INDIANA HEALTH AND LIFE INSURANCE
EXAM PRACTICE QUESTIONS AND
ANSWERS
An underwriter evaluation of information on a life insurance application is also known as
: - Answer-risk classification
An example of a Limited-Pay Life policy is: - Answer-Life Paid- Up at Age 65
The signed document that starts the free look period is the: - Answer-delivery receipt
Under a Guaranteed Renewable provision in a policy issued to a group of person an
insurance company may NOT terminate coverage on a group member if the member: -
Answer-becomes disable
Which of the following statements is generally CORRECT about a major medical policy?
- Answer-it provides benefits for reasonable and necessary medical expense, subject to
policy limits.
A life insurer that accepts an incomplete application and issues a policy is obligated to: -
Answer-charge a lower premium for the initial period of coverage
Under federal law, a tax-exempt Health Savings Account can only be opened for an
individual who is - Answer-covered by qualified High Deductible health plan
Which of the following statement is CORRECT about a Limited-Pay Whole Life policy? -
Answer-the policy provides insurance protection for a shorter period of time than a
straight life policy
Changing the Beneficiary is a right reserved for the: - Answer-contract owner
Under an individual Major Medical policy, a married policyowner has the right to take
which of the following. - Answer-Add a newborn child to the policy without providing
proof of insurability
An insured who wants to guarantee that an Accident and Health policy will remain in
force even in the event of being disable should purchase which of the following riders? -
Answer-Waiver of Premium
Which of the following conditions of a Major Medical policy? - Answer-It contains a
deductible and coinsurance.
, The Waiver of Premium provisions in a life policy guarantee that the: - Answer-
insurance company will pay premiums for the duration of a disability after a
predetermined waiting period
One of the primary reasons for using deductibles in health policies is to reduce: -
Answer-over-utilization of medical services
A Policy summary - Answer-highlights the critical parts of policy issued and describes
the coverages, riders, and exclusions
What minimum percentage of eligible employee must participate for a company to offer
a Contributory group insurance plan? - Answer-75
Social security provides all of the following type of benefits EXCEPT: - Answer-
Dismemberment
Which of the following annuities pays benefits based on units rather than specific dollar
amounts? - Answer-A variable aunnity
Which of the following information is included in the Consideration clause in an Accident
and Health policy? - Answer-Schedule and amount of premium paymentss
A policyowner returned a newly issued policy one week after the policy was delivered by
the producer and a refund of all premiums paid. Which of the following policy sections
covers the situation described? - Answer-Free look provison
Which of the following statements is CORRECT about a Disability Income policy with a
Guaranteed Insurance rider? - Answer-The insurance company guarantees the
premium rate for the life of the policy
Which of the following beneficiary designations may limit a policyowner's rights? -
Answer-Irrevocable
Which of the following kinds of policies typically contains a limited daily room and board
benefits and provides coverage on an in-hospital basis only? - Answer-Basic Hospital
Which of the following situations describes representation? - Answer-A prospect's
statement on an application that held to be substantially true
A prospect submits an Accident and Health application with the premium and receives a
conditional receipt to the insurance company issues a policy and mails it to the insured,
but the insured never receives it. Which of the following statements is CORRECT about
this situation? - Answer-The policy is in force
A doctor who is receiving Disability Income benefits is not able to return to work full time
but continue receiving benefits - Answer-A residual Benefit clause
EXAM PRACTICE QUESTIONS AND
ANSWERS
An underwriter evaluation of information on a life insurance application is also known as
: - Answer-risk classification
An example of a Limited-Pay Life policy is: - Answer-Life Paid- Up at Age 65
The signed document that starts the free look period is the: - Answer-delivery receipt
Under a Guaranteed Renewable provision in a policy issued to a group of person an
insurance company may NOT terminate coverage on a group member if the member: -
Answer-becomes disable
Which of the following statements is generally CORRECT about a major medical policy?
- Answer-it provides benefits for reasonable and necessary medical expense, subject to
policy limits.
A life insurer that accepts an incomplete application and issues a policy is obligated to: -
Answer-charge a lower premium for the initial period of coverage
Under federal law, a tax-exempt Health Savings Account can only be opened for an
individual who is - Answer-covered by qualified High Deductible health plan
Which of the following statement is CORRECT about a Limited-Pay Whole Life policy? -
Answer-the policy provides insurance protection for a shorter period of time than a
straight life policy
Changing the Beneficiary is a right reserved for the: - Answer-contract owner
Under an individual Major Medical policy, a married policyowner has the right to take
which of the following. - Answer-Add a newborn child to the policy without providing
proof of insurability
An insured who wants to guarantee that an Accident and Health policy will remain in
force even in the event of being disable should purchase which of the following riders? -
Answer-Waiver of Premium
Which of the following conditions of a Major Medical policy? - Answer-It contains a
deductible and coinsurance.
, The Waiver of Premium provisions in a life policy guarantee that the: - Answer-
insurance company will pay premiums for the duration of a disability after a
predetermined waiting period
One of the primary reasons for using deductibles in health policies is to reduce: -
Answer-over-utilization of medical services
A Policy summary - Answer-highlights the critical parts of policy issued and describes
the coverages, riders, and exclusions
What minimum percentage of eligible employee must participate for a company to offer
a Contributory group insurance plan? - Answer-75
Social security provides all of the following type of benefits EXCEPT: - Answer-
Dismemberment
Which of the following annuities pays benefits based on units rather than specific dollar
amounts? - Answer-A variable aunnity
Which of the following information is included in the Consideration clause in an Accident
and Health policy? - Answer-Schedule and amount of premium paymentss
A policyowner returned a newly issued policy one week after the policy was delivered by
the producer and a refund of all premiums paid. Which of the following policy sections
covers the situation described? - Answer-Free look provison
Which of the following statements is CORRECT about a Disability Income policy with a
Guaranteed Insurance rider? - Answer-The insurance company guarantees the
premium rate for the life of the policy
Which of the following beneficiary designations may limit a policyowner's rights? -
Answer-Irrevocable
Which of the following kinds of policies typically contains a limited daily room and board
benefits and provides coverage on an in-hospital basis only? - Answer-Basic Hospital
Which of the following situations describes representation? - Answer-A prospect's
statement on an application that held to be substantially true
A prospect submits an Accident and Health application with the premium and receives a
conditional receipt to the insurance company issues a policy and mails it to the insured,
but the insured never receives it. Which of the following statements is CORRECT about
this situation? - Answer-The policy is in force
A doctor who is receiving Disability Income benefits is not able to return to work full time
but continue receiving benefits - Answer-A residual Benefit clause
