Indiana Life Health Insurance Exam Review

Indiana Life & Health Insurance Exam Review Latest Update -180 Questions and 100% Verified Correct Answers Guaranteed A+

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? - CORRECT ANSWER: The insured's premiums will be

waived until she is 21

A long-term care insurance shopper's guide must be provided in the format developed by which of the following?

a) Director

b) Medical Information Bureau

c) NAIC

d) Office of Insurance Regulation - CORRECT ANSWER: c) NAIC

A man is injured while robbing a convenience store. How does his major medical policy handle the payment of his claim? - CORRECT ANSWER: Claim is denied if his policy contains the Illegal Occupation provision

A new insurance company wants to begin conducting insurance in Indiana. What will it

need to receive before it can legally open for business? - CORRECT ANSWER:

Certificate of Authority

A universal life insurance policy is best described as a/an - CORRECT ANSWER:

Annually Renewable Term policy with a cash value account

All of the following apply to defined benefit plans EXCEPT

a) Benefits are based on a specified formula that incorporates years of service, salary

and age of retirement

b) The employer is responsible for providing promised retirement benefits

c) They are qualified plans and cannot discriminate

d) Contributions are tied to the company profits - CORRECT ANSWER: d) Contributions

are tied to the company profits

All of the following are personal uses of life insurance EXCEPT:

a) Estate creation

b) Cash accumulation

c) Buy-sell agreement

d) Survivor - CORRECT ANSWER: c) Buy-sell agreement 1 / 3

All of the following are true regarding a decreasing term policy EXCEPT

a) The payable premium amount steadily declines throughout the duration of the

contract

b) The death benefit is $0 at the end of the policy term

c) The contract pays only in the event of death during the term and there is no cash

value

d) The face amount steadily declines throughout the duration of the contract -

CORRECT ANSWER: a) The payable premium amount steadily declines throughout the

duration of the contract

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 - CORRECT ANSWER: d) Viatical

contracts allow for a 10-day free-look period

All of the following are unfair claims settlement practices EXCEPT:

a) Suggesting negotiations in settling the claim

b) Refusing to pay claims without conducting a reasonable investigation

c) Failing to adopt and implement reasonable standards for settling claims

d) Failing to acknowledge pertinent communication pertaining to a claim - CORRECT

ANSWER: a) Suggesting negotiations in settling the claim

All of the following may be exempt from the whole or part of the Indiana licensing examination EXCEPT

a) A candidate applying for a surplus lines producer license

b) A Chartered Life Underwriter applying for a Life license

c) A resident producer in another state under certain conditions

d) A person selling credit life and credit health insurance - CORRECT ANSWER: a) A

candidate applying for a surplus lines producer license

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? - CORRECT ANSWER: Lower

An association could buy group insurance for its members if it meets all of the following

EXCEPT:

a) Has a constitution and by laws 2 / 3

b) Holds annual meetings

c) Is contributory

d) Has at least 50 members - CORRECT ANSWER: d) Has at least 50 members

An employee quits her job where she has a balance of $10,000 in her qualified plan.The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the

tax-free rollover? - CORRECT ANSWER: $8,000, 60 days

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learn of his history one year later. What will probably happen?

a) The policy will be voided

b) The insurer will sue the insured for committing fraud

c) Because the insured is currently not a drug user, his policy will not be affected

d) The policy will not be affected - CORRECT ANSWER: d) The policy will not be

affected

An insurance contract must contain all of the following to be considered legally binding

EXCEPT:

a) Competent parties

b) Beneficiary's consent

c) Offer and acceptance

d) Consideration - CORRECT ANSWER: b) Beneficiary's consent

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? - CORRECT ANSWER: Have accumulated 6 work credits in the past 3 years

An insured misstated her age on an application for an individual health insurance policy.The insurance company found the mistake after the contestable period had expired.The insurance company will take which of the following actions regarding any claim that

has been issued? - CORRECT ANSWER: Adjust the claim benefit to reflect the

insured's true age

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe? - CORRECT ANSWER: Reduction of Premium

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