INDIANA LIFE AND HEALTH INSURANCE EXAM | TOP
SCORES MADE SIMPLE | TRUSTED TEST
SOLUTIONS!
ACE EVERY QUIZ | CONFIDENCE BACKED BY
ACCURACY!
The insured and Insurance company will share the cost of covered losses under which
health policy feature? Answer: Payment of Claims provision
XYZ Corp was issued a group Health policy for its employees. Under this plan a:
Answer: 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? Answer: Guaranteed
insurability rider
An employer that offers a qualified retirement plan to its employees is eligible to:
Answer: make tax-deductible contributions to the plan
A policyowner's rights are limited under which beneficiary designation? Answer:
Irrevocable
The Notice of Claims provision requires a policyowner to: Answer: 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): Answer: Extra premium
P's individual health policy is now in the Grace Period. P's coverage will remain in force
if: Answer: the premium is paid
In health insurance policies, a waiver of premium keeps the coverage in force without
premium payments: Answer: 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
1
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, payments will be paid to his son for the balance of the 20 years. What type of annuity is
this? Answer: Life annuity with period certain
Dividends payable to a policyowner are Answer: 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: Answer: risk retention group
What type of reinsurance contract involves two companies automatically sharing their
risk exposure? Answer: Treaty
Who elects the governing body of a mutual insurance company? Answer: policyholders
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the Answer: 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? Answer: Upon completion of the application
When a policy pays dividends to its policyholders, it is said to be Answer: 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 Answer: Reserves
Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated: Answer: 1970- Fair credit reporting act
What year was the McCarran-Ferguson Act enacted? Answer: 1945
Which of these describe a participating insurance policy? Answer: 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: Answer: 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? Answer: Fair Credit Reporting Act
The probability of loss becoming more predictable is attributed to: Answer: Law of
Large Numbers
Which of the following is a requirement for a risk to be considered insurable? Answer:
Predictability of loss
The Law of Large Numbers involves a: Answer: Large group of homgeneous units
The cause of a loss is referred to as a Answer: Peril
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
SCORES MADE SIMPLE | TRUSTED TEST
SOLUTIONS!
ACE EVERY QUIZ | CONFIDENCE BACKED BY
ACCURACY!
The insured and Insurance company will share the cost of covered losses under which
health policy feature? Answer: Payment of Claims provision
XYZ Corp was issued a group Health policy for its employees. Under this plan a:
Answer: 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? Answer: Guaranteed
insurability rider
An employer that offers a qualified retirement plan to its employees is eligible to:
Answer: make tax-deductible contributions to the plan
A policyowner's rights are limited under which beneficiary designation? Answer:
Irrevocable
The Notice of Claims provision requires a policyowner to: Answer: 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): Answer: Extra premium
P's individual health policy is now in the Grace Period. P's coverage will remain in force
if: Answer: the premium is paid
In health insurance policies, a waiver of premium keeps the coverage in force without
premium payments: Answer: 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
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, payments will be paid to his son for the balance of the 20 years. What type of annuity is
this? Answer: Life annuity with period certain
Dividends payable to a policyowner are Answer: 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: Answer: risk retention group
What type of reinsurance contract involves two companies automatically sharing their
risk exposure? Answer: Treaty
Who elects the governing body of a mutual insurance company? Answer: policyholders
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the Answer: 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? Answer: Upon completion of the application
When a policy pays dividends to its policyholders, it is said to be Answer: 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 Answer: Reserves
Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated: Answer: 1970- Fair credit reporting act
What year was the McCarran-Ferguson Act enacted? Answer: 1945
Which of these describe a participating insurance policy? Answer: 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: Answer: 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? Answer: Fair Credit Reporting Act
The probability of loss becoming more predictable is attributed to: Answer: Law of
Large Numbers
Which of the following is a requirement for a risk to be considered insurable? Answer:
Predictability of loss
The Law of Large Numbers involves a: Answer: Large group of homgeneous units
The cause of a loss is referred to as a Answer: Peril
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
