INDIANA LIFE AND HEALTH INSURANCE

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INDIANA LIFE AND HEALTH INSURANCE

EXAM

CORRECT SOLUTIONS.

The insured and Insurance company will share the cost of covered losses under which health policy feature? - correct answer- Payment of Claims provision

XYZ Corp was issued a group Health policy for its employees.

Under this plan a: - correct answer- Policy must be issued to

XYZ, and a certificate must be issued to each employee

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? - correct answer- Guaranteed insurability rider

An employer that offers a qualified retirement plan to its

employees is eligible to: - correct answer- make tax-deductible

contributions to the plan

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A policyowner's rights are limited under which beneficiary designation? - correct answer- Irrevocable

The Notice of Claims provision requires a policyowner to: -

correct answer- Notify an insurer of a claim within a specified time

An underwriter determines that a life insurance applicant's risk should be reclassified due to a health issue. This policy may be

issued with a(n): - correct answer- Extra premium

P's individual health policy is now in the Grace Period. P's

coverage will remain in force if: - correct answer- the premium

is paid

In health insurance policies, a waiver of premium keeps the

coverage in force without premium payments: - correct answer-

After an insured has become totally disabled as defined in the policy

T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will 2 / 4

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be paid to his son for the balance of the 20 years. What type of annuity is this? - correct answer- Life annuity with period certain

Dividends payable to a policyowner are - correct answer- declared by the insurance company

A group-owned insurance company that is formed to assume

and spread the liability risks of its members is known as a: -

correct answer- risk retention group

What type of reinsurance contract involves two companies automatically sharing their risk exposure? - correct answer- Treaty

Who elects the governing body of a mutual insurance company? - correct answer- policyholders

An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - correct answer- Fair Credit Reporting Act

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At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - correct answer- Upon completion of the application

When a policy pays dividends to its policyholders, it is said to be - correct answer- participating

The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called - correct answer- Reserves

Which of the following requires insurers to disclose when an

applicant's consumer or credit history is being investigated: -

correct answer- 1970- Fair credit reporting act

What year was the McCarran-Ferguson Act enacted? - correct answer- 1945

Which of these describe a participating insurance policy? - correct answer- Policyowners are entitled to receive dividends

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