Indiana Life and Health Insurance Exam Questions and Answers, Exams of Insurance Economics

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Indiana Life and Health Insurance State

Exam (Part 2) 2024-2025 Edition. All

Exam Questions & Answers. Graded A+

A policyowner is allowed to pay premiums more than once a year under which provision? - ANSMode of Premium ABC Insurance Company fails to pay death proceeds after satisfactory proof of loss was submitted. ABC must begin paying interest on the death proceeds after ____ days of receiving proof of loss. - ANS According to Indiana Law, group life insurance conversion privileges must NOT: - ANSRequire evidence of insurability Additional coverage can be added to a Whole Life policy by adding a(n): - ANSDecreasing term rider An agent takes an Individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to: - ANSDetermine if the applicant is an acceptable risk by completing standard underwriting procedures An applicant MUST receive an outline of coverage when an application is taken for a(n):

• ANSMedicare Supplement policy An example of rebating would be: - ANSReturning a portion of a premium as inducement to purchase insurance An Indiana resident insurance producer must perform which of the following actions to continue with their license? - ANSMeet continuing education requirements An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction? - ANS20% is withheld for income taxes An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision? - ANS C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true? - ANSABC is the policyowner, C is the insured, and ABC is the beneficiary

C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the covered medical expenses are $2000? - ANS$720 (4400 deductible + 20% of remaining medical bill) Dividends paid from a life insurance policy are - ANSIssued by the insurer G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income? - ANS10 years How are surrender charges deducted in a life policy with a rear-end loaded provision? - ANSDeducted when the policy is discontinued J is 35 years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? - ANS20- pay life Life insurance coverage will frequently contain an Accelerated Benefits rider attached to the policy. What would be considered a "qualifying event" under these riders? - ANSMedical condition resulting in a significantly-shortened lifespan Life Insurance that covers an insured's whole life with level premiums paid over a limited time is called: - ANSLimited Pay life M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income Policy that pays $2,000 a month. Which of the following statements bEST describes what is owed by her estate? - ANSEarned, but unpaid benefits M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT: - ANSFree-look period has expired P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to - ANSP only T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert - ANSTo an individual policy upon employment termination The Affordable Care act (ACA) provides health coverage to dependents up to the age of: - ANS

The Health Insurance Profitability and Accountability Act (HIPAA) gives privacy protection for: - ANSHealth Information The individual who provides general medical care for a patient as well as the referral for specialized care is known as: - ANSPrimary Care Physician The provision in a Group health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the: - ANSWaiting Period 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: - ANSReserves Under a graded premium Policy, the premiums - ANSAre lower during the policy's early years Variable Annuities may invest premiums in each of the following, EXCEPT: - ANSInsurer's corporate business account Variable Life products require a producer to - ANShold a Life Insurance license and a Securities license What action should a producer take if the initial premium is NOT submitted with the application? - ANSForward the application to the insurer without the initial premium What benefit does the payor clause on a juvenile Life policy provide? - ANSPremiums are waived if the payor becomes disabled What must a producer sign when an existing life insurance policy is being reissued with a reduction in cash value? - ANSNotice Regarding Replacement What type of life policy covers 2 lives and pays the face amount after the first one dies?

• ANSJoint Life policy When a life insurance policy exceeds certain IRS table values, the result will create which of the following? - ANSModified Endowment Contract (MEC) When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? - ANSConversion Provision Which Federal law allows an insurer to obtain an inspection report on a potential insured? - ANSFair Credit Reporting Act Which of the following employees may NOT be excluded from a group life plan? - ANSFull time employees after the probationary period

Which of the following phrases refers to the fees charged by a healthcare professional?

• ANSUsual, customary, and reasonable expenses Which of the following situations does a Critical Illness plan cover? - ANSLeukemia Which of the following will a Long Term Care Plan typically provide benefits for? - ANSHome health care Which of the following will happen if a licensed resident insurance producer moves to another state? - ANSProducer's license shall terminate immediately Which of these actions does NOT constitute life insurance policy replacement? - ANSConvert term coverage to a whole life policy Which of these arrangements allows one to bypass insurable interest laws? - ANSInvestor-originated life Insurance Which of these is NOT considered to be a right given to a policyowner? - ANSModify a provision in the insurance contract Which of these provisions is NOT required in individual life insurance policies sold in Indiana? - ANSExtended term Which of these types of coverage is best described as a short term medical policy? - ANSInterim coverage Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary? - ANSSplit- Dollar Plan Which type of provider is known for stressing preventive medical care and routine physical examinations? - ANSHealth Maintenance Organizations (HMO's) Who has the right to change a revocable beneficiary? - ANSPolicyowner