Indiana State Life and Health Insurance, Exams of Advanced Education

Download Indiana State Life and Health Insurance and more Exams Advanced Education in PDF only on Docsity! Indiana State Life and Health Insurance (Actual) Exam 2024/2025 A "reimbursement policy" pays what amount of covered Long-Term Care expenses? All expenses regardless of the policy limits Actual covered expenses up to the daily maximum A daily dollar amount regardless of the actual incurred expenses The usual, customary, and reasonable expenses regardless of the policy limits - ANS- Actual covered expenses up to the daily maximum A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? Only income taxes on $30,000 Only income taxes on $24,000 Income taxes plus a 10% penalty tax on $30,000 Income taxes plus a 10% penalty tax on $24,000 - ANS-Income taxes plus a 10% penalty tax on $30,000 A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered except for? Hospital Charges Physician Fees Experimental and Investigative Services Nursing Services - ANS-Experimental and Investigative Services A domestic insurance company in Indiana must? Be organized under Indiana insurance laws Own real estate in Indiana Write insurance on risks located only in Indiana Honor the charter of the NAIC - ANS-Be organized under Indiana insurance laws A domestic insurance company in Indiana must? Own real estate in Indiana Write insurance on risks located only in Indiana Be incorporated and formed in Indiana Honor the charter of the NAIC - ANS-Be incorporated and formed in Indiana A level premium indicates? The premium is fixed for a period stated in the contract, then becomes variable The premium con only be changed with the consent of the insurer The premium stays level until the policy's renewal date The premium is fixed for the entire duration of the contract - ANS-The premium is fixed for the entire duration of the contract A life insurance application must be signed by all of these except? The policyowner The agent the insured (if an adult) Beneficiary - ANS-Beneficiary A life policy loan in Indiana cannot charge a fixed of interest higher than? 7% 8% 9% 10% - ANS-8% A life policy loan in Indiana cannot charge a fixed rate of interest higher than? 7% 8% 9% 10% - ANS-8% A noncontributory group term life plan is characterized by? 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? Cash Surrender Life Settlement Contract Buy-Sell Arrangement 1031 Exchange - ANS-Life Settlement Contract ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has? Waived one of its legal rights Issued a voidable policy Committed an act of fraud Assigned the risk to a reinsurer - ANS-Waived one of its legal rights According to Indiana Law, how long can statements made by an Applicant on a Health insurance policy be contested? 2 Years 3 Years Anytime During the Free-Look period - ANS-2 Years According to Indiana law, how long is the Free Look period for a Medicare Supplement Policy? 10 Days 20 Days 30 Days 40 Days - ANS-30 Days According to Indianas Mammography Coverage statue, which of these benefits are considered mandatory in every Medical Expense Policy? One baseline mammogram for women between ages 30-34 One mammogram every year for women aged 35 and older One mammogram every year for women aged 40 and older Two mammograms every year for those considered "women at risk" - ANS-One mammogram every year for women aged 40 and older All of the following statements are true regarding a policy's Grace Period except? Past due premiums are waived Policy loans may still be made Full coverage continues Grace period terms are stated in the policy - ANS-Past due premiums are waived All of the following statements regarding group health insurance is true except? Premiums are usually determined by the claims experience of the group A master contract is issued for the group An individual policy is given to each member Group health insurance premiums are typically lower than individual health insurance premiums - ANS-An individual policy is given to each member All of these statements are true regarding a child qualifying for coverage under the Indiana children Health Insurance Program, except? Must be a resident of Indiana to qualify Must be 19 years of age to qualify Family's income level must be greater than 150% of Federal poverty level, but less than 200% Must have been born in the united States to qualify - ANS-Must have been born in the united States to qualify An accident policy will most likely pay a benefit for a? Self-inflicted injury Critical illness On-the-job accident Off-the-job accident - ANS-Off-the-job accident An applicant must receive an Outline of Coverage when an applicant is taken for a? Endowment Annuity Medicare Supplement Policy Universal Life Policy - ANS-Medicare Supplement Policy An applicant must receive an Outline of Coverage when an application is taken for a? Endowment Annuity Medicare Supplement Policy Universal Life Policy - ANS-Medicare Supplement Policy An example of an Unfair Claims Settlement Practice is? Making it mandatory that the proof of loss be provided for each claim Requiring a time for submitting a claim Paying a claim in a timely matter Turning down a claim without providing the basis of denial - ANS-Turning down a claim without providing the basis of denial An example of an Unfair Claims Settlement Practice would be? Requesting a third-party arbitrator to resolve a disagreement Paying a claim promptly after receiving proof of loss Misrepresenting insurance policy provisions affecting a loss Requiring the insured to give a statement under oath - ANS-Misrepresenting insurance policy provisions affecting a loss An example of false advertising would be Paid testimonials from celebrity endorsements An insurer exaggerating its dividends in a magazine advertisement An producer spending more than $25 on marketing gifts for a client An insurer advertising in an insurance trade journal - ANS-An insurer exaggerating its dividends in a magazine advertisement An example of rebating would be A mutual insurance company paying dividends to its policyowners Reducing the premiums across the board for a specific risk class Producer Representative - ANS-Producer An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable? No deduction allowed $2,500 $2,000 $1,000 - ANS-$2,500 An insurance applicant must be informed of an investigation regarding his/her reputation and character according to the? State Guaranty Association Fair Labor Standards Board Fair Credit Reporting Act National Association of Insurance Commissioners - ANS-Fair Credit Reporting Act An insurance company may not reject a prospective insured's life application on the basis of which of the following factors? Hobbies Weight Gender Medical History - ANS-Gender An insurer must provide an insured with claim forms within __ days after receiving notice of a loss? 5 10 15 20 - ANS-15 As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? Coercion Defamation Rebating Misrepresentation - ANS-Coercion At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Before the appointment is scheduled Upon completion of the application At the policy's delivery When the insurer receives the MIB report - ANS-Upon completion of the application Basic Medical Expense insurance? Normally has a deductible and coinsurance Covers an illness but not an accident Pays for lost wages while hospitalized Has lower benefit limits than Major Medical Insurance - ANS-Has lower benefit limits than Major Medical Insurance Convincing a prospective insured to buy an insurance policy based on exaggerations is considered to be a form of? Rebating Intimidation Twisting Misrepresentation - ANS-Misrepresentation During the course of an insurance business transaction, who does the producer legally represent? Producer Insured Insurance Company Beneficiary - ANS-Insurance Company Eligible employees must be added to group health coverage no later than ____ days after their first day of employment? 30 45 60 90 - ANS-90 From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? Fair Credit Reporting Act Medical Information Bureau Part 3 of the Application Life Insurance Buyer's Guide - ANS-Fair Credit Reporting Act Generally, how long is a benefit period for a Major Medical Expense Plan? 1 Year 2 Years 3 Years 4 Years - ANS-1 Year Group life insurance policies are generally written as? A term rider Annually renewable term Increasing term Group whole life - ANS-Annually renewable term How are surrender charges deducted in a life policy with a rear-end loaded provision? Deducted from the death benefit Deducted when the policy is discontinued Deducted from policy's cash value Deducted when assigned to another policyowner - ANS-Deducted when the policy is discontinued How long does an insurance company appointment remain in force for? 1 Year 2 Years 3 Years Until Terminated - ANS-Until Terminated How long is the typical free-look period for Long-Term care insurance policies? 20 Days 30 Days 40 Days 50 Days - ANS-30 Days How many days is a temporary producers license valid? Amount less than the death benefit - ANS-Amount less than the death benefit In Indiana, the maximum fine that the Commissioner can impose on a producer or company who violates a cease and desist order is____per violation? $10,000 $15,000 $20,000 $25,000 - ANS-$25,000 In Indiana, the maximum fine the the commissioner can impose on a producer or company who violates a cease and desist order is___per violation? $10,000 $15,000 $20,000 $25,000 - ANS-$25,000 In Indiana, which o the following is considered an Unfair Competition Practice? Replacement Coercion Aleatory Subrogation - ANS-Coercion In Indiana, which of the following must be delivered to a policyowner upon the sale of an individual life insurance policy? Insurers AM Best rating The written sales proposal Policy Summary and Buyer's Guide Buyer's Guide only - ANS-Policy Summary and Buyer's Guide In order to establish a Health Reimbursement Arrangement, it must? Be offered in conjunction with other employer provided health benefits Limit the benefits to prescription drugs only Be established be the employer Limit the amount of money the employee can contribute toward the account - ANS-Be established be the employer In the event of employment termination, a person covered by a group policy also has the right to convert such coverages to an individual policy within____days without proving insurability? 15 30 31 45 - ANS-31 Information obtained from a phone conversation to the proposed insured can be found in which of these reports? Agent's Report MIB Report Inspection Report Attending Physician's Report - ANS-Inspection Report Insurance policies are offered on a "take it or leave it" basis, which make them? Conditional Contracts Aleatory Contracts Unilateral Contracts Contracts of Adhesion - ANS-Contracts of Adhesion J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct? The gross premium is higher on a monthly payment mode as compared to being paid annually The gross premiums is lower on a monthly payment mode as compared to being paid annually The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis - ANS-The gross premium is higher on a monthly payment mode as compared to being paid annually 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? Life Paid-Up at age 70 20-Pay Life Increasing Term to age 65 Straight Life - ANS-20-Pay Life J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? Irrevocable Contigent Primary Revocable - ANS-Revocable Jill is covered under two Group Health policies, one through her employer and one through her husband's employer. If Jill suffers a loss, which policy provision dictates the primary coverage? Replacement Time Payment of Claims Notice of Claim Coordination of Benefits - ANS-Coordination of Benefits Jill is covered under two Group Health policies, one through her employer and one through her husbands employer. If Jill suffers a loss, which policy provision dictates the primary coverage? Replacement Time Payment of Claims Notice if Claim Coordination of Benefits - ANS-Coordination of Benefits K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? Variable Life Adjustable Life Graded Premium Whole Life Modified Whole Life - ANS-Modified Whole Life K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable? Increasing Decreasing Adjustable Level - ANS-Level In poor health Below a specific income limit - ANS-Below a specific income limit Medicare Part B does not cover? Occupational Therapy Inpatient Hospital Services Physician and Surgeon Services Medical Equipment Rental - ANS-Inpatient Hospital Services Non-occupational disability coverage is designed for? 24 hour protection Those who are exempt from Workers' Compensation coverage Sole proprietors and self-employed individuals Employees who suffer non-work related disabilities, since work-related disabilities are covered be Workers' Compensation - ANS-Employees who suffer non-work related disabilities, since work-related disabilities are covered be Workers' Compensation One becomes eligible for Social Security disability benefits after having been disabled for? 3 Months 5 Months 6 Months 12 Months - ANS-5 Months P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? Claim will be denied and policy terminated Claim will be partially paid claim will be paid Claim will be denied - ANS-Claim will be denied P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? Authorize for payroll deductions Agree to a physical examination Sign an enrollment card Register with her state of residency - ANS-Sign an enrollment card P is a producer who is licensed in Indiana, but a resident of Michigan. In Indiana , P is considered to be a____Producer? Nonresident Foreign Alien Reciprocal - ANS-Nonresident P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? Accelerated Benefits Provision Entire Contract Accidental Death & Dismemberment Clause Consideration Clause - ANS-Accidental Death & Dismemberment Clause Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features? Aleatory Adhesion Unilateral Consideration - ANS-Aleatory Qualified Long-Term Care policies may take into consideration an applicant's pre- existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage? 1 6 12 24 - ANS-6 S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? Accelerated death benefit rider Return of premium rider Family income rider Term rider - ANS-Return of premium rider S is a life insurance policyowner who enters into a written agreement to receive immediate cash in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a? 1035 Exchange Viatical Settlement Equity Cash Arrangement Cash Conversion - ANS-Viatical Settlement S is a life insurance policyowner who enters into a written agreement to receive immediate cash in exchange for the sale transfer of her life insurance policy. This agreement is referred to as a? 1035 Exchange Viatical Settlement Equity Cash Agreement Cash Conversion - ANS-Viatical Settlement T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called? Insuring Time Limit on Certain Defenses Grace Period Free-Look - ANS-Time Limit on Certain Defenses T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? Allow her to take a tax deduction on unearned premiums Increase her policy's coverage amount Decrease her policy's coverage amount Nothing - ANS-Increase her policy's coverage amount The _____ must provide an insured with proper disclosure concerning the replacement of a life insurance policy? Compliance Officer Underwriter Commissioner To set sales quotas - ANS-To enforce state laws relating to insurance The Insurance Commissioner may suspend, revoke, or refuse to renew a producer's license for which of the following reasons? Producer files for bankruptcy Producer engages in the replacement of an existing policy Producer has used fraudulent, coercive, or dishonest practices Producer does not meet a sales quota - ANS-Producer has used fraudulent, coercive, or dishonest practices The legal Action provision in Indiana stipulates that the? Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 2 years to file Insured must wait 90 days after submitting proof of loss to initiate a lawsuit and has up to 2 years to file Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file Insured must wait 90 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file - ANS-Insured must wait 60 days after submitting proof of loss to initiate a lawsuit and has up to 3 years to file The provision that defines to whom the insurer will pay benefits to is called? Entire Contract Proof of Loss Claim Form Payment of Claims - ANS-Payment of Claims The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a? Closed panel Open panel Co-op panel Capitation panel - ANS-Closed panel The___must provide an insured with proper disclosure concerning the replacement of a life insurance policy? Compliance Officer Underwriter Commissioner Producer - ANS-Producer To be eligible for Social Security disability benefits, an employee must be unable to preform? Any occupation His/her current occupation Any occupation that reflects the employee's education level Any occupation that the employee is qualified and willing to do - ANS-Any occupation to continue health coverage for a newborn, the policyowner must notify the insurer of birth and provide the first premium payment within ____ days of birth? 10 15 30 31 - ANS-31 Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent? Only if the child is incapable of employment and chiefly dependent on the policyowner For up to an additional 10 years only Only physically disabled Only if mentally disabled - ANS-Only if the child is incapable of employment and chiefly dependent on the policyowner W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a? Flexible Premium Deferred annuity Variable annuity Immediate annuity Straight Life annuity - ANS-Immediate annuity What does a certificate of authority allow? A nonresident producer to conduct insurance business An insurance company to exceed coverage limits that the Guaranty Fund covers An insurance company to conduct insurance business in Indiana A resident producer to sell insurance contracts - ANS-An insurance company to conduct insurance business in Indian What is considered a valid reason for small businesses to insure the lives of its major shareholders? To provide an income for the surviving dependents Reduce the company's tax liability To pay for final expenses Fund a buy-sell agreement - ANS-Fund a buy-sell agreement What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy? Premiums may increase at time of renewal Premiums may increase at any time Policy may be renewed at the discretion of the insured Policy may be amended by insured at any time - ANS-Premiums may increase at time of renewal what is considered to be a characteristic of an immediate annuity? Benefit payments start within one payment period of purchase Benefit payments start within 5 years of initial purchase Normally tied to a specific equity or stock index Periodical contributions being immediately - ANS-Benefit payments start within one payment period of purchase What is Indianas definition of Life insurance replacement? Enforces Indianas insurance regulations Approves policy forms Underwrites high-risk insurance applicants - ANS-Ensures that claims filled against insolvent insurance companies will be paid What is the Suicide provision designed to do? Decline an applicant who is contemplating suicide Safeguard the insurer from an applicant who is contemplating suicide Protect the insurer from ever paying a claim that results from suicide Allows the insurer the option to pay a death benefit in the event of suicide - ANS- Safeguard the insurer from an applicant who is contemplating suicide What type of annuity has a cash value that is based upon the performance of its underlying investment funds? Deferred Flexible Variable Fixed - ANS-Variable What type of life insurance are credit policies issued as? Whole Variable Term Universal - ANS-Term What type of life insurance incorporates flexible premiums and an adjustable death benefit? Endowment Policy Modified Whole Life Decreasing Term Universal Life - ANS-Universal Life What type of reinsurance contract involves two companies automatically sharing their risk exposure? Arbitrage Facultative Excess Treaty - ANS-Treaty What would be an accurate definition of "controlled business"? Insurance business that is written on the producer's own life, property, or interests Insurance business obtained by an agent through coercion, intimidation, or boycotting Insurance business that is obtained through false advertising Insurance business that is obtained by replacing an existing policy through misrepresentation - ANS-Insurance business that is written on the producer's own life, property, or interests What year was the McCarran-Ferguson Act enacted? 1944 1945 1946 1947 - ANS-1945 When a life insurance application is completed, a Policy Summary must be given to the applicant. The Policy Summary must include? The insurers AM Best rating The Producers address Cash value rate The premiums cost for basic coverage applied for - ANS-The premiums cost for basic coverage applied for When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a? Federal Fair Credit Act Violation Title 18 Fraud Violation Anti-Money Laundering Violation Unfair Trade Practice Violation - ANS-Anti-Money Laundering Violation When must insurable interest be present in order for a life insurance policy to be valid? When the insured dies Within the incontestability period When the application is made Before the insured dies - ANS-When the application is made Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? Geographical Location Source of Income Risk Classification Marital Status - ANS-Risk Classification Which is true concerning a Variable Universal Life policy? Policyowner controls where the investment will go and selects the amount of the premium payment Policyowner has no say where the investment will go but can choose the premium mode The investment vehicle for this type of policy is held in the insurer's general portfolio The death benefit can vary but the policyowner has no say in the premium amount paid - ANS-Policyowner controls where the investment will go and selects the amount of the premium payment Which Long Term Care insurance statement is true? Inflation protection is usually not offered Benefits are usually payable for alcohol rehabilitation Can only be offered to individuals under the age of 70 Pre-existing conditions must be covered after the coverage has been in force for 6 months - ANS-Pre-existing conditions must be covered after the coverage has been in force for 6 months Which of he following would be a valid reason for suspending or revoking an insurance producer's license? The producer has been convicted of a misdemeanor within the past 10 years The producer unintentionally made a material misstatement on the license application The producer has misappropriated money held in a fiduciary capacity Which of the following is a requirement to obtain a nonresident producer license in Indiana? The producer must be at least 21 years of age The producers state of residence must have reciprocity with Indiana The producer must be bonded in the producers state of domicile The producer must pass a special examination for nonresident producers - ANS-The producers state of residence must have reciprocity with Indiana Which of the following is a standard provision of the conversion privileges in a Group Life policy? Group Life coverage can only be converted if the employer pays for the individual policy Group Life coverages can normally be converted to an individual policy within 6 months Group Life coverages can only be converted by providing evidence of insurability Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis - ANS-Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis Which of the following is an example of false advertising? An insurer advertising in an insurance trade journal An insurance company publishing misleading information about its policy's provisions A producer spending more than $25 on marketing gifts for a client Paid testimonials from celebrity endorsements - ANS-An insurance company publishing misleading information about its policy's provisions Which of the following is not a valid reason for the insurance commissioner to suspend or revoke a producers license? Producer returns part of a commission to client in exchange for a sale Producer represents more than one insurance company Producer engages in false advertising Producer commingles premiums collected with a personal account - ANS-Producer represents more than one insurance company Which of the following is not an unfair claim settlement practice? Failing to acknowledge and act promptly with respect to an insurance claim Compelling an insured to initiate a lawsuit be offering less on an insurance claim Failing to accept or deny a claim within reasonable time after proof of loss is submitted Needing written documentation of claim details - ANS-Needing written documentation of claim details Which of the following is not an unfair claim settlement practice? Failing to acknowledge and act promptly with respect to an insurance claim Compelling an insured to initiate a lawsuit by offering less on an insurance claim Failing to accept or deny a claim within reasonable time after proof of loss is submitted Needing written documentation of claim details - ANS-Needing written documentation of claim details Which of the following is the most important factor when deciding how much Disability Income coverage an applicant should purchase? Applicant'sOccupation Applicant's Monthly Income Applicant's Health Applicant's Previous Disabilities - ANS-Applicant's Monthly Income Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? Indemnity Subrogation Legal Action Consideration - ANS-Subrogation Which of the following situations does a Critical Illness plan cover? Asthma Leukemia Alcohol Rehabilitation Severe car accident - ANS-Leukemia Which of the following statements describes what an Accident and Health policyowner may not do? File a covered claim Assign ownership Cancel the coverage Adjust the premium payments - ANS-Adjust the premium payments Which of the following statements is correct about the Indiana Life and Health Insurance Guaranty Association? It is governed by the NAIC It is an agency of the state government It is a voluntary association of admitted Indiana insurance companies It protects Indiana insurance policyowners in the event an insurance company becomes insolvent - ANS-It protects Indiana insurance policyowners in the event an insurance company becomes insolvent Which of the following statements is correct about the insurance commissioner's authority to examine the business records of a producer? The commissioner has no authority to examine them The commissioner may examine them whenever it's deemed necessary The commissioner must examine them at least twice every 5years The commissioner must examine them at least twice every 3 years - ANS-The commissioner may examine them whenever it's deemed necessary Which of the following statements regarding a Tax Sheltered Annuity is incorrect? The income from the TSA is received income tax-free The amount contributed is deductible from taxable income The interest earnings are tax deferred A tax-sheltered annuity is available to employees of non-profit organizations - ANS-The income from the TSA is received income tax-free Vitamins and supplements Prescription drugs Household expenditures Cosmetic procedures - ANS-Prescription drugs Which of these statements regarding health coverage for physically handicapped dependents is false? The dependent must have been over 10 years of age when the handicap was insured The dependent must have been covered under the insureds policy at the time the handicap was insured The dependent must rely chiefly on the policyowner for support and maintenance The dependent must agree to periodic medical examinations at the request of the insurance company - ANS-The dependent must have been over 10 years of age when the handicap was insured Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? Modified Whole Life Variable Life Universal Life Adjustable Life - ANS-Variable Life Which of these types of policies may not have the Automatic Premium Loan provision attached to it? Modified Whole Life 20-Pay Life Decreasing Term Endowment - ANS-Decreasing Term Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? Modified Whole Life 20-Pay Life Decreasing Term Endowment - ANS-Decreasing Term Which of these would e considered a Limited-Pay Life policy? 10-year Renewable and Convertible Term Life Paid-Up at age 70 Straight Whole Life Renewable Term to Age 100 - ANS-Life Paid-Up at age 70 Which premium schedule results in the lowest cost to the policyowner? Semi-annual Monthly Quarterly Annual - ANS-Annual Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? Modification Conversion Exchange Adjustable - ANS-Conversion Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Interest Only Fixed Period Fixed Amount Life Income - ANS-Life Income Which type of contract liquidates an estate through recurrent payments? Universal Life Insurance Whole Life Insurance Annuity 401k - ANS-Annuity Which Unfair Competition Practice involves a producer suggesting that an insurance policy is like a share of stock? Twisting Intimidation Misrepresentation Sliding - ANS-Misrepresentation Who elects the governing body of a mutual insurance company? Chairman of the board Bondholders Stockholders Policyholders - ANS-Policyholders Who is responsible for determining if Long-Term Care coverage is appropriate to meeting an applicant's needs? Commissioner Applicant Producer Insurance Company - ANS-Producer Why would the Insurance Commissioner issue a temporary license? To allow a person who failed the state exam to conduct insurance business To allow a nonresident producer to conduct business in Indiana To allow the personal representative of a deceased producer to provide service to existing policyowners To allow a producer to sell for an unauthorized insurer - ANS-To allow the personal representative of a deceased producer to provide service to existing policyowners With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period? Gives the policyowner additional time to pay overdue premiums Gives the policyowner additional time to file a lawsuit Gives the policyowner additional time to file a claim Gives the policyowner additional time to provide proof of loss - ANS-Gives the policyowner additional time to pay overdue premiums With Optionally Renewable Health policies, the insurer may? Renew the policy only if no claims have been filed the previous year Renew the policy only with the insured'd consent Review the policy whenever they please and determine whether or not to renew it Review the policy annually and determine whether or not to renew it - ANS-Review the policy annually and determine whether or not to renew it