Prep RetentionInsurance Exam Prep

Idaho life insurance law practice questions

Last updated

The Idaho Life Producer exam has 10 questions on "Idaho statutes, rules, and regulations pertinent to life insurance only." That section covers replacement, annuity suitability, life settlements, policy provisions and group life. [1] Our Idaho life flashcards cover replacement, life settlements and the basic life policy provisions. This page covers the rest: the annuity best interest rules, annuity contract provisions, group life, claim payment and creditor protection.

Annuity best interest rules (Idaho Code 41-1940 to 41-1940E)

Practice questions

1. Under the care obligation, what must a producer know before recommending an annuity?
Answer: The consumer's financial situation, insurance needs and financial objectives, and the available recommendation options after a reasonable inquiry. (41-1940A(3)(a)) [3]

2. A producer recommends replacing an annuity. Which past event must they consider?
A. Whether the consumer has a will
B. Whether the consumer had another annuity exchange or replacement, especially within the preceding sixty months
C. The consumer's credit score
D. Whether the consumer owns a home

Answer: B. The producer must also weigh surrender charges, a new surrender period, lost benefits, added fees, and whether the new product would substantially benefit the consumer. (41-1940A(3)(j)) [3]

3. Someone received a life line of authority in 2024. Can they sell an annuity right away?
Answer: No. They must first complete the one-time four-credit annuity training. (41-1940C(2)) [4]

4. What is the grace period in an individual annuity contract?
Answer: One month, but not less than thirty days, for any payment after the first, with interest not over six percent a year if the insurer charges it. (41-1918) [6]

5. When does an annuity contract become incontestable, if statements other than age, sex and identity are required?
Answer: Two years from the date of issue, while in force during the lifetime of the person whose statements were required, except for nonpayment. (41-1919) [7]

6. How long after default can an annuity contract be reinstated?
Answer: Within one year from the default, unless the cash surrender value has been paid, with overdue payments and interest not over six percent a year. (41-1923) [8]

7. An insurer receives proof of death. When must it pay the life insurance proceeds to avoid owing interest?
Answer: Within thirty days. If it pays later, interest runs from the date of death to the date of payment. (41-1337(1)) [9]

8. Proof of death arrives more than 180 days after the death and the claim is paid late. From when does interest run?
Answer: From the date the insurer received satisfactory proof of death. (41-1337(2)) [9]

9. A noncontributory employee group life policy is issued. Who must it cover?
Answer: All eligible employees, except those whose evidence of insurability is not satisfactory or who rejected the coverage in writing. (41-2003(2)) [10]

10. What is the most life insurance that can be placed on a debtor under a creditor group policy?
Answer: The amount owed to the creditor or $150,000, whichever is less. (41-2005(4)) [11]

11. A public employee group life policy is issued. What is the minimum number of persons it must cover at issue?
Answer: At least five. (41-2006(4)) [12]

12. How much of an annuitant's periodic annuity benefits is protected from creditors?
Answer: Up to $1,250 per month. Payments above that can be garnished like wages. (41-1836(1)(b)) [13]

More group life rules

Study tips

More Idaho law questions are in the free Idaho insurance law practice test.

Prep Retention is independent and is not affiliated with Pearson VUE or the state.

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 41-1940: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1940/
  3. Idaho Code 41-1940A: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1940A/
  4. Idaho Code 41-1940C: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1940C/
  5. Idaho Code 41-1940D: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1940D/
  6. Idaho Code 41-1918: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1918/
  7. Idaho Code 41-1919: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1919/
  8. Idaho Code 41-1923: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH19/SECT41-1923/
  9. Idaho Code 41-1337: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH13/SECT41-1337/
  10. Idaho Code 41-2003: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH20/SECT41-2003/
  11. Idaho Code 41-2005: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH20/SECT41-2005/
  12. Idaho Code 41-2006: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH20/SECT41-2006/
  13. Idaho Code 41-1836: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH18/SECT41-1836/
  14. Idaho Code 41-2002: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH20/SECT41-2002/

More free Idaho exam help

Checkout