Indiana Life & Health Insurance Exam Review
$1 million - ANS-Which of the following would be a typical maximum benefit offered by major
medical plans?
$100,000 - ANS-The most the Insurance Guaranty Association will pay for net cash surrender
values is
$3,000 - ANS-an insured decides to surrender his $100,000 Whole Life Policy. The premiums
paid into the policy added up to $15,000. At policy surrender, the cash surrender value was
$18,000. What part of the surrender value would be income taxable.
$8,000, 60 days - ANS-An employee quits her job where she has a balance of $10,000 in her
qualified plan. The balance was paid out directly to the employee in order for her to move the
funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will
she receive from the plan administrator and how long does she have to complete the tax-free
rollover?
1 year - ANS-What is the maximum period that an insurer would pay benefits in accordance with
an Additional Monthly Benefit rider?
10 days - ANS-An insured pays a monthly premium of $100 for her health insurance. What
would be the duration of the grace period under her policy?
100% - ANS-In a noncontributory health insurance plan, what percentage of eligible employees
must participate in the plan before the plan can become effective?
3 months - ANS-What is a standard time limit for a pre-existing condition period in an ICHIA
policy?
30 days - ANS-How many days after a final disposition must an insurance producer report
administrative action or criminal prosecution to the Director?
6 credits - ANS-To attain currently insured status under Social Security, a worker must have
earned at least how many work credits during the last 13 quarters?
6 months - ANS-How long is an open enrollment period for Medicare supplement policies?
60 days - ANS-Under the Affordable Care Act, a special enrollment period allows an individual
to enroll in a qualified health plan within how many days of a qualifying event?
, A joining together by employers to provide health benefits for employees - ANS-Which
statement best defines a Multiple Employers Welfare Arrangement (MEWA)?
a) A candidate applying for a surplus lines producer license - ANS-All of the following may be
exempt from the whole or part of the Indiana licensing examination EXCEPT
a) A candidate applying for a surplus lines producer license
b) A Chartered Life Underwriter applying for a Life license
c) A resident producer in another state under certain conditions
d) A person selling credit life and credit health insurance
a) Benefits are usually limited to six months - ANS-Which of the following statements regarding
Business Overhead Expense policies is NOT true?
a) Benefits are usually limited to six months
b) Premiums paid for BOE are tax deductible
c) Any benefits received are taxable to the business
d) Leased equipment expenses are covered by the plan
a) Suggesting negotiations in settling the claim - ANS-All of the following are unfair claims
settlement practices EXCEPT:
a) Suggesting negotiations in settling the claim
b) Refusing to pay claims without conducting a reasonable investigation
c) Failing to adopt and implement reasonable standards for settling claims
d) Failing to acknowledge pertinent communication pertaining to a claim
a) The payable premium amount steadily declines throughout the duration of the contract -
ANS-All of the following are true regarding a decreasing term policy EXCEPT
a) The payable premium amount steadily declines throughout the duration of the contract
b) The death benefit is $0 at the end of the policy term
c) The contract pays only in the event of death during the term and there is no cash value
d) The face amount steadily declines throughout the duration of the contract
Adjust the claim benefit to reflect the insured's true age - ANS-An insured misstated her age on
an application for an individual health insurance policy. The insurance company found the
mistake after the contestable period had expired. The insurance company will take which of the
following actions regarding any claim that has been issued?
Advising the insured that if the claim goes to arbitration, the insured would probably receive less
than what is currently being offered - ANS-Which of the following would be considered an unfair
claims settlement practice?
$1 million - ANS-Which of the following would be a typical maximum benefit offered by major
medical plans?
$100,000 - ANS-The most the Insurance Guaranty Association will pay for net cash surrender
values is
$3,000 - ANS-an insured decides to surrender his $100,000 Whole Life Policy. The premiums
paid into the policy added up to $15,000. At policy surrender, the cash surrender value was
$18,000. What part of the surrender value would be income taxable.
$8,000, 60 days - ANS-An employee quits her job where she has a balance of $10,000 in her
qualified plan. The balance was paid out directly to the employee in order for her to move the
funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will
she receive from the plan administrator and how long does she have to complete the tax-free
rollover?
1 year - ANS-What is the maximum period that an insurer would pay benefits in accordance with
an Additional Monthly Benefit rider?
10 days - ANS-An insured pays a monthly premium of $100 for her health insurance. What
would be the duration of the grace period under her policy?
100% - ANS-In a noncontributory health insurance plan, what percentage of eligible employees
must participate in the plan before the plan can become effective?
3 months - ANS-What is a standard time limit for a pre-existing condition period in an ICHIA
policy?
30 days - ANS-How many days after a final disposition must an insurance producer report
administrative action or criminal prosecution to the Director?
6 credits - ANS-To attain currently insured status under Social Security, a worker must have
earned at least how many work credits during the last 13 quarters?
6 months - ANS-How long is an open enrollment period for Medicare supplement policies?
60 days - ANS-Under the Affordable Care Act, a special enrollment period allows an individual
to enroll in a qualified health plan within how many days of a qualifying event?
, A joining together by employers to provide health benefits for employees - ANS-Which
statement best defines a Multiple Employers Welfare Arrangement (MEWA)?
a) A candidate applying for a surplus lines producer license - ANS-All of the following may be
exempt from the whole or part of the Indiana licensing examination EXCEPT
a) A candidate applying for a surplus lines producer license
b) A Chartered Life Underwriter applying for a Life license
c) A resident producer in another state under certain conditions
d) A person selling credit life and credit health insurance
a) Benefits are usually limited to six months - ANS-Which of the following statements regarding
Business Overhead Expense policies is NOT true?
a) Benefits are usually limited to six months
b) Premiums paid for BOE are tax deductible
c) Any benefits received are taxable to the business
d) Leased equipment expenses are covered by the plan
a) Suggesting negotiations in settling the claim - ANS-All of the following are unfair claims
settlement practices EXCEPT:
a) Suggesting negotiations in settling the claim
b) Refusing to pay claims without conducting a reasonable investigation
c) Failing to adopt and implement reasonable standards for settling claims
d) Failing to acknowledge pertinent communication pertaining to a claim
a) The payable premium amount steadily declines throughout the duration of the contract -
ANS-All of the following are true regarding a decreasing term policy EXCEPT
a) The payable premium amount steadily declines throughout the duration of the contract
b) The death benefit is $0 at the end of the policy term
c) The contract pays only in the event of death during the term and there is no cash value
d) The face amount steadily declines throughout the duration of the contract
Adjust the claim benefit to reflect the insured's true age - ANS-An insured misstated her age on
an application for an individual health insurance policy. The insurance company found the
mistake after the contestable period had expired. The insurance company will take which of the
following actions regarding any claim that has been issued?
Advising the insured that if the claim goes to arbitration, the insured would probably receive less
than what is currently being offered - ANS-Which of the following would be considered an unfair
claims settlement practice?
