Indiana Final Exam Midterm Question
With Correct Revised Solutions 2025.
The clause that prevents the insurance company from acting unilaterally to change a policy is: -
Answer The entire contract clause
All of the following types of policies will not be subject to coordination of benefits, EXCEPT: -
Answer Group Policies
If an insurer has the right to refuse to renew a policy, the policy has which of the following
provisions? - Answer Optionally renewable
What should Bruce consider if he is concerned that the insurance company will 'keep his money'
if he dies before the income from his annuity has equaled the funds he deposited? - Answer
An installment refund annuity
Standard dividend options for a participating policy may be any of the following, EXCEPT: -
Answer Provide guaranteed insurability
In a noncontributory plan, all of the following are true, EXCEPT: - Answer The employer and
employee each pay part of the premium.
Which of the following is NOT a power or duty of Indiana's Commissioner of insurance? -
Answer Conducting interviews and accreditations of FINRA officials
Which of the following should a producer attempt to do when going through the application
process? - Answer Producer should issue a receipt to the applicant when he/she collects the
application and the premium
Which of the following is true of a nonqualified plan? - Answer Can be a deferred
compensation plan
All of the following correctly describe the law of large numbers, EXCEPT: - Answer The law of
large numbers provides the best data when groups consist of dissimilar risks.
, Which of the following is not an example of a basic medical expense plan? - Answer Disability
income
Fraternal benefit societies are described by all of the following, EXCEPT: - Answer They include
stock and mutual companies.
The clause that prevents an insurer from denying a claim, except for nonpayment of premiums,
after the policy has been in force for over 2 years is called the: - Answer Incontestability clause
All individual and group accident and sickness insurance policies which provide coverage for an
individual insured or a family member or child of the insured must also provide insurance
benefits to a newly born child of the insured: - Answer At birth
What is the maximum time a temporary insurance producer license can be valid? - Answer
180 days
If Megan wants to select a Medigap plan with an out-of-pocket limit of less than $2,500, she
should choose: - Answer Medigap Plan L
In order for a professional association to be considered an eligible group for group insurance
they must meet all of the following, EXCEPT: - Answer Have at least 20 members
Underwriting considerations for group coverage employ which of the following considerations?
- Answer Groups usually do not have a requirement for medical exams.
A comprehensive major medical policy will cover all of the following losses, EXCEPT: - Answer
Liposuction to reduce weight
Which of the following is not true about the accumulation of interest dividend option? - Answer
Dividends left to accumulate at interest are part of the policy's cash value.
Which of the following statements is not true about traditional IRAs? - Answer Withdrawals
made prior to age 59 1/2 are assessed a 20% penalty.
Withdrawals made prior to age 59 1/2 are assessed a 20% penalty. - Answer All of the above
With Correct Revised Solutions 2025.
The clause that prevents the insurance company from acting unilaterally to change a policy is: -
Answer The entire contract clause
All of the following types of policies will not be subject to coordination of benefits, EXCEPT: -
Answer Group Policies
If an insurer has the right to refuse to renew a policy, the policy has which of the following
provisions? - Answer Optionally renewable
What should Bruce consider if he is concerned that the insurance company will 'keep his money'
if he dies before the income from his annuity has equaled the funds he deposited? - Answer
An installment refund annuity
Standard dividend options for a participating policy may be any of the following, EXCEPT: -
Answer Provide guaranteed insurability
In a noncontributory plan, all of the following are true, EXCEPT: - Answer The employer and
employee each pay part of the premium.
Which of the following is NOT a power or duty of Indiana's Commissioner of insurance? -
Answer Conducting interviews and accreditations of FINRA officials
Which of the following should a producer attempt to do when going through the application
process? - Answer Producer should issue a receipt to the applicant when he/she collects the
application and the premium
Which of the following is true of a nonqualified plan? - Answer Can be a deferred
compensation plan
All of the following correctly describe the law of large numbers, EXCEPT: - Answer The law of
large numbers provides the best data when groups consist of dissimilar risks.
, Which of the following is not an example of a basic medical expense plan? - Answer Disability
income
Fraternal benefit societies are described by all of the following, EXCEPT: - Answer They include
stock and mutual companies.
The clause that prevents an insurer from denying a claim, except for nonpayment of premiums,
after the policy has been in force for over 2 years is called the: - Answer Incontestability clause
All individual and group accident and sickness insurance policies which provide coverage for an
individual insured or a family member or child of the insured must also provide insurance
benefits to a newly born child of the insured: - Answer At birth
What is the maximum time a temporary insurance producer license can be valid? - Answer
180 days
If Megan wants to select a Medigap plan with an out-of-pocket limit of less than $2,500, she
should choose: - Answer Medigap Plan L
In order for a professional association to be considered an eligible group for group insurance
they must meet all of the following, EXCEPT: - Answer Have at least 20 members
Underwriting considerations for group coverage employ which of the following considerations?
- Answer Groups usually do not have a requirement for medical exams.
A comprehensive major medical policy will cover all of the following losses, EXCEPT: - Answer
Liposuction to reduce weight
Which of the following is not true about the accumulation of interest dividend option? - Answer
Dividends left to accumulate at interest are part of the policy's cash value.
Which of the following statements is not true about traditional IRAs? - Answer Withdrawals
made prior to age 59 1/2 are assessed a 20% penalty.
Withdrawals made prior to age 59 1/2 are assessed a 20% penalty. - Answer All of the above
