2024 INDIANA LIFE AND HEALTH
INSURANCE (LEARN AS YOU GO)
EXAM WITH 100% CORRECT
ANSWERS
Which of the following is true regarding a hearing upon the nonrenewable of
a producer's license? - CORRECT ANSWERS-A. After the hearing, the
Commissioner may impose a criminal penalty on the applicant.
B. A hearing guarantees renewal of the license.
C. The Commissioner may request a hearing within 63 days of the
nonrenewal date.
D. The hearing must be held within 30 days of the written demand.
*D. Once the Commissioner notifies an applicant or a producer of a license
denial or nonrenewable, the applicant or producer has the right to make a
written demand for a hearing (within 63 days after the denial/nonrenewal
notice is mailed). The hearing must be held within 30 days of the written
demand.
Nonforfeiture values guarantee which of the following for the policyowner? -
CORRECT ANSWERS-A. That the death benefit will be paid in a lump sum.
B. That the policy premiums will never increase.
C. That the cash value will not be lost.
D. That the dividends will be paid annually.
*C. Because permanent life insurance policies have cash values, there are
certain guarantees built into the policy that cannot be forfeited by the
policyowner. Nonforfeiture values give the insured the right to the cash value
even if the policy lapses or is surrendered.
Which of the following can remove the Insurance Commissioner from office? -
CORRECT ANSWERS-A. Governor.
B. Voters.
C. NAIC President.
D. Insurance Guaranty Association.
*A. The Commissioner is appointed by the Governor and may also be
removed from office by the Governor, if such action is required.
,Which rider, when attached to a permanent life insurance policy, provides an
amount of insurance on every family member? - CORRECT ANSWERS-A.
Children's rider.
B. Additional insured rider.
C. Family term rider.
D. Spouse rider.
*C. A single rider that provides coverage on every family member is called a
"family rider".
Representations are written or oral statements made by the applicant that
are? - CORRECT ANSWERS-A. Immaterial to the actual acceptability of the
insurance contract.
B. Considered true to the best of the applicant's knowledge.
C. Guaranteed to be true.
D. Found to be false after further investigation.
*B. Representations are statements made by an applicant that they believe
to be true.
Jack is licensed as a life producer and Jill is licensed as a property and
casualty producer. Jack sends one of his life insurance clients to Jill to buy
automobile insurance. Jill makes the sale and sends a portion of her
commission to Jack as a finder's fee. Which is true concerning these events?
- CORRECT ANSWERS-A. Both Jack and Jill are guilty of rebating.
B. Neither is guilty of rebating.
C. Only Jill is guilty of rebating.
D. Only Jack is guilty of rebating.
*B. It is illegal for any insurer, producer or surplus lines producer to pay any
commission to any person for services, unless at the time services were
performed that person held a valid license or the recipient is not involved in
the insurance sold. Since Jack was not directly involved in the sale of the
property and casualty insurance, neither Jack nor Jill are guilty of rebating.
Within what timeframe should an applicant or a producer request a hearing
before the Commissioner regarding the notice of denial or nonrenewal of a
license? - CORRECT ANSWERS-A. Within 30 days after the license is denied.
B. Within 30 days after the application for renewal is received by the
Commissioner.
C. Within 63 days after the notice of denial is mailed.
D. Within 63 days after the application for license is mailed.
*C. Once the Commissioner notifies an applicant or a producer of a license
denial or nonrenewal, the applicant or producer has the right to make a
written demand for a hearing (within 63 days after the denial/nonrenewal
, notice is mailed). The hearing must be held within 30 days of the written
demand.
The main difference between immediate and deferred annuities is? -
CORRECT ANSWERS-A. The number of insureds.
B. the amount of each payment.
C. When the income payments begin.
D. How the annuity is purchased.
*C. the main difference between immediate and deferred annuities is when
the income payments begin. Immediate annuities will begin payments within
the first year, while deferred annuities will not gain payments until sometime
after the first year.
Which of the following is TRUE regarding the premium in term policies? -
CORRECT ANSWERS-A. The premium is level.
B. Only level term policy has a level premium.
C. The premium in term policies is not based on the insured's age.
D. Decreasing term policy will have a decreasing premium.
*A. Regardless of the type of term insurance purchased, the premium is level
throughout the term of the policy. Only the amount of the death benefit may
change.
Who bears all of the invest risk in a fixed annuity? - CORRECT ANSWERS-A.
The insurance company.
B. The owner.
C. The beneficiary.
D. The annuitant.
*A. Fixed annuities guarantee a minimum amount of interest to be credited
to the purchase payment. Income payments do not vary from one payment
to the next. the insurance company can afford to make guarantees because
the money of a fixed annuity is placed in the general account of the
insurance company, which is part of its investment portfolio. The company
makes conservative enough investments to insure a guaranteed rate to the
annuity owners.
If a company transacts any business of insurance without a certificate of
authority, what is the maximum penalty that can be charged to the director
of that company? - CORRECT ANSWERS-A. Civil penalty of $25,000.
B. $30,000 fine and a jail sentence up to 1 year.
C. $50,000 fine or the amount of commissions made, whichever is greater.
D. Up to $100,000 in fines.
INSURANCE (LEARN AS YOU GO)
EXAM WITH 100% CORRECT
ANSWERS
Which of the following is true regarding a hearing upon the nonrenewable of
a producer's license? - CORRECT ANSWERS-A. After the hearing, the
Commissioner may impose a criminal penalty on the applicant.
B. A hearing guarantees renewal of the license.
C. The Commissioner may request a hearing within 63 days of the
nonrenewal date.
D. The hearing must be held within 30 days of the written demand.
*D. Once the Commissioner notifies an applicant or a producer of a license
denial or nonrenewable, the applicant or producer has the right to make a
written demand for a hearing (within 63 days after the denial/nonrenewal
notice is mailed). The hearing must be held within 30 days of the written
demand.
Nonforfeiture values guarantee which of the following for the policyowner? -
CORRECT ANSWERS-A. That the death benefit will be paid in a lump sum.
B. That the policy premiums will never increase.
C. That the cash value will not be lost.
D. That the dividends will be paid annually.
*C. Because permanent life insurance policies have cash values, there are
certain guarantees built into the policy that cannot be forfeited by the
policyowner. Nonforfeiture values give the insured the right to the cash value
even if the policy lapses or is surrendered.
Which of the following can remove the Insurance Commissioner from office? -
CORRECT ANSWERS-A. Governor.
B. Voters.
C. NAIC President.
D. Insurance Guaranty Association.
*A. The Commissioner is appointed by the Governor and may also be
removed from office by the Governor, if such action is required.
,Which rider, when attached to a permanent life insurance policy, provides an
amount of insurance on every family member? - CORRECT ANSWERS-A.
Children's rider.
B. Additional insured rider.
C. Family term rider.
D. Spouse rider.
*C. A single rider that provides coverage on every family member is called a
"family rider".
Representations are written or oral statements made by the applicant that
are? - CORRECT ANSWERS-A. Immaterial to the actual acceptability of the
insurance contract.
B. Considered true to the best of the applicant's knowledge.
C. Guaranteed to be true.
D. Found to be false after further investigation.
*B. Representations are statements made by an applicant that they believe
to be true.
Jack is licensed as a life producer and Jill is licensed as a property and
casualty producer. Jack sends one of his life insurance clients to Jill to buy
automobile insurance. Jill makes the sale and sends a portion of her
commission to Jack as a finder's fee. Which is true concerning these events?
- CORRECT ANSWERS-A. Both Jack and Jill are guilty of rebating.
B. Neither is guilty of rebating.
C. Only Jill is guilty of rebating.
D. Only Jack is guilty of rebating.
*B. It is illegal for any insurer, producer or surplus lines producer to pay any
commission to any person for services, unless at the time services were
performed that person held a valid license or the recipient is not involved in
the insurance sold. Since Jack was not directly involved in the sale of the
property and casualty insurance, neither Jack nor Jill are guilty of rebating.
Within what timeframe should an applicant or a producer request a hearing
before the Commissioner regarding the notice of denial or nonrenewal of a
license? - CORRECT ANSWERS-A. Within 30 days after the license is denied.
B. Within 30 days after the application for renewal is received by the
Commissioner.
C. Within 63 days after the notice of denial is mailed.
D. Within 63 days after the application for license is mailed.
*C. Once the Commissioner notifies an applicant or a producer of a license
denial or nonrenewal, the applicant or producer has the right to make a
written demand for a hearing (within 63 days after the denial/nonrenewal
, notice is mailed). The hearing must be held within 30 days of the written
demand.
The main difference between immediate and deferred annuities is? -
CORRECT ANSWERS-A. The number of insureds.
B. the amount of each payment.
C. When the income payments begin.
D. How the annuity is purchased.
*C. the main difference between immediate and deferred annuities is when
the income payments begin. Immediate annuities will begin payments within
the first year, while deferred annuities will not gain payments until sometime
after the first year.
Which of the following is TRUE regarding the premium in term policies? -
CORRECT ANSWERS-A. The premium is level.
B. Only level term policy has a level premium.
C. The premium in term policies is not based on the insured's age.
D. Decreasing term policy will have a decreasing premium.
*A. Regardless of the type of term insurance purchased, the premium is level
throughout the term of the policy. Only the amount of the death benefit may
change.
Who bears all of the invest risk in a fixed annuity? - CORRECT ANSWERS-A.
The insurance company.
B. The owner.
C. The beneficiary.
D. The annuitant.
*A. Fixed annuities guarantee a minimum amount of interest to be credited
to the purchase payment. Income payments do not vary from one payment
to the next. the insurance company can afford to make guarantees because
the money of a fixed annuity is placed in the general account of the
insurance company, which is part of its investment portfolio. The company
makes conservative enough investments to insure a guaranteed rate to the
annuity owners.
If a company transacts any business of insurance without a certificate of
authority, what is the maximum penalty that can be charged to the director
of that company? - CORRECT ANSWERS-A. Civil penalty of $25,000.
B. $30,000 fine and a jail sentence up to 1 year.
C. $50,000 fine or the amount of commissions made, whichever is greater.
D. Up to $100,000 in fines.
