INDIANA LIFE HEALTH INSURANCE EXAM REVIEW

PDF Download INDIANA LIFE & HEALTH INSURANCE EXAM REVIEW Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -83 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: 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

Answer:

d) The policy will not be affected

Question 2: Which of the following riders would NOT increase the premium for a policyowner?

Answer:

Impairment rider Question 3: If an insurer becomes insolvent, which of the following would pay benefits to policyholders?

Answer:

The Guaranty Association

Question 4: 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

Answer:

c) NAIC

Question 5: What is the benefit of choosing extended term as a nonforfeiture option?

Answer:

It has the highest amount of insurance protections Question 6: How many days after a final disposition must an insurance producer report administrative action or criminal prosecution to the Director?

Answer:

30 days Question 7: All of the following are personal uses of life insurance EXCEPT:

a) Estate creation

b) Cash accumulation

c) Buy-sell agreement

d) Survivor

Answer:

c) Buy-sell agreement

Question 8: What is the purpose of a fixed period settlement option?

Answer:

To provide a guaranteed income for a certain amount of time

Question 9: How long is an open enrollment period for Medicare supplement policies?

Answer:

• months

Question 10: What characteristics must an annuity have if it is used to accumulate funds in an IRA?

Answer:

Tax-qualified Question 11: In a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective?

Answer:

100% Question 12: When can a Long-Term Care policy deny a claim for losses incurred because of a pre-existing condition?

Answer:

Within 6 months of the effective date of coverage Question 13: What type of annuity guarantees to pay an income to the annuitant each year as longs he lives, and upon death, the annuity will refund the remaining payments to a beneficiary?

Answer:

Installment refund annuity Question 14: Which of the following is NOT a government-funded insurance program?

a) Old-Age, Survivors and Disability Insurance (Social Security

b) Medicare

c) Medicaid

d) Federal Deposit Insurance Corporation (FDIC)

Answer:

d) Federal Deposit Insurance Corporation (FDIC)

Question 15: When is the earliest a policy may go into effect?

Answer:

When the application is signed and a check is given to the agent Question 16: An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?

Answer:

Pay the death benefit Question 17: 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?

Answer:

Reduction of Premium Question 18: Which of the following is NOT an enrollment period for Medicare Part A applicants?

a) Special enrollment

b) General enrollment

c) Automatic enrollment

d) Initial enrollment

Answer:

Automatic enrollment Question 19: If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Answer:

Guaranteed Insurability rider Question 20: The most the Insurance Guaranty Association will pay for net cash surrender values is

Answer:

$100,000