Exam (elaborations)
2024 INDIANA LIFE & HEALTH INSURANCE EXAM WITH CORRECT ANSWERS
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2024 INDIANA LIFE & HEALTH INSURANCE EXAM WITH CORRECT ANSWERS
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2024 INDIANA LIFE & HEALTHINSURANCE EXAM WITH CORRECT
ANSWERS
Absolute Assignment - CORRECT ANSWERS-transferring all rights of
ownership to another person or entity; new policy owner doesn't need to
have insurable interest in the insured
Collateral Assignment - CORRECT ANSWERS-transfer of partial rights to
another person; usually done to secure a loan or some other transaction;
partial and temporary assignment of some of the policy rights; once
debt/loan repaid, assigned rights returned to the policy owner
Participating Insurance Policy - CORRECT ANSWERS-may pay dividends to
the policyowner
Material Misrepresentation - CORRECT ANSWERS-misstatement to a question
asked in the application process; death benefit claim will likely be denied
Law of Large Numbers - CORRECT ANSWERS-the larger a group becomes, the
easier it is to predict losses; used to predict certain types of losses and set
appropriate premiums
Level Benefit Payment Amount - CORRECT ANSWERS-amount of each
payment received from the annuity during the annuity period
General Account - CORRECT ANSWERS-comprised mostly of conservative
investments like bonds; these investments are secure enough to allow the
insurance company to guarantee a specified rate of interest, as well as
assure the future income payments that the annuity will provide; fixed
annuity premiums are deposited into this
Equity Indexed Annuities - CORRECT ANSWERS-fixed annuities that invest on
a relatively aggressive basis; have guaranteed minimum interest rate;
interest rate often tied to familiar index such as the S&P 500; generally,
insurance companies reserve the initial returns for themselves but pay the
excess to the annuitant
Variable Annuity - CORRECT ANSWERS-serves as a hedge against inflation;
annuitant may receive different rates of return on the funds that are paid
, into the annuity; 3 main characteristics: underlying investment (separate
account), interest rate, and license requirements
Suitability - CORRECT ANSWERS-how well a recommended product will meet
the applicant's needs an resources
Exclusion Ratio (Annuity) - CORRECT ANSWERS-total investment divided by
total amount expected to be paid out over the life of the contract
Accumulation Phase - CORRECT ANSWERS-period after an annuity has been
purchased but before distributions begin
Provisions - CORRECT ANSWERS-stipulate the rights and obligations of an
insurance contract and are fairly universal from one policy to the next
Riders - CORRECT ANSWERS-modify provisions that already exist; used to
increase or decrease policy benefits and premiums
Options - CORRECT ANSWERS-offer insurers and insureds ways to invest or
distribute a sum of money available in a life policy
Substandard Risk - CORRECT ANSWERS-results in higher premium
Standard Risk - CORRECT ANSWERS-results in standard premium
Preferred Risk - CORRECT ANSWERS-results in lower premium
Expense Loading - CORRECT ANSWERS-combined with premiums to spread
the operating costs of a business to all insureds
Net Premium - CORRECT ANSWERS-premiums without expense loading
Concealment - CORRECT ANSWERS-occurs when a person withholds a
material fact that is crucial to making a decision; in insurance, this involves
withholding information that would be crucial to underwriting decisions
Warranty - CORRECT ANSWERS-a statement guaranteed to be true
Representation - CORRECT ANSWERS-a statement true to the best of an
applicant's knowledge
3 Basic Types of Term Life Insurance - CORRECT ANSWERS-level, increasing,
and decreasing
Level Term - CORRECT ANSWERS-death benefit doesn't change throughout
the life of the policy
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