Life and health insurance state exam
___ of personal life insurance premiums is usually deductible for federal income tax purposes -
ANS-0%
"A producer does not have the authority to change a policy or waive any of its provisions ". The
health provision that best describes this statement is called the - ANS-Entire Contract
A $20,000 life insurance policy application is completed, however the producer does not collect
the initial premium. At what point does the coverage go into effect? - ANS-When the applicant
receives the policy and pays the initial premium
A business overhead expense policy would cover which of the following if a business owner
becomes disabled? - ANS-Utilities and office rent
a contact owner terminates an annuity before the income payment period begins. The owner will
then receive - ANS-the current contract surrender value
A Cost of Living rider gives the insured - ANS-additional death benefits
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
A life insurance application must be signed by all of these EXCEPT: - ANS-beneficiary
A life insurance arrangement which circumvents insurable interest statutes is called: -
ANS-Investor-Originated Life Insurance
A life policy loan in Indiana cannot charge a fixed rate of interest higher than: - ANS-8%
A non-contributory plan requires ____ participation of all eligible employees. - ANS-100%
A policy of adhesion can only be modified by whom? - ANS-The insurance company
A policy owners rights are limited under which beneficiary designation? - ANS-Irrevocable
A policy-owner is able to choose the frequency of premium payments through what policy
feature? - ANS-Premium mode
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash
value at a faster rate in the early years of the policy. Which of these statements made by the
producer would be correct? - ANS-20-Pay Life accumulates cash value faster than Straight Life
, A prospective insured completes and signs an application for health insurance but intentionally
conceals information about pre-existing heart condition. while processing the claim, the
company discovers the pre-existing condition. In this situation the company will, - ANS-Continue
coverage but exclude the heart condition
A term life rider offers the insured what? - ANS-Additional life coverage
A variable insurance policy - ANS-does not guarantee a return on its investment accounts
All of these are powers of the commissioner EXCEPT: - ANS-incarcerate a producer
All of these statements concerning individual Medical expense policies sold in Indiana are true,
EXCEPT - ANS-A provision must be contained that guarantees reinstatement
An example of an unfair claims settlement practice would be : - ANS-misrepresenting insurance
policy provisions affecting a loss
An example of rebating would be : - ANS-returning a portion of a premium as inducement to
purchase insurance
An insured pays premiums on an annual basis for an individual health insurance policy. what is
the MINIMUM number of days for a grace period provision? - ANS-31
An_____ sells insurance advice for a fee - ANS-Consultant
As a condition for a loan, a bank required the borrower to purchase credit insurance from a
specific company. What is the bank guilty of ? - ANS-coercion
at minimum, long term care policies in Indiana must contain - ANS-a 30-day free look period
At the very least, an admitted insurance company shall be examined once every _____ years -
ANS-5
Basic Hospital and Surgical policy benefits are - ANS-lower than the actual expenses incurred
C is trying to determine whether to convert her convertible term life policy to whole life insurance
using her original age or attained age. What factor would affect her decision the most? -
ANS-the cost
Credit life insurance is - ANS-issued in an amount not to exceed the amount of the loan
Defamation occurs when a producer makes a false statement intended to - ANS-malign another
insurer
___ of personal life insurance premiums is usually deductible for federal income tax purposes -
ANS-0%
"A producer does not have the authority to change a policy or waive any of its provisions ". The
health provision that best describes this statement is called the - ANS-Entire Contract
A $20,000 life insurance policy application is completed, however the producer does not collect
the initial premium. At what point does the coverage go into effect? - ANS-When the applicant
receives the policy and pays the initial premium
A business overhead expense policy would cover which of the following if a business owner
becomes disabled? - ANS-Utilities and office rent
a contact owner terminates an annuity before the income payment period begins. The owner will
then receive - ANS-the current contract surrender value
A Cost of Living rider gives the insured - ANS-additional death benefits
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
A life insurance application must be signed by all of these EXCEPT: - ANS-beneficiary
A life insurance arrangement which circumvents insurable interest statutes is called: -
ANS-Investor-Originated Life Insurance
A life policy loan in Indiana cannot charge a fixed rate of interest higher than: - ANS-8%
A non-contributory plan requires ____ participation of all eligible employees. - ANS-100%
A policy of adhesion can only be modified by whom? - ANS-The insurance company
A policy owners rights are limited under which beneficiary designation? - ANS-Irrevocable
A policy-owner is able to choose the frequency of premium payments through what policy
feature? - ANS-Premium mode
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash
value at a faster rate in the early years of the policy. Which of these statements made by the
producer would be correct? - ANS-20-Pay Life accumulates cash value faster than Straight Life
, A prospective insured completes and signs an application for health insurance but intentionally
conceals information about pre-existing heart condition. while processing the claim, the
company discovers the pre-existing condition. In this situation the company will, - ANS-Continue
coverage but exclude the heart condition
A term life rider offers the insured what? - ANS-Additional life coverage
A variable insurance policy - ANS-does not guarantee a return on its investment accounts
All of these are powers of the commissioner EXCEPT: - ANS-incarcerate a producer
All of these statements concerning individual Medical expense policies sold in Indiana are true,
EXCEPT - ANS-A provision must be contained that guarantees reinstatement
An example of an unfair claims settlement practice would be : - ANS-misrepresenting insurance
policy provisions affecting a loss
An example of rebating would be : - ANS-returning a portion of a premium as inducement to
purchase insurance
An insured pays premiums on an annual basis for an individual health insurance policy. what is
the MINIMUM number of days for a grace period provision? - ANS-31
An_____ sells insurance advice for a fee - ANS-Consultant
As a condition for a loan, a bank required the borrower to purchase credit insurance from a
specific company. What is the bank guilty of ? - ANS-coercion
at minimum, long term care policies in Indiana must contain - ANS-a 30-day free look period
At the very least, an admitted insurance company shall be examined once every _____ years -
ANS-5
Basic Hospital and Surgical policy benefits are - ANS-lower than the actual expenses incurred
C is trying to determine whether to convert her convertible term life policy to whole life insurance
using her original age or attained age. What factor would affect her decision the most? -
ANS-the cost
Credit life insurance is - ANS-issued in an amount not to exceed the amount of the loan
Defamation occurs when a producer makes a false statement intended to - ANS-malign another
insurer
