INDIANA LIFE AND HEALTH INSURANCE
STATE EXAM SIMULATOR QUESTIONS
AND ANSWERS
An architecture firm would stand to lose a lot of money in the event of the death of its
project manager. Which type of policy should the firm purchase on its project manager?
- Answer-Universal life insurance
Key Person insurance
Graded insurance
Executive insurance
Correct. Key person insurance is a type of life insurance policy that provides a death
benefit to a business if its owner or another significant employee passes away.
If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses? - Answer-Long-term care
Indemnity
Medicare Supplement
Medicaid
Correct. In this situation, a Medicare Supplement policy would provide the subscriber
the best coverage for excess charges.
Which of the following permits an insurance company to transact business in Indiana?3
- Answer-Certificate of admission
Certificate of domestication
Certificate of authenticity
Certificate of authority
Correct. A certificate of authority permits an insurance company to transact business in
Indiana.
A policyowner is able to choose the frequency of premium payments through what
policy feature?
Consideration
Payor benefit
Premium Mode
Assignment provision
53 of 200 Questions Remaining
Proceed
Correct. Premium Mode is the feature that allows the policyowner to select the timing of
premium payment, such as monthly, quarterly, annually etc. - Answer-
Z owns a Disability Income policy with a 30-day Elimination period. Z contracts
pneumonia that leaves him unable to work from January 1 until January 15. Z then
, becomes disabled from an accident on February 1 and the disability lasts until July 1 the
same year. Z will become eligible to receive benefits starting on: - Answer-January 1
January 15
February 1
March 1
53 of 200 Questions Remaining
Proceed
Correct. The elimination period is the period of time between the onset of a disability,
and the time you are eligible for benefits. It is best thought of as a deductible period for
your policy. After a 30-day Elimination period, Z will become eligible for receiving
benefits on March 1.
Which of the following are Equity Indexed annuities typically invested in? - Answer-
Corporate Bonds
Money Market accounts
Municipal Bonds
S&P 500
53 of 200 Questions Remaining
Proceed
Correct. An indexed annuity is a type of tax-deferred annuity whose credited interest is
linked to an equity index — typically the S&P 500.
A group life insurance policy can be converted to an individual whole life policy under
which circumstance? - Answer-Employment termination
Nonpayment of premiums
Policy reinstatement
Decrease in employer revenue
53 of 200 Questions Remaining
Proceed
Correct. Termination of employment is a circumstance under which a group life
insurance policy can be converted to an individual policy.
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against
inflation, which Dividend Option should she chose? - Answer-Paid-Up Additional
Insurance
Cash Option
Reduced Premiums
Accumulate with Interest
53 of 200 Questions Remaining
Proceed
Correct. In this situation, Paid-Up Option should be
When is the face amount of a Whole Life policy paid? - Answer-At the policy's maturity
date only
When the insured dies or at the policy's maturity date, whichever happens first
Only when the insured dies
STATE EXAM SIMULATOR QUESTIONS
AND ANSWERS
An architecture firm would stand to lose a lot of money in the event of the death of its
project manager. Which type of policy should the firm purchase on its project manager?
- Answer-Universal life insurance
Key Person insurance
Graded insurance
Executive insurance
Correct. Key person insurance is a type of life insurance policy that provides a death
benefit to a business if its owner or another significant employee passes away.
If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses? - Answer-Long-term care
Indemnity
Medicare Supplement
Medicaid
Correct. In this situation, a Medicare Supplement policy would provide the subscriber
the best coverage for excess charges.
Which of the following permits an insurance company to transact business in Indiana?3
- Answer-Certificate of admission
Certificate of domestication
Certificate of authenticity
Certificate of authority
Correct. A certificate of authority permits an insurance company to transact business in
Indiana.
A policyowner is able to choose the frequency of premium payments through what
policy feature?
Consideration
Payor benefit
Premium Mode
Assignment provision
53 of 200 Questions Remaining
Proceed
Correct. Premium Mode is the feature that allows the policyowner to select the timing of
premium payment, such as monthly, quarterly, annually etc. - Answer-
Z owns a Disability Income policy with a 30-day Elimination period. Z contracts
pneumonia that leaves him unable to work from January 1 until January 15. Z then
, becomes disabled from an accident on February 1 and the disability lasts until July 1 the
same year. Z will become eligible to receive benefits starting on: - Answer-January 1
January 15
February 1
March 1
53 of 200 Questions Remaining
Proceed
Correct. The elimination period is the period of time between the onset of a disability,
and the time you are eligible for benefits. It is best thought of as a deductible period for
your policy. After a 30-day Elimination period, Z will become eligible for receiving
benefits on March 1.
Which of the following are Equity Indexed annuities typically invested in? - Answer-
Corporate Bonds
Money Market accounts
Municipal Bonds
S&P 500
53 of 200 Questions Remaining
Proceed
Correct. An indexed annuity is a type of tax-deferred annuity whose credited interest is
linked to an equity index — typically the S&P 500.
A group life insurance policy can be converted to an individual whole life policy under
which circumstance? - Answer-Employment termination
Nonpayment of premiums
Policy reinstatement
Decrease in employer revenue
53 of 200 Questions Remaining
Proceed
Correct. Termination of employment is a circumstance under which a group life
insurance policy can be converted to an individual policy.
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against
inflation, which Dividend Option should she chose? - Answer-Paid-Up Additional
Insurance
Cash Option
Reduced Premiums
Accumulate with Interest
53 of 200 Questions Remaining
Proceed
Correct. In this situation, Paid-Up Option should be
When is the face amount of a Whole Life policy paid? - Answer-At the policy's maturity
date only
When the insured dies or at the policy's maturity date, whichever happens first
Only when the insured dies
