Indiana Life & Health Insurance Exam Review Correct 100%

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learn of his history one year later. What will probably happen? a) The policy will be voided b) The insurer will sue the insured for committing fraud c) Because the insured is currently not a drug user, his policy will not be affected d) The policy will not be affected - ANSWER d) The policy will not be affected A new insurance company wants to begin conducting insurance in Indiana. What will it need to receive before it can legally open for business? - ANSWER Certificate of Authority How many days after a final disposition must an insurance producer report administrative action or criminal prosecution to the Director? - ANSWER 30 days 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? - ANSWER Reduction of Premium