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Indiana State Life and Health Insurance
EXAM 2025 | ALL CURRENT EXAM VERSIONS
2025 | ACCURATE REAL EXAM QUESTIONS
AND ANSWERS | ACCURATE AND VERIFIED
FOR GUARANTEED PASS | GRADED A
Which of the following statements describes what an Accident and Health policyowner may not do? File a covered claim Assign ownership Cancel the coverage Adjust the premium payments
- ANSWER Adjust the premium payments T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called? Insuring Time Limit on Certain Defenses Grace Period Free-Look
- ANSWER Time Limit on Certain Defenses P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? Claim will be denied and policy terminated Claim will be partially paid claim will be paid Claim will be denied
- ANSWER Claim will be denied Medicare Part B does not cover? Occupational Therapy Inpatient Hospital Services
Physician and Surgeon Services Medical Equipment Rental
- ANSWER Inpatient Hospital Services Qualified Long-Term Care policies may take into consideration an applicant's preexisting conditions for a maximum of not more than __ month(s) prior to the effective date of coverage? 1 6 12 24
- ANSWER 6 One becomes eligible for Social Security disability benefits after having been disabled for? 3 Months 5 Months 6 Months 12 Months
- ANSWER 5 Months How many days is a temporary producers license valid? 30 60 90 180
- ANSWER 180 In Indiana, the maximum fine the the commissioner can impose on a producer or company who violates a cease and desist order is___per violation? $10, $15, $20, $25,
- ANSWER $25, Which of these is an example of twisting? A producer maliciously aligns another insurance company's financial status
Own real estate in Indiana Write insurance on risks located only in Indiana Honor the charter of the NAIC
- ANSWER Be organized under Indiana insurance laws Which of the following is a requirement to obtain a nonresident producer license in Indiana? The producer must be at least 21 years of age The producer's state of residence must have reciprocity with Indiana The producer must be bonded in the producer's state of domicile The producer must pass a special examination for nonresident producers
- ANSWER The producer's state of residence must have reciprocity with Indiana What is Indianas definition of Life insurance replacement? A transaction in which coverage on an existing policy is increased A transaction in which group life coverage is converted to an individual policy A transaction in which a new policy is bought and an old policy is terminated A transaction in which a policyowner reinstates a lapsed policy
- ANSWER A transaction in which a new policy is bought and an old policy is terminated Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent? Only if the child is incapable of employment and chiefly dependent on the policyowner For up to an additional 10 years only Only physically disabled Only if mentally disabled
- ANSWER Only if the child is incapable of employment and chiefly dependent on the policyowner
Which of the following is not a valid reason for the insurance commissioner to suspend or revoke a producers license? Producer returns part of a commission to client in exchange for a sale Producer represents more than one insurance company Producer engages in false advertising Producer commingles premiums collected with a personal account
- ANSWER Producer represents more than one insurance company A producers license may be denied, suspended, or revoked if the licensee? Engages in replacement of an existing policy Is found guilty of misrepresentation in obtaining the license Files for bankruptcy Does not meet a sales quota
- ANSWER Is found guilty of misrepresentation in obtaining the license During the course of an insurance business transaction, who does the producer legally represent? Producer Insured Insurance Company Beneficiary
- ANSWER Insurance Company An example of rebating would be? Returning a portion of a premium as inducement to purchase insurance Reducing the premium across the board for a specific risk class A mutual insurance company paying dividends to its policyowners Using intimidation in order to restrain or monopolize the business of insurance - ANSWER Returning a portion of a premium as inducement to purchase insurance
Must be 19 years of age to qualify Family's income level must be greater than 150% of Federal poverty level, but less than 200% Must have been born in the united States to qualify
- ANSWER Must have been born in the united States to qualify As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? Coercion Defamation Rebating Misrepresentation
- ANSWER Coercion Which of these types of policies may not have the Automatic Premium Loan provision attached to it? Modified Whole Life 20 - Pay Life Decreasing Term Endowment
- ANSWER Decreasing Term If a retiree on Medicare required 5 hospital stays in 1 year, which policy would provide the best insurance for excess hospital expenses? Long-Term Care Indemnity Medicare Supplement Medicaid
- ANSWER Medicare Supplement L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They purchase a Family Policy that covers L's spouse to age 65. A death benefit will NOT be paid in which of the following circumstances? L's spouse dies at age 62 L's spouse dies at age 65 Their natural child dies at age 18 Their adopted child dies at age 18
- ANSWER L's spouse dies at age 65
Which of these statements regarding health coverage for physically handicapped dependents is false? The dependent must have been over 10 years of age when the handicap was insured The dependent must have been covered under the insureds policy at the time the handicap was insured The dependent must rely chiefly on the policyowner for support and maintenance The dependent must agree to periodic medical examinations at the request of the insurance company
- ANSWER The dependent must have been over 10 years of age when the handicap was insured Life insurance replacement regulation protects the interests of? The Policyowner The Producer The Insurer The NAIC
- ANSWER The Policyowner What is the purpose of the Indiana Life and Health Insurance Guaranty Association? Ensures that claims filled against insolvent insurance companies will be paid Enforces Indianas insurance regulations Approves policy forms Underwrites high-risk insurance applicants
- ANSWER Ensures that claims filled against insolvent insurance companies will be paid The _____ must provide an insured with proper disclosure concerning the replacement of a life insurance policy? Compliance Officer Underwriter Commissioner
10 Days 20 Days 30 Days 40 Days - ANSWER 30 Days How long does an insurance company appointment remain in force for? 1 Year 2 Years 3 Years Until Terminated - ANSWER Until Terminated Which of the following is not an unfair claim settlement practice? Failing to acknowledge and act promptly with respect to an insurance claim Compelling an insured to initiate a lawsuit be offering less on an insurance claim Failing to accept or deny a claim within reasonable time after proof of loss is submitted Needing written documentation of claim details - ANSWER Needing written documentation of claim details The Affordable Care Act provides health coverage to dependents up to the age of? 18 21 26 28 - ANSWER 26 to continue health coverage for a newborn, the policyowner must notify the insurer of birth and provide the first premium payment within ____ days of birth? 10 15 30 31 - ANSWER 31 What does a certificate of authority allow? A nonresident producer to conduct insurance business An insurance company to exceed coverage limits that the Guaranty Fund covers
An insurance company to conduct insurance business in Indiana A resident producer to sell insurance contracts - ANSWER An insurance company to conduct insurance business in Indian The free-look period for life insurance policies issued in Indiana is ____ days? 10 14 30 45 - ANSWER 10 In Indiana, which of the following must be delivered to a policyowner upon the sale of an individual life insurance policy? Insurers AM Best rating The written sales proposal Policy Summary and Buyer's Guide Buyer's Guide only - ANSWER Policy Summary and Buyer's Guide Jill is covered under two Group Health policies, one through her employer and one through her husbands employer. If Jill suffers a loss, which policy provision dictates the primary coverage? Replacement Time Payment of Claims Notice if Claim Coordination of Benefits - ANSWER Coordination of Benefits The Insurance Commissioner is authorized? To enforce state laws relating to insurance To pass state laws relating to insurance To set insurance rates for foreign insurers To set sales quotas - ANSWER To enforce state laws relating to insurance
The Indiana Children's Health Insurance Program provides children of need with health benefits until the child reaches age ____ or becomes financially ineligible, whichever is earlier? 18 19 20 21 - ANSWER 19 A life policy loan in Indiana cannot charge a fixed of interest higher than? 7% 8% 9% 10% - ANSWER 8% According to Indianas Mammography Coverage statue, which of these benefits are considered mandatory in every Medical Expense Policy? One baseline mammogram for women between ages 30- 34 One mammogram every year for women aged 35 and older One mammogram every year for women aged 40 and older Two mammograms every year for those considered "women at risk" - ANSWER One mammogram every year for women aged 40 and older What is the minimum Grace Period for an individual health policy that is paid monthly? 5 Days 10 Days 15 Days 30 Days - ANSWER 10 Days What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan? 30% 40% 50% 60% - ANSWER 50%
The Common Disaster clause provides that if both the insured and sole named beneficiary were to die in a common accident, which of the following is true? This clause provides the payment of proceeds to the insured's estate This clause provides the payment of proceeds to the beneficiary's estate The estate taxes in the insured's estate may be reduced The estate taxes in the beneficiary's estate may be reduced - ANSWER This clause provides the payment of proceeds to the insured's estate What is considered a valid reason for small businesses to insure the lives of its major shareholders? To provide an income for the surviving dependents Reduce the company's tax liability To pay for final expenses Fund a buy-sell agreement - ANSWER Fund a buy-sell agreement Which of these Nonforfeiture Options continue a build-up of cash value? Waiver of Premium Extended Term Reduced Paid-Up Cash Surrender - ANSWER Reduced Paid-Up A producer's license may be denied, suspended, or revoked if the license? Engages in replacement of an existing policy Is found guilty of misrepresentation in obtaining the license Files for bankruptcy Does not meet a sales quota - ANSWER Is found guilty of misrepresentation in obtaining the license When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a?
Is blinded in an accident - ANSWER Is blinded in an accident Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? Revocable Assignment Beneficiary Change Irrevocable Assignment Collateral Assignment - ANSWER Collateral Assignment If an insurance company issues a Disability Income policy that it cannot cancel for which it cannot increase premiums, the type of renewability that best describes this policy is called? Noncancellable conditionally Renewable Cancellable Guaranteed Renewable - ANSWER Noncancellable L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will? Pay the death benefit in full Adjust the death benefit to an increased amount Adjust the death benefit to a reduced amount Deny the claim - ANSWER Adjust the death benefit to a reduced amount Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? Modification Conversion Exchange Adjustable - ANSWER Conversion Life insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "Qualifying event" under these riders? Seasonal Unemployment
Short-Term Disability Medical Condition resulting in a significantly-shortened lifespan Divorce - ANSWER Medical Condition resulting in a significantly-shortened lifespan Which of these would e considered a Limited-Pay Life policy? 10 - year Renewable and Convertible Term Life Paid-Up at age 70 Straight Whole Life Renewable Term to Age 100 - ANSWER Life Paid-Up at age 70 Medicaid was designed to assist individuals who are? Federal employees Disabled In poor health Below a specific income limit - ANSWER Below a specific income limit An example of unfair discrimination would be? Declining an insurance application because of involvement in a hazardous occupation Offering the same terms of coverage to different policyowners in the same risk classification Offering different terms of coverage for different policyowners having the same risk classification Issuing a policy at a substandard rate because of poor health - ANSWER Offering different terms of coverage for different policyowners having the same risk classification An individual who in any manner sells, solicits, or negotiates insurance on behalf of insurance companies for compensation is an insurance? Solicitor Adjuster Producer Representative - ANSWER Producer
The NAIC - ANSWER The Policyowner If an annuity is terminated prior to beginning of the income payment period, the contract owner receives? No refund money The contract surrender value at the time All premiums paid up to the date of termination Reimbursement of all expenses deducted from the contract value - ANSWER The contract surrender value at the time Eligible employees must be added to group health coverage no later than ____ days after their first day of employment? 30 45 60 90 - ANSWER 90 ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has? Waived one of its legal rights Issued a voidable policy Committed an act of fraud Assigned the risk to a reinsurer - ANSWER Waived one of its legal rights J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct? The gross premium is higher on a monthly payment mode as compared to being paid annually The gross premiums is lower on a monthly payment mode as compared to being paid annually The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis
The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis - ANSWER The gross premium is higher on a monthly payment mode as compared to being paid annually Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? Geographical Location Source of Income Risk Classification Marital Status - ANSWER Risk Classification From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? Fair Credit Reporting Act Medical Information Bureau Part 3 of the Application Life Insurance Buyer's Guide - ANSWER Fair Credit Reporting Act Which Unfair Competition Practice involves a producer suggesting that an insurance policy is like a share of stock? Twisting Intimidation Misrepresentation Sliding - ANSWER Misrepresentation Basic Medical Expense insurance? Normally has a deductible and coinsurance Covers an illness but not an accident Pays for lost wages while hospitalized Has lower benefit limits than Major Medical Insurance - ANSWER Has lower benefit limits than Major Medical Insurance A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as?
