17 Free Massachusetts Life & Health Practice Questions: Life Policy Riders, Provisions, Options and Exclusions (2026)
How This Set Fits the Exam
This set covers the part of the Life exam on policy riders, provisions, options and exclusions. On the Massachusetts outline it is Section II of the Life general knowledge content, worth 15 of the 50 scored general-knowledge items, which makes it tied for the largest block on that exam. Standard life provisions, including the entire contract, free look, grace period, reinstatement, incontestability and misstatement of age, sit in G.L. c. 175 §132 on the state-law side of the outline.
The 17 questions below take the rider and provision families in turn. Try each one before you open the explanation.
Practice Questions 1-6: Riders That Add or Protect Coverage
Payor benefit, incontestability, guaranteed insurability, disability income, misstatement of age and the war exclusion: the questions that ask which provision does which job.
Question 1 (Chapter 2)
A parent buys a $50,000 whole life policy on their newborn child and adds a payor benefit rider. If the parent dies when the child is 10 years old, what happens to the child's policy under the payor benefit rider?
- A) The policy lapses immediately because premiums are no longer paid
- B) The child must purchase a new policy to maintain coverage
- C) The death benefit is paid out early to the child as a lump sum
- D) The insurer pays the premiums to keep the policy in force until a specified age or event
Show answer & explanation
Answer: D
The payor benefit rider ensures that if the person paying the premium (e.g., a parent) dies or becomes disabled, the insurer pays the premiums to keep the insured's (child's) policy in force. The coverage continues without lapse. Option A is incorrect because the policy does not lapse; option C is incorrect as no new purchase is needed; option B confuses the payor benefit with an accelerated death benefit, which is not its function.
Question 2 (Chapter 2)
Under the incontestability clause in a life insurance policy, after how long is the insurer generally prevented from denying a claim based on misrepresentations in the application, except for fraud?
- A) 6 months
- B) 1 year
- C) 5 years
- D) 2 years
Show answer & explanation
Answer: D
The incontestability clause prevents the insurer from denying a claim due to misrepresentations in the application after the policy has been in force for 2 years, except in cases of fraud. This is a standard provision in life insurance policies. Options A, B, and C are incorrect as they do not match the statutory and contractual 2-year period.
Question 3 (Chapter 2)
An insured wants to add a rider that would allow them to increase their coverage amount at specific intervals, such as every 3 years, without having to provide evidence of insurability. Which rider should they consider?
- A) Waiver of premium
- B) Accidental death and dismemberment
- C) Cost of living
- D) Guaranteed insurability
Show answer & explanation
Answer: D
A guaranteed insurability rider (also called a guaranteed purchase option) allows the policyholder to purchase additional coverage at predetermined times or after certain life events without providing evidence of insurability. Waiver of premium (A) deals with disability and premium payments; AD&D (B) provides accidental death benefits; cost of living (C) increases benefits for inflation.
Question 4 (Chapter 2)
A policyholder adds a disability income rider to their life insurance policy that provides a monthly benefit if they become totally disabled. After 9 months of continuous disability, the insurer begins paying the monthly benefit. What is the most likely elimination period associated with this rider?
- A) 30 days
- B) 60 days
- C) 180 days
- D) 90 days
Show answer & explanation
Answer: D
Disability income riders typically include an elimination period (waiting period) before benefits begin, commonly 60 or 90 days. A 90-day elimination period is standard for many individual disability income riders, meaning benefits start after 90 days of continuous disability. Since payments began after 9 months, this aligns with a 90-day elimination period. Options A and B are too short, and D is less common for this rider type.
Question 5 (Chapter 2)
A life insurance policy includes a misstatement of age provision. If the insured's age was understated on the application (making them appear younger), how will the death benefit be adjusted upon discovery after the insured's death?
- A) The death benefit will be increased to reflect the true age
- B) The death benefit will be paid in full as stated in the policy
- C) The death benefit will be decreased to what the premiums paid would have purchased at the correct age
- D) The policy will be voided and all premiums refunded
Show answer & explanation
Answer: C
Under the misstatement of age provision, if the age is understated, the death benefit is adjusted to what the premiums paid would have purchased at the correct age—resulting in a lower benefit. It is not increased (A), paid in full (B), or voided with premium refund (D), which applies only in cases of fraud or concealment in some jurisdictions, not standard misstatement of age.
Question 6 (Chapter 2)
Which of the following is a standard exclusion found in life insurance policies that would deny payment if the insured's death results from serving in the military during a declared war?
- A) Aviation exclusion
- B) Dangerous occupation exclusion
- C) War exclusion
- D) Suicide exclusion
Show answer & explanation
Answer: C
Life insurance policies commonly include a war exclusion that denies the death benefit if the insured's death results from military service in a declared war. Aviation exclusion (A) applies to death from private aviation, not war. Dangerous occupation (B) may exclude certain high-risk jobs but not war service specifically. Suicide exclusion (D) applies only to suicide, not war-related death.
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Practice Questions 7-12: Rider Mechanics, Nonforfeiture and Settlement Options
Return of premium, extended term, waiver of premium, cost of living and the interest only settlement option, where the exam tests how a rider or option actually pays.
Question 7 (Chapter 2)
A policyholder adds a return of premium rider to their 20-year term life insurance policy. If the insured dies in year 15 of the policy, what happens to the premiums paid under this rider?
- A) The premiums are refunded to the beneficiary in addition to the death benefit.
- B) The premiums are used to purchase paid-up additional insurance.
- C) The premiums are forfeited, and only the death benefit is paid.
- D) The premiums are refunded only if the insured outlives the term period.
Show answer & explanation
Answer: C
The return of premium rider refunds premiums paid only if the insured outlives the term period; if the insured dies during the term, the beneficiary receives the death benefit but no premium refund. Options A, C, and D incorrectly describe the rider's function.
Question 8 (Chapter 2)
An insured purchases a universal life policy and, upon lapse due to non-payment of premium, selects the extended term non-forfeiture option. How is the length of the extended term period determined?
- A) It provides coverage for the original face amount for a period determined by the cash surrender value.
- B) It is fixed at 10 years regardless of the policy's cash value.
- C) It continues until the insured reaches age 100.
- D) It is equal to the number of years premiums were paid.
Show answer & explanation
Answer: A
The extended term non-forfeiture option uses the cash surrender value to purchase term insurance for the original face amount for a period determined by that value. Options B, C, and D are incorrect as they misstate how the extended term period is calculated.
Question 9 (Chapter 2)
An insured purchases a 20-year term life insurance policy with a return of premium rider. If the insured dies in year 12 of the policy, what happens to the premiums paid under the return of premium rider?
- A) The beneficiary receives a refund of all premiums paid in addition to the death benefit.
- B) The premiums paid are used to purchase a paid-up addition to the policy.
- C) The return of premium rider provides no benefit if death occurs before the end of the term period.
- D) The insurer returns 50% of the premiums paid to the beneficiary as an accelerated death benefit.
Show answer & explanation
Answer: C
C is correct because a return of premium rider only returns the premiums paid if the insured outlives the term period; if death occurs during the term, the rider provides no refund — only the death benefit is paid. B is incorrect because the return of premium is not paid upon death during the term in addition to the death benefit; only the death benefit is paid. A is incorrect because return of premium riders do not purchase paid-up additions; they refund premiums only at term end if the insured is alive. D is incorrect because there is no standard provision for returning 50% of premiums early — this rider only pays at term end if the insured is living.
Question 10 (Chapter 2)
A policyholder adds a waiver of premium rider to their whole life policy. After becoming totally disabled, they are unable to work for 5 months. The insurer denies the waiver of premium benefit. What is the most likely reason for the denial?
- A) The disability must continue for at least six months before the waiver begins.
- B) The disability must be permanent and total to qualify.
- C) Waiver of premium riders only apply to term life policies.
- D) The policyholder failed to pay premiums during the disability period.
Show answer & explanation
Answer: A
The waiver of premium rider typically includes an elimination period, commonly six months of continuous total disability, before premiums are waived. Since the disability lasted only five months, it did not meet the waiting period. Option B is incorrect because the disability need not be permanent, only total and continuous for the required period. Option C is incorrect as the rider can attach to whole life policies. Option D is incorrect because non-payment during the waiting period does not disqualify the claim; the waiver applies after the elimination period is satisfied.
Question 11 (Chapter 2)
A policyholder adds a cost of living (COLA) rider to their whole life insurance policy. The rider increases the death benefit annually based on the Consumer Price Index (CPI). If the CPI increases by 4% in a given year, what is the most likely effect on the policy?
- A) The death benefit increases by 4%, and the premium remains unchanged.
- B) The cash value increases by 4%, but the death benefit remains unchanged.
- C) The death benefit increases by 4% only if the policy has accumulated sufficient cash value.
- D) The death benefit increases by 4%, and the premium increases to reflect the higher benefit.
Show answer & explanation
Answer: D
A cost of living (COLA) rider increases the death benefit (and sometimes cash value) annually to keep pace with inflation, typically tied to an index like the CPI. This increase in the death benefit requires a higher premium to fund the additional coverage; the premium is not fixed and will rise as the benefit increases. Option A is incorrect because the premium does not remain unchanged. Option B is incorrect because the death benefit, not just the cash value, increases. Option C is incorrect because the increase is not contingent on cash value sufficiency; it is a contractual increase based on the index.
Question 12 (Chapter 2)
Upon the death of the insured, the beneficiary chooses a settlement option where the insurance company retains the death benefit and pays out only the earnings generated by the principal at regular intervals. Which option was selected?
- A) Fixed amount
- B) Fixed period
- C) Interest only
- D) Life income
Show answer & explanation
Answer: C
Under the 'interest only' option, the insurer holds the principal and pays the interest to the beneficiary. This preserves the principal for a later payout or a secondary beneficiary. Fixed amount (A) and Fixed period (B) deplete the principal over time.
Practice Questions 13-17: Exclusions, Dividends and Delivery
Aviation exclusions, facility of payment, dividend options and the free look period, including two scenarios set in Massachusetts.
Question 13 (Chapter 2)
A life insurance applicant is a private pilot who flies frequently for recreation. The insurer issues the policy but includes a provision stating that the death benefit will not be paid if the insured dies while operating a private aircraft. This is an example of which of the following?
- A) Aviation exclusion
- B) Hazardous occupation rider
- C) War exclusion
- D) Incontestability waiver
Show answer & explanation
Answer: A
Aviation exclusions are common for private pilots or those in non-commercial aviation. It excludes coverage for death resulting from specific aviation activities. It is not a hazardous occupation exclusion (B) because flying is a hobby in this scenario, not the insured's job.
Question 14 (Chapter 2)
An insured dies leaving a $2,000 industrial life insurance policy. The named beneficiary cannot be located. The insurer pays the proceeds to a cousin who provided proof that they paid for the insured's funeral expenses. Which provision allows this?
- A) Spendthrift provision
- B) Facility of payment clause
- C) Collateral assignment
- D) Common disaster clause
Show answer & explanation
Answer: B
The Facility of Payment clause allows the insurer to pay a portion or all of the death benefit to someone other than the beneficiary (usually a relative or someone who incurred funeral expenses) if the beneficiary is a minor, deceased, or cannot be found.
Question 15 (Chapter 2)
A policyholder owns a participating whole life policy and has a significant outstanding policy loan. They want to use their annual dividends to purchase temporary insurance that specifically covers the amount of the loan for one year. Which dividend option should they select?
- A) Paid-up additions
- B) One-year term option
- C) Accumulate at interest
- D) Reduced premium payments
Show answer & explanation
Answer: B
The one-year term dividend option (sometimes called the 'fifth dividend option') uses the dividend to purchase one-year term insurance, often equal to the policy's cash value or the outstanding loan balance, to ensure the full face amount is paid to the beneficiary even if a loan exists.
Question 16 (Chapter 2)
A life insurance policy is issued to a Massachusetts resident with an aviation exclusion. If the insured dies while flying as a passenger on a regularly scheduled commercial airline flight, how will the insurer likely respond to the claim?
- A) The claim will be paid in full because commercial passenger flight is typically not excluded
- B) The claim will be denied because all aviation is excluded
- C) The insurer will only refund the premiums paid plus interest
- D) The claim will be paid, but the insurer will subtract the cost of the aviation rider
Show answer & explanation
Answer: A
Standard aviation exclusions typically apply to private pilots, student pilots, or military aviation. Death while traveling as a fare-paying passenger on a commercial airline is almost always covered under standard life insurance policies.
Question 17 (Chapter 2)
A Massachusetts producer delivers a life insurance policy to a client on October 1st. The client realizes on October 8th that the policy does not meet their needs and wants a full refund. Which provision allows this?
- A) The Grace Period
- B) The Free Look Provision
- C) The Reinstatement Provision
- D) The Insuring Clause
Show answer & explanation
Answer: B
The Free Look provision (usually 10 days for standard policies) allows the policyowner to return the policy for any reason within a specified number of days from delivery for a full refund of all premiums paid.
The Mistakes That Cost Marks
Mixing up what a rider waives and what it pays. A waiver of premium rider keeps the policy in force by waiving premiums during total disability after a waiting period, and a payor benefit rider does the same for the person paying for a child policy. Neither one pays a lump sum.
Reading incontestability as a ban on all denials. The clause limits the insurer's right to contest misstatements after two years, and fraud is the exception.
Applying the misstatement of age rule backwards. When age is misstated, the benefit is adjusted to what the premiums paid would have purchased at the correct age; the policy is not voided.
Treating every exclusion as general. A war exclusion, an aviation exclusion and a hazardous occupation exclusion each apply to a specific cause of death, and a passenger on a scheduled commercial flight is a different case from a private pilot.
Confusing the settlement options. Interest only, fixed amount, fixed period and life income pay out differently, and the question usually describes the payout rather than naming it.
Your Next Step
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