Advocis CHS Sample Questions & Practice Test

Certified Health Insurance Specialist (CHS) preparation should test living-benefits reasoning: income protection, disability definitions, critical illness, long-term care, group benefits, underwriting, claims, exclusions, and client communication.

Sample Exam Questions

Try these 12 original CHS sample questions. They are not official Advocis or IAFE questions.

Question 1

Topic: Disability need

A self-employed client has high monthly expenses and no paid sick leave. What is the most direct insurance planning concern?

• A. Loss of earned income during disability
• B. Estate tax only
• C. Mutual fund distribution timing
• D. Credit card rewards

Best answer: A

Explanation: Disability planning protects income and cash flow when illness or injury prevents work. Self-employed clients often need special attention because employer benefits may not exist.

Question 2

Topic: Definition of disability

Why does the policy definition of disability matter?

• A. It changes only the policy logo
• B. It is relevant only after a claim is denied
• C. It determines when the insured may qualify for benefits
• D. It is relevant only after age 90

Best answer: C

Explanation: Own-occupation, regular-occupation, any-occupation, partial disability, and residual definitions can materially affect claim outcomes.

Question 3

Topic: Elimination period

What is the elimination period in disability insurance?

• A. The maximum benefit amount
• B. The waiting period before benefits begin
• C. The beneficiary designation
• D. The investment return

Best answer: B

Explanation: The elimination period is the waiting period after disability begins before benefits are payable, subject to policy terms.

Question 4

Topic: Critical illness

How is critical illness insurance generally different from disability insurance?

• A. It always replaces all income forever
• B. It covers every illness
• C. It is always a group pension plan
• D. It commonly pays on diagnosis of a covered condition, while disability insurance focuses on inability to work

Best answer: D

Explanation: Critical illness policies typically pay a lump sum if a covered condition and survival period requirements are met. Disability insurance is tied to work capacity and income replacement.

Question 5

Topic: Long-term care

What risk does long-term care insurance primarily address?

• A. Need for ongoing care or assistance with daily living
• B. Short-term market volatility
• C. Employer payroll tax
• D. Car insurance deductible

Best answer: A

Explanation: Long-term care coverage is designed around care needs, dependency, and support costs, not investment volatility.

Question 6

Topic: Group benefits

Why should a client not rely on group benefits without review?

• A. Group benefits are always unlimited
• B. Group benefits cannot end
• C. Coverage amounts, definitions, portability, exclusions, and coordination may not match the client’s needs
• D. Group benefits always remove personal planning needs

Best answer: C

Explanation: Group benefits are valuable but may be limited or tied to employment. Personal planning checks gaps and portability.

Question 7

Topic: Underwriting

A client omits a major medical history item on an application. What is the advisor’s best response?

• A. Submit the application quickly without correction
• B. Encourage accurate disclosure and correct completion
• C. Tell the client insurers never review claims
• D. Hide the information in a side note

Best answer: B

Explanation: Accurate disclosure supports valid underwriting and reduces claim problems. Misrepresentation can create serious consequences.

Question 8

Topic: Claims

Why should clients understand claim documentation requirements before a claim occurs?

• A. Documentation is never needed
• B. Claims are paid automatically without conditions
• C. Advisors can guarantee claim approval
• D. Documentation affects how benefits are assessed and paid

Best answer: D

Explanation: Claim processes often require medical, income, employment, or functional evidence. Clear expectations help clients plan.

Question 9

Topic: Exclusions

A client assumes a policy covers every health condition. What should the advisor do?

• A. Review exclusions, limitations, definitions, and waiting periods with the client
• B. Agree without reading the policy
• C. Promise every claim will be paid
• D. Avoid written documentation

Best answer: A

Explanation: Living-benefits contracts have definitions and exclusions. Advisors should explain limits clearly and avoid overpromising.

Question 10

Topic: Benefit amount

What is a key consideration when selecting disability benefit amount?

• A. Only the client’s favorite insurer
• B. The advisor’s commission target
• C. Income, expenses, tax treatment, other coverage, and affordability
• D. The number of investment accounts

Best answer: C

Explanation: Benefit amount should reflect need, other resources, contract terms, tax treatment, and premium affordability.

Question 11

Topic: Coordination

Why can coordination of benefits matter?

• A. More policies always pay without limit
• B. Multiple plans may interact, limit, or coordinate reimbursement or income replacement
• C. Coordination applies only to property insurance
• D. It eliminates underwriting

Best answer: B

Explanation: Benefits can interact through offsets, coordination rules, or limits. Clients should understand how coverage works together.

Question 12

Topic: Client communication

A client asks whether a policy is “guaranteed to pay if I get sick.” What is the best response?

• A. Say yes to close the sale
• B. Say no policy ever pays
• C. Avoid discussing the policy wording
• D. Explain that benefits depend on contract definitions, covered conditions, exclusions, evidence, and claim approval

Best answer: D

Explanation: Clear communication avoids misleading expectations. CHS-style reasoning requires precise contract language and client education.

Related pages

• Advocis CLU
• LLQP Accident and Sickness
• FP Canada QAFP