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INDIANA LIFE AND HEALTH INSURANCE TEST QUESTIONS AND ANSWERS
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INDIANA LIFE AND HEALTH INSURANCE TEST QUESTIONS AND ANSWERS
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INDIANA LIFE AND HEALTH INSURANCETEST QUESTIONS AND ANSWERS
When an insurer issues an individual health insurance policy that is guaranteed
renewable, the insurer agrees - Answer-To renew the policy until the insured has
reached age 65.
The policyowner of a Universal Life policy may skip paying the premium and the policy
will not lapse as long as - Answer-The policy contains sufficient cash value to cover the
cost of insurance.
The policyowner wants to make sure that upon his death, the life policy will pay a
portion of the proceeds annually to his spouse, but that the principal will be paid to their
children when they reach a certain age. Which settlement option should the policyowner
choose? - Answer-Interest only option
How soon following the occurrence of a covered loss must an insured submit written
proof of such loss to the insurance company? - Answer-Within 90 days or as soon as
reasonably possible, but not to exceed 1 year
If one takes Social Security retirement benefits at age 62, what needs to be done at age
65 to qualify for Medicare? - Answer-Nothing
The time limit of certain defenses provision prohibits insurers from denying a claim due
to misrepresentation, as long as the policy has been in force for at least - Answer-2
years.
What is the clause that describes the method of paying the death benefit in the event
that the insured and beneficiary are both killed in the same accident? - Answer-
Common Disaster Clause
An insured purchased a variable life insurance policy with a face amount of $50,000.
Over the life of the policy, stock performance declined and the cash value fell to
$10,000. If the insured dies, how much will be paid out? - Answer-$50,000
All of the following are correct about the required provisions of a health insurance policy
EXCEPT - Answer-A reinstated policy provides immediate coverage for an illness.
An insured and his wife are both involved in a head-on collision. The husband dies
instantly, and the wife dies 15 days later. The company pays the death benefit to the
estate of the insured. This indicates that the life insurance policy had what provision? -
Answer-Common Disaster
,An insured who has an Accidental Death and Dismemberment policy loses her left arm
in an accident. What type of benefit will she most likely receive from this policy? -
Answer-The capital amount in a lump sum
Who can make a fully deductible contribution to a traditional IRA? - Answer-An
individual not covered by an employer-sponsored plan who has earned income
The provision that provides for the sharing of expenses between the insured and the
insurance company is - Answer-Coinsurance.
Which of the following is TRUE regarding variable annuities? - Answer-The annuitant
assumes the risks on investment.
What characteristic makes whole life permanent protection? - Answer-Coverage until
death or age 100
An applicant for a health insurance policy returns a completed application to her agent,
along with a check for the first premium. She receives a conditional receipt two weeks
later. Which of the following has the insurer done by this point? - Answer-Neither
approved the application nor issued the policy
Which of the following will vary the length of the grace period in health insurance
policies? - Answer-The mode of the premium payment
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - Answer-Conditional
Which of the following insurance arrangements will be appropriate for a parent buying a
life insurance policy on a child where the parent is the policyowner? - Answer-Third-
party ownership
An individual purchased a $100,000 Joint Life policy on himself and his wife. Eight years
later, he died in an automobile accident. How much will his wife receive from the policy?
- Answer-$100,000
Which of the following statements is correct regarding a whole life policy? - Answer-The
policyowner is entitled to policy loans.
Which of the following is true regarding taxation of dividends in participating policies? -
Answer-Dividends are not taxable.
How many consecutive months of coverage (other than in an acute care unit of a
hospital) must LTC insurance provide in this state? - Answer-12
, What type of insurance would be used for a Return of Premium rider? - Answer-
Increasing Term
All of the following are TRUE statements regarding the accumulation at interest option
EXCEPT - Answer-The interest is not taxable since it remains inside the insurance
policy.
When an annuity is written, whose life expectancy is taken into account? - Answer-
Annuitant
A lucky individual won the state lottery, so the state will be sending him a check each
month for the next 25 years. What type of annuity products are they likely to use to
provide these benefits? - Answer-Immediate annuity
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premiums must be paid - Answer-For 20 years or until death, whichever
occurs first.
Which of the following statements is true regarding coinsurance? - Answer-The larger
the percentage that is paid by the insured, the lower the required premium will be.
Which of the following is NOT a feature of a guaranteed renewable provision? - Answer-
The insurer can increase the policy premium on an individual basis.
Life income joint and survivor settlement option guarantees - Answer-Income for 2 or
more recipients until they die.
What is the number of credits required for fully insured status for Social Security
disability benefits? - Answer-40
Which of the following is INCORRECT concerning a noncontributory group plan? -
Answer-The employees receive individual policies.
What is another name for interest-sensitive whole life insurance? - Answer-Current
assumption life
According to the rights of renewability rider for cancellable policies, all of the following
are correct about the cancellation of an individual insurance policy EXCEPT - Answer-
Unearned premiums are retained by the insurance company.
Which of the following will be included in a policy summary? - Answer-Premium
amounts and surrender values
Which of the following riders would NOT increase the premium for a policyowner? -
Answer-Impairment rider
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