17 Free Kansas Life & Health Practice Questions: Kansas Life Insurance Law (2026)
How to Use This Kansas Life Law Set
Kansas law pertinent to life insurance only is Section XI of Pearson's Kansas outline: 11 of the 140 scored items. With Section X (18 items, common to all lines) and Section XII (11 items, health only), Kansas law makes up 40 items, or 28.6% of the exam.
The outline ties each Section XI topic to its own citation: replacement (K.A.R. 40-2-12), disclosure (K.A.R. 40-2-14), standard and prohibited provisions, the right to return a policy (K.A.R. 40-2-15), protection of beneficiaries from creditors, accelerated benefits, viatical settlements (K.S.A. 40-5000 through 5016) and annuity suitability under the best-interest standard (K.A.R. 40-1-53). These 17 questions come from LanePrep's Kansas Life & Health quiz bank, and roughly half concern replacement, the part of Kansas life law with the most moving pieces: who notifies whom, what the applicant must be left with, and what counts as a replacement in the first place. The rest cover free look, age misstatement, group conversion, viatical settlements and annuity disclosure.
Learn the rule and the condition behind it. Most questions here are one rule and one number or party, and the wrong options are real figures or roles borrowed from nearby rules.
Practice Questions 1-6: Free Look, Replacement Notices and Prohibited Provisions
How long a policyholder has to return a policy, how that changes when a replacing insurer issues immediately, and who must notify whom and leave what with the applicant in a replacement. The block also tests how far a policy may be backdated.
Question 1 (Chapter 5)
Producer Jim is helping a client replace an existing life insurance policy. The replacing insurer decides to issue the new policy immediately without waiting for the standard 20-day prior-insurer notification period. According to K.A.R. 40-2-12(f)(4), what is the minimum unconditional refund period that must be provided to the applicant?
- A) 10 days
- B) 15 days
- C) 30 days
- D) 20 days
Show answer & explanation
Answer: D
While the standard Kansas free-look is 10 days, K.A.R. 40-2-12(f)(4) requires a 20-day unconditional refund period if the replacing insurer issues the policy before the 20-day notification delay expires.
Question 2 (Chapter 5)
A policyholder decides to return her new life insurance policy 8 days after it was delivered. She did not replace an existing policy. Under K.A.R. 40-2-15, what is she entitled to receive?
- A) A full refund of all premiums paid
- B) A refund of 50% of the premium
- C) A refund of the premium minus a $50 administrative fee
- D) Nothing, as the free-look period is only 7 days
Show answer & explanation
Answer: A
K.A.R. 40-2-15 mandates a minimum 10-day free-look period for individual life insurance policies, during which the policyholder can return the policy for a full refund of all premiums paid.
Question 3 (Chapter 5)
In a replacement transaction, the replacing insurer must provide notice to the existing insurer. According to K.A.R. 40-2-12, within how many days of receiving the application must this notice be sent?
- A) 3 working days
- B) 5 working days
- C) 10 working days
- D) 20 working days
Show answer & explanation
Answer: A
K.A.R. 40-2-12 requires the replacing insurer to notify the existing insurer of the proposed replacement within 3 working days of the date the application is received.
Question 4 (Chapter 5)
Under K.S.A. 40-421, a Kansas life insurance policy may be backdated to save age, but it cannot be backdated more than:
- A) 6 months
- B) 30 days
- C) 3 months
- D) 1 year
Show answer & explanation
Answer: A
K.S.A. 40-421(1) bars a life policy from containing a provision by which the policy purports to be issued or take effect more than six months before the original application for the insurance was made. A policy may therefore be backdated, for example to save age, but by no more than six months; 30 days (B), three months (C) and one year (D) are not the statutory limit.
Question 5 (Chapter 5)
Under K.A.R. 40-2-12, if a producer uses a pre-printed sales proposal during a replacement presentation, what must they do with the proposal?
- A) Leave a copy of all sales proposals used with the applicant
- B) Keep it in their personal files only
- C) Submit a copy to the Kansas Department of Insurance
- D) Destroy it after the application is signed
Show answer & explanation
Answer: A
K.A.R. 40-2-12 requires the producer to leave with the applicant the original or a copy of all sales proposals used in the presentation.
Question 6 (Chapter 5)
A producer is helping a client replace an existing life insurance policy. After the applicant signs the 'Notice to Applicant Regarding Replacement of Life Insurance,' what is the producer's immediate obligation regarding this document under K.A.R. 40-2-12?
- A) File the original with the Kansas Department of Insurance within 10 days.
- B) Send the original to the existing insurer via certified mail.
- C) Hold the notice for 20 days before submitting the application.
- D) Leave a copy of the signed notice with the applicant.
Show answer & explanation
Answer: D
Under K.A.R. 40-2-12, the producer must leave a copy of the 'Notice to Applicant Regarding Replacement of Life Insurance' with the applicant at the time it is signed. The producer does not file this directly with the Department of Insurance (A), nor are they required to mail it to the existing insurer (B), as that is generally the responsibility of the replacing company.
Get the 25-question sample set by email
Want a full-exam practice set to study offline? Drop your email — we'll send 25 questions across every content area, each with the answer and explanation.
No spam. Just the questions and one optional follow-up.
Practice Questions 7-12: Age Misstatement, Replacement Scope, Viatical Brokers and Annuities
What an insurer does when age is misstated, which transactions count as a replacement and which are exempt, whom a viatical settlement broker serves, and what the best-interest standard requires a producer to disclose about compensation.
Question 7 (Chapter 5)
A life insurance company discovers that an insured person's age was understated on their application. According to the standard provisions in K.S.A. 40-420, what action is the insurer permitted to take?
- A) Cancel the policy immediately for material misrepresentation.
- B) Charge the insured's estate for the unpaid premium difference plus 10% interest.
- C) The insurer cannot take any action if the policy has been in force for more than two years.
- D) Adjust the death benefit to the amount the premium would have purchased at the correct age.
Show answer & explanation
Answer: D
K.S.A. 40-420 mandates a 'Misstatement of Age' provision, which states that if the age of the insured has been misstated, the amount payable under the policy shall be such as the premium would have purchased at the correct age. This is an exception to the Incontestability clause (C).
Question 8 (Chapter 5)
Producer Mark is selling a new life policy to a client. Mark knows the client plans to pledge their existing life insurance policy as collateral for a bank loan to fund the new policy's premiums. Is this a replacement under K.A.R. 40-2-12?
- A) No, because the existing policy remains in force.
- B) No, because the bank is a third party and not an insurance company.
- C) Yes, because the existing policy is being pledged as collateral for a loan.
- D) Yes, but only if the bank loan exceeds 50% of the cash value.
Show answer & explanation
Answer: C
K.A.R. 40-2-12(a)(7)(E) treats a transaction as a replacement when the agent knows or reasonably should know that existing life insurance is likely to be assigned as collateral for a loan or subjected to substantial borrowing of loan values. Pledging the existing policy as collateral for a bank loan that funds the new policy's premiums is the first of those two situations, so it is a replacement even though the old policy stays in force and the lender is not an insurer. The 50 percent figure in (a)(5) defines 'substantial borrowings' of loan values, the second situation, and is not a threshold for pledging the policy as collateral, so D is wrong.
Question 9 (Chapter 5)
Which of the following transactions is EXEMPT from the Kansas Life Insurance Replacement Regulation (K.A.R. 40-2-12)?
- A) Credit life insurance.
- B) The purchase of a new whole life policy using a policy loan from an existing policy.
- C) Replacing a term policy that has 10 years of coverage remaining.
- D) A transaction where the agent 'reasonably should know' a replacement will occur.
Show answer & explanation
Answer: A
K.A.R. 40-2-12(b), not (d) (which lists the agent's duties), sets out the exemptions. Credit life insurance is typically written under a group policy issued to a creditor to insure its debtors (K.S.A. 40-433(2)), and (b)(2) exempts new life insurance provided under a group life insurance policy or under policies covering debtors of a creditor that are distributed on a mass merchandising basis and administered by group-type methods. A policy loan used to fund new insurance (B) can be a replacement when it is substantial borrowing of loan values, meaning more than 50 percent of the tabular cash value ((a)(5), (a)(7)(E)); a term policy with 10 years left (C) is not exempt, because (b)(3) covers only a non-convertible, non-renewable term policy with five years or less to expire; and a transaction in which the agent knows or reasonably should know a replacement will occur (D) is the definition of a replacement in (a)(7), not an exemption.
Question 10 (Chapter 5)
A viatical settlement broker in Kansas is working with a viator. Which of the following best describes the broker's legal duty under K.S.A. 40-5002(n)?
- A) The broker owes a fiduciary duty to the viatical settlement provider.
- B) The broker must act as a neutral mediator between the provider and the viator.
- C) The broker represents the viator and owes a fiduciary duty to the viator to act in their best interest.
- D) The broker's only duty is to ensure all paperwork is filed with the Department of Insurance.
Show answer & explanation
Answer: C
K.S.A. 40-5002(n) defines a viatical settlement broker as acting on behalf of the viator and provides that, however the broker is compensated, the broker is deemed to represent only the viator and owes the viator a fiduciary duty to act according to the viator's instructions and in the viator's best interest; K.S.A. 40-5008(a)(2) requires the provider or broker to disclose this to the viator in writing. The broker therefore does not owe the duty to the provider (A), is not a neutral mediator (B), and has duties well beyond filing paperwork (D).
Question 11 (Chapter 5)
During a replacement presentation, a producer uses a customized software program to generate a side-by-side comparison of the existing and proposed life insurance policies. According to Kansas law, what must the producer do with this comparison?
- A) Provide a copy to the applicant and submit a copy to the replacing insurer.
- B) Keep the comparison in the producer's private files for at least one year.
- C) Destroy the comparison after the applicant signs the application to ensure privacy.
- D) The comparison is considered 'advertising' and only needs to be filed with the Commissioner.
Show answer & explanation
Answer: A
K.A.R. 40-2-12 requires producers to provide the applicant with a copy of all sales proposals and comparisons used in a replacement transaction and to submit copies of these materials to the replacing insurer.
Question 12 (Chapter 5)
A producer is selling an annuity in Kansas and must comply with the Best Interest Standard disclosure requirements. Which of the following must be disclosed to the consumer regarding the producer's compensation?
- A) The exact dollar amount of the commission in the first year.
- B) Whether the producer will receive cash or non-cash compensation (like a trip) for the sale.
- C) The producer's personal net worth and tax bracket.
- D) A list of all other clients who have purchased the same annuity.
Show answer & explanation
Answer: B
K.A.R. 40-1-53 requires producers to disclose the source and type of compensation they will receive, including whether it is cash or non-cash compensation, though the exact dollar amount is not typically required in the initial standard disclosure.
Practice Questions 13-17: Replacement Knowledge, Group Conversion and Viatical Settlements
What a producer must do when the applicant answers no but the producer knows a replacement is planned, how long an employee has to convert group life coverage after a job ends, and when a viatical settlement soon after issue is allowed.
Question 13 (Chapter 5)
A Kansas resident, Robert, passes away leaving a $500,000 life insurance policy to his daughter, Emily. Robert had significant outstanding debts at the time of his death. Under K.S.A. 40-414, which of the following is true regarding Robert's creditors?
- A) Creditors can seize the proceeds to pay Robert's debts if the policy was issued within 2 years of death.
- B) Creditors can seize the cash value but not the death benefit.
- C) The proceeds are only protected if they are held in a spendthrift trust.
- D) The proceeds are generally exempt from the claims of Robert's creditors.
Show answer & explanation
Answer: D
K.S.A. 40-414 provides that the proceeds and cash values of life insurance policies are generally exempt from the claims of the insured's creditors and the beneficiary's creditors.
Question 14 (Chapter 5)
A producer is completing a life insurance application for a client. The client answers 'No' to the question about whether they intend to replace any existing insurance. The producer, however, knows the client is planning to lapse a policy with another company next month. What is the producer's duty under K.A.R. 40-2-12?
- A) The producer must follow the client's written answer to avoid liability.
- B) The producer must treat the transaction as a replacement because they have knowledge of the client's intent.
- C) The producer should wait until the other policy actually lapses before taking action.
- D) The producer is only responsible for what is written on the application form.
Show answer & explanation
Answer: B
K.A.R. 40-2-12 states that a replacement occurs if the producer 'knows or should know' that a replacement is intended, regardless of the applicant's initial answer on the application.
Question 15 (Chapter 5)
A Kansas employee is covered under a group life insurance policy. The employee's employment is terminated. Under K.S.A. 40-434, the employee has the right to convert the group coverage to an individual policy within how many days?
- A) 10 days.
- B) 20 days.
- C) 31 days.
- D) 60 days.
Show answer & explanation
Answer: C
K.S.A. 40-434 (Standard Provisions for Group Life) requires a provision that the person insured shall be entitled to have issued an individual policy of life insurance without evidence of insurability, provided application is made and the first premium paid within 31 days after termination of employment.
Question 16 (Chapter 5)
An individual purchased a life insurance policy 18 months ago. They now wish to enter into a viatical settlement contract. Under K.S.A. 40-5010, this is generally prohibited unless which of the following conditions is met?
- A) The individual has reached age 65.
- B) The individual is diagnosed with a terminal illness.
- C) The individual has moved to a different state.
- D) The individual has been unemployed for at least 6 months.
Show answer & explanation
Answer: B
K.S.A. 40-5010 bars entering into a viatical settlement during the two years after the policy is issued unless the viator certifies an exception. One exception is independent evidence that the viator or insured is terminally or chronically ill within the two-year period ((b)(1)); others include the viator's divorce ((b)(3)) and retirement from full-time employment ((b)(4)). A policy bought 18 months ago is still inside the two-year window, so the terminal illness is what allows the settlement. Reaching age 65, moving to another state and six months of unemployment are not exceptions.
Question 17 (Chapter 5)
An agent is recommending the purchase of a fixed annuity to a 70-year-old client in March 2025. Which standard of conduct must the agent follow according to K.A.R. 40-1-53?
- A) The Best Interest Standard
- B) The Reasonable Basis Standard
- C) The Fiduciary Duty Standard
- D) The Caveat Emptor Standard
Show answer & explanation
Answer: A
Effective January 1, 2024, K.A.R. 40-1-53 requires producers to act in the best interest of the consumer when making a recommendation for an annuity.
The Mistakes That Cost Marks
Using one free-look number for every case. For an ordinary individual policy Kansas requires a right to return it within at least 10 days of delivery with the total premium refunded (K.A.R. 40-2-15). When a replacing insurer issues its new policy immediately instead of waiting out the standard 20-day prior-insurer notification delay, K.A.R. 40-2-12(f)(4) requires an unconditional refund right of 20 days. The replacement right is longer, not shorter.
Thinking a replacement means cancelling the old policy. The regulation reaches further than that, it has its own exemptions, and a producer who knows a replacement is planned must treat the transaction as one whatever the application says. Read for what the producer knows, not only what the form says.
Mixing up who has which duty in a replacement. The producer, the replacing insurer and the existing insurer each have separate duties: who leaves sales material and the signed notice with the applicant, and who notifies the existing insurer. Match the duty to the party before you read the options.
Reading an age misstatement as a reason to void. A misstated age adjusts the amount payable to what the premium paid would have bought at the correct age. It does not void the policy, and it is an exception to incontestability.
Treating annuity suitability as old news. The best-interest standard has applied to annuity sales since January 1, 2024 (K.A.R. 40-1-53), and a producer who sells annuities must first complete a one-time four-credit annuity course approved by the Commissioner.
Confusing whom a viatical broker serves. The broker represents the viator, the person selling the policy, not the viatical settlement provider.
Your Next Step
The course is audio you can play on the road, and Chapter 1 is free, no signup. The rest of the free questions are on the Kansas Life & Health practice questions hub. For the health-side Kansas law, see Kansas accident & health insurance law; for the general life material behind these rules, see provisions, riders, options and exclusions and underwriting, policy delivery and retirement concepts. To see how Section XI fits in the exam, read how many questions the exam has and how hard the exam is.
Section weights and citations come from Pearson's Kansas content outline (publication 121703, effective March 1, 2025). Read October 2026.
Free: 25 Kansas L&H practice questions
Liked this article? Get 25 exam-style questions emailed to you — with full answer explanations, no credit card. Closest thing to studying offline.
No spam. Just the questions and one optional follow-up.
Study this topic with LanePrep
Listen to these audio chapters on your commute — no screen required.
Related Articles
25 Free Kansas Life & Health Exam Practice Questions (2026)
25 min read
How to Pass the Kansas Life and Health Insurance Exam on the First Try (2026)
10 min read
How Much Does a Kansas Life and Health Insurance License Cost? (2026 Fees)
6 min read
Is the Kansas Life & Health Exam Hard? Pass Rates and Difficulty (2026)
5 min read
How Many Questions Are on the Kansas Life & Health Exam? Format, Time Limit and Passing Score (2026)
4 min read
17 Free Kansas Life & Health Practice Questions: Life Insurance Provisions, Riders, Options and Exclusions (2026)
13 min read
17 Free Kansas Life & Health Practice Questions: Life Underwriting, Policy Delivery and Retirement Concepts (2026)
12 min read
17 Free Kansas Life & Health Practice Questions: Kansas Accident & Health Insurance Law (2026)
16 min read