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INDIANA LIFE AND HEALTH INSURANCE
EXAM 2025 UPDATED ACTUAL EXAM WITH
CORRECT SOLUTIONS.
The insured and Insurance company will share the cost of
covered losses under which health policy feature? - correct
answer- Payment of Claims provision
XYZ Corp was issued a group Health policy for its employees.
Under this plan a: - correct answer- Policy must be issued to
XYZ, and a certificate must be issued to each employee
Bryce purchased a disability income policy with a rider that
guarantees him the option of purchasing additional amounts of
coverage at predetermined times without requiring to provide
evidence of insurability. What kind of rider is this? - correct
answer- Guaranteed insurability rider
An employer that offers a qualified retirement plan to its
employees is eligible to: - correct answer- make tax-deductible
contributions to the plan
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A policyowner's rights are limited under which beneficiary
designation? - correct answer- Irrevocable
The Notice of Claims provision requires a policyowner to: -
correct answer- Notify an insurer of a claim within a specified
time
An underwriter determines that a life insurance applicant's risk
should be reclassified due to a health issue. This policy may be
issued with a(n): - correct answer- Extra premium
P's individual health policy is now in the Grace Period. P's
coverage will remain in force if: - correct answer- the premium
is paid
In health insurance policies, a waiver of premium keeps the
coverage in force without premium payments: - correct answer-
After an insured has become totally disabled as defined in the
policy
T has an annuity that guarantees an income payment for the
rest of his life. The contract also guarantees that if T dies before
receiving payments for 20 years, the remaining payments will
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be paid to his son for the balance of the 20 years. What type of
annuity is this? - correct answer- Life annuity with period certain
Dividends payable to a policyowner are - correct answer-
declared by the insurance company
A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a: -
correct answer- risk retention group
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - correct answer-
Treaty
Who elects the governing body of a mutual insurance
company? - correct answer- policyholders
An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the -
correct answer- Fair Credit Reporting Act
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At what point must a life insurance applicant be informed of
their rights that fall under the Fair Credit Reporting Act? -
correct answer- Upon completion of the application
When a policy pays dividends to its policyholders, it is said to
be - correct answer- participating
The stated amount or percent of liquid assets that an insurer
must have on hand that will satisfy future obligations to its
policyholders is called - correct answer- Reserves
Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated: -
correct answer- 1970- Fair credit reporting act
What year was the McCarran-Ferguson Act enacted? - correct
answer- 1945
Which of these describe a participating insurance policy? -
correct answer- Policyowners are entitled to receive dividends
INDIANA LIFE AND HEALTH INSURANCE
EXAM 2025 UPDATED ACTUAL EXAM WITH
CORRECT SOLUTIONS.
The insured and Insurance company will share the cost of
covered losses under which health policy feature? - correct
answer- Payment of Claims provision
XYZ Corp was issued a group Health policy for its employees.
Under this plan a: - correct answer- Policy must be issued to
XYZ, and a certificate must be issued to each employee
Bryce purchased a disability income policy with a rider that
guarantees him the option of purchasing additional amounts of
coverage at predetermined times without requiring to provide
evidence of insurability. What kind of rider is this? - correct
answer- Guaranteed insurability rider
An employer that offers a qualified retirement plan to its
employees is eligible to: - correct answer- make tax-deductible
contributions to the plan
,2 | Page
A policyowner's rights are limited under which beneficiary
designation? - correct answer- Irrevocable
The Notice of Claims provision requires a policyowner to: -
correct answer- Notify an insurer of a claim within a specified
time
An underwriter determines that a life insurance applicant's risk
should be reclassified due to a health issue. This policy may be
issued with a(n): - correct answer- Extra premium
P's individual health policy is now in the Grace Period. P's
coverage will remain in force if: - correct answer- the premium
is paid
In health insurance policies, a waiver of premium keeps the
coverage in force without premium payments: - correct answer-
After an insured has become totally disabled as defined in the
policy
T has an annuity that guarantees an income payment for the
rest of his life. The contract also guarantees that if T dies before
receiving payments for 20 years, the remaining payments will
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be paid to his son for the balance of the 20 years. What type of
annuity is this? - correct answer- Life annuity with period certain
Dividends payable to a policyowner are - correct answer-
declared by the insurance company
A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a: -
correct answer- risk retention group
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - correct answer-
Treaty
Who elects the governing body of a mutual insurance
company? - correct answer- policyholders
An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the -
correct answer- Fair Credit Reporting Act
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At what point must a life insurance applicant be informed of
their rights that fall under the Fair Credit Reporting Act? -
correct answer- Upon completion of the application
When a policy pays dividends to its policyholders, it is said to
be - correct answer- participating
The stated amount or percent of liquid assets that an insurer
must have on hand that will satisfy future obligations to its
policyholders is called - correct answer- Reserves
Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated: -
correct answer- 1970- Fair credit reporting act
What year was the McCarran-Ferguson Act enacted? - correct
answer- 1945
Which of these describe a participating insurance policy? -
correct answer- Policyowners are entitled to receive dividends
