Health Ch. 8 Indiana Laws & Rules Pertinent to
Insurance
A licensed Indiana Insurance Consultant sells insurance advice for a fee. - ANS-Which of these
statements regarding licensed Indiana Insurance Consultants is true?
Must hold meetings with clients in an approved facility
Can also be licensed as an Insurance Producer
Commissions are split with licensed Producers
Insurance advice is sold for a fee
A Limited Lines license is appropriate for a person that wants to sell only pre-need Life
Insurance for a funeral home. - ANS-What kind of insurance license is recommended for those
individuals who would like to sell pre-need Life Insurance for a funeral home?
Producer
Consultant
Limited Lines
Surplus Lines
All of these are necessary conditions for a lapsed Whole life policy to be reinstated EXCEPT for
"A new incontestable period starts at time of reinstatement". - ANS-In order for a lapsed Whole
Life policy to be reinstated, all of these must occur EXCEPT
All back premiums paid with interest
Reinstatement occurs within 3 years of policy lapse
A new incontestable period starts at time of reinstatement
Proof of good health required
All of these statements qualify a child for coverage under the Indiana Children's Health
Insurance Program EXCEPT for the child must be born in the United States. - ANS-All of these
statements are true regarding a child qualifying for coverage under the Indiana Children's Health
Insurance Program EXCEPT
Must be a resident of Indiana to qualify
Must be under 19 years of age to qualify
Family's income level must be greater than 150% of Federal poverty level, but less than 200%
Must have been born in the United States to qualify
Forcing an insured to sue the Insurance Company in order to receive a claim settlement is
considered illegal under the Indiana Unfair Claims Settlement laws. - ANS-Under Indiana's
Unfair Claims Settlement laws, which of these activities by an Insurance Company is considered
illegal?
Leave the insured no choice but to sue the Insurance Company to settle a claim
Promptly pay a claim
, Ask for additional information to settle a claim
Pay a partial claim
If an applicant's HIV antibody test comes back as positive, the results reported to the MIB will
indicate that the applicant had abnormal test results. - ANS-An applicant is found to have
Autoimmune Deficiency Syndrome during the underwriting process of a Life Insurance policy.
Which information may be revealed by the insurance company to the Medical Information
Bureau (MIB)?
Applicant has Autoimmune Deficiency Syndrome
Applicant has abnormal results
Applicant is at high risk for acquiring Autoimmune Deficiency Syndrome
Presence of Human Immunodeficiency Virus
If the Indiana Insurance Commissioner receives a complaint about an alleged Unfair Claim
Settlement practice, the Commissioner is required to notify the Insurance Company involved
within 10 days. - ANS-Unfair Claim Settlement complaints submitted to the Insurance
Commissioner will result in a notification of the violation to the Insurance Company within ___
days.
10
15
20
30
In order for a Licensed Resident Producer to sell insurance advice, they must make full
disclosure in writing at the outset of the transaction about how they will be compensated. -
ANS-In order for a Licensed Resident Producer to sell insurance advice, they must
have a consultant present during the meeting
make full disclosure in writing at the outset of the transaction about how they will be
compensated
also hold a Consultant's license
have a CLU designation
In this situation, a Temporary Producers License may be issued to the spouse of a disabled
Producer to carry out the day-to-day operations of the insurance agency. - ANS-Which of these
would be a valid reason for the Indiana Insurance Commissioner to issue a Temporary Producer
License?
A disabled Producer would like his spouse to maintain his insurance agency while disabled
A new recruit would like to determine if selling insurance is a viable career choice
To allow a retired Producer to receive renewal commissions
To allow a Producer from another state to sell insurance in Indiana
In this situation, the Producer has the right to a Judicial Review of the Insurance
Commissioner's decision. - ANS-If a Producer is found to have violated the Insurance Code,
what are the potential consequences?
Insurance
A licensed Indiana Insurance Consultant sells insurance advice for a fee. - ANS-Which of these
statements regarding licensed Indiana Insurance Consultants is true?
Must hold meetings with clients in an approved facility
Can also be licensed as an Insurance Producer
Commissions are split with licensed Producers
Insurance advice is sold for a fee
A Limited Lines license is appropriate for a person that wants to sell only pre-need Life
Insurance for a funeral home. - ANS-What kind of insurance license is recommended for those
individuals who would like to sell pre-need Life Insurance for a funeral home?
Producer
Consultant
Limited Lines
Surplus Lines
All of these are necessary conditions for a lapsed Whole life policy to be reinstated EXCEPT for
"A new incontestable period starts at time of reinstatement". - ANS-In order for a lapsed Whole
Life policy to be reinstated, all of these must occur EXCEPT
All back premiums paid with interest
Reinstatement occurs within 3 years of policy lapse
A new incontestable period starts at time of reinstatement
Proof of good health required
All of these statements qualify a child for coverage under the Indiana Children's Health
Insurance Program EXCEPT for the child must be born in the United States. - ANS-All of these
statements are true regarding a child qualifying for coverage under the Indiana Children's Health
Insurance Program EXCEPT
Must be a resident of Indiana to qualify
Must be under 19 years of age to qualify
Family's income level must be greater than 150% of Federal poverty level, but less than 200%
Must have been born in the United States to qualify
Forcing an insured to sue the Insurance Company in order to receive a claim settlement is
considered illegal under the Indiana Unfair Claims Settlement laws. - ANS-Under Indiana's
Unfair Claims Settlement laws, which of these activities by an Insurance Company is considered
illegal?
Leave the insured no choice but to sue the Insurance Company to settle a claim
Promptly pay a claim
, Ask for additional information to settle a claim
Pay a partial claim
If an applicant's HIV antibody test comes back as positive, the results reported to the MIB will
indicate that the applicant had abnormal test results. - ANS-An applicant is found to have
Autoimmune Deficiency Syndrome during the underwriting process of a Life Insurance policy.
Which information may be revealed by the insurance company to the Medical Information
Bureau (MIB)?
Applicant has Autoimmune Deficiency Syndrome
Applicant has abnormal results
Applicant is at high risk for acquiring Autoimmune Deficiency Syndrome
Presence of Human Immunodeficiency Virus
If the Indiana Insurance Commissioner receives a complaint about an alleged Unfair Claim
Settlement practice, the Commissioner is required to notify the Insurance Company involved
within 10 days. - ANS-Unfair Claim Settlement complaints submitted to the Insurance
Commissioner will result in a notification of the violation to the Insurance Company within ___
days.
10
15
20
30
In order for a Licensed Resident Producer to sell insurance advice, they must make full
disclosure in writing at the outset of the transaction about how they will be compensated. -
ANS-In order for a Licensed Resident Producer to sell insurance advice, they must
have a consultant present during the meeting
make full disclosure in writing at the outset of the transaction about how they will be
compensated
also hold a Consultant's license
have a CLU designation
In this situation, a Temporary Producers License may be issued to the spouse of a disabled
Producer to carry out the day-to-day operations of the insurance agency. - ANS-Which of these
would be a valid reason for the Indiana Insurance Commissioner to issue a Temporary Producer
License?
A disabled Producer would like his spouse to maintain his insurance agency while disabled
A new recruit would like to determine if selling insurance is a viable career choice
To allow a retired Producer to receive renewal commissions
To allow a Producer from another state to sell insurance in Indiana
In this situation, the Producer has the right to a Judicial Review of the Insurance
Commissioner's decision. - ANS-If a Producer is found to have violated the Insurance Code,
what are the potential consequences?
