This Indiana Life Insurance Exam is a standardized computer-based test administered by
Pearson VUE and Ivy Tech on behalf of the Indiana Department of Insurance (IDOI). It
verifies a candidate's entry-level knowledge of life insurance products, contract laws, and
state-specific regulations. A minimum passing score of 70% is required across all
versions.
Available Exam Types
Candidates can choose to test for a standalone life license or combine it with health
authorities:
• IN Life Producer Exam: This comprehensive exam features roughly 80 to 100
multiple-choice questions. It covers national general life insurance principles
alongside specific state regulations.
• IN Life, Accident, and Health Producer Exam: A combined exam for
individuals wanting to sell both product lines. It covers a larger volume of material in
a single testing session.
• IN Life Laws & Regulations Exam: A shorter, 35-question test specifically
tracking state-specific compliance, marketing rules, and IDOI powers.
Core Topics Covered
The exam is divided between general industry knowledge (national section) and state laws
(local section):
• General Insurance Concepts: Fundamentals of risk, insurable interest, contract
law, and agent ethics.
• Life Insurance Policies: Details regarding term, whole, variable, universal, and
industrial life structures.
• Policy Riders and Options: Standard provisions, policy options, exclusions, and
riders like accidental death or waiver of premium.
1
, • Taxes and Annuities: Tax treatment of premiums and proceeds, plus the
structures of fixed and variable annuities.
• Indiana State Laws: Rules common to all lines of insurance, the licensing process,
producer responsibilities, and unfair trade practices.
Quiz_________________?
. It is the same as a Modified Life Policy -
Answer✅
Which of the following statements is NOT true about Enhanced Ordinary Life?
a. It is the same as a Modified Life policy.
b. It is a combination of continuous premium Whole Life and Renewable Term.
c. Policy dividends are used to purchase Paid Up Additions.
d. It is only available on Participating Life insurance policies.
Quiz_________________?
$25,000 -
Answer✅
If the Commissioner issues a cease-and-desist order and you continue the same activities,
you can be fined up to which of the following amounts per violation of that order?
a. $5,000
b. $1,000
c. $50,000
d. $25,000
Quiz_________________?
1. A Single Premium
2
, 2. Limited Pay (For a limited period of time)
3. Straight Life (Continuous) Premium
The shorter the payment period, the higher each individual payment but the lower the total
cost. The longer the payment period, the smaller the individual premiums, but the greater
the total cost. No matter how it's paid for, the cash value will equal the face amount at age
100. -
Answer✅
How can you buy a whole life insurance policy?
Quiz_________________?
1. Offer: A concise statement that is answered by Yes or No. In life insurance, an application
is only an offer if it comes with the first premium.
2. Acceptance: Mirror image of the offer. The company must issue and deliver the policy by
the agent.
3. Consideration: The exchange of something of value. Company offers promises and
applicant gives premium.
4. Capacity: Ability to enter into the contract
5. Purpose: Reason for existence. In life, the applicant must have insurable interest and
consent in the life of the proposed insured. -
Answer✅
What are the five elements of a contract?
Quiz_________________?
1. Take the Money
2. Buy an Annuity Certain (A guaranteed income for a specific period of time)
3. A Life Annuity (Guaranteed income for life) -
Answer✅
What three choices does an annuitant have when the annuity reaches annuitization?
3
, Quiz_________________?
1. Terminally ill
2. Extraordinary Medical Intervention (organ transplant, artificial life support, etc.)
3. Permanently Institutionalized
4. Limits the Insured's life span (Heart disease, cancer, renal failure)
5. Any other condition approved by the Commissioner -
Answer✅
In order to qualify for Accelerated Death Benefits, the insured must be in what kind of
circumstance?
Quiz_________________?
1. Valued Contracts: They have a pre-determined, face amount. When Joe dies, his family
will receive the death benefit placed on the contract.
2. Reimbursement/indemnity contracts: Exist to make you whole. Brings you back to where
you were before something bad happened to you.
3. Service contracts: The carrier/company provides the service. -
Answer✅
What are the different types of insurance contracts?
Quiz_________________?
20% of total earned income
Maximum annual contributions are limited to the lesser of $30,000 or 20 percent of total
earned income (25% of the after-contribution income). -
4
Pearson VUE and Ivy Tech on behalf of the Indiana Department of Insurance (IDOI). It
verifies a candidate's entry-level knowledge of life insurance products, contract laws, and
state-specific regulations. A minimum passing score of 70% is required across all
versions.
Available Exam Types
Candidates can choose to test for a standalone life license or combine it with health
authorities:
• IN Life Producer Exam: This comprehensive exam features roughly 80 to 100
multiple-choice questions. It covers national general life insurance principles
alongside specific state regulations.
• IN Life, Accident, and Health Producer Exam: A combined exam for
individuals wanting to sell both product lines. It covers a larger volume of material in
a single testing session.
• IN Life Laws & Regulations Exam: A shorter, 35-question test specifically
tracking state-specific compliance, marketing rules, and IDOI powers.
Core Topics Covered
The exam is divided between general industry knowledge (national section) and state laws
(local section):
• General Insurance Concepts: Fundamentals of risk, insurable interest, contract
law, and agent ethics.
• Life Insurance Policies: Details regarding term, whole, variable, universal, and
industrial life structures.
• Policy Riders and Options: Standard provisions, policy options, exclusions, and
riders like accidental death or waiver of premium.
1
, • Taxes and Annuities: Tax treatment of premiums and proceeds, plus the
structures of fixed and variable annuities.
• Indiana State Laws: Rules common to all lines of insurance, the licensing process,
producer responsibilities, and unfair trade practices.
Quiz_________________?
. It is the same as a Modified Life Policy -
Answer✅
Which of the following statements is NOT true about Enhanced Ordinary Life?
a. It is the same as a Modified Life policy.
b. It is a combination of continuous premium Whole Life and Renewable Term.
c. Policy dividends are used to purchase Paid Up Additions.
d. It is only available on Participating Life insurance policies.
Quiz_________________?
$25,000 -
Answer✅
If the Commissioner issues a cease-and-desist order and you continue the same activities,
you can be fined up to which of the following amounts per violation of that order?
a. $5,000
b. $1,000
c. $50,000
d. $25,000
Quiz_________________?
1. A Single Premium
2
, 2. Limited Pay (For a limited period of time)
3. Straight Life (Continuous) Premium
The shorter the payment period, the higher each individual payment but the lower the total
cost. The longer the payment period, the smaller the individual premiums, but the greater
the total cost. No matter how it's paid for, the cash value will equal the face amount at age
100. -
Answer✅
How can you buy a whole life insurance policy?
Quiz_________________?
1. Offer: A concise statement that is answered by Yes or No. In life insurance, an application
is only an offer if it comes with the first premium.
2. Acceptance: Mirror image of the offer. The company must issue and deliver the policy by
the agent.
3. Consideration: The exchange of something of value. Company offers promises and
applicant gives premium.
4. Capacity: Ability to enter into the contract
5. Purpose: Reason for existence. In life, the applicant must have insurable interest and
consent in the life of the proposed insured. -
Answer✅
What are the five elements of a contract?
Quiz_________________?
1. Take the Money
2. Buy an Annuity Certain (A guaranteed income for a specific period of time)
3. A Life Annuity (Guaranteed income for life) -
Answer✅
What three choices does an annuitant have when the annuity reaches annuitization?
3
, Quiz_________________?
1. Terminally ill
2. Extraordinary Medical Intervention (organ transplant, artificial life support, etc.)
3. Permanently Institutionalized
4. Limits the Insured's life span (Heart disease, cancer, renal failure)
5. Any other condition approved by the Commissioner -
Answer✅
In order to qualify for Accelerated Death Benefits, the insured must be in what kind of
circumstance?
Quiz_________________?
1. Valued Contracts: They have a pre-determined, face amount. When Joe dies, his family
will receive the death benefit placed on the contract.
2. Reimbursement/indemnity contracts: Exist to make you whole. Brings you back to where
you were before something bad happened to you.
3. Service contracts: The carrier/company provides the service. -
Answer✅
What are the different types of insurance contracts?
Quiz_________________?
20% of total earned income
Maximum annual contributions are limited to the lesser of $30,000 or 20 percent of total
earned income (25% of the after-contribution income). -
4
