INDIANA LIFE & HEALTH INSURANCE FINAL PAPER
2025/2026 QUESTIONS AND ANSWERS GRADED A+
✔✔A universal life insurance policy is best described as a/an - ✔✔Annually Renewable
Term policy with a cash value account
✔✔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) Benefits are usually
limited to six months
✔✔Which of the following is INCORRECT concerning a noncontributory group plan?
a) The employer pays 100% of the premiums
b) The employees receive individual policies
c) They help to reduce adverse selection against the insurer
d) They require 100% employee participation - ✔✔b) The employees receive individuals
policies
✔✔Under the Affordable Care Act, which classification applies to health plans based on
the amount of covered costs? - ✔✔Metal level classification
✔✔What is the purpose of a fixed period settlement option? - ✔✔To provide a
guaranteed income for a certain amount of time
✔✔Which of the following would be a typical maximum benefit offered by major medical
plans? - ✔✔$1 million
✔✔Premium payments for personally-owned disability income policies are - ✔✔Not tax
deductible
✔✔The most the Insurance Guaranty Association will pay for net cash surrender values
is - ✔✔$100,000
✔✔What is the name of a clause that is included in a policy that limits or eliminates the
death benefit if the insured dies as a result of war or while serving in the military? -
✔✔Military service or war
, ✔✔Which of the following would be considered an unfair claims settlement practice? -
✔✔Advising the insured that if the claim goes to arbitration, the insured would probably
receive less than what is currently being offered
✔✔All of the following are true regarding vatical settlement regulations in Indiana
EXCEPT
a) Insured are required to submit a disclosure on their medical condition and
competence
b) Producers must provide the insured with the info on alternatives to a viatical
settlement
c) All viatical producers must be licensed
d) Viatical contracts allow a 10-day free-look period - ✔✔d) Viatical contracts allow for a
10-day free-look period
✔✔What is the benefit of choosing extended term as a nonforfeiture option? - ✔✔It has
the highest amount of insurance protections
✔✔All other factors being equal, what would the premium be like in a survivorship life
policy as compared to the premium in a joint life policy? - ✔✔Lower
✔✔An insured pays a monthly premium of $100 for her health insurance. What would
be the duration of the grace period under her policy? - ✔✔10 days
✔✔Which of the following statements concerning a Simplified Employee Pension plan
(SEP) is INCORRECT - ✔✔SEPs are suitable for large companies
✔✔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? - ✔✔60
days
✔✔Which provision states that the insurance company must pay Medical Expense
claims immediately? - ✔✔Time of Payment of Claims
✔✔An insured becomes disabled at age 22 and can no longer work. She meets the
definition of total disability under Social Security. What other requirement must the
insured have met to receive Social Security disability benefits? - ✔✔Have accumulated
6 work credits in the past 3 years
✔✔A father owns a life insurance policy on his 15-year old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled, what will
happen to the life insurance premiums? - ✔✔The insured's premiums will be waived
until she is 21
2025/2026 QUESTIONS AND ANSWERS GRADED A+
✔✔A universal life insurance policy is best described as a/an - ✔✔Annually Renewable
Term policy with a cash value account
✔✔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) Benefits are usually
limited to six months
✔✔Which of the following is INCORRECT concerning a noncontributory group plan?
a) The employer pays 100% of the premiums
b) The employees receive individual policies
c) They help to reduce adverse selection against the insurer
d) They require 100% employee participation - ✔✔b) The employees receive individuals
policies
✔✔Under the Affordable Care Act, which classification applies to health plans based on
the amount of covered costs? - ✔✔Metal level classification
✔✔What is the purpose of a fixed period settlement option? - ✔✔To provide a
guaranteed income for a certain amount of time
✔✔Which of the following would be a typical maximum benefit offered by major medical
plans? - ✔✔$1 million
✔✔Premium payments for personally-owned disability income policies are - ✔✔Not tax
deductible
✔✔The most the Insurance Guaranty Association will pay for net cash surrender values
is - ✔✔$100,000
✔✔What is the name of a clause that is included in a policy that limits or eliminates the
death benefit if the insured dies as a result of war or while serving in the military? -
✔✔Military service or war
, ✔✔Which of the following would be considered an unfair claims settlement practice? -
✔✔Advising the insured that if the claim goes to arbitration, the insured would probably
receive less than what is currently being offered
✔✔All of the following are true regarding vatical settlement regulations in Indiana
EXCEPT
a) Insured are required to submit a disclosure on their medical condition and
competence
b) Producers must provide the insured with the info on alternatives to a viatical
settlement
c) All viatical producers must be licensed
d) Viatical contracts allow a 10-day free-look period - ✔✔d) Viatical contracts allow for a
10-day free-look period
✔✔What is the benefit of choosing extended term as a nonforfeiture option? - ✔✔It has
the highest amount of insurance protections
✔✔All other factors being equal, what would the premium be like in a survivorship life
policy as compared to the premium in a joint life policy? - ✔✔Lower
✔✔An insured pays a monthly premium of $100 for her health insurance. What would
be the duration of the grace period under her policy? - ✔✔10 days
✔✔Which of the following statements concerning a Simplified Employee Pension plan
(SEP) is INCORRECT - ✔✔SEPs are suitable for large companies
✔✔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? - ✔✔60
days
✔✔Which provision states that the insurance company must pay Medical Expense
claims immediately? - ✔✔Time of Payment of Claims
✔✔An insured becomes disabled at age 22 and can no longer work. She meets the
definition of total disability under Social Security. What other requirement must the
insured have met to receive Social Security disability benefits? - ✔✔Have accumulated
6 work credits in the past 3 years
✔✔A father owns a life insurance policy on his 15-year old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled, what will
happen to the life insurance premiums? - ✔✔The insured's premiums will be waived
until she is 21
