Insurance Exam Part 2
$1,000 - ANS-A Hospital Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar
year. Two claims were paid September 2013, each incurring medical expenses in excess of the
deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as
well. What would be this family's out-of-pocket medical expenses for 2013?
$25,000 - ANS-In Indiana, the MAX fine that the commissioner can impose on a producer or
company who violates a cease and desist order is ______ per violation
19 - ANS-The Indiana children's health program (CHIP) provides children of need with health
benefits until the child reaches age _____ or becomes financially ineligible, whichever is earlier
1970- Fair Credit Reporting Act - ANS-Which of the following requires insurers to disclose when
can applicant's consumer or credit history is being investigated
25% - ANS-In Indiana, what is the maximum percentage of controlled businesses a producer
may produce over a twelve month period?
30 - ANS-ABC insurance company fails to pay death proceeds after satisfactory proof of loss
was submitted. ABC must then begin paying interest on the death proceeds after ______days of
receiving proof of loss
6 - ANS-Qualified long term care policies may take into consideration an applicants pre existing
conditions for a maximum of not more than _____ months prior to the effective date of coverage
720 - ANS-C was injured while deep sea diving and requires a hospital stay. C has a major
medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM
C will pay if the covered medical expenses are $2000
A transaction in which a new policy is bought and an old is terminated - ANS-What is Indiana's
definition of life insurance replacement
Actual covered expenses up to the daily maximum - ANS-A "reimbursement policy" pays what
amount of covered long term care expenses?
AIDS and HIV virus exams can be conducted in a discriminatory fashion - ANS-What is a true
statement regarding the underwriting process?
Alcohol rehabilitation - ANS-Under a Long Term Care policy, which benefit would be typically
excluded or limited?
, An insured - ANS-An insurer is not required to provide information on fraudulent claims if
requested by
Anytime - ANS-When can a policy owner change a revocable beneficiary
Beneficiary's age - ANS-S would like to use dividends from her life insurance policy to purchase
paid-up additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT
Business overhead expense - ANS-What type of policy would pay an employees salary if the
employer was injured in a bicycle accident and out of work for six weeks?
Certificate of authority - ANS-What permits an insurance company to transact business in
Indiana
Claim payments of admitted, insolvent insurance companies - ANS-What does Indiana life and
health insurance guaranty association provide?
Collateral assignment - ANS-Which of these actions is taken when a policy owner uses a life
insurance policy as a collateral for a bank loans
Complete the application and review the information with the customer prior to obtaining the
customers signature, then send the application off to the insurance company - ANS-What
correctly explains the actions an agent should take if a customer wants to apply for an insurance
policy?
Defered - ANS-P, age 50, purchased an annuity that P will fund with $500/month for 15 years.
The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P
purchase?
Entire contract - ANS-Which of the following policy provisions prohibits an insurance company
from incorporating external documents into an insurance policy?
Every 5 years - ANS-How often must the commissioner examine each domestic insurance
company
Everyone must be covered in the group - ANS-What is an important underwriting principle of
group life insurance
Expense incurred - ANS-Long term care policies will usually pay for eligible benefits using which
method?
$1,000 - ANS-A Hospital Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar
year. Two claims were paid September 2013, each incurring medical expenses in excess of the
deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as
well. What would be this family's out-of-pocket medical expenses for 2013?
$25,000 - ANS-In Indiana, the MAX fine that the commissioner can impose on a producer or
company who violates a cease and desist order is ______ per violation
19 - ANS-The Indiana children's health program (CHIP) provides children of need with health
benefits until the child reaches age _____ or becomes financially ineligible, whichever is earlier
1970- Fair Credit Reporting Act - ANS-Which of the following requires insurers to disclose when
can applicant's consumer or credit history is being investigated
25% - ANS-In Indiana, what is the maximum percentage of controlled businesses a producer
may produce over a twelve month period?
30 - ANS-ABC insurance company fails to pay death proceeds after satisfactory proof of loss
was submitted. ABC must then begin paying interest on the death proceeds after ______days of
receiving proof of loss
6 - ANS-Qualified long term care policies may take into consideration an applicants pre existing
conditions for a maximum of not more than _____ months prior to the effective date of coverage
720 - ANS-C was injured while deep sea diving and requires a hospital stay. C has a major
medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM
C will pay if the covered medical expenses are $2000
A transaction in which a new policy is bought and an old is terminated - ANS-What is Indiana's
definition of life insurance replacement
Actual covered expenses up to the daily maximum - ANS-A "reimbursement policy" pays what
amount of covered long term care expenses?
AIDS and HIV virus exams can be conducted in a discriminatory fashion - ANS-What is a true
statement regarding the underwriting process?
Alcohol rehabilitation - ANS-Under a Long Term Care policy, which benefit would be typically
excluded or limited?
, An insured - ANS-An insurer is not required to provide information on fraudulent claims if
requested by
Anytime - ANS-When can a policy owner change a revocable beneficiary
Beneficiary's age - ANS-S would like to use dividends from her life insurance policy to purchase
paid-up additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT
Business overhead expense - ANS-What type of policy would pay an employees salary if the
employer was injured in a bicycle accident and out of work for six weeks?
Certificate of authority - ANS-What permits an insurance company to transact business in
Indiana
Claim payments of admitted, insolvent insurance companies - ANS-What does Indiana life and
health insurance guaranty association provide?
Collateral assignment - ANS-Which of these actions is taken when a policy owner uses a life
insurance policy as a collateral for a bank loans
Complete the application and review the information with the customer prior to obtaining the
customers signature, then send the application off to the insurance company - ANS-What
correctly explains the actions an agent should take if a customer wants to apply for an insurance
policy?
Defered - ANS-P, age 50, purchased an annuity that P will fund with $500/month for 15 years.
The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P
purchase?
Entire contract - ANS-Which of the following policy provisions prohibits an insurance company
from incorporating external documents into an insurance policy?
Every 5 years - ANS-How often must the commissioner examine each domestic insurance
company
Everyone must be covered in the group - ANS-What is an important underwriting principle of
group life insurance
Expense incurred - ANS-Long term care policies will usually pay for eligible benefits using which
method?
