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Indiana Life and Health ALL VERSIONS
2025 | LATEST AND ACCURATE REAL
EXAM QUESTIONS WITH DETAILED
ANSWERS | VERIFIED FOR
GUARANTEED PASS | LATEST UPDATE
Which of the following types of insurance is investment based, has a level fixed premium, and a non guaranteed cash value? a) Credit life b) Variable whole life c) Interest-based life d) Universal life
- ANSWER B Regarding health insurance, all of the following are tax-deductible EXCEPT a) Employer paid group Accidental Death and Dismemberment. b) Employee paid group disability income. c) Employer paid group health d) Employers paid group Long-Term Care
- ANSWER B What is the purpose of a benefit schedule? a) To list the insured's copayments and deductibles. b) To state what and how much is covered in the plan. c) To include the average charges for procedures. d) To provide the dates for the payment of benefits.
- ANSWER B Regarding the PPACA health care tax credit, which of the following is true? a) Tax credits are based upon a taxpayer's or family's expected annual medical expenses. b) All wage earners who purchase a health care insurance are eligible for the tax credit. c) Tax credits are sent to the tax payer to reduce monthly insurance premiums. d) Persons receiving Medicaid are not eligible.
- ANSWER D An insured needs ongoing treatment for a diabetic condition. Under PPACA, which of the following is correct?
a) Treatment is subject to an annual dollar maximum. b) The condition must be covered under the insured's plan. c) The condition is covered if the insured's plan specifies the condition. d) Treatment is subject to pre-existing conditions exclusions.
- ANSWER B What do Life Insurance Replacement (Rule 16.1), Advertising Rule (13) and Solicitation (Rule 24) rules have in common? a) They are prepared by the NAIC. b) They are disclosure rules. c) They are privacy protection rules. d) They protect insurance companies and producers.
- ANSWER B According to the Life Insurance Solicitation Rule 24, what would be defined as cost? a) The dividend projections. b) The difference between what the insured pays and what he gets in return. c) The amount the insured pays in premium. d) The difference between what the insured pays in premium and what the insurer spends in administrative expenses.
- ANSWER B All of the following are features of catastrophic plans EXCEPT a) Out-of-pocket costs b) High deductibles c) Essential benefits d) High premiums
- ANSWER D Which of the following is NOT true? a) A consultant may not be compensated by a producer. b) A producer may act as a consultant. c) A licensed consultant may hold a producer license. d) A consultant is licensed to give advice for a fee.
- ANSWER C Which of the following individuals would be a likely candidate to purchase a deferred annuity? a) Someone who needs to start receiving benefit payments within 6 months of the annuity purchase. b) Someone who wants to leave the death benefit to the beneficiaries.
A Major Medical Expense policy would exclude for all of the following treatments EXCPET a) Cosmetic surgery b) Drug addiction c) Eye refractions d) Dental care
- ANSWER B An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed? a) No penalty b) 6% c) 10% d) 20% - ANSWER C What is the purpose of the impairment rider in health insurance policy? a) To identify pre-existing conditions. b) To exclude coverage for a specific impairment. c) To cover impairments that otherwise could not be covered. d) To provide disability coverage.
- ANSWER B What is the maximum age that a disabled insured worker may receive Social Security disability benefits? a) 62 b) 65 c) For life with no maximum age limit. d) 54
- ANSWER B The "stop-loss" feature on a major medical policy is intended to a) Establish a maximum amount of out-of-pocket expenses that an insured will have to pay for medical expenses in a calendar year. b) Establish a maximum amount of out-of-pocket expenses that an insured will have to pay for medical expenses for the life of the policy. c) Discourage insured from making unnecessary appointments at the doctor's office. d) Establish the number of claims that may be filed on a policy in a calendar year. - ANSWER A Which statement below is incorrect regarding the type of term insurance that fits best with the applicants needs? a) Employers looking to provide cost effective group life insurance for their employers may choose annual renewable term.
b) Applicants who may require a larger death benefit in the future should buy convertible term insurance. c) Applicants concerned with the increasing cost of living should purchase increasing term. d) Applicants wishing to pay off a mortgage should they suffer a premature death might buy a decreasing term plan.
- ANSWER B All of the following are characteristics of group health insurance plan EXCEPT a) The benefits under a group plan are more extensive than those under individual plans. b) The parties that hold a group health insurance contract are the employees and the employers. c) The cost of insuring an individual is less than what would be charged for comparable benefits under an individual plan. d) Employers may require the employees to contribute to the premium payments. - ANSWER B Which of the following statements is NOT true regarding health insurance policy provisions? a) All individual policies contain Universal Mandatory Provisions. b) Insurers may only offer optional provisions that are allowed by the state where the policy is delivered. c) Insurers may add provisions that are not in conflict with uniform standards. d) All additional provisions written by the insurers are cataloged by their respective states.
- ANSWER D Which of the following is NOT mandatory under the Uniform Provisions Law as applied to accident and health policies? a) Physical Examination and Autopsy. b) Entire Contract. c) Probationary Period. d) Time Limit on Certain Defenses.
- ANSWER C Which of the following describes the relationship between a capital sum and a principal sum. a) Principal sums vary, while capital sums do not. b) Capital sums vary, while principal sums do not. c) Principal sums are percentages of capital sums. d) Capital sums are percentages of principal sums.
b) Applicant c) Producer d) Insurer
- ANSWER D Life insurance creates an immediate estate. Which of the following best explains this statement? a) The face value of the policy is payable to the beneficiary upon death of the insured. b) The policy has cash values and nonforfeiture values. c) The policy generates immediate cash value. d) The death benefit will always be paid to the estate of the insured. - ANSWER A The entire contract includes all of the following EXCEPT a) A buyer's guide. b) The life insurance policy c) A copy of the application d) Any riders or amendments.
- ANSWER A A husband and wife both incur expenses that are attributed to a single major medical insurance deductibles. Which type of deductible do they have in their policy? a) Flat b) Annual c) Per occurrence d) Family
- ANSWER D HMO's are known as what type of plans? a) Consumer driven b) Reimbursement c) Service d) Health savings - ANSWER C Which of the following individuals would be a likely candidate to purchase a deferred annuity? a) Someone who needs to start receiving benefit payments within 6 months of the annuity purchase. b) Someone who wants to leave the death benefit to the beneficiaries. c) Someone who cannot afford life insurance. d) Someone who wants to grow retirement funds tax deferred. - ANSWER D If a life insurance policy is purchased by someone who has no insurable interest in the insured, it is considered a) A STOLI policy b) Estate liquidation c) Third-party ownership
d) A specialized policy - ANSWER A Which of the following would NOT trigger the payment of Accelerated Death Benefits? a) Requiring an organ transplant for the insured to survive. b) Being permanently institutionalized. c) Being permanently disabled. d) Terminal Illness - ANSWER C When may HIV-related test results be provided to the MIB? a) Only if the individual is not identified. b) Under all circumstances. c) When given authorization by the patient. d) Only when the test results are negative. - ANSWER A An elimination period may NOT have to be satisfied for a disability in which of the following? a) An insured suffers a relapse of a prior disability within 6 months of the initial covered disability. b) An insured suffered the disability from the results of active duty with the US Armed Forces. c) An insured is disabled from a work-related accident. d) An insured contracts an incurable disease. - ANSWER A Which of the following is a daily nursing and rehabilitative care that can only be provided by medical personnel, under the direction of a physician? a) Assisted living 3 d) Custodial care - ANSWER 3 A Major Medical Expense policy would exclude for all of the following treatments 4 EXCPET a) Cosmetic surgery b) Drug addiction c) Eye refractions d) Dental care - ANSWER 4 An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed? a) No penalty 4 b) 6% c) 10% d) 20% - ANSWER 4 b) Skilled care c) Intermediate care What is the purpose of the impairment rider in health insurance policy? a) To identify pre-existing conditions. b) To exclude coverage for a specific impairment. c) To cover impairments that otherwise could not be covered. d) To provide disability coverage. - ANSWER B
d) All additional provisions written by the insurers are cataloged by their respective states. - ANSWER D Which of the following is NOT mandatory under the Uniform Provisions Law as applied to accident and health policies? a) Physical Examination and Autopsy. b) Entire Contract. c) Probationary Period. d) Time Limit on Certain Defenses. - ANSWER C Which of the following describes the relationship between a capital sum and a principal sum. a) Principal sums vary, while capital sums do not. b) Capital sums vary, while principal sums do not. c) Principal sums are percentages of capital sums. d) Capital sums are percentages of principal sums. - ANSWER D An employee has a Flexible Spending Account with a $5,000 annual benefit. This year the employee used $3,000. What would be the amount of the benefit available to the employee next year. a) $7, b) $5, c) $3, d) $2,000 - ANSWER B What happens to the face amount of a whole life policy if the insured reaches the age of 100? a) It is paid to the insured's estate and the policy is terminated. b) It is paid to the beneficiary in full. c) The cash value and the face amount are paid to the insured. d) The face amount is paid to the insured. - ANSWER D Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care? a) Skilled care b) Intermediate care c) Custodial Care d) Home health care - ANSWER B HMO's are known as what type of plans? a) Consumer driven b) Reimbursement c) Service d) Health savings - ANSWER C
If an insured pays a health insurance premium each month, how long would the grace period be under the policy? a) 7 days b) 10 days c) 14 days d) 25 days - ANSWER B J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose? a) Joint and Survivor b) Fixed Amount c) Fixed Period d) Interest Only - ANSWER B All of the following must sign an application for health insurance EXCEPT the a) The proposed insured. b) Applicant c) Producer d) Insurer - ANSWER D Life insurance creates an immediate estate. Which of the following best explains this statement? a) The face value of the policy is payable to the beneficiary upon death of the insured. b) The policy has cash values and nonforfeiture values. c) The policy generates immediate cash value. d) The death benefit will always be paid to the estate of the insured. - ANSWER A The entire contract includes all of the following EXCEPT a) A buyer's guide. b) The life insurance policy c) A copy of the application d) Any riders or amendments. - ANSWER A A husband and wife both incur expenses that are attributed to a single major medical insurance deductibles. Which type of deductible do they have in their policy? a) Flat b) Annual c) Per occurrence d) Family - ANSWER D Which of the following types of insurance is investment based, has a level fixed premium, and a non guaranteed cash value? a) Credit life b) Variable whole life
All of the following are features of catastrophic plans EXCEPT a) Out-of-pocket costs b) High deductibles c) Essential benefits d) High premiums - ANSWER D Which of the following is NOT true? a) A consultant may not be compensated by a producer. b) A producer may act as a consultant. c) A licensed consultant may hold a producer license. d) A consultant is licensed to give advice for a fee. - ANSWER C 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 Certain conditions, such as dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe? - ANSWER Presumptive disability Which of the following does the Insuring Clause NOT specify? a) The insurance company b) The name of the insured c) A list of available doctors d) Covered perils - ANSWER c) A list of available doctors
How long is an open enrollment period for Medicare supplement policies? - ANSWER 6 months What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit rider? - ANSWER 1 year In which of the following locations would skilled care most likely be provided? - ANSWER In an institutional setting When transacting business in this state an insurer formed under the laws of another country is known as an: - ANSWER Alien insurer Which of the following is NOT an enrollment period for Medicare Part A applicants? a) Special enrollment b) General enrollment c) Automatic enrollment d) Initial enrollment - ANSWER Automatic enrollment Which type of life insurance policy generates immediate cash value? - ANSWER Single premium What characteristics must an annuity have if it is used to accumulate funds in an IRA? - ANSWER Tax-qualified All of the following are unfair claims settlement practices EXCEPT: a) Suggesting negotiations in settling the claim b) Refusing to pay claims without conducting a reasonable investigation c) Failing to adopt and implement reasonable standards for settling claims d) Failing to acknowledge pertinent communication pertaining to a claim - ANSWER a) Suggesting negotiations in settling the claim Why do group health providers usually require a certain amount of participation in the plan by eligible employees? - ANSWER To guard against adverse selection and reduce cost If an insurer becomes insolvent, which of the following would pay benefits to policyholders? - ANSWER The Guaranty Association A long-term care insurance shopper's guide must be provided in the format developed by which of the following?
To be eligible for a Health Savings Account, an individual must be covered by a - ANSWER High-deductible health plan What type of annuity guarantees to pay an income to the annuitant each year as longs he lives, and upon death, the annuity will refund the remaining payments to a beneficiary? - ANSWER Installment refund annuity The authority granted to an agent through the agent's contract is referred to as - ANSWER Express Authority An association could buy group insurance for its members if it meets all of the following EXCEPT: a) Has a constitution and by laws b) Holds annual meetings c) Is contributory d) Has at least 50 members - ANSWER d) Has at least 50 members A universal life insurance policy is best described as a/an - ANSWER Annually Renewable Term policy with a cash value account Which of the following statements regarding Business Overhead Expense policies is NOT true? a) Benefits are usually limited to six months b) Premiums paid for BOE are tax deductible c) Any benefits received are taxable to the business d) Leased equipment expenses are covered by the plan - ANSWER a) Benefits are usually limited to six months Which of the following is INCORRECT concerning a noncontributory group plan? a) The employer pays 100% of the premiums b) The employees receive individual policies c) They help to reduce adverse selection against the insurer d) They require 100% employee participation - ANSWER b) The employees receive individuals policies Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs? - ANSWER Metal level classification What is the purpose of a fixed period settlement option? - ANSWER To provide a guaranteed income for a certain amount of time
Which of the following would be a typical maximum benefit offered by major medical plans? - ANSWER $1 million Premium payments for personally-owned disability income policies are - ANSWER Not tax deductible The most the Insurance Guaranty Association will pay for net cash surrender values is - ANSWER $100, What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military? - ANSWER Military service or war Which of the following would be considered an unfair claims settlement practice? - ANSWER Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered All of the following are true regarding vatical settlement regulations in Indiana EXCEPT a) Insured are required to submit a disclosure on their medical condition and competence b) Producers must provide the insured with the info on alternatives to a viatical settlement c) All viatical producers must be licensed d) Viatical contracts allow a 10-day free-look period - ANSWER d) Viatical contracts allow for a 10-day free-look period What is the benefit of choosing extended term as a nonforfeiture option? - ANSWER It has the highest amount of insurance protections All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy? - ANSWER Lower An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy? - ANSWER 10 days Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT - ANSWER SEPs are suitable for large companies Under the Affordable Care Act, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event? - ANSWER 60 days
c) The contract pays only in the event of death during the term and there is no cash value d) The face amount steadily declines throughout the duration of the contract - ANSWER a) The payable premium amount steadily declines throughout the duration of the contract In a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective? - ANSWER 100% All of the following may be exempt from the whole or part of the Indiana licensing examination EXCEPT a) A candidate applying for a surplus lines producer license b) A Chartered Life Underwriter applying for a Life license c) A resident producer in another state under certain conditions d) A person selling credit life and credit health insurance - ANSWER a) A candidate applying for a surplus lines producer license Variable Life insurance is based on what kind of premium? - ANSWER Level fixed Which of the following is NOT covered under Basic Hospital Expense Coverage? - ANSWER Surgeon's fees Which statement best defines a Multiple Employers Welfare Arrangement (MEWA)? - ANSWER A joining together by employers to provide health benefits for employees When can a Long-Term Care policy deny a claim for losses incurred because of a preexisting condition? - ANSWER Within 6 months of the effective date of coverage Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced? - ANSWER Cost comparison methods When an insured died, his survivors were eligible for limited benefits under his Social Security account. What was the insured's status? - ANSWER Currently insured Which of the following would most directly affect the purchasing power of benefits paid on a fixed annuity? - ANSWER Economic inflation If a company transacts any business of insurance without a certificate of authority, what is the maximum penalty that can be charged to the director of that company? - ANSWER Civil penalty of $25,
To attain currently insured status under Social Security, a worker must have earned at least how many work credits during the last 13 quarters? - ANSWER 6 credits Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT a) The loss must not be catastrophic b) There must be a sufficient number of homogenous exposure units to make losses reasonably predictable c) The loss produced by the risk must be defined d) The loss may be intentional - ANSWER d) The loss may be intentional Which of the following is NOT a government-funded insurance program? a) Old-Age, Survivors and Disability Insurance (Social Security b) Medicare c) Medicaid d) Federal Deposit Insurance Corporation (FDIC) - ANSWER d) Federal Deposit Insurance Corporation (FDIC) Which of the following would NOT be eligible for a health insurance policy from the Indiana Comprehensive Health Insurance Association? a) A person who has been rejected for the same coverage by at least 1 carrier b) A person who can only be insured at a higher rate by another insurer c) A federally-eligible d) A person who applied for Medicaid 90 days prior to applying for the Association policy
- ANSWER d) A person who applied for Medicaid 90 days prior to applying for the Association policy An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued? - ANSWER Adjust the claim benefit to reflect the insured's true age An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax- free rollover? - ANSWER $8,000, 60 days
