Indiana State Life and Health Insurance Exam 2023
(CANHAM)
Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental, Measurable -
ANS-elements of insurable risk
a business formed as a public or private corporation and owned by its stockholders, aka
shareholders. issues non-par policies - ANS-stock insurer
a diagnosed medical condition that only allows specific questions, not including sexual
orientation and may be required by insurer to be tested for certain amounts of insurance -
ANS-AIDS
a fund held by the life insurance company and maintained separately from the insurer's general
assets and also holds variable annuity and variable life insurance premiums - ANS-separate
account
a notice given in advance stating who is authorized to disclose personal information, the kind of
information it may disclose, and the reason it's being collected. signed by applicant to give
consent - ANS-disclosure notification
a permanent life insurance policy that allows policyholders to tie accumulation values to a stock
market index such as S&P500. contains minimum guaranteed interest rate component -
ANS-equity indexed universal life
a permanent life insurance policy which is guaranteed to remain in force for the insured's entire
lifetime and premiums will never increase - ANS-whole life
a person in a position of financial trust - ANS-fiduciary
a plan where a business pays the premiums on a life insurance policy which the employee
owns. aka section 162 bonus plan which is a nonqualified employee benefit arrangement where
an employer pays a bonus to a particular employee. bonus is tax deductible - ANS-executive
bonus plan
a policy that covers two or more lives with the death benefit being paid when the first insured
dies, also called first-to-die policies. once DB is paid, policy ends - ANS-joint life policy
a relationship in which one person is authorized to represent and act for another person or
corporation. - ANS-law of agency
a report card of the insurance company - ANS-financial strength rating
, a review that happens with producer and policyowner that includes policy, riders, exclusions,
and other details to make sure it is understood - ANS-policy review
a single contract that covers an entire group of people, the employer is the policyowner.
employer determines amount of insurance. - ANS-group life insurance
a statement that is believed to be true to the best one one's knowledge at the time it is given -
ANS-representation
a statement that is guaranteed to be true. if warranty is not kept, there is a breach of warranty
which voids contract - ANS-warranty
A type of buy-sell agreement where the purchaser of a deceased owner's business interest is
the business itself. if business is a corp, entity plans are called stock redemption plans. usually
used with non-incorporated businesses-partnerships - ANS-entity plan
a type of permanent life insurance policy that is basically a universal life policy with a separate
account and is also called flexible premium variable life. death benefit is paid if the insured dies
as long as there is sufficient cash value to pay costs of insurance - ANS-variable universal life
a use of life insurance that can pay off mortgage debt if the insured dies and assures that the
surviving family will be able to stay in the home - ANS-mortgage payoff
a use of life insurance that protects the survivors of the insured if the worst should happen to
him/her - ANS-survivor protection
a variation on industrial life insurance, sold by home service producers in the neighborhoods.
typically larger in size-$10k-$25k in face value - ANS-home service life insurance
adds benefits to life insurance policies and customize coverage to fit needs but come with an
additional premium - ANS-rider
agents that hire, train, and supervise other agents. they receive overriding commissions on the
business produced by the agents they manage - ANS-general agents
agreements that provide for the sale of a business interest at the death or disability of an owner.
aka business continuation plans - ANS-buy-sell
aka admitted, authorized, or approved that requires an insurance company to have a certificate
of authority - ANS-authorized insurer
aka current assumption whole life, which is a type of whole LI where the cash value can
increase beyond the stated guarantee if economic conditions warrant. these policies have a
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