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Insurance Law Exam Questions With Correct
Answers 100% Verified.
Commissioner - Answer✔is appointed and serves at the pleasure of the Governor of Indiana
and enforces the insurance laws of this state.
Who liquidates a failing insurance company? - Answer✔Commissioner
What can the Commissioner issue and administer? - Answer✔Subpoenas and oaths
An admitted company shall be examined - Answer✔once every 5 years
For foreign or alien companies, the Commissioner may accept an examination prepared by the
insurance department - Answer✔in the company's state of domicile, as long as they follow
NAIC
procedures
Domestic insurance company: - Answer✔A company that resides and is incorporated under the
laws of the state
in which its home office is located.
Foreign insurance company: - Answer✔A company whose home office is located in another
state or U.S.
Territory.
Alien insurance company: - Answer✔A company that is chartered and organized in any country
other than the United States.
Admitted insurer: also called an authorized insurance company - Answer✔An insurance
company that has qualified and received a Certificate of Authority from
the Insurance Department to sell insurance in this state.
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 9:50PM. A+
Non-admitted insurer: also called a unauthorized insurance company - Answer✔An insurance
company that has been denied or not yet applied for a Certificate of Authority and may not sell
insurance in this state.
Guaranty Association will provide: $300,000 in - Answer✔life insurance death benefits
Guaranty Association will provide: $300,000 for - Answer✔health insurance benefits
Guaranty Association will provide: $100,000 in - Answer✔cash values
Guaranty Association will provide: $100,000 in present - Answer✔value annuity benefits
There is a limitation of - Answer✔$300,000 in total benefits given to any one person
Who is eligible for a temporary license? - Answer✔Producer's surviving spouse, court-
appointed personal rep, or business owner/partner/employee
A temporary license is valid for a maximum of - Answer✔180 days
Licensed agents moving to Indiana from another state have - Answer✔90 days within cancelling
their previous
license to apply for a resident license here.
A consultant sells - Answer✔insurance advice for a fee
No person shall act as an insurance consultant until - Answer✔a license as an insurance
consultant has been issued
Who does not have to have a license as a consultant? - Answer✔attorneys, insurance Producers
or brokers, trust officers of a bank, actuaries, or CPA's
In order for a Licensed Resident Producer to sell insurance advice, - Answer✔they must make
full
disclosure in writing at the outset of the transaction about how they will be compensated
In order for a business entity to be licensed as a Producer in Indiana - Answer✔it must
designate an individual licensed Producer who will be responsible for the business entity's
compliance
A limited lines producer is a person authorized by the Commissioner to sell, solicit, or negotiate
limited lines insurance, such as - Answer✔credit life and health, title insurance, flight insurance,
pre-need life insurance for
a funeral home, and crop hail insurance.
2
Insurance Law Exam Questions With Correct
Answers 100% Verified.
Commissioner - Answer✔is appointed and serves at the pleasure of the Governor of Indiana
and enforces the insurance laws of this state.
Who liquidates a failing insurance company? - Answer✔Commissioner
What can the Commissioner issue and administer? - Answer✔Subpoenas and oaths
An admitted company shall be examined - Answer✔once every 5 years
For foreign or alien companies, the Commissioner may accept an examination prepared by the
insurance department - Answer✔in the company's state of domicile, as long as they follow
NAIC
procedures
Domestic insurance company: - Answer✔A company that resides and is incorporated under the
laws of the state
in which its home office is located.
Foreign insurance company: - Answer✔A company whose home office is located in another
state or U.S.
Territory.
Alien insurance company: - Answer✔A company that is chartered and organized in any country
other than the United States.
Admitted insurer: also called an authorized insurance company - Answer✔An insurance
company that has qualified and received a Certificate of Authority from
the Insurance Department to sell insurance in this state.
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 9:50PM. A+
Non-admitted insurer: also called a unauthorized insurance company - Answer✔An insurance
company that has been denied or not yet applied for a Certificate of Authority and may not sell
insurance in this state.
Guaranty Association will provide: $300,000 in - Answer✔life insurance death benefits
Guaranty Association will provide: $300,000 for - Answer✔health insurance benefits
Guaranty Association will provide: $100,000 in - Answer✔cash values
Guaranty Association will provide: $100,000 in present - Answer✔value annuity benefits
There is a limitation of - Answer✔$300,000 in total benefits given to any one person
Who is eligible for a temporary license? - Answer✔Producer's surviving spouse, court-
appointed personal rep, or business owner/partner/employee
A temporary license is valid for a maximum of - Answer✔180 days
Licensed agents moving to Indiana from another state have - Answer✔90 days within cancelling
their previous
license to apply for a resident license here.
A consultant sells - Answer✔insurance advice for a fee
No person shall act as an insurance consultant until - Answer✔a license as an insurance
consultant has been issued
Who does not have to have a license as a consultant? - Answer✔attorneys, insurance Producers
or brokers, trust officers of a bank, actuaries, or CPA's
In order for a Licensed Resident Producer to sell insurance advice, - Answer✔they must make
full
disclosure in writing at the outset of the transaction about how they will be compensated
In order for a business entity to be licensed as a Producer in Indiana - Answer✔it must
designate an individual licensed Producer who will be responsible for the business entity's
compliance
A limited lines producer is a person authorized by the Commissioner to sell, solicit, or negotiate
limited lines insurance, such as - Answer✔credit life and health, title insurance, flight insurance,
pre-need life insurance for
a funeral home, and crop hail insurance.
2
