Indiana Study Guide Insurance Exam
Questions with Correct Verified Answers
2025 Graded A+
/. Which of the following would be a valid reason for suspending or revoking an
insurance producer's license?
A. The producer has been convicted of a misdemeanor within the past 10 years
B. The producer unintentionally made a material misstatement on the license
application
C. The producer has misappropriated money help in a fiduciary capacity
D. The producer has filed for personal bankruptcy - Answer-✅C. The producer has
misappropriated money held in a fiduciary capacity
/.How does group insurance differ from individual insurance?
A. Evidence of insurability is required
B. Premiums are higher
C. Premiums are lower
D. Pre-existing conditions not covered - Answer-✅C. Premiums are lower
/.In order for a domestic, foreign, or alien insurance company to conduct business, it
must be authorized by whom?
A. NAIC
B. The state where they are conducting business
C. The attorney general in the state where they are domiciled
D. Homeland security - Answer-✅B. The state where they are conducting business
/.What type of life insurance incorporates flexible premiums and an adjustable death
benefit?
,A. Endowment policy
B. Modified Whole Life
C. Decreasing Term
D. Universal Life - Answer-✅D. Universal Life
/.Basic hospital and Surgical policy benefits are:
A. Lower than the actual expenses incurred
B. Higher than the actual expenses incurred
C. Normally subject to deductibles
D. Normally subject to coinsurance - Answer-✅A. Lower than the actual expenses
incurred
/.What type of life policy covers 2 lives and pays the face amount after the first one
dies?
A. Group life
B. Joint Life Policy
C. Family Income Policy
D. Last survivor Policy - Answer-✅B. Joint Life Policy
/.According to Indiana Law, group life insurance conversion privileges must NOT:
A. Allow a new policy to be issued
B. allow a time period to convert group life coverage to an individual life policy
C. Allow a rate increase
D. require evidence of insurability - Answer-✅D. Require evidence of insurability
/.What percent of personal life insurance premiums is usually deductible for federal
income tax purposes?
A. 100%
, B. 75%
C. 50%
D. 0% - Answer-✅D. 0%
/.A whole life insurance policyowner does not wish to continue making premium
payments. Which of the following enables the policyowner to sell the policy for more
than its cash value?
A. Cash surrender
B. Life settlement contract
C. Buy-sell arrangement
D. 1031 Exchange - Answer-✅B. Life settlement contract
/.An incomplete life insurance application submitted to an insurer will result in which of
these actions?
A. Application will be returned to the writing agent.
B. Application will be approved with restrictions
C. Application will be pending until a MIB report is sent to the insurer
D. Application will be automatically declined - Answer-✅A. Application will be returned
to the writing agent
/.Who elects the governing body of a mutual insurance company?
A. Chairman of the board
B. Bondholders
C. Stockholders
D. Policyholders - Answer-✅D. Policyholders
/.The health insurance program which is administered by each state and funded by both
the federal and state governments is called:
A. Long-term care
B. Medicaid
Questions with Correct Verified Answers
2025 Graded A+
/. Which of the following would be a valid reason for suspending or revoking an
insurance producer's license?
A. The producer has been convicted of a misdemeanor within the past 10 years
B. The producer unintentionally made a material misstatement on the license
application
C. The producer has misappropriated money help in a fiduciary capacity
D. The producer has filed for personal bankruptcy - Answer-✅C. The producer has
misappropriated money held in a fiduciary capacity
/.How does group insurance differ from individual insurance?
A. Evidence of insurability is required
B. Premiums are higher
C. Premiums are lower
D. Pre-existing conditions not covered - Answer-✅C. Premiums are lower
/.In order for a domestic, foreign, or alien insurance company to conduct business, it
must be authorized by whom?
A. NAIC
B. The state where they are conducting business
C. The attorney general in the state where they are domiciled
D. Homeland security - Answer-✅B. The state where they are conducting business
/.What type of life insurance incorporates flexible premiums and an adjustable death
benefit?
,A. Endowment policy
B. Modified Whole Life
C. Decreasing Term
D. Universal Life - Answer-✅D. Universal Life
/.Basic hospital and Surgical policy benefits are:
A. Lower than the actual expenses incurred
B. Higher than the actual expenses incurred
C. Normally subject to deductibles
D. Normally subject to coinsurance - Answer-✅A. Lower than the actual expenses
incurred
/.What type of life policy covers 2 lives and pays the face amount after the first one
dies?
A. Group life
B. Joint Life Policy
C. Family Income Policy
D. Last survivor Policy - Answer-✅B. Joint Life Policy
/.According to Indiana Law, group life insurance conversion privileges must NOT:
A. Allow a new policy to be issued
B. allow a time period to convert group life coverage to an individual life policy
C. Allow a rate increase
D. require evidence of insurability - Answer-✅D. Require evidence of insurability
/.What percent of personal life insurance premiums is usually deductible for federal
income tax purposes?
A. 100%
, B. 75%
C. 50%
D. 0% - Answer-✅D. 0%
/.A whole life insurance policyowner does not wish to continue making premium
payments. Which of the following enables the policyowner to sell the policy for more
than its cash value?
A. Cash surrender
B. Life settlement contract
C. Buy-sell arrangement
D. 1031 Exchange - Answer-✅B. Life settlement contract
/.An incomplete life insurance application submitted to an insurer will result in which of
these actions?
A. Application will be returned to the writing agent.
B. Application will be approved with restrictions
C. Application will be pending until a MIB report is sent to the insurer
D. Application will be automatically declined - Answer-✅A. Application will be returned
to the writing agent
/.Who elects the governing body of a mutual insurance company?
A. Chairman of the board
B. Bondholders
C. Stockholders
D. Policyholders - Answer-✅D. Policyholders
/.The health insurance program which is administered by each state and funded by both
the federal and state governments is called:
A. Long-term care
B. Medicaid
