Indiana Life Insurance Exam
Indiana Life Insurance Exam Questions
Containing 198 Terms with Correct
Solutions Update 2024.
Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value
should the annuitant die during the accumulation period.
, Indiana Life Insurance Exam
D. It provides for a tax-free death benefit. - Answer: D. It provides for a
tax-free death benefit.
All of the following policies provide for the tax deferred accumulation of
cash value EXCEPT:
A. Interest Sensitive Whole Life
B. Single Premium Variable Annuity
C. Variable Universal Life
D. Term Life - Answer: D. Term Life
All of the following are true statements about the taxation of life
insurance benefits except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as
ordinary income.
D. The death benefit of a life policy is received by the beneficiary federal
income tax free. - Answer: A. Policy loans are taxed as ordinary income
, Indiana Life Insurance Exam
Which of the following statements is true about the Group Life
conversion privilege?
a. Death during the conversion period is covered even if the departing
employee chooses NOT to convert to an individual policy.
b. The departing employee must pay the premium if they elect to be
covered during the conversion period.
c. If a departing employee elects to convert their life insurance, the
company must offer Term insurance as a choice.
d. Under the COBRA laws a departing employee may elect to remain a
member of the Group Life plan for a limited period of time. - Answer: A.
Death during the conversion period is covered even if the departing
employee chooses NOT to convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole
Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - Answer: A. Family Income Policy
, Indiana Life Insurance Exam
A type of Annuity in which the cash values are invested in securities is
called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible premium - Answer: Variable
Mary is receiving an annuity payout from her Variable Straight Life
Annuity. Upon her death, which of the following will be payable to her
estate?
a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to
Mary in benefits - Answer: A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
Indiana Life Insurance Exam Questions
Containing 198 Terms with Correct
Solutions Update 2024.
Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value
should the annuitant die during the accumulation period.
, Indiana Life Insurance Exam
D. It provides for a tax-free death benefit. - Answer: D. It provides for a
tax-free death benefit.
All of the following policies provide for the tax deferred accumulation of
cash value EXCEPT:
A. Interest Sensitive Whole Life
B. Single Premium Variable Annuity
C. Variable Universal Life
D. Term Life - Answer: D. Term Life
All of the following are true statements about the taxation of life
insurance benefits except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as
ordinary income.
D. The death benefit of a life policy is received by the beneficiary federal
income tax free. - Answer: A. Policy loans are taxed as ordinary income
, Indiana Life Insurance Exam
Which of the following statements is true about the Group Life
conversion privilege?
a. Death during the conversion period is covered even if the departing
employee chooses NOT to convert to an individual policy.
b. The departing employee must pay the premium if they elect to be
covered during the conversion period.
c. If a departing employee elects to convert their life insurance, the
company must offer Term insurance as a choice.
d. Under the COBRA laws a departing employee may elect to remain a
member of the Group Life plan for a limited period of time. - Answer: A.
Death during the conversion period is covered even if the departing
employee chooses NOT to convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole
Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - Answer: A. Family Income Policy
, Indiana Life Insurance Exam
A type of Annuity in which the cash values are invested in securities is
called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible premium - Answer: Variable
Mary is receiving an annuity payout from her Variable Straight Life
Annuity. Upon her death, which of the following will be payable to her
estate?
a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to
Mary in benefits - Answer: A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
