PRE-LICENSING INSURANCE COURSE CHAPTER 19
EXAM QUESTIONS WITH 100% CORRECT
ANSWERS GRADED A+ NEW MODIFIED 2026
LATEST
Any person who violates a cease and desist order of the Commissioner may,
after notice and hearing and upon order of the Commissioner, be subject to a
civil penalty of not more than:
a. $10,000 for each act or violation
b. $15,000 for each act or violation
c. $20,000 for each act or violation
d. $25,000 for each act or violation --CORRECT ANSWER--d. $25,000 for
each act or violation
Which of the following unfair trade practices does NOT involve
misrepresentation?
a. Boycott
b. Churning
c. Twisting
d. Defamation --CORRECT ANSWER--a. Boycott
Page 1 of 47
,Presenting an oral or written statement that the person knows to contain
materially false information as part of and material to the rating of an insurance
policy is an example of:
a. Insurance fraud
b. Viatical tampering
c. Twisted indemnity
d. Rebate discrimination --CORRECT ANSWER--a. Insurance fraud
If an insurance company should fail, the maximum amount of protection
provided by the Indiana Insurance Guaranty Association is between:
a. $100,000 and $300,000
b. $200,000 and $400,000
c. $300,000 and $500,000
d. $400,000 and $600,000 --CORRECT ANSWER--a. $100,000 and $300,000
What is a policyholder's punishment for deliberate false statements on an
insurance application?
a. Fined up to $50,000 per act and/or imprisonment for a maximum of 10 years
b. Imprisoned for up to 10 years
c. Fined $100,000
Page 2 of 47
,d. Loss of insurance policy and a fine of $5,0000 --CORRECT ANSWER--a.
Fined up to $50,000 per act and/or imprisonment for a maximum of 10 years
Giving, as an inducement to contract insurance, special favors, advantages in
the dividends or benefits, or any valuable consideration not specified in the
contract is known as:
a. Rebating
b. Swirling
c. Unfurling
d. Retreading --CORRECT ANSWER--a. Rebating
What is a written or oral statement that misrepresents terms, conditions or
benefits of a policy so that the policyholder is induced to lapse on their current
insurance or take out another policy?
a. Twisting
b. Unfair discrimination
c. Rebating
d. Sharing commissions --CORRECT ANSWER--a. Twisting
Any person who commits an unfair trade practice or act will be subject to:
Page 3 of 47
, a. A cease and desist order
b. An inquiry by the Commissioner
c. An examination by the NAIC
d. An assessment by FINRA --CORRECT ANSWER--a. A cease and desist
order
Suggesting a policy is better suited for a prospective applicant than the facts
would indicate is:
a. Defamation
b. Twisting
c. Misrepresentation
d. Rebating --CORRECT ANSWER--c. Misrepresentation
If an agent waives the applicant's initial policy premium as a favor for
purchasing a life insurance policy, which of the following unfair trade practices
has the agent used?
a. Twisting
b. Boycott
c. Illegal inducement
d. Misrepresentation --CORRECT ANSWER--c. Illegal inducement
Page 4 of 47
EXAM QUESTIONS WITH 100% CORRECT
ANSWERS GRADED A+ NEW MODIFIED 2026
LATEST
Any person who violates a cease and desist order of the Commissioner may,
after notice and hearing and upon order of the Commissioner, be subject to a
civil penalty of not more than:
a. $10,000 for each act or violation
b. $15,000 for each act or violation
c. $20,000 for each act or violation
d. $25,000 for each act or violation --CORRECT ANSWER--d. $25,000 for
each act or violation
Which of the following unfair trade practices does NOT involve
misrepresentation?
a. Boycott
b. Churning
c. Twisting
d. Defamation --CORRECT ANSWER--a. Boycott
Page 1 of 47
,Presenting an oral or written statement that the person knows to contain
materially false information as part of and material to the rating of an insurance
policy is an example of:
a. Insurance fraud
b. Viatical tampering
c. Twisted indemnity
d. Rebate discrimination --CORRECT ANSWER--a. Insurance fraud
If an insurance company should fail, the maximum amount of protection
provided by the Indiana Insurance Guaranty Association is between:
a. $100,000 and $300,000
b. $200,000 and $400,000
c. $300,000 and $500,000
d. $400,000 and $600,000 --CORRECT ANSWER--a. $100,000 and $300,000
What is a policyholder's punishment for deliberate false statements on an
insurance application?
a. Fined up to $50,000 per act and/or imprisonment for a maximum of 10 years
b. Imprisoned for up to 10 years
c. Fined $100,000
Page 2 of 47
,d. Loss of insurance policy and a fine of $5,0000 --CORRECT ANSWER--a.
Fined up to $50,000 per act and/or imprisonment for a maximum of 10 years
Giving, as an inducement to contract insurance, special favors, advantages in
the dividends or benefits, or any valuable consideration not specified in the
contract is known as:
a. Rebating
b. Swirling
c. Unfurling
d. Retreading --CORRECT ANSWER--a. Rebating
What is a written or oral statement that misrepresents terms, conditions or
benefits of a policy so that the policyholder is induced to lapse on their current
insurance or take out another policy?
a. Twisting
b. Unfair discrimination
c. Rebating
d. Sharing commissions --CORRECT ANSWER--a. Twisting
Any person who commits an unfair trade practice or act will be subject to:
Page 3 of 47
, a. A cease and desist order
b. An inquiry by the Commissioner
c. An examination by the NAIC
d. An assessment by FINRA --CORRECT ANSWER--a. A cease and desist
order
Suggesting a policy is better suited for a prospective applicant than the facts
would indicate is:
a. Defamation
b. Twisting
c. Misrepresentation
d. Rebating --CORRECT ANSWER--c. Misrepresentation
If an agent waives the applicant's initial policy premium as a favor for
purchasing a life insurance policy, which of the following unfair trade practices
has the agent used?
a. Twisting
b. Boycott
c. Illegal inducement
d. Misrepresentation --CORRECT ANSWER--c. Illegal inducement
Page 4 of 47
