INDIANA LIFE AND HEALTH INSURANCE
FINAL EXAM (XCEL TESTING SOLUTIONS)
QUESTIONS WITH COMPLETE ANSWERS
Which of these is NOT considered to be a violation of the Unfair Competition Law in
Indiana?
monopolize or restrain trade
making unsubstantiated criticisms about an insurance company
pay insurance commissions to an unlicensed individual
paying a finder's fee to an individual who provides a sales lead - Answer-paying a
finder's fee to an individual who provides a sales lead
A viatical settlement agent, according to the Indiana Department of Insurance, is
an individual who finances a viatical settlement contract
an individual who regulates the statute compliance of a viatical settlement contract
an individual who negotiates a viatical settlement contract with a viator
an individual who purchases a life insurance contract from a terminally ill person -
Answer-an individual who negotiates a viatical settlement contract with a viator
How many days must an insured notify the insurer of a claim under the Notice of Claim
provision?
10 days
20 days
30 days
45 days - Answer-20 days
What is required for a business entity to be licensed in Indiana as a Producer?
Get special approval from the Commissioner
A licensed Consultant must be designated as responsible for compliance
A licensed Producer must be designated as responsible for compliance
Only Producers may work for the business entity - Answer-A licensed Producer must
be designated as responsible for compliance
Which of the following is a requirement for a risk to be considered insurable?
Catastrophic
Speculative
Chance of both a loss and gain
Predictability of loss - Answer-Predictability of loss
An insurance company has how many days to deliver claim forms to an insured after
the insured gives Notice of Claim?
10 days
15 days
, 20 days
30 days - Answer-15 days
The insurance company that shares profits or losses with its investors is called a
mutual company
admitted company
domestic company
stock company - Answer-stock company
Which statement is NOT true about Individual Medical Expense policies sold in Indiana?
The maximum Incontestable Clause is two years
The Grace Period offered is based on the frequency of premium payments
They must contain a provision which guarantees reinstatement
They must contain a Free Look provision - Answer-They must contain a provision
which guarantees reinstatement
Which of the following statements BEST describes an impairment rider for a Medical
Expense policy?
Pays additional benefits for impairments
Specific health conditions are excluded
Specific health conditions are covered by a reinsurer
Dependents with an impairment are included - Answer-Specific health conditions are
excluded
What kind of insurance license is recommended for those individuals who would like to
sell pre-need Life Insurance for a funeral home?
Producer
Consultant
Limited Lines
Surplus Lines - Answer-Limited Lines
The Fair Credit Reporting Act is intended to give
assistance to insurers when underwriting insurance applications
consumers the right to protect their own credit information
access to consumer's medical information
assistance to insurers when handling claims - Answer-consumers the right to protect
their own credit information
Under the Uniform Individual Policy Health Provisions law, the Legal Action provision
states how much time an insured has to
sue the insurer
be sued by the insurer
file written proof of loss
hire a lawyer to handle a lawsuit - Answer-sue the insurer
Indiana's Long Term Care Partnership Program requires a Producer to have
FINAL EXAM (XCEL TESTING SOLUTIONS)
QUESTIONS WITH COMPLETE ANSWERS
Which of these is NOT considered to be a violation of the Unfair Competition Law in
Indiana?
monopolize or restrain trade
making unsubstantiated criticisms about an insurance company
pay insurance commissions to an unlicensed individual
paying a finder's fee to an individual who provides a sales lead - Answer-paying a
finder's fee to an individual who provides a sales lead
A viatical settlement agent, according to the Indiana Department of Insurance, is
an individual who finances a viatical settlement contract
an individual who regulates the statute compliance of a viatical settlement contract
an individual who negotiates a viatical settlement contract with a viator
an individual who purchases a life insurance contract from a terminally ill person -
Answer-an individual who negotiates a viatical settlement contract with a viator
How many days must an insured notify the insurer of a claim under the Notice of Claim
provision?
10 days
20 days
30 days
45 days - Answer-20 days
What is required for a business entity to be licensed in Indiana as a Producer?
Get special approval from the Commissioner
A licensed Consultant must be designated as responsible for compliance
A licensed Producer must be designated as responsible for compliance
Only Producers may work for the business entity - Answer-A licensed Producer must
be designated as responsible for compliance
Which of the following is a requirement for a risk to be considered insurable?
Catastrophic
Speculative
Chance of both a loss and gain
Predictability of loss - Answer-Predictability of loss
An insurance company has how many days to deliver claim forms to an insured after
the insured gives Notice of Claim?
10 days
15 days
, 20 days
30 days - Answer-15 days
The insurance company that shares profits or losses with its investors is called a
mutual company
admitted company
domestic company
stock company - Answer-stock company
Which statement is NOT true about Individual Medical Expense policies sold in Indiana?
The maximum Incontestable Clause is two years
The Grace Period offered is based on the frequency of premium payments
They must contain a provision which guarantees reinstatement
They must contain a Free Look provision - Answer-They must contain a provision
which guarantees reinstatement
Which of the following statements BEST describes an impairment rider for a Medical
Expense policy?
Pays additional benefits for impairments
Specific health conditions are excluded
Specific health conditions are covered by a reinsurer
Dependents with an impairment are included - Answer-Specific health conditions are
excluded
What kind of insurance license is recommended for those individuals who would like to
sell pre-need Life Insurance for a funeral home?
Producer
Consultant
Limited Lines
Surplus Lines - Answer-Limited Lines
The Fair Credit Reporting Act is intended to give
assistance to insurers when underwriting insurance applications
consumers the right to protect their own credit information
access to consumer's medical information
assistance to insurers when handling claims - Answer-consumers the right to protect
their own credit information
Under the Uniform Individual Policy Health Provisions law, the Legal Action provision
states how much time an insured has to
sue the insurer
be sued by the insurer
file written proof of loss
hire a lawyer to handle a lawsuit - Answer-sue the insurer
Indiana's Long Term Care Partnership Program requires a Producer to have
