10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The NDLH exam has 110 questions and runs 2 hours 30 minutes.
These 10 free NDLH questions are organized by exam domain, so you can see how each part of the North Dakota Life & Health Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
A North Dakota producer is licensed for life insurance but is not appointed by Prairie Life. At a client's request, the producer obtains a Prairie Life policy, and Prairie Life made no representation that the producer could bind it. In a dispute over this placement, whom is the producer regarded as representing?
Correct answer: B - The insured or beneficiary
An employee's North Dakota group life coverage ends on June 1. She is entitled to convert the coverage within 31 days without evidence of insurability. She dies on June 18 before submitting an application or first premium. What benefit is payable?
Correct answer: D - The group policy pays the amount she was entitled to convert
An insurer increases a life applicant's premium after reviewing a consumer report. The insurer must now:
Correct answer: A - Send an adverse-action notice identifying the reporting agency and the 60-day right to a free report
An insurer gives a producer branded office signs, business cards, and a public agent listing. A customer reasonably believes the producer can accept an application, even though the private agency agreement is narrower. Which type of authority is implicated by the insurer's outward conduct?
Correct answer: C - Apparent authority
A family identifies $90,000 of immediate obligations, $480,000 of income-replacement capital, and $80,000 of education funding. It has $150,000 in liquid assets and $200,000 of existing life insurance. A $250,000 interest in a closely held business will not be sold and is excluded from available resources. Under the needs approach, how much additional life insurance is indicated?
Correct answer: B - $300,000
A client wants permanent coverage with flexible premiums and an adjustable death benefit. The client rejects separate-account market risk but wants interest credits tied by formula to an external index, subject to a cap and floor. The closest product match is:
Correct answer: D - Indexed universal life
A policyowner can no longer pay premiums on a cash-value life policy. She wants to keep the original face amount for as long as the existing cash value can support it, rather than accept a smaller permanent benefit. The owner should elect:
Correct answer: C - Extended term insurance
The owner of a deferred variable annuity has not annuitized the contract. After market losses and permitted annual withdrawals, the account value reaches zero, yet the contract continues the stated withdrawals because all rider limits were followed. The rider is:
Correct answer: A - Guaranteed Minimum Withdrawal Benefit
A non-MEC life policy has an investment in the contract of $30,000. On full surrender, the owner receives $20,000 in cash and a $15,000 outstanding policy loan is extinguished. What is the owner's taxable surrender gain?
Correct answer: B - $5,000
Under North Dakota's individual short-term limited-duration insurance rules, a 10-month policy includes an insured-option renewal within the state's 12-month total duration. At renewal, the insurer proposes a new medical questionnaire and a higher risk class because of a condition diagnosed during the first term. North Dakota law requires the insurer to:
Correct answer: C - Renew without re-underwriting and keep the insured in the original risk class
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