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Idaho life insurance exam flashcards

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The Idaho Life Producer exam has 25 scored questions on Idaho law, and 10 of them come from "Idaho statutes, rules, and regulations pertinent to life insurance only." [1] That section covers replacement, annuity suitability, life settlements, policy provisions and group life. [1] These flashcards cover the Idaho Code and Idaho rules behind those topics. Each answer names the section it comes from.

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Policy provisions (Idaho Code chapter 19)

1. How long is the grace period on an Idaho individual life policy?
Thirty days, or at the insurer's option one month of not less than thirty days, for any premium after the first policy year. The policy stays in full force during it. (41-1904) [2]

2. What interest can the insurer charge for the grace period?
Not more than six percent a year for the days of grace used. (41-1904) [2]

3. When does a life policy become incontestable?
After it has been in force during the insured's lifetime for two years from its date of issue, except for nonpayment of premiums. Disability and accidental death benefit provisions are left out of this rule. (41-1905) [3]

4. Are statements in the application warranties or representations?
In the absence of fraud, they are representations, not warranties. (41-1906) [3]

5. What happens if the insured's age was misstated?
The amount payable is what the premium would have bought at the correct age. (41-1907) [4]

6. When is a policy loan available?
After three full years' premiums have been paid, once the policy has a cash surrender value, and while no premium is in default past the grace period. (41-1909(1)) [5]

7. How long after a premium default can an Idaho life policy be reinstated?
Within three years from the date of default (two years for industrial life), with written application, evidence of insurability, and payment of premiums in arrears with interest not over eight percent a year. (41-1911) [6]

8. If an insurer sets a deadline for paying death claims, what is the limit?
It cannot be more than two months from receipt of proof of death. (41-1913) [7]

9. How long is the free look on life policies and annuities covered by section 41-1935?
Twenty days from delivery, with a refund of the premium. (41-1935(1)) [8]

10. What happens to a policy returned during the free look?
It is void from the beginning, as if it had never been issued. (41-1935(2)) [8]

Application and lapse

11. Can someone buy life insurance on another adult without that person applying or consenting in writing?
Generally no. Exceptions in the law include a spouse insuring the other spouse, and insurance on a minor by someone with an insurable interest or on whom the minor depends. (41-1808) [9]

12. What must an applicant be offered before an individual life policy is issued?
The option to name one other person to receive notice of lapse or termination for nonpayment of premium. (41-1830(1)) [10]

13. How much notice must the insurer give before a policy lapses for nonpayment?
At least fourteen days before the lapse takes effect, by first-class mail, to the owner and the designee. This does not apply to policies with premiums payable monthly or more often. (41-1830(5), (6)) [10]

Replacement (IDAPA 18.03.04)

14. In a replacement, how soon must the replacing insurer notify the existing insurer?
Within five working days of the date the application is received in the replacing insurer's home or regional office. (IDAPA 18.03.04.014.02.b) [11]

15. What refund right does the replacing insurer give?
An unconditional refund of all premiums paid, which can be used within twenty days from the date the policy is delivered. (IDAPA 18.03.04.014.04) [11]

16. How long must replacement records be kept?
At least three years, or until the end of the next regular examination by the insurance department of the insurer's state of domicile, whichever is later. (IDAPA 18.03.04.014.03) [11]

17. What statement must come with each application when an insurer uses an agent or broker?
A statement signed by the agent or broker as to whether they know if replacement is involved. (IDAPA 18.03.04.014.01) [11]

Life settlements (Idaho Code 41-1950 to 41-1965)

18. How long does an owner have to rescind a life settlement contract?
Twenty days from the date it is signed by all parties. (41-1956(6)) [12]

19. After the insurer acknowledges the transfer, how fast must the owner be paid?
Within three business days. (41-1956(7)) [12]

20. What rights might an owner lose by selling a policy?
Other rights or benefits, including conversion rights and waiver of premium benefits. (41-1956(8)) [12]

21. How soon after a policy is issued can it be sold in a life settlement?
Not within two years of issue, unless the owner certifies that one of the listed conditions has been met, such as terminal or chronic illness, the death of the owner's spouse, divorce, or retirement from full-time work. (41-1961(1)) [13]

How to use these cards

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Sources

Laws and exam documents quoted as of October 2026.

  1. Pearson VUE, Idaho content outlines 121301 (effective July 31, 2025): https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/121301.pdf
  2. Idaho Code 41-1904: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1904/
  3. Idaho Code 41-1905 and 41-1906: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1905/ ; https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1906/
  4. Idaho Code 41-1907: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1907/
  5. Idaho Code 41-1909: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1909/
  6. Idaho Code 41-1911: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1911/
  7. Idaho Code 41-1913: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1913/
  8. Idaho Code 41-1935: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1935/
  9. Idaho Code 41-1808: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH18/SECT41-1808/
  10. Idaho Code 41-1830: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH18/SECT41-1830/
  11. IDAPA 18.03.04 (replacement): https://adminrules.idaho.gov/rules/current/18/180304.pdf
  12. Idaho Code 41-1956: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1956/
  13. Idaho Code 41-1961: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1961/

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