INDIANA STATE LIFE & HEALTH EXAM
Individual disability income policies typical include an elimination period (t/f) - Answers-
True
A producer's license may be denied, suspended, or revoked if the licensee: - Answers-is
found guilty of misrepresentation in obtaining the license
Which of the following actions is NOT possible with a Universal Life policy? - Answers-
premiums may be applied as a credit against income tax
How long is the typical free look period for long term care insurance policies? -
Answers-20 days
Equity indexed annuities are invested in: - Answers-The S&P 500
Group life policies in Indiana are required to contain a conversion privilege that allows
for conversion: - Answers-to an individual policy for a stated period of time
What is a key requirement for accelerated death benefit policy? - Answers-Must have a
terminal illness to qualify
Qualified LTC policies may take into consideration an applicant's pre-existing conditions
for a maximum of not more than _____ month(s) prior to the effective date of coverage -
Answers-6
An insured must qualify for social security disability income to be accepted for the
waiver of premium provision? (t/f) - Answers-false
Which of the following actions by a producer would NOT result in a license suspension
or revocation? - Answers-Producer represents a foreign insurance company
Which of the following is NOT a required provision in group life policies? - Answers-
Right to Loan
What the maximum Social Security Disability benefit amount an insured can receive? -
Answers-100% of the insured's Primary Insurance Amount (PIA)
T has an annuity that guarantees an income payment for the rest of his life. The contract
also guarantees that if T dies before receiving payments for 20 years, the remaining
payments will be paid to his son for the balance of the 20 years. What type of annuity is
this? - Answers-Life Annuity with Period Certain
Which of these provisions is NOT required in individual life insurance policies sold in
Indiana? - Answers-Extended Term
, What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - Answers-Fair Credit Reporting Act
Q is severely injured in an automobile accident and becomes totally disabled. How
many months must Q be disabled before being able to apply for Social Security
disability benefits? - Answers-5
Who elects the governing body of a mutual insurance company? - Answers-
Policyholders
Which of the following policies combines investment choices with a form of Term
coverage? - Answers-Variable-Universal Life
Medicare Part B does NOT cover: - Answers-Physician and surgeon services
What type of annuity has a cash value that based upon the performance of it's
underlying investment funs? - Answers-Variable
What requires insurers to disclose when an applicant's consumer or credit history is
being investigated? - Answers-1970 - Fair Credit Reporting Act
Under the ACA, consumers must have health insurance as of January 1, 2014 that
contains Minimum Essential Coverage (MEC). Individuals who exempt from this law
include: - Answers-Those who cannot afford or have religious objections
A person who is insured within a group contract will be given a: - Answers-certificate
When must insurable interest exist for a life insurance contract to be valid? - Answers-
Inception of the contract
What kind of special need would a policy owner require with an adjustable life insurance
policy? - Answers-Flexible premiums
Which provision allows the policy owner to change a term life policy to a permanent one
without providing proof of good health? - Answers-Conversion
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent
beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to - Answers-P only
Which of these Nonforfeiture Options continue a build-up of cash value? - Answers-
Reduced Paid-Up
In Indiana, what is the maximum percentage of controlled business a producer may
write in a twelve-month period? - Answers-25%
Individual disability income policies typical include an elimination period (t/f) - Answers-
True
A producer's license may be denied, suspended, or revoked if the licensee: - Answers-is
found guilty of misrepresentation in obtaining the license
Which of the following actions is NOT possible with a Universal Life policy? - Answers-
premiums may be applied as a credit against income tax
How long is the typical free look period for long term care insurance policies? -
Answers-20 days
Equity indexed annuities are invested in: - Answers-The S&P 500
Group life policies in Indiana are required to contain a conversion privilege that allows
for conversion: - Answers-to an individual policy for a stated period of time
What is a key requirement for accelerated death benefit policy? - Answers-Must have a
terminal illness to qualify
Qualified LTC policies may take into consideration an applicant's pre-existing conditions
for a maximum of not more than _____ month(s) prior to the effective date of coverage -
Answers-6
An insured must qualify for social security disability income to be accepted for the
waiver of premium provision? (t/f) - Answers-false
Which of the following actions by a producer would NOT result in a license suspension
or revocation? - Answers-Producer represents a foreign insurance company
Which of the following is NOT a required provision in group life policies? - Answers-
Right to Loan
What the maximum Social Security Disability benefit amount an insured can receive? -
Answers-100% of the insured's Primary Insurance Amount (PIA)
T has an annuity that guarantees an income payment for the rest of his life. The contract
also guarantees that if T dies before receiving payments for 20 years, the remaining
payments will be paid to his son for the balance of the 20 years. What type of annuity is
this? - Answers-Life Annuity with Period Certain
Which of these provisions is NOT required in individual life insurance policies sold in
Indiana? - Answers-Extended Term
, What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - Answers-Fair Credit Reporting Act
Q is severely injured in an automobile accident and becomes totally disabled. How
many months must Q be disabled before being able to apply for Social Security
disability benefits? - Answers-5
Who elects the governing body of a mutual insurance company? - Answers-
Policyholders
Which of the following policies combines investment choices with a form of Term
coverage? - Answers-Variable-Universal Life
Medicare Part B does NOT cover: - Answers-Physician and surgeon services
What type of annuity has a cash value that based upon the performance of it's
underlying investment funs? - Answers-Variable
What requires insurers to disclose when an applicant's consumer or credit history is
being investigated? - Answers-1970 - Fair Credit Reporting Act
Under the ACA, consumers must have health insurance as of January 1, 2014 that
contains Minimum Essential Coverage (MEC). Individuals who exempt from this law
include: - Answers-Those who cannot afford or have religious objections
A person who is insured within a group contract will be given a: - Answers-certificate
When must insurable interest exist for a life insurance contract to be valid? - Answers-
Inception of the contract
What kind of special need would a policy owner require with an adjustable life insurance
policy? - Answers-Flexible premiums
Which provision allows the policy owner to change a term life policy to a permanent one
without providing proof of good health? - Answers-Conversion
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent
beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to - Answers-P only
Which of these Nonforfeiture Options continue a build-up of cash value? - Answers-
Reduced Paid-Up
In Indiana, what is the maximum percentage of controlled business a producer may
write in a twelve-month period? - Answers-25%
