Indiana Life Insurance Exam Questions
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Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value
should the annuitant die during the accumulation period.
D. It provides for a tax-free death benefit. - ✔✔D. It provides for a tax-free
death benefit.
All of the following policies provide for the tax deferred accumulation of
cash value EXCEPT:
A. Interest Sensitive Whole Life
B. Single Premium Variable Annuity
C. Variable Universal Life
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,D. Term Life - ✔✔D. Term Life
All of the following are true statements about the taxation of life insurance
benefits except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as
ordinary income.
D. The death benefit of a life policy is received by the beneficiary federal
income tax free. - ✔✔A. Policy loans are taxed as ordinary income
Which of the following statements is true about the Group Life conversion
privilege?
a. Death during the conversion period is covered even if the departing
employee chooses NOT to convert to an individual policy.
b. The departing employee must pay the premium if they elect to be
covered during the conversion period.
c. If a departing employee elects to convert their life insurance, the
company must offer Term insurance as a choice.
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,d. Under the COBRA laws a departing employee may elect to remain a
member of the Group Life plan for a limited period of time. - ✔✔A. Death
during the conversion period is covered even if the departing employee
chooses NOT to convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole
Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - ✔✔A. Family Income Policy
A type of Annuity in which the cash values are invested in securities is
called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible premium - ✔✔Variable
Mary is receiving an annuity payout from her Variable Straight Life Annuity.
Upon her death, which of the following will be payable to her estate?
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, a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to Mary
in benefits - ✔✔A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
d. The nonforfeiture values - ✔✔The Face Amount
Endowment policies can mature in two ways. What are they?
a. The insured dies during the policy period or annuitizes the policy after
age 59&1/2.
b. The insured dies during the policy period or reaches the endowment age
as designated in the policy.
c. The insured dies during the policy period or retires at age 59&1/2.
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and Answers 100% Solved | Latest
Update
Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value
should the annuitant die during the accumulation period.
D. It provides for a tax-free death benefit. - ✔✔D. It provides for a tax-free
death benefit.
All of the following policies provide for the tax deferred accumulation of
cash value EXCEPT:
A. Interest Sensitive Whole Life
B. Single Premium Variable Annuity
C. Variable Universal Life
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,D. Term Life - ✔✔D. Term Life
All of the following are true statements about the taxation of life insurance
benefits except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as
ordinary income.
D. The death benefit of a life policy is received by the beneficiary federal
income tax free. - ✔✔A. Policy loans are taxed as ordinary income
Which of the following statements is true about the Group Life conversion
privilege?
a. Death during the conversion period is covered even if the departing
employee chooses NOT to convert to an individual policy.
b. The departing employee must pay the premium if they elect to be
covered during the conversion period.
c. If a departing employee elects to convert their life insurance, the
company must offer Term insurance as a choice.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,d. Under the COBRA laws a departing employee may elect to remain a
member of the Group Life plan for a limited period of time. - ✔✔A. Death
during the conversion period is covered even if the departing employee
chooses NOT to convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole
Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - ✔✔A. Family Income Policy
A type of Annuity in which the cash values are invested in securities is
called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible premium - ✔✔Variable
Mary is receiving an annuity payout from her Variable Straight Life Annuity.
Upon her death, which of the following will be payable to her estate?
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©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to Mary
in benefits - ✔✔A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
d. The nonforfeiture values - ✔✔The Face Amount
Endowment policies can mature in two ways. What are they?
a. The insured dies during the policy period or annuitizes the policy after
age 59&1/2.
b. The insured dies during the policy period or reaches the endowment age
as designated in the policy.
c. The insured dies during the policy period or retires at age 59&1/2.
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