Study Guide Indiana Insurance Exam
- ANS-What type of life policy covers 2 lives and pays the face amount after the first one dies?
A. Group life
B. Joint Life Policy
C. Family Income Policy
D. Last survivor Policy
A. 15 hours of additional education after they receive their license - ANS-Indiana's Long term
care partnership program requires a producer to have:
A. 15 hours of additional education after they receive their license
B. Passed a separate exam devoted specifically to Long Term Care insurance
C. A $30,000 bond
D. 20 hours of additional education after they receive their license
A. Aleatory An agreement concerned with an uncertain event that provides for unequal transfer
of value between the parties. Insurance policies are aleatory contracts because an insured can
pay premiums for many years without sustaining a covered loss.) - ANS-Q purchases a
$500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies
suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which
of the following insurance contract features?
A. Aleatory
B. Adhesion
C. Unilateral
D. Consideration
A. Application will be returned to the writing agent - ANS-An incomplete life insurance
application submitted to an insurer will result in which of these actions?
A. Application will be returned to the writing agent.
,B. Application will be approved with restrictions
C. Application will be pending until a MIB report is sent to the insurer
D. Application will be automatically declined
A. Avoid duplication of benefit payments - ANS-The coordination of benefits (COB) provision
exists in order to:
A. Avoid duplication of benefit payments
B. Avoid excessive hospitalization
C. Lower insurance premiums
D. Maximize patient care
A. Both an insurance and securities product - ANS-Variable Whole Life insurance can be
described as:
A. Both an insurance and securities product
B. an insurance product only
C. A securities product only
D. the insurance company assumes the investment risk
A. Cost - ANS-C is trying to determine whether to convert her convertible term life policy to
whole life insurance using her original age or attained age. What factor would affect her decision
the most?
A. The cost
B. The nonforfeiture options
C. the contestable period
D. The assignment of ownership
A. Employee funds the HRA entirely - ANS-Which of these is NOT a characteristic of a Health
Reimbursement Arrangement (HRA)?
, A. Employee funds the HRA entirely
B. Employer funds the HRA entirely
C. HRA's can be offered with other health plans
D. HRA's allow reimbursement for eligible medical expenses
A. F - ANS-E and F are business partners. Each takes out a $500,000 life insurance policy on
the other, naming himself as primary beneficiary. E and F eventually terminate their business,
and four months later E dies. Although E was married with three children at the time of death,
the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the
proceeds from E's life Insurance policy be directed to?
A. F
B. The dissolved partnership
C. E's family
D. E's Estate
A. Increase face amount - ANS-Which of the following actions require a policyowner to provide
proof of insurability in an Adjustable Life Policy?
A. Increase face amount
B. Decrease face amount
C. Increase premium-paying period
D. Decrease premium payment
A. Insurable Interest - ANS-A life insurance policy would be considered a wagering contract
WITHOUT:
A. Insurable interest
B. Premium payment
C. Agent solicitation
D. Constructive delivery
- ANS-What type of life policy covers 2 lives and pays the face amount after the first one dies?
A. Group life
B. Joint Life Policy
C. Family Income Policy
D. Last survivor Policy
A. 15 hours of additional education after they receive their license - ANS-Indiana's Long term
care partnership program requires a producer to have:
A. 15 hours of additional education after they receive their license
B. Passed a separate exam devoted specifically to Long Term Care insurance
C. A $30,000 bond
D. 20 hours of additional education after they receive their license
A. Aleatory An agreement concerned with an uncertain event that provides for unequal transfer
of value between the parties. Insurance policies are aleatory contracts because an insured can
pay premiums for many years without sustaining a covered loss.) - ANS-Q purchases a
$500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies
suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which
of the following insurance contract features?
A. Aleatory
B. Adhesion
C. Unilateral
D. Consideration
A. Application will be returned to the writing agent - ANS-An incomplete life insurance
application submitted to an insurer will result in which of these actions?
A. Application will be returned to the writing agent.
,B. Application will be approved with restrictions
C. Application will be pending until a MIB report is sent to the insurer
D. Application will be automatically declined
A. Avoid duplication of benefit payments - ANS-The coordination of benefits (COB) provision
exists in order to:
A. Avoid duplication of benefit payments
B. Avoid excessive hospitalization
C. Lower insurance premiums
D. Maximize patient care
A. Both an insurance and securities product - ANS-Variable Whole Life insurance can be
described as:
A. Both an insurance and securities product
B. an insurance product only
C. A securities product only
D. the insurance company assumes the investment risk
A. Cost - ANS-C is trying to determine whether to convert her convertible term life policy to
whole life insurance using her original age or attained age. What factor would affect her decision
the most?
A. The cost
B. The nonforfeiture options
C. the contestable period
D. The assignment of ownership
A. Employee funds the HRA entirely - ANS-Which of these is NOT a characteristic of a Health
Reimbursement Arrangement (HRA)?
, A. Employee funds the HRA entirely
B. Employer funds the HRA entirely
C. HRA's can be offered with other health plans
D. HRA's allow reimbursement for eligible medical expenses
A. F - ANS-E and F are business partners. Each takes out a $500,000 life insurance policy on
the other, naming himself as primary beneficiary. E and F eventually terminate their business,
and four months later E dies. Although E was married with three children at the time of death,
the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the
proceeds from E's life Insurance policy be directed to?
A. F
B. The dissolved partnership
C. E's family
D. E's Estate
A. Increase face amount - ANS-Which of the following actions require a policyowner to provide
proof of insurability in an Adjustable Life Policy?
A. Increase face amount
B. Decrease face amount
C. Increase premium-paying period
D. Decrease premium payment
A. Insurable Interest - ANS-A life insurance policy would be considered a wagering contract
WITHOUT:
A. Insurable interest
B. Premium payment
C. Agent solicitation
D. Constructive delivery
