INDIANA LIFE AND HEALTH INSURANCE EXAM
– QUESTIONS AND VERIFIED ANSWERS || 100%
GUARANTEED PASS <RECENT VERSION>
1. What is the primary purpose of insurance?
A. To guarantee a profit for the policyholder
B. To transfer the risk of financial loss from an individual to a group
C. To serve as a high-yield investment vehicle
D. To eliminate the chance of loss occurring
Answer: B. To transfer the risk of financial loss from an individual
to a group
2. In an insurance contract, what is the term for the person or entity
who receives the policy benefits?
A. Insured
B. Beneficiary
C. Owner
D. Producer
Answer: B. Beneficiary
3. What is the fundamental principle that prevents an insured from
profiting from a loss?
A. Adhesion
B. Indemnity
C. Waiver
D. Consideration
Answer: B. Indemnity
4. A statement in an insurance application that is untrue and, if
known by the insurer, would have caused them to reject the
application, is called:
A. A warranty
,B. A representation
C. A concealment
D. A misrepresentation
Answer: D. A misrepresentation
5. What is the term for the cause of a potential loss (e.g., fire,
accident, illness)?
A. Hazard
B. Peril
C. Risk
D. Liability
Answer: B. Peril
6. An agent who acts with apparent authority binds the:
A. Insured only
B. Agent only
C. Insurance company
D. State insurance department
Answer: C. Insurance company
7. What is the legal term for the price of an insurance policy?
A. Dividend
B. Premium
C. Consideration
D. Claim
Answer: B. Premium
8. A policy that pays a stated amount regardless of the actual
financial loss is known as:
A. An indemnity policy
B. A valued policy
C. A liability policy
, D. A coinsurance policy
Answer: B. A valued policy
9. The part of a life insurance policy that states the amount payable
upon the death of the insured is the:
A. Face amount
B. Cash value
C. Premium
D. Dividend
Answer: A. Face amount
10. What type of life insurance provides permanent protection with
level premiums and cash value?
A. Term Life
B. Whole Life
C. Group Life
D. Credit Life
Answer: B. Whole Life
11. A life insurance policy that combines term insurance with an
investment component is called:
A. Universal Life
B. Joint Life
C. Modified Life
D. Graded Premium Life
Answer: A. Universal Life
12. What is the "free look" period for a new life insurance policy in
Indiana?
A. 10 days
B. 20 days
C. 30 days
– QUESTIONS AND VERIFIED ANSWERS || 100%
GUARANTEED PASS <RECENT VERSION>
1. What is the primary purpose of insurance?
A. To guarantee a profit for the policyholder
B. To transfer the risk of financial loss from an individual to a group
C. To serve as a high-yield investment vehicle
D. To eliminate the chance of loss occurring
Answer: B. To transfer the risk of financial loss from an individual
to a group
2. In an insurance contract, what is the term for the person or entity
who receives the policy benefits?
A. Insured
B. Beneficiary
C. Owner
D. Producer
Answer: B. Beneficiary
3. What is the fundamental principle that prevents an insured from
profiting from a loss?
A. Adhesion
B. Indemnity
C. Waiver
D. Consideration
Answer: B. Indemnity
4. A statement in an insurance application that is untrue and, if
known by the insurer, would have caused them to reject the
application, is called:
A. A warranty
,B. A representation
C. A concealment
D. A misrepresentation
Answer: D. A misrepresentation
5. What is the term for the cause of a potential loss (e.g., fire,
accident, illness)?
A. Hazard
B. Peril
C. Risk
D. Liability
Answer: B. Peril
6. An agent who acts with apparent authority binds the:
A. Insured only
B. Agent only
C. Insurance company
D. State insurance department
Answer: C. Insurance company
7. What is the legal term for the price of an insurance policy?
A. Dividend
B. Premium
C. Consideration
D. Claim
Answer: B. Premium
8. A policy that pays a stated amount regardless of the actual
financial loss is known as:
A. An indemnity policy
B. A valued policy
C. A liability policy
, D. A coinsurance policy
Answer: B. A valued policy
9. The part of a life insurance policy that states the amount payable
upon the death of the insured is the:
A. Face amount
B. Cash value
C. Premium
D. Dividend
Answer: A. Face amount
10. What type of life insurance provides permanent protection with
level premiums and cash value?
A. Term Life
B. Whole Life
C. Group Life
D. Credit Life
Answer: B. Whole Life
11. A life insurance policy that combines term insurance with an
investment component is called:
A. Universal Life
B. Joint Life
C. Modified Life
D. Graded Premium Life
Answer: A. Universal Life
12. What is the "free look" period for a new life insurance policy in
Indiana?
A. 10 days
B. 20 days
C. 30 days
