INDIANA LIFE & HEALTH INSURANCE
EXAM ACTUAL QUESTIONS AND
CORRECT ANSWERS
The insured and Insurance company will share the cost of covered losses under which health
policy feature? - Correct answers✔Payment of Claims provision
XYZ Corp was issued a group Health policy for its employees. Under this plan a: - Correct
answers✔Policy must be issued to XYZ, and a certificate must be issued to each employee
Bryce purchased a disability income policy with a rider that guarantees him the option of
purchasing additional amounts of coverage at predetermined times without requiring to provide
evidence of insurability. What kind of rider is this? - Correct answers✔Guaranteed insurability
rider
An employer that offers a qualified retirement plan to its employees is eligible to: - Correct
answers✔make tax-deductible contributions to the plan
A policyowner's rights are limited under which beneficiary designation? - Correct
answers✔Irrevocable
The Notice of Claims provision requires a policyowner to: - Correct answers✔Notify an insurer
of a claim within a specified time
An underwriter determines that a life insurance applicant's risk should be reclassified due to a
health issue. This policy may be issued with a(n): - Correct answers✔Extra premium
P's individual health policy is now in the Grace Period. P's coverage will remain in force if: -
Correct answers✔the premium is paid
,In health insurance policies, a waiver of premium keeps the coverage in force without premium
payments: - Correct answers✔After an insured has become totally disabled as defined in the
policy
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? - Correct
answers✔Life annuity with period certain
Dividends payable to a policyowner are - Correct answers✔declared by the insurance company
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a: - Correct answers✔risk retention group
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - Correct answers✔Treaty
Who elects the governing body of a mutual insurance company? - Correct
answers✔policyholders
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the - Correct answers✔Fair Credit Reporting Act
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - Correct answers✔Upon completion of the application
When a policy pays dividends to its policyholders, it is said to be - Correct
answers✔participating
, The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy
future obligations to its policyholders is called - Correct answers✔Reserves
Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated: - Correct answers✔1970- Fair credit reporting act
What year was the McCarran-Ferguson Act enacted? - Correct answers✔1945
Which of these describe a participating insurance policy? - Correct answers✔Policyowners are
entitled to receive dividends
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit
of its members is known as: - Correct answers✔A fraternal benefit society
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained? - Correct answers✔Fair Credit Reporting Act
The probability of loss becoming more predictable is attributed to: - Correct answers✔Law of
Large Numbers
Which of the following is a requirement for a risk to be considered insurable? - Correct
answers✔Predictability of loss
The Law of Large Numbers involves a: - Correct answers✔Large group of homgeneous units
The cause of a loss is referred to as a - Correct answers✔Peril
EXAM ACTUAL QUESTIONS AND
CORRECT ANSWERS
The insured and Insurance company will share the cost of covered losses under which health
policy feature? - Correct answers✔Payment of Claims provision
XYZ Corp was issued a group Health policy for its employees. Under this plan a: - Correct
answers✔Policy must be issued to XYZ, and a certificate must be issued to each employee
Bryce purchased a disability income policy with a rider that guarantees him the option of
purchasing additional amounts of coverage at predetermined times without requiring to provide
evidence of insurability. What kind of rider is this? - Correct answers✔Guaranteed insurability
rider
An employer that offers a qualified retirement plan to its employees is eligible to: - Correct
answers✔make tax-deductible contributions to the plan
A policyowner's rights are limited under which beneficiary designation? - Correct
answers✔Irrevocable
The Notice of Claims provision requires a policyowner to: - Correct answers✔Notify an insurer
of a claim within a specified time
An underwriter determines that a life insurance applicant's risk should be reclassified due to a
health issue. This policy may be issued with a(n): - Correct answers✔Extra premium
P's individual health policy is now in the Grace Period. P's coverage will remain in force if: -
Correct answers✔the premium is paid
,In health insurance policies, a waiver of premium keeps the coverage in force without premium
payments: - Correct answers✔After an insured has become totally disabled as defined in the
policy
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? - Correct
answers✔Life annuity with period certain
Dividends payable to a policyowner are - Correct answers✔declared by the insurance company
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a: - Correct answers✔risk retention group
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - Correct answers✔Treaty
Who elects the governing body of a mutual insurance company? - Correct
answers✔policyholders
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the - Correct answers✔Fair Credit Reporting Act
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - Correct answers✔Upon completion of the application
When a policy pays dividends to its policyholders, it is said to be - Correct
answers✔participating
, The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy
future obligations to its policyholders is called - Correct answers✔Reserves
Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated: - Correct answers✔1970- Fair credit reporting act
What year was the McCarran-Ferguson Act enacted? - Correct answers✔1945
Which of these describe a participating insurance policy? - Correct answers✔Policyowners are
entitled to receive dividends
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit
of its members is known as: - Correct answers✔A fraternal benefit society
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained? - Correct answers✔Fair Credit Reporting Act
The probability of loss becoming more predictable is attributed to: - Correct answers✔Law of
Large Numbers
Which of the following is a requirement for a risk to be considered insurable? - Correct
answers✔Predictability of loss
The Law of Large Numbers involves a: - Correct answers✔Large group of homgeneous units
The cause of a loss is referred to as a - Correct answers✔Peril
