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2024 INDIANA LIFE INSURANCE EXAM PREP WITH CORRECT ANSWERS
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2024 INDIANA LIFE INSURANCE EXAM PREP WITH CORRECT ANSWERS
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2024 INDIANA LIFE INSURANCEEXAM PREP WITH CORRECT
ANSWERS
Twisting - CORRECT ANSWERS-A form of misrepresentation in which an
agent persuades an insured/owner to cancel, lapse, or switch policies, even
when it's to the insured's disadvantage.
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 ANSWERS-REDUCTION OF PREMIUM
Which of the following terms is used to name the NON-TAXED return of
UNUSED premiums? - CORRECT ANSWERS-DIVIDEND
Which of the following ultimately determines the INTERST RATES paid to the
owner of a FIXED annuity? - CORRECT ANSWERS-Insurer's GUARANTEED
minimum rate of interest
Under an EXTENDED TERM NONFORFEITURE option, the policy cash value is
converted to - CORRECT ANSWERS-the SAME FACE AMOUNT as in the whole
life policy
If an insured continually uses the AUTOMATIC PREMIUM LOAN option to pay
the policy premium, - CORRECT ANSWERS-The policy will TERMINATE when
the cash value is REDUCED to NOTHING!
A candidate applying for WHICH of the following licenses will NOT be
required to pass a WRITTEN EXAM? - CORRECT ANSWERS-A NONRESIDENT
PRODUCER
A deferred annuity is surrendered PRIOR to annuitization. Which of the
following best describes the NON-FORFEITURE VALUE of the annuity? -
CORRECT ANSWERS-The surrender value should be EQUAL to 100% of the
premium paid, MINUS any prior withdrawals and surrender charges
The policyowner wants to make sure that upon his death, the life policy will
pay a portion of the PROCEEDS annually to his spouse, but that the
PRINCIPAL will be paid to their children when they reach a certain age. Which
SETTLEMENT option should the policyowner choose? - CORRECT ANSWERS-
INTEREST ONLY option
, An insurance producer has not been appointed to an insurance company.
WHO is the PRODUCER considered to represent? - CORRECT ANSWERS-The
CLIENT
An individual has just borrowed $10,000 from his bank on a 5-year
installment LOAN requiring MONTHLY PAYMENTS. What type of life insurance
policy would be BEST suited to THIS situation? - CORRECT ANSWERS-
DECREASING TERM
because the policy's face amount DECREASES as the amount of DEBT is
reduced
Which of the following BEST describes GROSS ANNUAL PREMIUM? - CORRECT
ANSWERS-ANNUAL cost of MORTALITY, PLUS EXPENSES
Which of the following is TRUE for both equity indexed annuities AND fixed
annuities? - CORRECT ANSWERS-They have a GUARANTEED MINIMUM
INTEREST RATE
Which of the following statements is TRUE concerning IRREVOCALBE
BENEFICIARIES? - CORRECT ANSWERS-They can be changed ONLY with the
WRITTEN CONSENT of that beneficiary
The type of SETTLEMENT option which pays throughout the lifetimes of two
or more beneficiaries is called - CORRECT ANSWERS-JOINT and SURVIVOR
option pays while EITHER beneficiary is still living
The policyowner of a UNIVERSAL LIFE policy may skip paying the premium
and the policy will not lapse as long as - CORRECT ANSWERS-The policy
contains sufficient cash value to cover the cost of insurance
Death due to plane crash for a fare-paying passenger - CORRECT ANSWERS-
Which of the following is NOT typically excluded from life policies?
Which option for Universal life allows the beneficiary to collect both the
death benefit and cash value upon the death of the insured? - CORRECT
ANSWERS-OPTION B
There is no current income taxation upon the growth in the annuity -
CORRECT ANSWERS-Annuity contracts grow tax deffered. That means that
40 - CORRECT ANSWERS-What is the number of credits required for fully
status for social security disability benefits?
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