INDIANA LIFE INSURANCE EXAM

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INDIANA LIFE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Mary is receiving an annuity payout from her Variable Straight Life Annuity.Upon her death, which of the following will be payable to her estate?

• Nothing
• The policy death benefit
• The remaining value of her account
• The total premiums paid into the account, less the amount paid to Mary in benefits

Answer:

• Nothing

Question 2: Agent Steve takes a prepaid application from applicant Cindy and issues a 30 day Interim Term insurance receipt to Cindy. The effective date of the interim coverage will be on

the:

• policy delivery date.
• date of application or date of the medical exam, which ever occurs last, if the proposed

insured is insurable on that key date.

• date of application.
• policy issue date.

Answer:

• Date of Application

Question 3: You are subject to a fine of not more than $1,000 for each violation, not to exceed $5,000 in any 6-month period.The limits for fines are $25K per violation for unknowing violations and $50K per violation for knowing violations of the law.

Answer:

All of the following are true regarding controlled business EXCEPT

• Controlled business includes insurance written on yourself.

• The limit for controlled business is 25% of the premium that you write in a year.

• Controlled business includes insurance written on your parents.

• The limit for controlled business is 25% of your commission income in a twelve month period

Question 4: Joe will receive the face amount of his life insurance policy from the Viatical company.

Answer:

All of the following are bene?ts which can be paid under an Accelerated Death bene?t EXCEPT

• Terminal Illness

• Nursing Home

• Total Disability

• Dread Disease

Question 5: Funeral Directors selling pre-need burial plans.

Funeral Directors, and their employees who are also licensed funeral directors may obtain a limited license to sell pre-need insurance, after completing the necessary prelicensing course and passing the examination.

Answer:

All of the following are qualifications of a resident Producer EXCEPT

• They must be at least 21 years of age.

• They must be an Indiana resident.

• They must have completed an approved prelicensing course.

• They must have passed an examination.

Question 6: In an effort to show true love, Romeo names Juliet as his irrevocable beneficiary on a Variable Universal Life policy. Unfortunately, the relationship does not last, and some time later Romeo falls in love with Gwenevere. What can Romeo do concerning his beneficiary designation?

• Romeo may terminate his existing life insurance policy and purchase a new policy naming

Gwenevere as his beneficiary.

• Romeo may put his existing policy on Reduced Paid Up, and purchase a new policy naming

Gwenevere as his beneficiary.

• Romeo may not make any substantial changes to his existing policy as he has named Juliet

as his irrevocable beneficiary.

• Romeo may now name Gwenevere as his revocable beneficiary.

Answer:

• Romeo may now name Gwenevere as his revocable beneficiary.

Question 7: Luis and his spouse, Mary, are both age 30. Luis owns a life insurance policy that will pay Mary an income through age 50, followed by a death benefit if Luis were to die before age 50. Luis owns which of the following types of life insurance policies?

• Survivorship Life
• Modified Life
• Family Income
• Family

Answer:

• Family Income

Question 8: Linda will allow a one-year Term policy to expire

Answer:

Producer Bart makes a sales presentation to Betty for a Universal Life policy. While completing the application, Bart learns that Betty is insured under a life policy. Bart must give Betty the Important Notice Regarding the Replacement of Life Insurance and a copy of the Sales Proposal used in the presentation under all of the following situations EXCEPT

• Betty will convert her existing Convertible Term policy to Whole Life.

• Betty says that coming up with the initial premium for the UL will not be a problem as she will borrow

all the cash value out of her existing policy to pay it.

• Betty tells Bart that she will exchange her original policy for a reduced paid-up policy.

• Betty decides to follow Bart's recommendation that she continue her Whole Life as extended term

insurance.Question 9: Because Joe is terminally ill, he decides to exercise his accelerated death benefit on his Whole Life insurance policy. Which of the following is true concerning this benefit option?

• Joe's company will loan Joe his cash value interest free, and then subtract the loan from the

death benefit.

• Joe's company will pay the entire death benefit to Joe's beneficiary prior to Joe's actual

death.

• Joe's company will pay a percentage of the face amount to Joe prior to death, and then pay

the balance to the beneficiary at Joe's death.

• Joe's company will pay the face amount of the policy to Joe prior to death, and then pay an

additional face amount to the beneficiary at death.

Answer:

• Joe's company will pay a percentage of the face amount to Joe prior to death, and then pay the

balance to the beneficiary at Joe's death.Question 10: Which of the following statements is NOT true about Fixed Annuities?

• A securities license is necessary to sell Fixed Annuities.
• There will be a guaranteed minimum rate of return payable on the investment.
• Monies cannot be withdrawn prior to age 59 1/2 without penalty.
• The monies invested will be in the company's General Account.

Answer:

• A securities license is necessary to sell Fixed Annuities