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2024 INDIANA STATE LIFE & HEALTH EXAM WITH CORRECT ANSWERS
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2024 INDIANA STATE LIFE & HEALTH EXAM WITH CORRECT ANSWERS
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2024 INDIANA STATE LIFE &HEALTH EXAM WITH CORRECT
ANSWERS
Upon reaching the limiting age, a handicapped child can extend their health
insurance coverage as a dependent - CORRECT ANSWERS-Only if the child is
incapable of employment and chiefly dependent on the policyowner
According to Indiana Law, group life insurance conversion privileges must
NOT: - CORRECT ANSWERS-Require evidence of insurability
Individual disability income policies typical include an elimination period (t/f)
- CORRECT ANSWERS-True
A producer's license may be denied, suspended, or revoked if the licensee: -
CORRECT ANSWERS-is found guilty of misrepresentation in obtaining the
license
Which of the following actions is NOT possible with a Universal Life policy? -
CORRECT ANSWERS-premiums may be applied as a credit against income
tax
How long is the typical free look period for long term care insurance policies?
- CORRECT ANSWERS-20 days
Equity indexed annuities are invested in: - CORRECT ANSWERS-The S&P 500
Group life policies in Indiana are required to contain a conversion privilege
that allows for conversion: - CORRECT ANSWERS-to an individual policy for a
stated period of time
What is a key requirement for accelerated death benefit policy? - CORRECT
ANSWERS-Must have a terminal illness to qualify
The Insurance Commissioner CANNOT: - CORRECT ANSWERS-Activate
insurance companies financial reserves
,The Legal Action Provision in Indiana stipulates that the: - CORRECT
ANSWERS-insured must wait 60 days after submitting proof of loss to initiate
a lawsuit and has up to 3 years to file
A business entity acting as an insurance producer must: - CORRECT
ANSWERS-designate at least one licensed producer to be responsible for the
entity's compliance with the insurance laws and rules
A life insurance policy can be backdated before the application date for up to
____ months. - CORRECT ANSWERS-6
In a vatical settlement, how much does the policyowner receive for a life
insurance policy? - CORRECT ANSWERS-Amount less than the death benefit
At what point may a producer sell insurance for an insurer? - CORRECT
ANSWERS-After being properly appointed by the insurer
A licensed business entity acting as an insurance producer must: - CORRECT
ANSWERS-notify the Dept. of Insurance of any fictitious name used
If an existing Accident and Health policy is being replaced with a new policy,
the decision to replace should not be based on: - CORRECT ANSWERS-
commissions to be paid
Which of the following is NOT considered rebating? - CORRECT ANSWERS-
Sharing commission with an agent licensed in the same line of business
An example of an Unfair Claims Settlement Practice isL - CORRECT
ANSWERS-turning down a claim without providing the basis of denial
In order to terminate a producer's appointment, the insurer must: - CORRECT
ANSWERS-send notice of the termination to the commissioner
Qualified LTC policies may take into consideration an applicant's pre-existing
conditions for a maximum of not more than _____ month(s) prior to the
effective date of coverage - CORRECT ANSWERS-6
An insured must qualify for social security disability income to be accepted
for the waiver of premium provision? (t/f) - CORRECT ANSWERS-false
What type of annuity has a cash value that based upon the performance of
it's underlying investment funs? - CORRECT ANSWERS-Variable
What requires insurers to disclose when an applicant's consumer or credit
history is being investigated? - CORRECT ANSWERS-1970 - Fair Credit
Reporting Act
,Under the ACA, consumers must have health insurance as of January 1, 2014
that contains Minimum Essential Coverage (MEC). Individuals who exempt
from this law include: - CORRECT ANSWERS-Those who cannot afford or have
religious objections
A person who is insured within a group contract will be given a: - CORRECT
ANSWERS-certificate
When must insurable interest exist for a life insurance contract to be valid? -
CORRECT ANSWERS-Inception of the contract
What kind of special need would a policy owner require with an adjustable
life insurance policy? - CORRECT ANSWERS-Flexible premiums
Which of the following actions by a producer would NOT result in a license
suspension or revocation? - CORRECT ANSWERS-Producer represents a
foreign insurance company
Which of the following is NOT a required provision in group life policies? -
CORRECT ANSWERS-Right to Loan
What the maximum Social Security Disability benefit amount an insured can
receive? - CORRECT ANSWERS-100% of the insured's Primary Insurance
Amount (PIA)
T has an annuity that guarantees an income payment for the rest of his life.
The contract also guarantees that if T dies before receiving payments for 20
years, the remaining payments will be paid to his son for the balance of the
20 years. What type of annuity is this? - CORRECT ANSWERS-Life Annuity
with Period Certain
Which of these provisions is NOT required in individual life insurance policies
sold in Indiana? - CORRECT ANSWERS-Extended Term
What is the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - CORRECT
ANSWERS-Fair Credit Reporting Act
Q is severely injured in an automobile accident and becomes totally disabled.
How many months must Q be disabled before being able to apply for Social
Security disability benefits? - CORRECT ANSWERS-5
Who elects the governing body of a mutual insurance company? - CORRECT
ANSWERS-Policyholders
, Which of the following policies combines investment choices with a form of
Term coverage? - CORRECT ANSWERS-Variable-Universal Life
Medicare Part B does NOT cover: - CORRECT ANSWERS-Physician and
surgeon services
Which provision allows the policy owner to change a term life policy to a
permanent one without providing proof of good health? - CORRECT
ANSWERS-Conversion
P and Q are married and have three children. P is the primary beneficiary on
Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is
the contingent beneficiary. P, Q, and R are involved in a car accident and Q
and R are killed instantly. The Accidental Death benefits will be paid to -
CORRECT ANSWERS-P only
Which of these Nonforfeiture Options continue a build-up of cash value? -
CORRECT ANSWERS-Reduced Paid-Up
In Indiana, what is the maximum percentage of controlled business a
producer may write in a twelve-month period? - CORRECT ANSWERS-25%
Which of the following is NOT included in the policy face? - CORRECT
ANSWERS-Exclusions
All LTC policies purchased in Indiana MUST contain a free-look period of: -
CORRECT ANSWERS-10 days
Which of the following services is NOT covered under a hospitalization
expense policy? - CORRECT ANSWERS-Surgeon's fees
A "reimbursement policy" pays what amount of covered LTC expenses? -
CORRECT ANSWERS-Actual covered expenses up to the daily maximum
Which of the following statements about a Guaranteed Renewable Health
Insurance policy is correct? - CORRECT ANSWERS-Premiums normally
increase at time of renewal
What year was the McCarran-Ferguson Act enacted? - CORRECT ANSWERS-
1945
The Life & Health Insurance Guaranty Association is: - CORRECT ANSWERS-
funded by admitted insurance companies through assessments
When must insurable interest be present in order for a life insurance policy
to be valid? - CORRECT ANSWERS-When the application is made
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