1|Page
INDIANA LIFE INSURANCE EXAM PART 1 AND PART
2 EXAM LATEST 2026 ACTUAL VERIFIED EXAM
WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
||NEWEST EXAM!!!||
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
d. The nonforfeiture values - Answer-The Face Amount
Endowment policies can mature in two ways. What are
they?
a. The insured dies during the policy period or annuitizes
the policy after age 59&1/2.
b. The insured dies during the policy period or reaches
the endowment age as designated in the policy.
c. The insured dies during the policy period or retires at
age 59&1/2.
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d. The insured dies or reaches age 100. - Answer-B.
The insured dies during the policy period or reaches the
endowment age as designated in the policy.
At age 30, Joe Insured purchases a 20 Pay Whole Life
Policy. Which of the following statements is true
regarding Joe's policy coverage?
a. Joe's death protection will end at age 50.
b. Joe's nonforfeiture values will end at age 50.
c. Joe will be able to stop paying the premiums at age
50, but his death protection will run through age 100.
d. At age 50, Joe's cash value will equal the face value
of his contract. - Answer-C. Joe will be able to stop
paying the premiums at age 50, but his death protection
will run through age 100.
Warranties are:
a. The same as representations.
b. Statements that are absolutely true.
c. Statements that are believed to be true.
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d. Critical to the formation of a life insurance contractual
agreement. - Answer-B. Statements that are absolutely
true.
All the following are reasons why an insurance company
may not pay a death benefit under a Term life insurance
policy EXCEPT:
a. A suicide before the end of the first two policy years.
b. Non payment of premium.
c. An accidental death resulting from drowning.
d. A material misrepresentation on the application
discovered before the end of the contestable period. -
Answer-C. An accidental death resulting from drowning.
Which of the following life insurance policies offers the
build up of cash value on an interest-sensitive basis and
the right to make partial withdrawals of that cash value
without interest?
a. Universal Life
b. Adjustable Life
c. Variable Universal Life
d. Variable Whole Life - Answer-A. Universal Life
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Joel owns a $100,000 face amount Whole Life policy
which has a cash value of $11,000. There is also an
outstanding loan of $4,000. If Joel dies, how much
would the insurance company pay to his beneficiary?
a. $96,000
b. $100,000
c. $111,000
d. $107,000 - Answer-A. $96,000
Which of the following is NOT a characteristic of a
Variable Annuity?
A. Premium Payments may be level or flexible or single
premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of
the cash value should the annuitant die during the
accumulation period.
D. It provides for a tax-free death benefit. - Answer-D. It
provides for a tax-free death benefit.
All of the following policies provide for the tax deferred
accumulation of cash value EXCEPT:
INDIANA LIFE INSURANCE EXAM PART 1 AND PART
2 EXAM LATEST 2026 ACTUAL VERIFIED EXAM
WITH COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
||NEWEST EXAM!!!||
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
d. The nonforfeiture values - Answer-The Face Amount
Endowment policies can mature in two ways. What are
they?
a. The insured dies during the policy period or annuitizes
the policy after age 59&1/2.
b. The insured dies during the policy period or reaches
the endowment age as designated in the policy.
c. The insured dies during the policy period or retires at
age 59&1/2.
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d. The insured dies or reaches age 100. - Answer-B.
The insured dies during the policy period or reaches the
endowment age as designated in the policy.
At age 30, Joe Insured purchases a 20 Pay Whole Life
Policy. Which of the following statements is true
regarding Joe's policy coverage?
a. Joe's death protection will end at age 50.
b. Joe's nonforfeiture values will end at age 50.
c. Joe will be able to stop paying the premiums at age
50, but his death protection will run through age 100.
d. At age 50, Joe's cash value will equal the face value
of his contract. - Answer-C. Joe will be able to stop
paying the premiums at age 50, but his death protection
will run through age 100.
Warranties are:
a. The same as representations.
b. Statements that are absolutely true.
c. Statements that are believed to be true.
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d. Critical to the formation of a life insurance contractual
agreement. - Answer-B. Statements that are absolutely
true.
All the following are reasons why an insurance company
may not pay a death benefit under a Term life insurance
policy EXCEPT:
a. A suicide before the end of the first two policy years.
b. Non payment of premium.
c. An accidental death resulting from drowning.
d. A material misrepresentation on the application
discovered before the end of the contestable period. -
Answer-C. An accidental death resulting from drowning.
Which of the following life insurance policies offers the
build up of cash value on an interest-sensitive basis and
the right to make partial withdrawals of that cash value
without interest?
a. Universal Life
b. Adjustable Life
c. Variable Universal Life
d. Variable Whole Life - Answer-A. Universal Life
, 4|Page
Joel owns a $100,000 face amount Whole Life policy
which has a cash value of $11,000. There is also an
outstanding loan of $4,000. If Joel dies, how much
would the insurance company pay to his beneficiary?
a. $96,000
b. $100,000
c. $111,000
d. $107,000 - Answer-A. $96,000
Which of the following is NOT a characteristic of a
Variable Annuity?
A. Premium Payments may be level or flexible or single
premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of
the cash value should the annuitant die during the
accumulation period.
D. It provides for a tax-free death benefit. - Answer-D. It
provides for a tax-free death benefit.
All of the following policies provide for the tax deferred
accumulation of cash value EXCEPT:
