Indiana Life & Health Insurance Exam
Review
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
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?
Certificate of Authority
How many days after a final disposition must an insurance producer report
administrative action or criminal prosecution to the Director?
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?
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?
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
c) A list of available doctors
How long is an open enrollment period for Medicare supplement policies?
6 months
What is the maximum period that an insurer would pay benefits in accordance
with an Additional Monthly Benefit rider?
1 year
In which of the following locations would skilled care most likely be provided?
In an institutional setting
When transacting business in this state an insurer formed under the laws of
another country is known as an:
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
Automatic enrollment
Which type of life insurance policy generates immediate cash value?
Single premium
What characteristics must an annuity have if it is used to accumulate funds in an
IRA?
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
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?
To guard against adverse selection and reduce cost
If an insurer becomes insolvent, which of the following would pay benefits to
policyholders?
The Guaranty Association
A long-term care insurance shopper's guide must be provided in the format
developed by which of the following?
a) Director
b) Medical Information Bureau
c) NAIC
d) Office of Insurance Regulation
c) NAIC
Which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life
and health insurance.
If a life policy allows the policyowner to make periodic additions to the face
amount at standard rates, without proving insurability, the policy includes a
Guaranteed Insurability rider
Prior to purchasing a Medigap policy, a person must be enrolled in which of the
following?
Parts A and B of Medicare
Which of the following determines whether disability insurance benefits are
taxed?
Whether the premium were tax deductible
Review
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
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?
Certificate of Authority
How many days after a final disposition must an insurance producer report
administrative action or criminal prosecution to the Director?
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?
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?
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
c) A list of available doctors
How long is an open enrollment period for Medicare supplement policies?
6 months
What is the maximum period that an insurer would pay benefits in accordance
with an Additional Monthly Benefit rider?
1 year
In which of the following locations would skilled care most likely be provided?
In an institutional setting
When transacting business in this state an insurer formed under the laws of
another country is known as an:
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
Automatic enrollment
Which type of life insurance policy generates immediate cash value?
Single premium
What characteristics must an annuity have if it is used to accumulate funds in an
IRA?
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
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?
To guard against adverse selection and reduce cost
If an insurer becomes insolvent, which of the following would pay benefits to
policyholders?
The Guaranty Association
A long-term care insurance shopper's guide must be provided in the format
developed by which of the following?
a) Director
b) Medical Information Bureau
c) NAIC
d) Office of Insurance Regulation
c) NAIC
Which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life
and health insurance.
If a life policy allows the policyowner to make periodic additions to the face
amount at standard rates, without proving insurability, the policy includes a
Guaranteed Insurability rider
Prior to purchasing a Medigap policy, a person must be enrolled in which of the
following?
Parts A and B of Medicare
Which of the following determines whether disability insurance benefits are
taxed?
Whether the premium were tax deductible
