Indiana Life and Health Insurance State Exam Study
Guide
- ANS-Which of the following actions by a producer
- ANS-Which of the following provisions
- ANS-Which of these Nonforfeiture Options continue a build-up of cash value?
$1,600 (2200-200x80%) - ANS-M has a Major Medical insurance policy with a $200 flat
deductible and an 80% Coinsurance clause. If M incurs a $2,200 claim for an eligible medical
expense, how much will M receive in payment for this claim?
$50,000 minus any outstanding policy loans - ANS-P purchases a $50,000 whole life insurance
policy in 2005. One of the questions on the application asks if P engages in scuba diving, to
which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up
scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's
beneficiary?
0 - ANS-P is self-employed and owns an Individual Disability Income policy. He becomes totally
disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this
income is subject to federal income tax?
0 - ANS-T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent beneficiary.
Five years later, S dies of natural causes and the father is killed in a scuba accident shortly
afterwards. How much of the death benefit will the mother receive?
0% - ANS-______ of personal life insurance premiums is usually deductible for federal income
tax purposes
10 - ANS-The free-look period for life insurance policies in Indiana is _____ days
10 days - ANS-What is the minimum grace period for an individual health policy that is paid
monthly
10 year convertible term - ANS-Which of the following types of term life policies most likely
contains a renewability feature
10 years - ANS-G purchased a Family Income policy at age 40. The policy has a 20-year rider
period. If G were to die at age 50, how long would G's family receive an income?
,10% - ANS-Premature IRA distributions are assessed a penalty tax of
10% penalty is applied to withdrawals before 59 1/2 - ANS-all of the following statements about
traditional individual retirement accounts are false EXCEPT
100 - ANS-What is the maximum number of employees (earning at least 5000) that an employer
can have in order to start a SIMPLE retirement plan?
100% - ANS-A noncontributory plan requires ____ participation of all eligible employees
100% - ANS-XYZ Company pays the entire premium for its group health plan. The MINIMUM
percentage of eligible employees that must be covered is
100% of the insured's primary insurance amount (PIA) - ANS-What is the maximum social
security disability benefit amount an insured can receive?
1000 - ANS-A Hospital/Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar
year. Two claims were paid in September 2013, each incurring medical expenses in excess of
the deductible. Two additional claims were filed in 2014, each in excess of the deductible
amount as well. What would be this family's out-of-pocket medical expenses for 2013?
10000 - ANS-Under the USA Patriot Act, insurers are required to report receipt of cash
payments in excess of
12 months - ANS-A long-term care policy sold in Indiana must provide benefits for a minimum
of:
1250 - ANS-N is covered under an individual Disability policy with a 30-day Elimination period
and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received
on this claim is
1250 (3.5 months - 1 month elimination = 2.5 months x $500 = 1250) - ANS-An insured owns an
individual Disability Income policy with a 30-day Elimination Period for sickness and accidents
and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the
MAXIMUM amount he would receive for an approved claim?
15 - ANS-An insurer must provide an insured with claim forms within __ days after receiving
notice of a loss.
15 - ANS-Under the indiana long-term care partnership program (LTCP), producers are required
to have an additional ____ hours of education after they receive their license in order to sell
policies under this program.
,15 hours of additional education after they receive their license - ANS-Indiana's Long Term Care
Partnership Program requires a Producer to have:
180 - ANS-How many days is a temporary producer's license valid?
19 - ANS-The Indiana Children's Health Insurance Program (CHIP) provides children in need
with health benefits until the child reaches age ___ or becomes financially ineligible, whichever
is earlier
1945 - ANS-What year was the McCarran-Ferguson Act enacted
1970- FCRA - ANS-which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated
2 - ANS-A newly licensed producer must complete 24 hours of continuing education every ____
years
2 - ANS-An individual life insurance policy sold in Indiana can be contested by the insurer only
during the first _________ years of the contract
2 - ANS-What is the minimum number of activities of daily living (ADL) an insured must be
unable to perform to qualify for long term care benefits
2-50 employees - ANS-To be classified as a small employer, an employer must employ:
20 - ANS-A person insured under a health policy is required to give the insurance company a
Notice of Claim within how many days after a covered loss?
20 - ANS-An insured must notify an insurer of a medical claim within how many days after an
accident?
20 days - ANS-If a new life insurance policy is replacing an existing one, the insured is given the
right to return for a full refund at least ____ days after policy delivery.
20 days - ANS-Insurers may request a hearing within ___ if their policy is rejected
20-pay life - ANS-J is 35-years old and looking to purchase a whole life insurance policy. Which
of the following types of policies will provide the most rapid growth of cash value?
20-paylife - ANS-What type of policy would offer a 40-year old the quickest accumulation of
cash value?
, 20% is withheld for income taxes - ANS-An individual participant personally received eligible
rollover funds from a profit-sharing plan. What is the income tax withholding requirements for
this transaction?
2100 - ANS-Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical
policy with a $100 deductible and 80/20 coinsurance. How much will Q be responsible for
paying on this claim?
24 - ANS-A producer must complete ____ hours of continuation education biennially to maintain
the license
25,000 - ANS-In indiana, the MAXIMUM fine that the commissioner can impose on a producer
or company who violates a cease and desist order is ____ per violation
25,000 - ANS-J has an Accidental Death and Dismemberment policy with a principal sum of
$50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will
receive from his policy?
25% - ANS-In Indiana, what is the maximum percentage of controlled business a producer may
produce over a twelve-month period?
2500 - ANS-an individual working part-time has an annual income of 25000. If this individual has
an IRA, what is the maximum deductible IRA contribution allowable?
25000 individual whole life policy - ANS-An employee with $25,000 group term life coverage
was recently fired. This employee's group coverage may be converted to a
26 - ANS-The affordable Care Act (ACA) provides health coverage to dependents up to the age
of:
30 - ANS-A licensee must notify the commissioner with ____ days of an address change/
30 - ANS-a medicare supplement policy may be returned for a 100% premium refund within
________ days after policy delivery
30 - ANS-ABC Insurance Company fails to pay death proceeds after satisfactory proof of loss
was submitted. ABC must then begin paying interest on the death proceeds after _______ days
of receiving proof of loss
30 day free lock period - ANS-At minimum, long term care policies in indiana must contain
30 day free look period - ANS-How long is the typical free look period for Long Term care
insurance policies?
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