INDIANA LIFE AND HEALTH
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
The insured and Insurance company will share the cost of covered losses under which health
policy feature? - ANS Payment of Claims provision
XYZ Corp was issued a group Health policy for its employees. Under this plan a: - ANS 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? - ANS Guaranteed insurability
rider
An employer that offers a qualified retirement plan to its employees is eligible to: -
ANS make tax-deductible contributions to the plan
A policyowner's rights are limited under which beneficiary designation? - ANS Irrevocable
The Notice of Claims provision requires a policyowner to: - ANS 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): - ANS Extra premium
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,P's individual health policy is now in the Grace Period. P's coverage will remain in force if: -
ANS the premium is paid
In health insurance policies, a waiver of premium keeps the coverage in force without premium
payments: - ANS 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
be paid to his son for the balance of the 20 years. What type of annuity is this? - ANS Life
annuity with period certain
Dividends payable to a policyowner are - ANS 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: - ANS risk retention group
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - ANS Treaty
Who elects the governing body of a mutual insurance company? - ANS policyholders
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the - ANS Fair Credit Reporting Act
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - ANS Upon completion of the application
When a policy pays dividends to its policyholders, it is said to be - ANS 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 - ANS Reserves
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, Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated: - ANS 1970- Fair credit reporting act
What year was the McCarran-Ferguson Act enacted? - ANS 1945
Which of these describe a participating insurance policy? - ANS Policyowners are entitled to
receive dividends
A nonprofit incorporated society that does not have capital stock and operates for the sole
benefit of its members is known as: - ANS A fraternal benefit society
What is the name of the law that requires insurers to disclose information gathering practices
and where the information was obtained? - ANS Fair Credit Reporting Act
The probability of loss becoming more predictable is attributed to: - ANS Law of Large
Numbers
Which of the following is a requirement for a risk to be considered insurable? -
ANS Predictability of loss
The Law of Large Numbers involves a: - ANS Large group of homgeneous units
The cause of a loss is referred to as a - ANS Peril
All of the following are examples of pure risk EXCEPT - ANS Losing money at a casino
Insurance companies determine risk exposure by which of the following? - ANS Law of large
numbers and risk pooling
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 3
INSURANCE EXAM 2025 QUESTIONS
AND ANSWERS
The insured and Insurance company will share the cost of covered losses under which health
policy feature? - ANS Payment of Claims provision
XYZ Corp was issued a group Health policy for its employees. Under this plan a: - ANS 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? - ANS Guaranteed insurability
rider
An employer that offers a qualified retirement plan to its employees is eligible to: -
ANS make tax-deductible contributions to the plan
A policyowner's rights are limited under which beneficiary designation? - ANS Irrevocable
The Notice of Claims provision requires a policyowner to: - ANS 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): - ANS Extra premium
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 1
,P's individual health policy is now in the Grace Period. P's coverage will remain in force if: -
ANS the premium is paid
In health insurance policies, a waiver of premium keeps the coverage in force without premium
payments: - ANS 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
be paid to his son for the balance of the 20 years. What type of annuity is this? - ANS Life
annuity with period certain
Dividends payable to a policyowner are - ANS 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: - ANS risk retention group
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - ANS Treaty
Who elects the governing body of a mutual insurance company? - ANS policyholders
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the - ANS Fair Credit Reporting Act
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - ANS Upon completion of the application
When a policy pays dividends to its policyholders, it is said to be - ANS 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 - ANS Reserves
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 2
, Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated: - ANS 1970- Fair credit reporting act
What year was the McCarran-Ferguson Act enacted? - ANS 1945
Which of these describe a participating insurance policy? - ANS Policyowners are entitled to
receive dividends
A nonprofit incorporated society that does not have capital stock and operates for the sole
benefit of its members is known as: - ANS A fraternal benefit society
What is the name of the law that requires insurers to disclose information gathering practices
and where the information was obtained? - ANS Fair Credit Reporting Act
The probability of loss becoming more predictable is attributed to: - ANS Law of Large
Numbers
Which of the following is a requirement for a risk to be considered insurable? -
ANS Predictability of loss
The Law of Large Numbers involves a: - ANS Large group of homgeneous units
The cause of a loss is referred to as a - ANS Peril
All of the following are examples of pure risk EXCEPT - ANS Losing money at a casino
Insurance companies determine risk exposure by which of the following? - ANS Law of large
numbers and risk pooling
COPYRIGHT © 2025 FYNDLAY ALL RIGHTS RESERVED 3
