2026 INDIANA LIFE HEALTH QUESTIONS AND
ANSWERS SURE A+
✔✔Representation vs. warranty on an application - ✔✔A representation is believed to
be true. A warranty is guaranteed to be true.
✔✔Material misrepresentation - ✔✔A false answer that would have changed the
insurer's decision. It can void coverage during the contestable period.
✔✔What can a life insurance replacement restart? - ✔✔New surrender charges, a new
contestable period, and a new suicide exclusion period.
✔✔HIPAA - ✔✔Protects private health information and controls how it may be shared.
✔✔HIV testing rules in underwriting - ✔✔Written consent is required. Testing cannot be
based only on sexual orientation or where a person lives.
✔✔USA PATRIOT Act and insurance - ✔✔Insurers identify customers and report
suspicious activity to fight money laundering and terrorism financing.
✔✔Gramm-Leach-Bliley Act - ✔✔Requires privacy notices and protection of nonpublic
personal information. Some information sharing may have an opt-out right.
, ✔✔Main life underwriting information sources - ✔✔Application, medical exam and labs,
APS, MIB, consumer reports, producer report, and inspection report.
✔✔Fair Credit Reporting Act rights - ✔✔The applicant must be told a report may be
used, receive notice of adverse action, and may review and dispute wrong information.
✔✔When must life insurance insurable interest exist? (Life additional facts) - ✔✔When
the policy is issued. It does not have to exist at death.
✔✔Why is STOLI or IOLI improper? - ✔✔It is started mainly so an investor can profit
from a stranger's death and lacks a proper insurance purpose or insurable interest.
✔✔Statement of good health at delivery - ✔✔It may be required if the first premium was
not paid with the application. If health changed, the producer should contact the insurer
before delivery.
✔✔When does coverage usually begin if no premium was paid with the application? -
✔✔When the policy is delivered, the premium is paid, and any required good-health
statement is completed.
✔✔Third-party ownership - ✔✔The owner and insured are different people. The owner
must have insurable interest when the policy starts and controls policy rights.
✔✔Group life master policy and certificate - ✔✔The employer or sponsor receives the
master policy. Each insured employee receives a certificate of insurance.
✔✔Contributory vs. noncontributory group life participation - ✔✔Contributory usually
needs at least 75% participation. Noncontributory usually needs 100% participation.
✔✔Group life conversion privilege - ✔✔A person leaving the group may change to an
individual policy without proof of insurability if done within the allowed time, often 31
days.
✔✔Human life value vs. needs approach - ✔✔Human life value starts with future
earning power. The needs approach totals specific family needs and subtracts money
already available.
✔✔Social Security fully insured rule - ✔✔Forty credits normally means fully insured for
retirement, although younger workers may need fewer credits for disability or survivor
benefits.
✔✔Regular life withdrawal vs. MEC withdrawal - ✔✔A regular life policy generally takes
out basis first. A MEC takes out taxable gain first.
ANSWERS SURE A+
✔✔Representation vs. warranty on an application - ✔✔A representation is believed to
be true. A warranty is guaranteed to be true.
✔✔Material misrepresentation - ✔✔A false answer that would have changed the
insurer's decision. It can void coverage during the contestable period.
✔✔What can a life insurance replacement restart? - ✔✔New surrender charges, a new
contestable period, and a new suicide exclusion period.
✔✔HIPAA - ✔✔Protects private health information and controls how it may be shared.
✔✔HIV testing rules in underwriting - ✔✔Written consent is required. Testing cannot be
based only on sexual orientation or where a person lives.
✔✔USA PATRIOT Act and insurance - ✔✔Insurers identify customers and report
suspicious activity to fight money laundering and terrorism financing.
✔✔Gramm-Leach-Bliley Act - ✔✔Requires privacy notices and protection of nonpublic
personal information. Some information sharing may have an opt-out right.
, ✔✔Main life underwriting information sources - ✔✔Application, medical exam and labs,
APS, MIB, consumer reports, producer report, and inspection report.
✔✔Fair Credit Reporting Act rights - ✔✔The applicant must be told a report may be
used, receive notice of adverse action, and may review and dispute wrong information.
✔✔When must life insurance insurable interest exist? (Life additional facts) - ✔✔When
the policy is issued. It does not have to exist at death.
✔✔Why is STOLI or IOLI improper? - ✔✔It is started mainly so an investor can profit
from a stranger's death and lacks a proper insurance purpose or insurable interest.
✔✔Statement of good health at delivery - ✔✔It may be required if the first premium was
not paid with the application. If health changed, the producer should contact the insurer
before delivery.
✔✔When does coverage usually begin if no premium was paid with the application? -
✔✔When the policy is delivered, the premium is paid, and any required good-health
statement is completed.
✔✔Third-party ownership - ✔✔The owner and insured are different people. The owner
must have insurable interest when the policy starts and controls policy rights.
✔✔Group life master policy and certificate - ✔✔The employer or sponsor receives the
master policy. Each insured employee receives a certificate of insurance.
✔✔Contributory vs. noncontributory group life participation - ✔✔Contributory usually
needs at least 75% participation. Noncontributory usually needs 100% participation.
✔✔Group life conversion privilege - ✔✔A person leaving the group may change to an
individual policy without proof of insurability if done within the allowed time, often 31
days.
✔✔Human life value vs. needs approach - ✔✔Human life value starts with future
earning power. The needs approach totals specific family needs and subtracts money
already available.
✔✔Social Security fully insured rule - ✔✔Forty credits normally means fully insured for
retirement, although younger workers may need fewer credits for disability or survivor
benefits.
✔✔Regular life withdrawal vs. MEC withdrawal - ✔✔A regular life policy generally takes
out basis first. A MEC takes out taxable gain first.
