INDIANA STATE LIFE AND HEALTH INSURANCE EXAM

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INDIANA STATE LIFE AND HEALTH INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of the following is not an unfair claim settlement practice?

Failing to acknowledge and act promptly with respect to an insurance claim Compelling an insured to initiate a lawsuit be offering less on an insurance claim Failing to accept or deny a claim within reasonable time after proof of loss is submitted Needing written documentation of claim details

Answer:

Needing written documentation of claim details Question 2: A producer's license may be denied, suspended, or revoked if the license?Engages in replacement of an existing policy Is found guilty of misrepresentation in obtaining the license Files for bankruptcy Does not meet a sales quota

Answer:

Is found guilty of misrepresentation in obtaining the license Question 3: According to Indianas Mammography Coverage statue, which of these benefits are considered mandatory in every Medical Expense Policy?One baseline mammogram for women between ages 30-34 One mammogram every year for women aged 35 and older One mammogram every year for women aged 40 and older Two mammograms every year for those considered "women at risk"

Answer:

One mammogram every year for women aged 40 and older

Question 4: S is a life insurance policyowner who enters into a written agreement to receive immediate cash in exchange for the sale transfer of her life insurance policy. This agreement is referred to as a?1035 Exchange Viatical Settlement Equity Cash Agreement Cash Conversion

Answer:

Viatical Settlement Question 5: In the event of employment termination, a person covered by a group policy also has the right to convert such coverages to an individual policy within____days without proving insurability?15 30 31 45

Answer:

31 Question 6: J chooses a monthly premium payment mode on his Whole Life insurance policy.Which of these statements is correct?The gross premium is higher on a monthly payment mode as compared to being paid annually The gross premiums is lower on a monthly payment mode as compared to being paid annually The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis

Answer:

The gross premium is higher on a monthly payment mode as compared to being paid annually

Question 7: What does a certificate of authority allow?

A nonresident producer to conduct insurance business An insurance company to exceed coverage limits that the Guaranty Fund covers An insurance company to conduct insurance business in Indiana A resident producer to sell insurance contracts

Answer:

An insurance company to conduct insurance business in Indian

Question 8: The Insurance Commissioner may suspend, revoke, or refuse to renew a producer's license for which of the following reasons?Producer files for bankruptcy Producer engages in the replacement of an existing policy Producer has used fraudulent, coercive, or dishonest practices Producer does not meet a sales quota

Answer:

Producer has used fraudulent, coercive, or dishonest practices Question 9: The Common Disaster clause provides that if both the insured and sole named beneficiary were to die in a common accident, which of the following is true?This clause provides the payment of proceeds to the insured's estate This clause provides the payment of proceeds to the beneficiary's estate The estate taxes in the insured's estate may be reduced The estate taxes in the beneficiary's estate may be reduced

Answer:

This clause provides the payment of proceeds to the insured's estate Question 10: Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?Aleatory Adhesion Unilateral Consideration

Answer:

Aleatory Question 11: What is considered a valid reason for small businesses to insure the lives of its major shareholders?To provide an income for the surviving dependents Reduce the company's tax liability To pay for final expenses Fund a buy-sell agreement

Answer:

Fund a buy-sell agreement

Question 12: What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy?Premiums may increase at time of renewal Premiums may increase at any time Policy may be renewed at the discretion of the insured Policy may be amended by insured at any time

Answer:

Premiums may increase at time of renewal Question 13: Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan?Revocable Assignment Beneficiary Change Irrevocable Assignment Collateral Assignment

Answer:

Collateral Assignment Question 14: Which of the following consists of an offer, acceptance, and consideration?Warranty Estoppel Contract Representation

Answer:

Contract Question 15: What is the purpose of the Indiana Life and Health Insurance Guaranty Association?Ensures that claims filled against insolvent insurance companies will be paid Enforces Indianas insurance regulations Approves policy forms Underwrites high-risk insurance applicants

Answer:

Ensures that claims filled against insolvent insurance companies will be paid Question 16: When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a?Federal Fair Credit Act Violation Title 18 Fraud Violation Anti-Money Laundering Violation Unfair Trade Practice Violation