2024 INDIANA LIFE AND HEALTH
INSURANCE TEST EXAM WITH
CORRECT ANSWERS
In the event a policy lapses due to nonpayment of premium, within how
many days would the policy be automatically reinstated once the
outstanding premium is paid? - CORRECT ANSWERS-45 days
When an insurer issues an individual health insurance policy that is
guaranteed renewable, the insurer agrees - CORRECT ANSWERS-To renew
the policy until the insured has reached age 65.
The policyowner of a Universal Life policy may skip paying the premium and
the policy will not lapse as long as - CORRECT ANSWERS-The policy contains
sufficient cash value to cover the cost of insurance.
The policyowner wants to make sure that upon his death, the life policy will
pay a portion of the proceeds annually to his spouse, but that the principal
will be paid to their children when they reach a certain age. Which
settlement option should the policyowner choose? - CORRECT ANSWERS-
Interest only option
Which of the following is NOT correct regarding false statements by a person
engaged in the business of insurance? - CORRECT ANSWERS-Only written
statements can be considered fraud.
In long-term care insurance, what type of care is provided with intermediate
care? - CORRECT ANSWERS-Occasional nursing or rehabilitative care
How soon following the occurrence of a covered loss must an insured submit
written proof of such loss to the insurance company? - CORRECT ANSWERS-
Within 90 days or as soon as reasonably possible, but not to exceed 1 year
A person who knowingly and with intent to defraud an insurer files a
statement of claim containing any false, incomplete, or misleading
information can be found guilty of committing a - CORRECT ANSWERS-
Felony.
,Which option is being utilized when the insurer accumulates dividends at
interest and then uses the accumulated dividends, plus interest, and the
policy cash value to pay the policy up early? - CORRECT ANSWERS-Paid-up
option
Which statement accurately describes the Change of Beneficiary provision? -
CORRECT ANSWERS-Any policy that has a death benefit must also have a
Change of Beneficiary provision.
A partnership buy-sell agreement in which each partner purchases insurance
on the life of each of the other partners is called a - CORRECT ANSWERS-
Cross-purchase plan.
In which of the following locations would skilled care most likely be provided?
- CORRECT ANSWERS-In an institutional setting
A medical expense policy that establishes the amount of benefit paid based
upon the prevailing charges which fall within the standard range of fees
normally charged for a specific procedure by a doctor of similar training and
experience in that geographic area is known as - CORRECT ANSWERS-Usual,
customary and reasonable.
Which of the following is NOT true regarding Equity Indexed Annuities? -
CORRECT ANSWERS-They earn lower interest rates than fixed annuities.
All of the following are TRUE regarding the convertibility option under a term
life insurance policy EXCEPT - CORRECT ANSWERS-Upon conversion, the
death benefit of the permanent policy will be reduced by 50%.
If a policy includes a free-look period of at least 10 days, the Buyer's Guide
may be delivered to the applicant no later than - CORRECT ANSWERS-With
the policy.
An individual is purchasing a permanent life insurance policy with a face
value of $25,000. While this is all the insurance that he can afford at this
time, he wants to be sure that additional coverage will be available in the
future. Which of the following options should be included in the policy? -
CORRECT ANSWERS-Guaranteed insurability option
Which characteristic does NOT describe managed care? - CORRECT
ANSWERS-Unlimited access to providers
Which of the following is NOT an example of controlled business? - CORRECT
ANSWERS-A licensee writes policies solely for friends and their families.
, A policyholder with a dependent child who needs hospital and medical
coverage past a limiting age due to physical or mental handicap must furnish
which of the following for continued coverage? - CORRECT ANSWERS-Proof of
incapacity for self-sustaining employment and dependency upon the
policyholder for support and maintenance
If one takes Social Security retirement benefits at age 62, what needs to be
done at age 65 to qualify for Medicare? - CORRECT ANSWERS-Nothing
The time limit of certain defenses provision prohibits insurers from denying a
claim due to misrepresentation, as long as the policy has been in force for at
least - CORRECT ANSWERS-2 years.
What is the clause that describes the method of paying the death benefit in
the event that the insured and beneficiary are both killed in the same
accident? - CORRECT ANSWERS-Common Disaster Clause
An insured purchased a variable life insurance policy with a face amount of
$50,000. Over the life of the policy, stock performance declined and the cash
value fell to $10,000. If the insured dies, how much will be paid out? -
CORRECT ANSWERS-$50,000
All of the following are correct about the required provisions of a health
insurance policy EXCEPT - CORRECT ANSWERS-A reinstated policy provides
immediate coverage for an illness.
An insured and his wife are both involved in a head-on collision. The husband
dies instantly, and the wife dies 15 days later. The company pays the death
benefit to the estate of the insured. This indicates that the life insurance
policy had what provision? - CORRECT ANSWERS-Common Disaster
An insured who has an Accidental Death and Dismemberment policy loses
her left arm in an accident. What type of benefit will she most likely receive
from this policy? - CORRECT ANSWERS-The capital amount in a lump sum
Who can make a fully deductible contribution to a traditional IRA? - CORRECT
ANSWERS-An individual not covered by an employer-sponsored plan who has
earned income
The provision that provides for the sharing of expenses between the insured
and the insurance company is - CORRECT ANSWERS-Coinsurance.
Which of the following is TRUE regarding variable annuities? - CORRECT
ANSWERS-The annuitant assumes the risks on investment.
INSURANCE TEST EXAM WITH
CORRECT ANSWERS
In the event a policy lapses due to nonpayment of premium, within how
many days would the policy be automatically reinstated once the
outstanding premium is paid? - CORRECT ANSWERS-45 days
When an insurer issues an individual health insurance policy that is
guaranteed renewable, the insurer agrees - CORRECT ANSWERS-To renew
the policy until the insured has reached age 65.
The policyowner of a Universal Life policy may skip paying the premium and
the policy will not lapse as long as - CORRECT ANSWERS-The policy contains
sufficient cash value to cover the cost of insurance.
The policyowner wants to make sure that upon his death, the life policy will
pay a portion of the proceeds annually to his spouse, but that the principal
will be paid to their children when they reach a certain age. Which
settlement option should the policyowner choose? - CORRECT ANSWERS-
Interest only option
Which of the following is NOT correct regarding false statements by a person
engaged in the business of insurance? - CORRECT ANSWERS-Only written
statements can be considered fraud.
In long-term care insurance, what type of care is provided with intermediate
care? - CORRECT ANSWERS-Occasional nursing or rehabilitative care
How soon following the occurrence of a covered loss must an insured submit
written proof of such loss to the insurance company? - CORRECT ANSWERS-
Within 90 days or as soon as reasonably possible, but not to exceed 1 year
A person who knowingly and with intent to defraud an insurer files a
statement of claim containing any false, incomplete, or misleading
information can be found guilty of committing a - CORRECT ANSWERS-
Felony.
,Which option is being utilized when the insurer accumulates dividends at
interest and then uses the accumulated dividends, plus interest, and the
policy cash value to pay the policy up early? - CORRECT ANSWERS-Paid-up
option
Which statement accurately describes the Change of Beneficiary provision? -
CORRECT ANSWERS-Any policy that has a death benefit must also have a
Change of Beneficiary provision.
A partnership buy-sell agreement in which each partner purchases insurance
on the life of each of the other partners is called a - CORRECT ANSWERS-
Cross-purchase plan.
In which of the following locations would skilled care most likely be provided?
- CORRECT ANSWERS-In an institutional setting
A medical expense policy that establishes the amount of benefit paid based
upon the prevailing charges which fall within the standard range of fees
normally charged for a specific procedure by a doctor of similar training and
experience in that geographic area is known as - CORRECT ANSWERS-Usual,
customary and reasonable.
Which of the following is NOT true regarding Equity Indexed Annuities? -
CORRECT ANSWERS-They earn lower interest rates than fixed annuities.
All of the following are TRUE regarding the convertibility option under a term
life insurance policy EXCEPT - CORRECT ANSWERS-Upon conversion, the
death benefit of the permanent policy will be reduced by 50%.
If a policy includes a free-look period of at least 10 days, the Buyer's Guide
may be delivered to the applicant no later than - CORRECT ANSWERS-With
the policy.
An individual is purchasing a permanent life insurance policy with a face
value of $25,000. While this is all the insurance that he can afford at this
time, he wants to be sure that additional coverage will be available in the
future. Which of the following options should be included in the policy? -
CORRECT ANSWERS-Guaranteed insurability option
Which characteristic does NOT describe managed care? - CORRECT
ANSWERS-Unlimited access to providers
Which of the following is NOT an example of controlled business? - CORRECT
ANSWERS-A licensee writes policies solely for friends and their families.
, A policyholder with a dependent child who needs hospital and medical
coverage past a limiting age due to physical or mental handicap must furnish
which of the following for continued coverage? - CORRECT ANSWERS-Proof of
incapacity for self-sustaining employment and dependency upon the
policyholder for support and maintenance
If one takes Social Security retirement benefits at age 62, what needs to be
done at age 65 to qualify for Medicare? - CORRECT ANSWERS-Nothing
The time limit of certain defenses provision prohibits insurers from denying a
claim due to misrepresentation, as long as the policy has been in force for at
least - CORRECT ANSWERS-2 years.
What is the clause that describes the method of paying the death benefit in
the event that the insured and beneficiary are both killed in the same
accident? - CORRECT ANSWERS-Common Disaster Clause
An insured purchased a variable life insurance policy with a face amount of
$50,000. Over the life of the policy, stock performance declined and the cash
value fell to $10,000. If the insured dies, how much will be paid out? -
CORRECT ANSWERS-$50,000
All of the following are correct about the required provisions of a health
insurance policy EXCEPT - CORRECT ANSWERS-A reinstated policy provides
immediate coverage for an illness.
An insured and his wife are both involved in a head-on collision. The husband
dies instantly, and the wife dies 15 days later. The company pays the death
benefit to the estate of the insured. This indicates that the life insurance
policy had what provision? - CORRECT ANSWERS-Common Disaster
An insured who has an Accidental Death and Dismemberment policy loses
her left arm in an accident. What type of benefit will she most likely receive
from this policy? - CORRECT ANSWERS-The capital amount in a lump sum
Who can make a fully deductible contribution to a traditional IRA? - CORRECT
ANSWERS-An individual not covered by an employer-sponsored plan who has
earned income
The provision that provides for the sharing of expenses between the insured
and the insurance company is - CORRECT ANSWERS-Coinsurance.
Which of the following is TRUE regarding variable annuities? - CORRECT
ANSWERS-The annuitant assumes the risks on investment.
