Indiana Life & Health Insurance Exam
2025/2026 Exam Questions and Verified
Answers | Already Graded A+
Participating Insurance Policy - 🧠ANSWER ✔✔may pay dividends to the
policyowner
Material Misrepresentation - 🧠ANSWER ✔✔misstatement to a question asked in
the application process; death benefit claim will likely be denied
Law of Large Numbers - 🧠ANSWER ✔✔the larger a group becomes, the easier it
is to predict losses; used to predict certain types of losses and set appropriate
premiums
Substandard Risk - 🧠ANSWER ✔✔results in higher premium
Standard Risk - 🧠ANSWER ✔✔results in standard premium
Preferred Risk - 🧠ANSWER ✔✔results in lower premium
,Expense Loading - 🧠ANSWER ✔✔combined with premiums to spread the
operating costs of a business to all insureds
Net Premium - 🧠ANSWER ✔✔premiums without expense loading
Concealment - 🧠ANSWER ✔✔occurs when a person withholds a material fact that
is crucial to making a decision; in insurance, this involves withholding information
that would be crucial to underwriting decisions
Warranty - 🧠ANSWER ✔✔a statement guaranteed to be true
Representation - 🧠ANSWER ✔✔a statement true to the best of an applicant's
knowledge
3 Basic Types of Term Life Insurance - 🧠ANSWER ✔✔level, increasing, and
decreasing
Level Term - 🧠ANSWER ✔✔death benefit doesn't change throughout the life of
the policy
Annually Renewable Term (ART) - 🧠ANSWER ✔✔premium increases annually
according to attained age; policy may be guaranteed to be renewable each without
proof of insurability
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
, Re-entry Option - 🧠ANSWER ✔✔the insured, upon the end of a term policy with
guaranteed renewable option, may qualify for a discounted premium rate with
proof of insurability
Decreasing Term - 🧠ANSWER ✔✔death benefit decreases each year over duration
of the policy term; typically used when the amount of needed protection is time
sensitive, or decreases over time
Increasing Term - 🧠ANSWER ✔✔death benefit increases each year over duration
of the policy term (usually by specific amount or percentage of original amount);
often used by insurance companies to fund certain riders that provide a refund of
premiums of a gradual increase in total coverage, such as the cost of living or
return of premium riders
Convertible Term - 🧠ANSWER ✔✔provides the policy owner with the right to
convert the policy to a permanent insurance policy without evidence of
insurability; premium will be based on the insured's attained age at the time of
conversion
Continuous Premium (Straight Life or Ordinary Life) - 🧠ANSWER ✔✔basic
whole life policy; will typically have the lowest annual premium
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
2025/2026 Exam Questions and Verified
Answers | Already Graded A+
Participating Insurance Policy - 🧠ANSWER ✔✔may pay dividends to the
policyowner
Material Misrepresentation - 🧠ANSWER ✔✔misstatement to a question asked in
the application process; death benefit claim will likely be denied
Law of Large Numbers - 🧠ANSWER ✔✔the larger a group becomes, the easier it
is to predict losses; used to predict certain types of losses and set appropriate
premiums
Substandard Risk - 🧠ANSWER ✔✔results in higher premium
Standard Risk - 🧠ANSWER ✔✔results in standard premium
Preferred Risk - 🧠ANSWER ✔✔results in lower premium
,Expense Loading - 🧠ANSWER ✔✔combined with premiums to spread the
operating costs of a business to all insureds
Net Premium - 🧠ANSWER ✔✔premiums without expense loading
Concealment - 🧠ANSWER ✔✔occurs when a person withholds a material fact that
is crucial to making a decision; in insurance, this involves withholding information
that would be crucial to underwriting decisions
Warranty - 🧠ANSWER ✔✔a statement guaranteed to be true
Representation - 🧠ANSWER ✔✔a statement true to the best of an applicant's
knowledge
3 Basic Types of Term Life Insurance - 🧠ANSWER ✔✔level, increasing, and
decreasing
Level Term - 🧠ANSWER ✔✔death benefit doesn't change throughout the life of
the policy
Annually Renewable Term (ART) - 🧠ANSWER ✔✔premium increases annually
according to attained age; policy may be guaranteed to be renewable each without
proof of insurability
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
, Re-entry Option - 🧠ANSWER ✔✔the insured, upon the end of a term policy with
guaranteed renewable option, may qualify for a discounted premium rate with
proof of insurability
Decreasing Term - 🧠ANSWER ✔✔death benefit decreases each year over duration
of the policy term; typically used when the amount of needed protection is time
sensitive, or decreases over time
Increasing Term - 🧠ANSWER ✔✔death benefit increases each year over duration
of the policy term (usually by specific amount or percentage of original amount);
often used by insurance companies to fund certain riders that provide a refund of
premiums of a gradual increase in total coverage, such as the cost of living or
return of premium riders
Convertible Term - 🧠ANSWER ✔✔provides the policy owner with the right to
convert the policy to a permanent insurance policy without evidence of
insurability; premium will be based on the insured's attained age at the time of
conversion
Continuous Premium (Straight Life or Ordinary Life) - 🧠ANSWER ✔✔basic
whole life policy; will typically have the lowest annual premium
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
