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FINAL EXAM - INDIANA LIFE, QUESTIONS AND ANSWERS
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FINAL EXAM - INDIANA LIFE, QUESTIONS AND ANSWERS
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FINAL EXAM - INDIANA LIFE,QUESTIONS AND ANSWERS
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? - Answer-59 1/2
An ___ insurance company is one formed in a country other than the United States -
Answer-Alien
In Indiana , which of the following must be delivered to a policy owner upon the sale of
an individual life insurance policy? - Answer-A Policy Summary and Buyer's Guide
The ___ must provide an insured with proper disclosure concerning the replacement of
a life insurance policy - Answer-producer
An ___ term life policy is normally used when covering an insured mortgage balance -
Answer-Decreasing
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The
annuity will then pay P retirement payments after the 15 years. Which type of annuity
did P purchase? - Answer-deferred
A domestic insurance company in Indiana must : - Answer-Be organized under Indiana
insurance laws
J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per
year in premium for the first 5 years. The premium then increases to $900 per year in
the sixth year, and remains level thereafter. The policy's death benefit also remains at
$100,000. Which type of Life Insurance policy is this? - Answer-Modified Premium Life
Which of the following is an important underwriting principle of group life insurance? -
Answer-Everyone must be covered in the group
Which statement regarding a key employee life policy is NOT true ? - Answer-The
beneficiary is named by the key employee
If it's employees share in the cost of insurance, what type of group life insurance plan
would a corporation have? - Answer-Contributory
Which of the following life insurance policies combine term insurance with an
investment element? - Answer-Universal Life
, T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life
Annuity. What will this transaction provide? - Answer-Income that cannot be outlived by
the owner
In the event of employment termination a person covered by a group policy also has the
right to convert such coverage to an individual policy within ___ days without proving
insurability - Answer-31 days
M had an annual life insurance premium payment due January 1. She died January 10
without making the premium payment. What action will the insurer take? - Answer-Pay
face amount minus the past due premium
C is trying to determine whether to convert her convertible term life policy to whole life
insurance using her original age or attained age. What factor would affect her decision
the most? - Answer-the cost
Which of the following statements about accumulated interest earned on dividends from
an insurance policy is true? - Answer-taxed as ordinary income
The type of annuity that can be purchased with one monetary deposit is called an ? -
Answer-Immediate annuity
In regards to representations or warranties, which of these statements is TRUE? -
Answer-If material to the risk, false representations will void a policy
A life insurance policy can be backdated before the application date for up to - Answer-6
months
A business entity acting as an insurance producer must - Answer-designate at least one
licensed producer to be responsible for the entity's compliance with the insurance laws
and rules
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his
son as beneficiary. M has the right to change the beneficiary designation at anytime.
What type of beneficiary is his son? - Answer-Revocable
During the course of an insurance business transaction , who does the producer legally
represent? - Answer-insurance company
All are true statements regarding the underwriting process, EXCEPT: - Answer-AIDS
and HIV virus exams can be conducted in a discriminatory fashion
Which statement is true regarding a variable whole life policy ? - Answer-A minimum
guaranteed Death benefit is provided
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