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 MELH exam has 151 questions and runs 3 hours 30 minutes.
These 10 free MELH questions are organized by exam domain, so you can see how each part of the Maine Life & Health Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
An indexed universal life policy uses an 80% participation rate, an 8% cap, and a 0% floor. The index rises 12% for the crediting period, and monthly policy charges are deducted separately. How should the producer explain the result?
Correct answer: B - The policy credits 8% before charges, and cash value may still decline after charges
A business owner wants permanent life insurance with flexible premiums, an adjustable death benefit, and the ability to allocate cash value among separate-account subaccounts. The owner accepts investment risk. Which policy matches those objectives?
Correct answer: D - Variable universal life
A life insurance application listed the insured as age 42 when the insured was actually 47. The insured dies four years later, and the policy contains the standard misstatement-of-age provision. What is the proper claim adjustment?
Correct answer: A - Pay the amount the premium would have purchased at age 47
The owner of a cash-value life policy wants a policy loan. The policy's beneficiary is irrevocable, and no assignment or court order alters that designation. What must occur before the loan is processed?
Correct answer: C - The irrevocable beneficiary must provide written consent
At application, an applicant pays the initial premium and receives a conditional receipt stating that temporary coverage exists only if the applicant was insurable as applied for on the application or examination date. The applicant dies before delivery, and underwriting determines that coverage could have been offered only at a table rating. What is the coverage result under the receipt?
Correct answer: B - No temporary coverage arose because the insurable-as-applied-for condition failed
A customer overpays a life premium with several cashier's checks, then asks that the excess be refunded to an unrelated overseas account and resists questions about the source of funds. What should the producer do first?
Correct answer: D - Escalate through the insurer's AML process without tipping off the customer
A 45-year-old owns a life policy that failed the 7-pay test and is therefore a modified endowment contract. The owner takes a policy loan while the contract has gain. How is the distribution generally treated for federal tax purposes?
Correct answer: C - LIFO applies; gain is taxable first and usually carries a 10% additional tax
A PPO provider bills $9,000 for a covered service. The network allowed amount is $7,500, the member has $1,500 of deductible remaining, and the plan pays 80% after the deductible. There is no copayment or balance bill. What are the plan payment and member payment?
Correct answer: A - $4,800 plan; $2,700 member
A 66-year-old employee remains covered by an HSA-qualified high-deductible health plan but is also enrolled in Medicare Part A. The employee already has an HSA balance. Which guidance is correct?
Correct answer: B - Keep and use the existing HSA, but stop all HSA contributions while Medicare enrollment continues
An individual health policy has lapsed. The insurer requires a reinstatement application and accepts the overdue premium but neither approves nor disapproves the application. On the 46th day after receipt, the insured suffers a covered accidental injury. How should the claim be treated under the uniform reinstatement provision?
Correct answer: D - Cover it: automatic reinstatement occurred on day 45, and accident coverage was immediate
The MELH exam also covers these domains. Drill them in the full free practice test:
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