INDIANA LIFE INSURANCE EXACTITUDE
n n n n
EXAM SERIES 2024n n n
Whichnof nthe nfollowingnisnNOTnancharacteristicnofnanVariable nAnnuity?
A.nPremiumnPaymentsnmaynbe nlevelnornflexible nornsingle npremium
B.nThe ncashnvaluesnare ninvestedninnsecurities.
C.nThe nnon-
forfeiture nvaluesnwillnprovidenfornthenreturnnofnthe ncashnvaluenshouldnthenannuitantndie nduringnthenaccum
ulationnperiod.
D.nItnprovidesnfornantax-free ndeathnbenefit.n-ncorrectnanswern✔✔D.nItnprovidesnfornantax-
free ndeathnbenefit.
Allnof nthe nfollowingnpoliciesnprovide nfornthe ntax ndeferrednaccumulationnofncashnvalue nEXCEPT:
A.nInterestnSensitive nWhole nLife
B.nSingle nPremiumnVariable nAnnuity
C.nVariable nUniversalnLife
D.nTermnLife n- ncorrectnanswern✔✔D.nTermnLife
Allnof nthe nfollowingnare ntrue nstatementsnaboutnthe ntaxationnof nlife ninsurance nbenefitsnexcept:
A.nPolicynloansnare ntaxednasnordinarynincome
B.nThe ncashnvalue ninnanlife ninsurance npolicyngrowsnonnantax ndeferrednbasis.
C.nThe ninterestnearnednonnthe n"interest"nSettlementnOptionnisntaxednasnordinarynincome.
D.nThe ndeathnbenefitnof nanlife npolicynisnreceivednbynthe nbeneficiarynfederalnincome ntax nfree.n-
n correctn answern ✔✔A. n Policy n loansn are n taxed n asn ordinary n income
,Whichnof nthe nfollowingnstatementsnisntrue naboutnthe nGroupnLife nconversionnprivilege?
a.nDeathnduringnthe nconversionnperiodnisncoverednevennifnthendepartingnemployeenchoosesnNOTntonconver
tntonannindividualnpolicy.
b.nThe ndepartingnemployeenmustnpaynthenpremiumnifntheynelectntonbe ncoverednduringnthe nconversionnperi
od.
c.nIfnandepartingnemployeenelectsntonconvertntheirnlife ninsurance,nthencompanynmustnoffernTermninsurance
n asn an choice.
d.nUndernthe nCOBRAnlawsnandepartingnemployee nmaynelectntonremainnanmembernof nthenGroupnLifenplannfo
rnanlimitednperiodnofntime.n-
n correctn answern✔✔A. n Deathnduringnthen conversion nperiodn isncoveredn evennif n the ndepartingnemployee nch
oosesnNOTntonconvertntonannindividualnpolicy.
Whichnof nthe nfollowingnisnancombinationnofnDecreasingnTermnandnWhole nLife?
a.nFamilynIncome nPolicy
b.nFamilynMaintenance nPolicy
c.nModifiednLife
d.nFamilynPolicyn-ncorrectnanswern✔✔A.nFamilynIncome nPolicy
Antype nof nAnnuityninnwhichnthe ncashnvaluesnare ninvestedninnsecuritiesnisncalled:
a.nVariable
b.nDeferred
c.nJointnandnSurvivorship
d.nFlexible npremiumn-ncorrectnanswern✔✔Variable
MarynisnreceivingnannannuitynpayoutnfromnhernVariable nStraightnLifenAnnuity.nUponnherndeath,nwhichnofnth
e nfollowingnwillnbe npayable ntonhernestate?
a.nNothing
,b.nThe npolicyndeathnbenefit
c.nThe nremainingnvalue nofnhernaccount
d.nThe ntotalnpremiumsnpaidnintonthe naccount,nlessnthe namountnpaidntonMaryninnbenefitsn-
n correctn answern ✔✔A. n Nothing
WhatnisndecreasingninnanDecreasingnTermnpolicy?
a.nThe ncashnvalue
b.nThe npremium
c.nThe nface namount
d.nThe nnonforfeiture nvaluesn-ncorrectnanswern✔✔The nFace nAmount
Endowmentnpoliciesncannmature ninntwonways.nWhatnare nthey?
a.nThe ninsuredndiesnduringnthe npolicynperiodnornannuitizesnthe npolicynafternage n59&1/2.
b.nThe ninsuredndiesnduringnthenpolicynperiodnornreachesnthenendowmentnagenasndesignatedninnthe npolicy.
c.nThe ninsuredndiesnduringnthe npolicynperiodnornretiresnatnage n59&1/2.
d.nThe ninsuredndiesnornreachesnage n100.n-
n correctn answern✔✔B. nThen insuredndiesn duringn the npolicy n period nornreaches nthen endowmentn agen asn desig
natedninnthe npolicy.
Atnage n30,nJoenInsurednpurchasesnan20nPaynWhole nLifenPolicy.nWhichnofnthe nfollowingnstatementsnisntrue nr
egardingnJoe'snpolicyncoverage?
a.nJoe'sndeathnprotectionnwillnendnatnage n50.
b.nJoe'snnonforfeiture nvaluesnwillnendnatnage n50.
c.nJoe nwillnbe nable ntonstopnpayingnthe npremiumsnatnage n50,nbutnhisndeathnprotectionnwillnrunnthroughnage n
100.
d.nAtnage n50,nJoe'sncashnvalue nwillnequalnthe nface nvalue nofnhisncontract.n-
n correctn answern✔✔C. nJoe nwilln ben ablen ton stopn payingnthen premiums n atnagen 50, n butn hisn deathn protection n
willnrunnthroughnage n100.
, Warrantiesnare:
a.nThe nsame nasnrepresentations.
b.nStatementsnthatnare nabsolutelyntrue.
c.nStatementsnthatnare nbelievedntonbe ntrue.
d.nCriticalntonthe nformationnofnanlife ninsurance ncontractualnagreement.n-
n correctn answern ✔✔B. n Statements n thatn are n absolutely n true.
Allnthe nfollowingnarenreasonsnwhynanninsurancencompanynmaynnotnpaynandeathnbenefitnundernanTermnlifeni
nsurance npolicynEXCEPT:
a.nAnsuicide nbefore nthe nendnofnthe nfirstntwonpolicynyears.
b.nNonnpaymentnof npremium.
c.nAnnaccidentalndeathnresultingnfromndrowning.
d.nAnmaterialnmisrepresentationnonnthenapplicationndiscoverednbefore nthenendnofnthencontestable nperiod.
n - n correctn answern ✔✔C. n Ann accidentaln deathn resultingn fromn drowning.
Whichnof nthe nfollowingnlife ninsurance npoliciesnoffersnthe nbuildnupnof ncashnvalue nonnanninterest-
sensitive nbasisnandnthe nrightntonmake npartialnwithdrawalsnof nthatncashnvalue nwithoutninterest?
a.nUniversalnLife
b.nAdjustable nLife
c.nVariable nUniversalnLife
d.nVariable nWhole nLife n-ncorrectnanswern✔✔A.nUniversalnLife
Joelnownsnan$100,000nface namountnWhole nLifenpolicynwhichnhasnancashnvaluenof n$11,000.nThere nisnalsonann
outstandingnloannof n$4,000.nIfnJoelndies,nhownmuchnwouldntheninsurance ncompanynpayntonhisnbeneficiary?
a.n$96,000
n n n n
EXAM SERIES 2024n n n
Whichnof nthe nfollowingnisnNOTnancharacteristicnofnanVariable nAnnuity?
A.nPremiumnPaymentsnmaynbe nlevelnornflexible nornsingle npremium
B.nThe ncashnvaluesnare ninvestedninnsecurities.
C.nThe nnon-
forfeiture nvaluesnwillnprovidenfornthenreturnnofnthe ncashnvaluenshouldnthenannuitantndie nduringnthenaccum
ulationnperiod.
D.nItnprovidesnfornantax-free ndeathnbenefit.n-ncorrectnanswern✔✔D.nItnprovidesnfornantax-
free ndeathnbenefit.
Allnof nthe nfollowingnpoliciesnprovide nfornthe ntax ndeferrednaccumulationnofncashnvalue nEXCEPT:
A.nInterestnSensitive nWhole nLife
B.nSingle nPremiumnVariable nAnnuity
C.nVariable nUniversalnLife
D.nTermnLife n- ncorrectnanswern✔✔D.nTermnLife
Allnof nthe nfollowingnare ntrue nstatementsnaboutnthe ntaxationnof nlife ninsurance nbenefitsnexcept:
A.nPolicynloansnare ntaxednasnordinarynincome
B.nThe ncashnvalue ninnanlife ninsurance npolicyngrowsnonnantax ndeferrednbasis.
C.nThe ninterestnearnednonnthe n"interest"nSettlementnOptionnisntaxednasnordinarynincome.
D.nThe ndeathnbenefitnof nanlife npolicynisnreceivednbynthe nbeneficiarynfederalnincome ntax nfree.n-
n correctn answern ✔✔A. n Policy n loansn are n taxed n asn ordinary n income
,Whichnof nthe nfollowingnstatementsnisntrue naboutnthe nGroupnLife nconversionnprivilege?
a.nDeathnduringnthe nconversionnperiodnisncoverednevennifnthendepartingnemployeenchoosesnNOTntonconver
tntonannindividualnpolicy.
b.nThe ndepartingnemployeenmustnpaynthenpremiumnifntheynelectntonbe ncoverednduringnthe nconversionnperi
od.
c.nIfnandepartingnemployeenelectsntonconvertntheirnlife ninsurance,nthencompanynmustnoffernTermninsurance
n asn an choice.
d.nUndernthe nCOBRAnlawsnandepartingnemployee nmaynelectntonremainnanmembernof nthenGroupnLifenplannfo
rnanlimitednperiodnofntime.n-
n correctn answern✔✔A. n Deathnduringnthen conversion nperiodn isncoveredn evennif n the ndepartingnemployee nch
oosesnNOTntonconvertntonannindividualnpolicy.
Whichnof nthe nfollowingnisnancombinationnofnDecreasingnTermnandnWhole nLife?
a.nFamilynIncome nPolicy
b.nFamilynMaintenance nPolicy
c.nModifiednLife
d.nFamilynPolicyn-ncorrectnanswern✔✔A.nFamilynIncome nPolicy
Antype nof nAnnuityninnwhichnthe ncashnvaluesnare ninvestedninnsecuritiesnisncalled:
a.nVariable
b.nDeferred
c.nJointnandnSurvivorship
d.nFlexible npremiumn-ncorrectnanswern✔✔Variable
MarynisnreceivingnannannuitynpayoutnfromnhernVariable nStraightnLifenAnnuity.nUponnherndeath,nwhichnofnth
e nfollowingnwillnbe npayable ntonhernestate?
a.nNothing
,b.nThe npolicyndeathnbenefit
c.nThe nremainingnvalue nofnhernaccount
d.nThe ntotalnpremiumsnpaidnintonthe naccount,nlessnthe namountnpaidntonMaryninnbenefitsn-
n correctn answern ✔✔A. n Nothing
WhatnisndecreasingninnanDecreasingnTermnpolicy?
a.nThe ncashnvalue
b.nThe npremium
c.nThe nface namount
d.nThe nnonforfeiture nvaluesn-ncorrectnanswern✔✔The nFace nAmount
Endowmentnpoliciesncannmature ninntwonways.nWhatnare nthey?
a.nThe ninsuredndiesnduringnthe npolicynperiodnornannuitizesnthe npolicynafternage n59&1/2.
b.nThe ninsuredndiesnduringnthenpolicynperiodnornreachesnthenendowmentnagenasndesignatedninnthe npolicy.
c.nThe ninsuredndiesnduringnthe npolicynperiodnornretiresnatnage n59&1/2.
d.nThe ninsuredndiesnornreachesnage n100.n-
n correctn answern✔✔B. nThen insuredndiesn duringn the npolicy n period nornreaches nthen endowmentn agen asn desig
natedninnthe npolicy.
Atnage n30,nJoenInsurednpurchasesnan20nPaynWhole nLifenPolicy.nWhichnofnthe nfollowingnstatementsnisntrue nr
egardingnJoe'snpolicyncoverage?
a.nJoe'sndeathnprotectionnwillnendnatnage n50.
b.nJoe'snnonforfeiture nvaluesnwillnendnatnage n50.
c.nJoe nwillnbe nable ntonstopnpayingnthe npremiumsnatnage n50,nbutnhisndeathnprotectionnwillnrunnthroughnage n
100.
d.nAtnage n50,nJoe'sncashnvalue nwillnequalnthe nface nvalue nofnhisncontract.n-
n correctn answern✔✔C. nJoe nwilln ben ablen ton stopn payingnthen premiums n atnagen 50, n butn hisn deathn protection n
willnrunnthroughnage n100.
, Warrantiesnare:
a.nThe nsame nasnrepresentations.
b.nStatementsnthatnare nabsolutelyntrue.
c.nStatementsnthatnare nbelievedntonbe ntrue.
d.nCriticalntonthe nformationnofnanlife ninsurance ncontractualnagreement.n-
n correctn answern ✔✔B. n Statements n thatn are n absolutely n true.
Allnthe nfollowingnarenreasonsnwhynanninsurancencompanynmaynnotnpaynandeathnbenefitnundernanTermnlifeni
nsurance npolicynEXCEPT:
a.nAnsuicide nbefore nthe nendnofnthe nfirstntwonpolicynyears.
b.nNonnpaymentnof npremium.
c.nAnnaccidentalndeathnresultingnfromndrowning.
d.nAnmaterialnmisrepresentationnonnthenapplicationndiscoverednbefore nthenendnofnthencontestable nperiod.
n - n correctn answern ✔✔C. n Ann accidentaln deathn resultingn fromn drowning.
Whichnof nthe nfollowingnlife ninsurance npoliciesnoffersnthe nbuildnupnof ncashnvalue nonnanninterest-
sensitive nbasisnandnthe nrightntonmake npartialnwithdrawalsnof nthatncashnvalue nwithoutninterest?
a.nUniversalnLife
b.nAdjustable nLife
c.nVariable nUniversalnLife
d.nVariable nWhole nLife n-ncorrectnanswern✔✔A.nUniversalnLife
Joelnownsnan$100,000nface namountnWhole nLifenpolicynwhichnhasnancashnvaluenof n$11,000.nThere nisnalsonann
outstandingnloannof n$4,000.nIfnJoelndies,nhownmuchnwouldntheninsurance ncompanynpayntonhisnbeneficiary?
a.n$96,000
