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Indiana Life & Health Insurance Exam (1) Questions & 100% Verified Correct Answers with complete solutions (Latest update CA$11.16   Add to cart
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Indiana Life & Health Insurance Exam (1) Questions & 100% Verified Correct Answers with complete solutions (Latest update

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Indiana Life & Health Insurance Exam (1) Questions & 100% Verified Correct Answers with complete solutions (Latest update

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  • August 14, 2024
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • indiana life health insurance exam 1

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Indiana Life & Health Insurance Exam
may pay dividends to the policyowner - ANS-Participating Insurance Policy

misstatement to a question asked in the application process; death benefit claim will likely be
denied - ANS-Material Misrepresentation

the larger a group becomes, the easier it is to predict losses; used to predict certain types of
losses and set appropriate premiums - ANS-Law of Large Numbers

results in higher premium - ANS-Substandard Risk

results in standard premium - ANS-Standard Risk

results in lower premium - ANS-Preferred Risk

combined with premiums to spread the operating costs of a business to all insureds -
ANS-Expense Loading

premiums without expense loading - ANS-Net Premium

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 -
ANS-Concealment

a statement guaranteed to be true - ANS-Warranty

a statement true to the best of an applicant's knowledge - ANS-Representation

level, increasing, and decreasing - ANS-3 Basic Types of Term Life Insurance

death benefit doesn't change throughout the life of the policy - ANS-Level Term

premium increases annually according to attained age; policy may be guaranteed to be
renewable each without proof of insurability - ANS-Annually Renewable Term (ART)

the insured, upon the end of a term policy with guaranteed renewable option, may qualify for a
discounted premium rate with proof of insurability - ANS-Re-entry Option

death benefit decreases each year over duration of the policy term; typically used when the
amount of needed protection is time sensitive, or decreases over time - ANS-Decreasing Term

, death benefit increases each year over duration of the policy term (usually by specific amount or
percentage of original amount); often used by insurance companies to fund certain riders that
provide a refund of premiums of a gradual increase in total coverage, such as the cost of living
or return of premium riders - ANS-Increasing Term

provides the policy owner with the right to convert the policy to a permanent insurance policy
without evidence of insurability; premium will be based on the insured's attained age at the time
of conversion - ANS-Convertible Term

basic whole life policy; will typically have the lowest annual premium - ANS-Continuous
Premium (Straight Life or Ordinary Life)

premiums for coverage paid-up before age 100; higher premium and cash value builds up
faster; 20-pay life, life paid-up at 65 (LP-65); - ANS-Limited Payment

provides level death benefit to the insured's age 100 for a one-time, lump-sum payment; policy
completely paid-up after one premium and generates immediate cash - ANS-Single Premium
Whole Life (SPWL)

lower premium in first few policy years (3 to 5 years) and higher level premium for remainder of
insured's life - ANS-Modified Life

premiums start low, gradually increase each year (for about 5 to 10 years), and remain level
thereafter - ANS-Graded-premium Whole Life

provides same benefits as traditional whole life policies with added benefit of current interest
rates which may allow for either greater cash value accumulation or a shorter premium-paying
period - ANS-Interest Sensitive Whole Life (Current Assumption Life)

cash value is dependent upon the performance of the equity index (S&P 500) although there is
a guaranteed minimum interest rate; policy's face amount increases annually to keep pace with
inflation - ANS-Equity-Indexed Whole Life

insured determines how much coverage is needed and the affordable amount of premium; as
insured's needs change, policy owner may make adjustments such as increase or decrease the
premium or the premium paying period, increase or decrease the face amount (requires proof of
insurability for increasing the death benefit or changing to a lower premium type policy), or
change the period of protection; policy owner also has option of converting from term to whole
life or vice versa - ANS-Adjustable LIfe

policy owner has the flexibility to increase the amount of premium paid into the policy and to
later decrease it again; interests sensitive policy with a guaranteed contract interest rate (usually
3 to 6%) and opportunity to get the current interest rate; two components: insurance (always

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