Indiana State Life and Health Insurance Exam
180 - ANS-How many days is a temporary producers license valid?
30
60
90
180
$25,000 - ANS-In Indiana, the maximum fine the the commissioner can impose on a producer or
company who violates a cease and desist order is___per violation?
$10,000
$15,000
$20,000
$25,000
A producer misrepresents a policy to induce a policyowner to surrender an existing policy -
ANS-Which of these is an example of twisting?
A producer maliciously aligns another insurance company's financial status
A producer misrepresents a policy to induce a policyowner to surrender an existing policy
A producer reduces the commission in order to sell a policy
A producer induces a policyowner with something of value to purchase a policy
Be licensed as a producer in the producer's state of domicile - ANS-Which of the following is a
requirement to obtain a nonresident producer license in Indiana?
Maintain a specific sales quota in resident state
Own real estate in Indiana
Be licensed as a producer in the producer's state of domicile
Pass a special examination for nonresident producers
Nonresident - ANS-P is a producer who is licensed in Indiana, but a resident of Michigan. In
Indiana , P is considered to be a____Producer?
,Nonresident
Foreign
Alien
Reciprocal
Commissions to be Paid - ANS-If an existing Accident and Health policy is being replaced with a
new policy, the decision to replace should not be based on?
Waiting Periods
Commissions to be Paid
Exclusion and Limitations
Underwriting Requirements
Be organized under Indiana insurance laws - ANS-A domestic insurance company in Indiana
must?
Be organized under Indiana insurance laws
Own real estate in Indiana
Write insurance on risks located only in Indiana
Honor the charter of the NAIC
The producer's state of residence must have reciprocity with Indiana - ANS-Which of the
following is a requirement to obtain a nonresident producer license in Indiana?
The producer must be at least 21 years of age
The producer's state of residence must have reciprocity with Indiana
The producer must be bonded in the producer's state of domicile
The producer must pass a special examination for nonresident producers
A transaction in which a new policy is bought and an old policy is terminated - ANS-What is
Indianas definition of Life insurance replacement?
A transaction in which coverage on an existing policy is increased
A transaction in which group life coverage is converted to an individual policy
A transaction in which a new policy is bought and an old policy is terminated
,A transaction in which a policyowner reinstates a lapsed policy
Only if the child is incapable of employment and chiefly dependent on the policyowner -
ANS-Upon reaching the limiting age, a handicapped child can extend their health insurance
coverage as a dependent?
Only if the child is incapable of employment and chiefly dependent on the policyowner
For up to an additional 10 years only
Only physically disabled
Only if mentally disabled
Producer represents more than one insurance company - ANS-Which of the following is not a
valid reason for the insurance commissioner to suspend or revoke a producers license?
Producer returns part of a commission to client in exchange for a sale
Producer represents more than one insurance company
Producer engages in false advertising
Producer commingles premiums collected with a personal account
Is found guilty of misrepresentation in obtaining the license - ANS-A producers license may be
denied, suspended, or revoked if the licensee?
Engages in replacement of an existing policy
Is found guilty of misrepresentation in obtaining the license
Files for bankruptcy
Does not meet a sales quota
Insurance Company - ANS-During the course of an insurance business transaction, who does
the producer legally represent?
Producer
Insured
Insurance Company
Beneficiary
, Returning a portion of a premium as inducement to purchase insurance - ANS-An example of
rebating would be?
Returning a portion of a premium as inducement to purchase insurance
Reducing the premium across the board for a specific risk class
A mutual insurance company paying dividends to its policyowners
Using intimidation in order to restrain or monopolize the business of insurance
Group must be formed for a purpose other than obtaining insurance - ANS-Which of the
following is a requirement to be eligible for a group life policy in Indiana?
Group must be formed for a purpose other than obtaining insurance
Group must designate one of its members to be the named insured
Group must have been formed for obtaining insurance
Group must include at least five employers
A potential Applicant must be told that Life insurance is the exclusive subject of the sale -
ANS-What is required for a Producer to be in compliance with Rule 13, Life Insurance
Advertising?
A potential Applicant must be told the the Producer is currently licensed for any Life Insurance
transaction
A potential Applicant must be told that Life insurance is the exclusive subject of the sale
A Producer is required to notify potential Applicants that dividends are guaranteed
A Producer is required to have all sales materials approved by the commissioner
The premiums cost for basic coverage applied for - ANS-When a life insurance application is
completed, a Policy Summary must be given to the applicant. The Policy Summary must
include?
The insurers AM Best rating
The Producers address
Cash value rate
180 - ANS-How many days is a temporary producers license valid?
30
60
90
180
$25,000 - ANS-In Indiana, the maximum fine the the commissioner can impose on a producer or
company who violates a cease and desist order is___per violation?
$10,000
$15,000
$20,000
$25,000
A producer misrepresents a policy to induce a policyowner to surrender an existing policy -
ANS-Which of these is an example of twisting?
A producer maliciously aligns another insurance company's financial status
A producer misrepresents a policy to induce a policyowner to surrender an existing policy
A producer reduces the commission in order to sell a policy
A producer induces a policyowner with something of value to purchase a policy
Be licensed as a producer in the producer's state of domicile - ANS-Which of the following is a
requirement to obtain a nonresident producer license in Indiana?
Maintain a specific sales quota in resident state
Own real estate in Indiana
Be licensed as a producer in the producer's state of domicile
Pass a special examination for nonresident producers
Nonresident - ANS-P is a producer who is licensed in Indiana, but a resident of Michigan. In
Indiana , P is considered to be a____Producer?
,Nonresident
Foreign
Alien
Reciprocal
Commissions to be Paid - ANS-If an existing Accident and Health policy is being replaced with a
new policy, the decision to replace should not be based on?
Waiting Periods
Commissions to be Paid
Exclusion and Limitations
Underwriting Requirements
Be organized under Indiana insurance laws - ANS-A domestic insurance company in Indiana
must?
Be organized under Indiana insurance laws
Own real estate in Indiana
Write insurance on risks located only in Indiana
Honor the charter of the NAIC
The producer's state of residence must have reciprocity with Indiana - ANS-Which of the
following is a requirement to obtain a nonresident producer license in Indiana?
The producer must be at least 21 years of age
The producer's state of residence must have reciprocity with Indiana
The producer must be bonded in the producer's state of domicile
The producer must pass a special examination for nonresident producers
A transaction in which a new policy is bought and an old policy is terminated - ANS-What is
Indianas definition of Life insurance replacement?
A transaction in which coverage on an existing policy is increased
A transaction in which group life coverage is converted to an individual policy
A transaction in which a new policy is bought and an old policy is terminated
,A transaction in which a policyowner reinstates a lapsed policy
Only if the child is incapable of employment and chiefly dependent on the policyowner -
ANS-Upon reaching the limiting age, a handicapped child can extend their health insurance
coverage as a dependent?
Only if the child is incapable of employment and chiefly dependent on the policyowner
For up to an additional 10 years only
Only physically disabled
Only if mentally disabled
Producer represents more than one insurance company - ANS-Which of the following is not a
valid reason for the insurance commissioner to suspend or revoke a producers license?
Producer returns part of a commission to client in exchange for a sale
Producer represents more than one insurance company
Producer engages in false advertising
Producer commingles premiums collected with a personal account
Is found guilty of misrepresentation in obtaining the license - ANS-A producers license may be
denied, suspended, or revoked if the licensee?
Engages in replacement of an existing policy
Is found guilty of misrepresentation in obtaining the license
Files for bankruptcy
Does not meet a sales quota
Insurance Company - ANS-During the course of an insurance business transaction, who does
the producer legally represent?
Producer
Insured
Insurance Company
Beneficiary
, Returning a portion of a premium as inducement to purchase insurance - ANS-An example of
rebating would be?
Returning a portion of a premium as inducement to purchase insurance
Reducing the premium across the board for a specific risk class
A mutual insurance company paying dividends to its policyowners
Using intimidation in order to restrain or monopolize the business of insurance
Group must be formed for a purpose other than obtaining insurance - ANS-Which of the
following is a requirement to be eligible for a group life policy in Indiana?
Group must be formed for a purpose other than obtaining insurance
Group must designate one of its members to be the named insured
Group must have been formed for obtaining insurance
Group must include at least five employers
A potential Applicant must be told that Life insurance is the exclusive subject of the sale -
ANS-What is required for a Producer to be in compliance with Rule 13, Life Insurance
Advertising?
A potential Applicant must be told the the Producer is currently licensed for any Life Insurance
transaction
A potential Applicant must be told that Life insurance is the exclusive subject of the sale
A Producer is required to notify potential Applicants that dividends are guaranteed
A Producer is required to have all sales materials approved by the commissioner
The premiums cost for basic coverage applied for - ANS-When a life insurance application is
completed, a Policy Summary must be given to the applicant. The Policy Summary must
include?
The insurers AM Best rating
The Producers address
Cash value rate
