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Indiana State Life and Health Insurance
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Which of the following is the most important factor when deciding how much Disability Income coverage an applicant should purchase? Applicant'sOccupation Applicant's Monthly Income Applicant's Health Applicant's Previous Disabilities
- ANSWER Applicant's Monthly Income A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. which of these statements made by the producer would be correct? Straight life accumulates faster than Limited-Pay Life 20 - Pay Life accumulates cash value faster than Straight Life Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurers financial rating 20 - Pay Life and Straight Life accumulate cash value at the same rate
- ANSWER 20-Pay Life accumulates cash value faster than Straight Life In the event of employment termination, a person covered by a group policy also has the right to convert such coverages to an individual policy within____days without proving insurability? 15 30 31
- ANSWER 31
Which of these is considered a statement that is assured to be true in every respect? Estoppel Warranty Guarantee Representation
- ANSWER Warranty 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 producers state of residence must have reciprocity with Indiana The producer must be bonded in the producers state of domicile The producer must pass a special examination for nonresident producers
- ANSWER The producers state of residence must have reciprocity with Indiana Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? Indemnity Subrogation Legal Action Consideration
- ANSWER Subrogation Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? Modified Whole Life Variable Life Universal Life Adjustable Life
- ANSWER Variable Life P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?
Which of the following actions by a producer would not result in a license suspension or revocation? Producer misappropriates an insured's premium payment Producer misrepresents the term of an existing insurance contract Producer represents a foreign insurance company Producer demonstrates incompetency to transact business as an insurance producer - ANSWER Producer represents a foreign insurance company What type of reinsurance contract involves two companies automatically sharing their risk exposure? Arbitrage Facultative Excess Treaty
- ANSWER Treaty K is the insured and P is the sole beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? Proceeds will be paid to P's estate Proceeds will be divided equally between K's and P's estate Proceeds will be paid to K's estate The courts decide who will receive death benefits
- ANSWER Proceeds will be paid to P's estate The legal Action provision in Indiana stipulates that the? Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 2 years to file Insured must wait 90 days after submitting proof of loss to initiate a lawsuit and has up to 2 years to file
Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file Insured must wait 90 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file
- ANSWER Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Interest Only Fixed Period Fixed Amount Life Income
- ANSWER Life Income Why would the Insurance Commissioner issue a temporary license? To allow a person who failed the state exam to conduct insurance business To allow a nonresident producer to conduct business in Indiana To allow the personal representative of a deceased producer to provide service to existing policyowners To allow a producer to sell for an unauthorized insurer
- ANSWER To allow the personal representative of a deceased producer to provide service to existing policyowners An applicant must receive an Outline of Coverage when an applicant is taken for a? Endowment Annuity Medicare Supplement Policy Universal Life Policy
- ANSWER Medicare Supplement Policy What would be an accurate definition of "controlled business"? Insurance business that is written on the producer's own life, property, or interests Insurance business obtained by an agent through coercion, intimidation, or boycotting
Making it mandatory that the proof of loss be provided for each claim Requiring a time for submitting a claim Paying a claim in a timely matter Turning down a claim without providing the basis of denia l - ANSWER Turning down a claim without providing the basis of denial The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called? Entire Contract Provision Consideration Clause Insuring Agreement Assignment Agreement
- ANSWER Insuring Agreement What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? State Guaranty Association Fair Labor Standards Board Fair Credit Reporting Act National Association of Insurance Commissioners
- ANSWER Fair Credit Reporting Act An Indiana resident insurance producer must preform which of the following actions to continue with their license? Retake the state exam Complete a pre-licensing course Meet continuing education requirements Maintain a sales quota
- ANSWER Meet continuing education requirements Which of these is considered a mandatory provision? Payment of Claims Insurance with Other Insurers
Misstatement of Age Change of Occupation - ANSWER Payment of Claims S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? Accelerated death benefit rider Return of premium rider Family income rider Term rider - ANSWER Return of premium rider XYZ Corp was issued a Group Health policy for its employees. Under this plan a? Certificate must be issued to XYZ, and a policy must be issued to each employee Certificate must be issued to XYZ and each employee Policy must be issued to XYZ, and a certificate must be issued to each employee Policy must be issued to XYZ and each employee - ANSWER Policy must be issued to XYZ, and a certificate must be issued to each employee The provision that defines to whom the insurer will pay benefits to is called? Entire Contract Proof of Loss Claim Form Payment of Claims - ANSWER Payment of Claims Convincing a prospective insured to buy an insurance policy based on exaggerations is considered to be a form of? Rebating Intimidation Twisting Misrepresentation - ANSWER Misrepresentation An insurance company may not reject a prospective insured's life application on the basis of which of the following factors? Hobbies Weight Gender
The age at which dependent children can be taken off an insurance policy The age at which pre-existing conditions are not taken into consideration The age at which an insured can convert a group plan to an individual plan The age at which dependent children can purchase their own insurance - ANSWER The age at which dependent children can be taken off an insurance policy Which of these options can an individual use their medical flexible spending account to pay for? Vitamins and supplements Prescription drugs Household expenditures Cosmetic procedures - ANSWER Prescription drugs To be eligible for Social Security disability benefits, an employee must be unable to preform? Any occupation His/her current occupation Any occupation that reflects the employee's education level Any occupation that the employee is qualified and willing to do - ANSWER Any occupation Which Long Term Care insurance statement is true? Inflation protection is usually not offered Benefits are usually payable for alcohol rehabilitation Can only be offered to individuals under the age of 70 Pre-existing conditions must be covered after the coverage has been in force for 6 months - ANSWER Pre-existing conditions must be covered after the coverage has been in force for 6 months An accident policy will most likely pay a benefit for a?
Self-inflicted injury Critical illness On-the-job accident Off-the-job accident - ANSWER Off-the-job accident The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a? Closed panel Open panel Co-op panel Capitation panel - ANSWER Closed panel A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? Only income taxes on $30, Only income taxes on $24, Income taxes plus a 10% penalty tax on $30, Income taxes plus a 10% penalty tax on $24,000 - ANSWER Income taxes plus a 10% penalty tax on $30, A "reimbursement policy" pays what amount of covered Long-Term Care expenses? All expenses regardless of the policy limits Actual covered expenses up to the daily maximum A daily dollar amount regardless of the actual incurred expenses The usual, customary, and reasonable expenses regardless of the policy limits - ANSWER Actual covered expenses up to the daily maximum Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? Modified Whole Life 20 - Pay Life
Who is responsible for determining if Long-Term Care coverage is appropriate to meeting an applicant's needs? Commissioner Applicant Producer Insurance Company - ANSWER Producer If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of? Insurer Beneficiary Reinsurer Insured - ANSWER Insured 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 by 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 An example of rebating would be A mutual insurance company paying dividends to its policyowners Reducing the premiums across the board for a specific risk class Returning a portion of a premium as inducement to purchase insurance Using intimidation in order to restrain or monopolize the business of insurance - ANSWER Returning a portion of a premium as inducement to purchase insurance J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? Irrevocable Contigent
Primary Revocable - ANSWER Revocable If a producer commits an act of coercion or intimidation, how would the producer's insurance company be held responsible for this act? If the insurer only suspends the producer, not terminate If the insurer reduces the commission level of the producer If the insurer approves of the act If the insurer does not make a public announcement of the act - ANSWER If the insurer approves of the act With Optionally Renewable Health policies, the insurer may? Renew the policy only if no claims have been filed the previous year Renew the policy only with the insured'd consent Review the policy whenever they please and determine whether or not to renew it Review the policy annually and determine whether or not to renew it - ANSWER Review the policy annually and determine whether or not to renew it With Optionally Renewable Health policies, the insurer may? Renew the policy only if no claims have been filled the previous year Renew the policy only with insured's consent Review the policy whenever they please and determine whether or not to renew it Review the policy annually and determine whether or not to renew it - ANSWER Review the policy annually and determine whether or not to renew it A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered except for? Hospital Charges Physician Fees
60 - ANSWER 30
What type of annuity has a cash value that is based upon the performance of its underlying investment funds? Deferred Flexible Variable Fixed - ANSWER Variable How long is the typical free-look period for Long-Term care insurance policies? 20 Days 30 Days 40 Days 50 Days - ANSWER 30 Days What is the maximum Social Security Disability benefit amount an insured can receive? 50% of the insured's Primary Insurance Amount (PIA) 75% of the insured's Primary Insurance Amount (PIA) 100% of the insured's Primary Insurance Amount (PIA) 100% of the insured's Primary Insurance Amount (PIA) minus any monies received from a retirement plan - ANSWER 100% of the insured's Primary Insurance Amount (PIA) An example of rebating would be? A mutual insurance company paying dividends to its policyowners Reducing the premiums across the board for a specific risk class Offering a client something of value not stated in the contract in exchange for their business Using intimidation in order to restrain or monopolize the business of insurance - ANSWER Offering a client something of value not stated in the contract in exchange for their business
What is the maximum number of employees (earning at least $5,000) that an employer can have in order to start a simple retirement plan? 25 50 100 250 - ANSWER 100 Which is true concerning a Variable Universal Life policy? Policyowner controls where the investment will go and selects the amount of the premium payment Policyowner has no say where the investment will go but can choose the premium mode The investment vehicle for this type of policy is held in the insurer's general portfolio The death benefit can vary but the policyowner has no say in the premium amount paid
- ANSWER Policyowner controls where the investment will go and selects the amount of the premium payment According to Indiana Law, how long can statements made by an Applicant on a Health insurance policy be contested? 2 Years 3 Years Anytime During the Free-Look period - ANSWER 2 Years What is the Suicide provision designed to do? Decline an applicant who is contemplating suicide Safeguard the insurer from an applicant who is contemplating suicide Protect the insurer from ever paying a claim that results from suicide Allows the insurer the option to pay a death benefit in the event of suicide - ANSWER Safeguard the insurer from an applicant who is contemplating suicide which of the following actions is not possible with a Universal Life policy? Policy's cash value may be used to pay premiums
A life insurance application must be signed by all of these except? The policyowner The agent the insured (if an adult) Beneficiary - ANSWER Beneficiary Which type of contract liquidates an estate through recurrent payments? Universal Life Insurance Whole Life Insurance Annuity 401k - ANSWER Annuity Which of the following situations does a Critical Illness plan cover? Asthma Leukemia Alcohol Rehabilitation Severe car accident - ANSWER Leukemia Group life insurance policies are generally written as? A term rider Annually renewable term Increasing term Group whole life - ANSWER Annually renewable term Which of the following statements is correct about the insurance commissioner's authority to examine the business records of a producer? The commissioner has no authority to examine them The commissioner may examine them whenever it's deemed necessary The commissioner must examine them at least twice every 5years The commissioner must examine them at least twice every 3 years - ANSWER The commissioner may examine them whenever it's deemed necessary A life policy loan in Indiana cannot charge a fixed rate of interest higher than?
10% - ANSWER 8%
Which of the following will happen if a licensed resident insurance producer moves to another state? Producer will need to forfeit residual commissions in the home state Producer's license shall terminate immediately Producer automatically qualifies for a license Producer remains a resident agent for another 12 months in the original state of licensure - ANSWER Producer's license shall terminate immediately What is the face amount of a Whole Life policy paid? At the policy's maturity date only When the insured dies or at the policy's maturity date, whichever happens first Only when the insured dies When the policy is surrendered - ANSWER When the insured dies or at the policy's maturity date, whichever happens first An insurer must provide an insured with claim forms within __ days after receiving notice of a loss? 5 10 15 20 - ANSWER 15 Which of the following will a Long Term Care plan typically provide benefits for? Disability Income Death Unemployment Home Health Care - ANSWER Home Health Care
