Life And Health Insurance Exam 2025 State of Indiana with 300
Exam Practice Questions and Correct Verified Answers/ Indiana Life
& Health Insurance Test 2025 (New!)
Jis receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if
he dies before al to the contingent beneficiary. Which settlement option did J choose? - ANSWER-
Fixed Amount
The "stop-loss" feature on a major medical policy is intended to a) Establish the number of claims
that may be filed on a policy in a calendar year. b) Establish a maximum amount of out-of-pocket
expense that an Insured will have to pay for medical expense in a calendar year c) Establisha
maximum amount of out-of-pocket expense that an insured will have to pay for medical expense for
the life of the policy. d) Discourage insured from making unnecessary appointments at the doctor's
office. A stop-loss feature is a provision that gives the insured financial security by limiting the
maximum amount that would have to be paid in deductibles and co-payments during calendar year. -
ANSWER-calendar year. Establish a maximum amount of out-of-pocket expense that an Insured
will have to pay for medical expense in a calendar year
The guaranteed purchase option is also referred to as the a) Multiple indemnity rider. b) Impairment
rider. c) Evidence of insurability rider. d) Future Increase option - ANSWER-d) Future Increase
option The guaranteed purchase option is also referred to as the future increase option.
# 11 All of the following could qualify as a group for the purpose of purchasing group health
insurance EXCEPT a) Multiple employer trust. b) Single employer with 14 employees. c) An
association of 35 people. d) Labor union - ANSWER-c) An association of 35 people.
# 12. Where are premiums from fixed annuities invested? a) Ageneral account b) A variable annuity
c) A hedge fund d) A separate account - ANSWER-a) Ageneral account
#13. Which of the following meets the insured's personal needs, and is provided by nonmedical
personnel? a) Intermediate care b) Custodial care c) Skilled care d) Assisted living - ANSWER-b)
Custodial care
#14. What does the application of contract of adhesion mean? a) Since the insured does not
participate in preparing the contract, any ambiguities would be resolved in favor of the Insured, b)
The holder of the contract has the ultimate power of promise. c) The insurer may go to another for
representation. d) It makes sure that the insured does not get more than the value of the loss. -
,ANSWER-a) Since the insured does not participate in preparing the contract, any ambiguities
would be resolved in favor of the Insured,
#15. Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a
suit against the insurer to recover on a health policy prior to a) 60 days after written proof of loss has
been submitted b) 90 days after written proof of loss has been submitted. c) One year after the
occurrence of a disability. d) 30 days after the loss. - ANSWER-a) 60 days after written proof of loss
has been submitted
#21. Medicare Part A services do NOT include which of the following? a) Private Duty Nursing b)
Posthospital Skilled Nursing Facilty Care c) Hospitalization d) Hospice Care - ANSWER-a) Private
Duty Nursing
# 23. Joe, age 63, was disabled and can no longer work. He meets the Social Security definition of
total disability. How many work credits must Joe have accumulated to have the status of fully
insured? a) 10 b) 6 c) 20 d) 40 - ANSWER-d) 40
#24. What effect will the long-term care (LTC) rider have on the death benefit of a life insurance
policy if LTC benefits were paid to the insured? a) Increase the death benefit by the amount paid into
LTC b) Not affect the amount payable to the beneficiary c) Eliminate the death benefit d) Reduce the
death benefit - ANSWER-d) Reduce the death benefit
# 27. Which of the following describes the relationship between the principal sum and a capital sum?
a) A capital sum is a percentage of the principal sum b) The principal sum varies, while the capital
sum does not. c) The capital sum varies, while the principal sum does not. d) The principal sum is a
percentage of a capital sum - ANSWER-a) A capital sum is a percentage of the principal sum
# 29. In life insurance, which of the following is NOT required to have an insurable interest in the
insured? a) The beneficiary b) The policyowner c) The insured d). The applicant - ANSWER-The
beneficiary
# 33. When may HIV-related test results be provided to the MIB? a) When given authorization by the
patient b) Only when the test results are negative ci Only if the individual is not identified d) Under
all circumstances - ANSWER-Only ci Only if the individual is not identified
# 35. Which of the following statements is NOT true regarding health insurance policy provisions? a)
Insurers may add provisions that are not in conflict with uniform standards b) All additional
, provisions written by Insurers are cataloged by their respective states c) All individual policies contain
Universal Mandatory Provisions. d) Insurers may only offer optional provisions that are allowed by
the state where the policy is delivered. - ANSWER-b) All additional provisions written by Insurers
are cataloged by their respective states
# 41 A life insurance policy gualifies as a Modified Endowment Contract (MEC) if the amount of
premium paid exceeds the amount that insurance in how many years? a) 3 years b) 5 years c) 7 years
d) The life of the policy - ANSWER-c) 7 years
# 44. Which of the following is provided by skilled medical personnel to those who need occasional
medical assistance or rehabilitative care? a) Intermediate care b) Custodial care c) Home health care
d) Skilled care - ANSWER-a) Intermediate care
# 46, Dividends received on participating life insurance policies are a) Not taxable because they are a
retum of unused premiums. b) Taxable because they are a return on your investment. c) Not taxable
because they are a return on your investment. d) Taxable because they are a returh of unused
premiums. - ANSWER-a) Not taxable because they are a retum of unused premiums.
#47. On an Accidental Death and Dismemberment (AD&D) policy, the death benefit payable is known
as the a) Capital sum. b) Policy limit c) Principal sum d) Face amount - ANSWER-c) Principal sum
# 48. What is the purpose of the impairment rider in a health insurance policy? a) To cover
impalrments that otherwise be covered b) To provide disability coverage c) To identify pre-existing
conditions d) To exclude coverage for a specific Impairment - ANSWER-d) To exclude coverage for a
specific Impairment
# 50, Which of the following individuals would be a likely candidate to purchase a deferred annuity?
a) Somegne who wants to grow retirement funds tax deferred b) Someone who needs to start
receiving benefit payments within 6 months of the annuity purchase c) Someone who wants to leave
the death benefit to the beneficiaries d) Someone who cannot afford life insurance - ANSWER-a)
Somegne who wants to grow retirement funds tax deferred b)
# 53. All of the following must sign an application for health insurance EXCEPT the a) Producer. b)
Insurer c) The proposed insured. di Applicant. - ANSWER-b) Insurer
Exam Practice Questions and Correct Verified Answers/ Indiana Life
& Health Insurance Test 2025 (New!)
Jis receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if
he dies before al to the contingent beneficiary. Which settlement option did J choose? - ANSWER-
Fixed Amount
The "stop-loss" feature on a major medical policy is intended to a) Establish the number of claims
that may be filed on a policy in a calendar year. b) Establish a maximum amount of out-of-pocket
expense that an Insured will have to pay for medical expense in a calendar year c) Establisha
maximum amount of out-of-pocket expense that an insured will have to pay for medical expense for
the life of the policy. d) Discourage insured from making unnecessary appointments at the doctor's
office. A stop-loss feature is a provision that gives the insured financial security by limiting the
maximum amount that would have to be paid in deductibles and co-payments during calendar year. -
ANSWER-calendar year. Establish a maximum amount of out-of-pocket expense that an Insured
will have to pay for medical expense in a calendar year
The guaranteed purchase option is also referred to as the a) Multiple indemnity rider. b) Impairment
rider. c) Evidence of insurability rider. d) Future Increase option - ANSWER-d) Future Increase
option The guaranteed purchase option is also referred to as the future increase option.
# 11 All of the following could qualify as a group for the purpose of purchasing group health
insurance EXCEPT a) Multiple employer trust. b) Single employer with 14 employees. c) An
association of 35 people. d) Labor union - ANSWER-c) An association of 35 people.
# 12. Where are premiums from fixed annuities invested? a) Ageneral account b) A variable annuity
c) A hedge fund d) A separate account - ANSWER-a) Ageneral account
#13. Which of the following meets the insured's personal needs, and is provided by nonmedical
personnel? a) Intermediate care b) Custodial care c) Skilled care d) Assisted living - ANSWER-b)
Custodial care
#14. What does the application of contract of adhesion mean? a) Since the insured does not
participate in preparing the contract, any ambiguities would be resolved in favor of the Insured, b)
The holder of the contract has the ultimate power of promise. c) The insurer may go to another for
representation. d) It makes sure that the insured does not get more than the value of the loss. -
,ANSWER-a) Since the insured does not participate in preparing the contract, any ambiguities
would be resolved in favor of the Insured,
#15. Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a
suit against the insurer to recover on a health policy prior to a) 60 days after written proof of loss has
been submitted b) 90 days after written proof of loss has been submitted. c) One year after the
occurrence of a disability. d) 30 days after the loss. - ANSWER-a) 60 days after written proof of loss
has been submitted
#21. Medicare Part A services do NOT include which of the following? a) Private Duty Nursing b)
Posthospital Skilled Nursing Facilty Care c) Hospitalization d) Hospice Care - ANSWER-a) Private
Duty Nursing
# 23. Joe, age 63, was disabled and can no longer work. He meets the Social Security definition of
total disability. How many work credits must Joe have accumulated to have the status of fully
insured? a) 10 b) 6 c) 20 d) 40 - ANSWER-d) 40
#24. What effect will the long-term care (LTC) rider have on the death benefit of a life insurance
policy if LTC benefits were paid to the insured? a) Increase the death benefit by the amount paid into
LTC b) Not affect the amount payable to the beneficiary c) Eliminate the death benefit d) Reduce the
death benefit - ANSWER-d) Reduce the death benefit
# 27. Which of the following describes the relationship between the principal sum and a capital sum?
a) A capital sum is a percentage of the principal sum b) The principal sum varies, while the capital
sum does not. c) The capital sum varies, while the principal sum does not. d) The principal sum is a
percentage of a capital sum - ANSWER-a) A capital sum is a percentage of the principal sum
# 29. In life insurance, which of the following is NOT required to have an insurable interest in the
insured? a) The beneficiary b) The policyowner c) The insured d). The applicant - ANSWER-The
beneficiary
# 33. When may HIV-related test results be provided to the MIB? a) When given authorization by the
patient b) Only when the test results are negative ci Only if the individual is not identified d) Under
all circumstances - ANSWER-Only ci Only if the individual is not identified
# 35. Which of the following statements is NOT true regarding health insurance policy provisions? a)
Insurers may add provisions that are not in conflict with uniform standards b) All additional
, provisions written by Insurers are cataloged by their respective states c) All individual policies contain
Universal Mandatory Provisions. d) Insurers may only offer optional provisions that are allowed by
the state where the policy is delivered. - ANSWER-b) All additional provisions written by Insurers
are cataloged by their respective states
# 41 A life insurance policy gualifies as a Modified Endowment Contract (MEC) if the amount of
premium paid exceeds the amount that insurance in how many years? a) 3 years b) 5 years c) 7 years
d) The life of the policy - ANSWER-c) 7 years
# 44. Which of the following is provided by skilled medical personnel to those who need occasional
medical assistance or rehabilitative care? a) Intermediate care b) Custodial care c) Home health care
d) Skilled care - ANSWER-a) Intermediate care
# 46, Dividends received on participating life insurance policies are a) Not taxable because they are a
retum of unused premiums. b) Taxable because they are a return on your investment. c) Not taxable
because they are a return on your investment. d) Taxable because they are a returh of unused
premiums. - ANSWER-a) Not taxable because they are a retum of unused premiums.
#47. On an Accidental Death and Dismemberment (AD&D) policy, the death benefit payable is known
as the a) Capital sum. b) Policy limit c) Principal sum d) Face amount - ANSWER-c) Principal sum
# 48. What is the purpose of the impairment rider in a health insurance policy? a) To cover
impalrments that otherwise be covered b) To provide disability coverage c) To identify pre-existing
conditions d) To exclude coverage for a specific Impairment - ANSWER-d) To exclude coverage for a
specific Impairment
# 50, Which of the following individuals would be a likely candidate to purchase a deferred annuity?
a) Somegne who wants to grow retirement funds tax deferred b) Someone who needs to start
receiving benefit payments within 6 months of the annuity purchase c) Someone who wants to leave
the death benefit to the beneficiaries d) Someone who cannot afford life insurance - ANSWER-a)
Somegne who wants to grow retirement funds tax deferred b)
# 53. All of the following must sign an application for health insurance EXCEPT the a) Producer. b)
Insurer c) The proposed insured. di Applicant. - ANSWER-b) Insurer
