Indiana State Life and Health Insurance
Exam|| 205 Questions & Solutions
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?
$10,000
$15,000
$20,000
$25,000 - ANSWER $25,000
Which of these is an example of twisting?
A producer maliciously aligns another insurance company's financial status
A producer misrepresents a policy to induce a policyowner to surrender an existing
policy
A producer reduces the commission in order to sell a policy
A producer induces a policyowner with something of value to purchase a policy -
ANSWER A producer misrepresents a policy to induce a policyowner to surrender an
existing policy
Which of the following is a requirement to obtain a nonresident producer license in
Indiana?
Maintain a specific sales quota in resident state
Own real estate in Indiana
Be licensed as a producer in the producer's state of domicile
Pass a special examination for nonresident producers - ANSWER Be licensed as a
producer in the producer's state of domicile
,P is a producer who is licensed in Indiana, but a resident of Michigan. In Indiana , P is
considered to be a____Producer?
Nonresident
Foreign
Alien
Reciprocal - ANSWER Nonresident
If an existing Accident and Health policy is being replaced with a new policy, the
decision to replace should not be based on?
Waiting Periods
Commissions to be Paid
Exclusion and Limitations
Underwriting Requirements - ANSWER Commissions to be Paid
A domestic insurance company in Indiana must?
Be organized under Indiana insurance laws
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
Which of the following is a requirement to be eligible for a group life policy in Indiana?
Group must be formed for a purpose other than obtaining insurance
Group must designate one of its members to be the named insured
Group must have been formed for obtaining insurance
Group must include at least five employers - ANSWER Group must be formed for a
purpose other than obtaining insurance
What is required for a Producer to be in compliance with Rule 13, Life Insurance
Advertising?
A potential Applicant must be told the the Producer is currently licensed for any Life
Insurance transaction
A potential Applicant must be told that Life insurance is the exclusive subject of the sale
A Producer is required to notify potential Applicants that dividends are guaranteed
A Producer is required to have all sales materials approved by the commissioner -
ANSWER A potential Applicant must be told that Life insurance is the exclusive subject
of the sale
When a life insurance application is completed, a Policy Summary must be given to the
applicant. The Policy Summary must include?
The insurers AM Best rating
The Producers address
Cash value rate
Exam|| 205 Questions & Solutions
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?
$10,000
$15,000
$20,000
$25,000 - ANSWER $25,000
Which of these is an example of twisting?
A producer maliciously aligns another insurance company's financial status
A producer misrepresents a policy to induce a policyowner to surrender an existing
policy
A producer reduces the commission in order to sell a policy
A producer induces a policyowner with something of value to purchase a policy -
ANSWER A producer misrepresents a policy to induce a policyowner to surrender an
existing policy
Which of the following is a requirement to obtain a nonresident producer license in
Indiana?
Maintain a specific sales quota in resident state
Own real estate in Indiana
Be licensed as a producer in the producer's state of domicile
Pass a special examination for nonresident producers - ANSWER Be licensed as a
producer in the producer's state of domicile
,P is a producer who is licensed in Indiana, but a resident of Michigan. In Indiana , P is
considered to be a____Producer?
Nonresident
Foreign
Alien
Reciprocal - ANSWER Nonresident
If an existing Accident and Health policy is being replaced with a new policy, the
decision to replace should not be based on?
Waiting Periods
Commissions to be Paid
Exclusion and Limitations
Underwriting Requirements - ANSWER Commissions to be Paid
A domestic insurance company in Indiana must?
Be organized under Indiana insurance laws
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
Which of the following is a requirement to be eligible for a group life policy in Indiana?
Group must be formed for a purpose other than obtaining insurance
Group must designate one of its members to be the named insured
Group must have been formed for obtaining insurance
Group must include at least five employers - ANSWER Group must be formed for a
purpose other than obtaining insurance
What is required for a Producer to be in compliance with Rule 13, Life Insurance
Advertising?
A potential Applicant must be told the the Producer is currently licensed for any Life
Insurance transaction
A potential Applicant must be told that Life insurance is the exclusive subject of the sale
A Producer is required to notify potential Applicants that dividends are guaranteed
A Producer is required to have all sales materials approved by the commissioner -
ANSWER A potential Applicant must be told that Life insurance is the exclusive subject
of the sale
When a life insurance application is completed, a Policy Summary must be given to the
applicant. The Policy Summary must include?
The insurers AM Best rating
The Producers address
Cash value rate
