Indiana Life & Health Insurance Exam Complete questions with correct answers

Indiana Life & Health Insurance Exam Complete
questions with correct answers

QUESTION>Life with Guaranteed Minimum (Annuity) - ANSWER ~if annuitant dies before the principal
amount has been paid out, remainder of principal amount will be refunded to the beneficiary; also called
refund life; guarantees that the entire principle amount will be paid out



QUESTION>Life with Period Certain - ANSWER ~annuity payments are guaranteed for the lifetime of the
annuitant and for a specified period time for the beneficiary



QUESTION>Installment Refund (Annuity) - ANSWER ~when annuitant dies, beneficiary will continue to
receive guaranteed installments until the entire principal amount has been paid out



QUESTION>Cash Refund (Annuity) - ANSWER ~when annuitant dies, the annuitant's beneficiary receives
a refund of the principal, or the original amount paid into the annuity minus benefit payments already
made to the annuitant; guarantees the return of the amount to purchase the annuity but it does not
guarantee to pay any interest; only difference between cash refund and installment refund is that cash
refund is a lump-sum payment



QUESTION>Fixed-Period Installments - ANSWER ~annuitant selects the time period for the benefits, and
insurer determines how much each payment will be, based on the value of the account and future
earnings projections; pays for a specified amount of time only, whether or not the annuitant is living



QUESTION >Participating Insurance Policy - ANSWER ~may pay dividends to the policyowner



QUESTION>Material Misrepresentation - ANSWER ~misstatement to a question asked in the application
process; death benefit claim will likely be denied



QUESTION>Law of Large Numbers - ANSWER ~the larger a group becomes, the easier it is to predict
losses; used to predict certain types of losses and set appropriate premiums



QUESTION>Substandard Risk - ANSWER ~results in higher premium

, QUESTION>Standard Risk - ANSWER ~results in standard premium



QUESTION>Preferred Risk - ANSWER ~results in lower premium



QUESTION>Expense Loading - ANSWER ~combined with premiums to spread the operating costs of a
business to all insureds



QUESTION>Net Premium - ANSWER ~premiums without expense loading



QUESTION>Concealment - ANSWER ~occurs when a person withholds a material fact that is crucial to
making a decision; in insurance, this involves withholding information that would be crucial to
underwriting decisions



QUESTION>Warranty - ANSWER ~a statement guaranteed to be true



QUESTION>Representation - ANSWER ~a statement true to the best of an applicant's knowledge



QUESTION>3 Basic Types of Term Life Insurance - ANSWER ~level, increasing, and decreasing



QUESTION>Level Term - ANSWER ~death benefit doesn't change throughout the life of the policy



QUESTION>Annually Renewable Term (ART) - ANSWER ~premium increases annually according to
attained age; policy may be guaranteed to be renewable each without proof of insurability



QUESTION>Re-entry Option - ANSWER ~the insured, upon the end of a term policy with guaranteed
renewable option, may qualify for a discounted premium rate with proof of insurability



QUESTION>Decreasing Term - ANSWER ~death benefit decreases each year over duration of the policy
term; typically used when the amount of needed protection is time sensitive, or decreases over time