Indiana Life & Health Insurance Exam
Review
A father owns a life insurance policy on his 15-year old daughter. The policy contains the
optional Payor Benefit rider. If the father becomes disabled, what will happen to the life
insurance premiums? - ANS-The insured's premiums will be waived until she is 21
A long-term care insurance shopper's guide must be provided in the format developed by which
of the following?
a) Director
b) Medical Information Bureau
c) NAIC
d) Office of Insurance Regulation - ANS-c) NAIC
A man is injured while robbing a convenience store. How does his major medical policy handle
the payment of his claim? - ANS-Claim is denied if his policy contains the Illegal Occupation
provision
A new insurance company wants to begin conducting insurance in Indiana. What will it need to
receive before it can legally open for business? - ANS-Certificate of Authority
A universal life insurance policy is best described as a/an - ANS-Annually Renewable Term
policy with a cash value account
All of the following apply to defined benefit plans EXCEPT
a) Benefits are based on a specified formula that incorporates years of service, salary and age
of retirement
b) The employer is responsible for providing promised retirement benefits
c) They are qualified plans and cannot discriminate
d) Contributions are tied to the company profits - ANS-d) Contributions are tied to the company
profits
All of the following are personal uses of life insurance EXCEPT:
a) Estate creation
b) Cash accumulation
c) Buy-sell agreement
d) Survivor - ANS-c) Buy-sell agreement
All of the following are true regarding a decreasing term policy EXCEPT
a) The payable premium amount steadily declines throughout the duration of the contract
b) The death benefit is $0 at the end of the policy term
c) The contract pays only in the event of death during the term and there is no cash value
, d) The face amount steadily declines throughout the duration of the contract - ANS-a) The
payable premium amount steadily declines throughout the duration of the contract
All of the following are true regarding vatical settlement regulations in Indiana EXCEPT
a) Insured are required to submit a disclosure on their medical condition and competence
b) Producers must provide the insured with the info on alternatives to a viatical settlement
c) All viatical producers must be licensed
d) Viatical contracts allow a 10-day free-look period - ANS-d) Viatical contracts allow for a
10-day free-look period
All of the following are unfair claims settlement practices EXCEPT:
a) Suggesting negotiations in settling the claim
b) Refusing to pay claims without conducting a reasonable investigation
c) Failing to adopt and implement reasonable standards for settling claims
d) Failing to acknowledge pertinent communication pertaining to a claim - ANS-a) Suggesting
negotiations in settling the claim
All of the following may be exempt from the whole or part of the Indiana licensing examination
EXCEPT
a) A candidate applying for a surplus lines producer license
b) A Chartered Life Underwriter applying for a Life license
c) A resident producer in another state under certain conditions
d) A person selling credit life and credit health insurance - ANS-a) A candidate applying for a
surplus lines producer license
All other factors being equal, what would the premium be like in a survivorship life policy as
compared to the premium in a joint life policy? - ANS-Lower
An association could buy group insurance for its members if it meets all of the following
EXCEPT:
a) Has a constitution and by laws
b) Holds annual meetings
c) Is contributory
d) Has at least 50 members - ANS-d) Has at least 50 members
An employee quits her job where she has a balance of $10,000 in her qualified plan. The
balance was paid out directly to the employee in order for her to move the funds to a new
account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from
the plan administrator and how long does she have to complete the tax-free rollover? -
ANS-$8,000, 60 days
An individual applies for a life policy. Two years ago he suffered a head injury from an accident,
so he cannot remember parts of his past, but is otherwise competent. He has also been
hospitalized for drug abuse, but does not remember this when applying for insurance. The
insurer issues the policy and learn of his history one year later. What will probably happen?
a) The policy will be voided
Review
A father owns a life insurance policy on his 15-year old daughter. The policy contains the
optional Payor Benefit rider. If the father becomes disabled, what will happen to the life
insurance premiums? - ANS-The insured's premiums will be waived until she is 21
A long-term care insurance shopper's guide must be provided in the format developed by which
of the following?
a) Director
b) Medical Information Bureau
c) NAIC
d) Office of Insurance Regulation - ANS-c) NAIC
A man is injured while robbing a convenience store. How does his major medical policy handle
the payment of his claim? - ANS-Claim is denied if his policy contains the Illegal Occupation
provision
A new insurance company wants to begin conducting insurance in Indiana. What will it need to
receive before it can legally open for business? - ANS-Certificate of Authority
A universal life insurance policy is best described as a/an - ANS-Annually Renewable Term
policy with a cash value account
All of the following apply to defined benefit plans EXCEPT
a) Benefits are based on a specified formula that incorporates years of service, salary and age
of retirement
b) The employer is responsible for providing promised retirement benefits
c) They are qualified plans and cannot discriminate
d) Contributions are tied to the company profits - ANS-d) Contributions are tied to the company
profits
All of the following are personal uses of life insurance EXCEPT:
a) Estate creation
b) Cash accumulation
c) Buy-sell agreement
d) Survivor - ANS-c) Buy-sell agreement
All of the following are true regarding a decreasing term policy EXCEPT
a) The payable premium amount steadily declines throughout the duration of the contract
b) The death benefit is $0 at the end of the policy term
c) The contract pays only in the event of death during the term and there is no cash value
, d) The face amount steadily declines throughout the duration of the contract - ANS-a) The
payable premium amount steadily declines throughout the duration of the contract
All of the following are true regarding vatical settlement regulations in Indiana EXCEPT
a) Insured are required to submit a disclosure on their medical condition and competence
b) Producers must provide the insured with the info on alternatives to a viatical settlement
c) All viatical producers must be licensed
d) Viatical contracts allow a 10-day free-look period - ANS-d) Viatical contracts allow for a
10-day free-look period
All of the following are unfair claims settlement practices EXCEPT:
a) Suggesting negotiations in settling the claim
b) Refusing to pay claims without conducting a reasonable investigation
c) Failing to adopt and implement reasonable standards for settling claims
d) Failing to acknowledge pertinent communication pertaining to a claim - ANS-a) Suggesting
negotiations in settling the claim
All of the following may be exempt from the whole or part of the Indiana licensing examination
EXCEPT
a) A candidate applying for a surplus lines producer license
b) A Chartered Life Underwriter applying for a Life license
c) A resident producer in another state under certain conditions
d) A person selling credit life and credit health insurance - ANS-a) A candidate applying for a
surplus lines producer license
All other factors being equal, what would the premium be like in a survivorship life policy as
compared to the premium in a joint life policy? - ANS-Lower
An association could buy group insurance for its members if it meets all of the following
EXCEPT:
a) Has a constitution and by laws
b) Holds annual meetings
c) Is contributory
d) Has at least 50 members - ANS-d) Has at least 50 members
An employee quits her job where she has a balance of $10,000 in her qualified plan. The
balance was paid out directly to the employee in order for her to move the funds to a new
account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from
the plan administrator and how long does she have to complete the tax-free rollover? -
ANS-$8,000, 60 days
An individual applies for a life policy. Two years ago he suffered a head injury from an accident,
so he cannot remember parts of his past, but is otherwise competent. He has also been
hospitalized for drug abuse, but does not remember this when applying for insurance. The
insurer issues the policy and learn of his history one year later. What will probably happen?
a) The policy will be voided
