Indiana Life and Health Insurance State Exam (Part 2)

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?

31

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?

ABC is the policyowner, C is the insured, and ABC is the beneficiary

Under a graded premium Policy, the premiums

Are lower during the policy's early years

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?

Earned, but unpaid benefits

Which of these provisions is NOT required in individual life insurance policies sold in Indiana?

Extended term

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

Fair Credit Reporting Act

What action should a producer take if the initial premium is NOT submitted with the application?

Forward the application to the insurer without the initial premium

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:

Free-look period has expired

Which of the following employees may NOT be excluded from a group life plan?

Full time employees after the probationary period

The Health Insurance Profitability and Accountability Act (HIPAA) gives privacy protection for:

Health Information

Which type of provider is known for stressing preventive medical care and routine physical examinations?

Health Maintenance Organizations (HMO's)

Which of the following will a Long Term Care Plan typically provide benefits for?

Home health care

Variable Annuities may invest premiums in each of the following, EXCEPT:

Insurer's corporate business account

Which of these types of coverage is best described as a short term medical policy?

Interim coverage

Which of these arrangements allows one to bypass insurable interest laws?

Investor-originated life Insurance

Dividends paid from a life insurance policy are

Issued by the insurer

What type of life policy covers 2 lives and pays the face amount after the first one dies?

Joint Life policy

Which of the following situations does a Critical Illness plan cover?

Leukemia

Life Insurance that covers an insured's whole life with level premiums paid over a limited time is called:

Limited 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?

Medical condition resulting in a significantly-shortened lifespan

An applicant MUST receive an outline of coverage when an application is taken for a(n):

Medicare Supplement policy

An Indiana resident insurance producer must perform which of the following actions to continue with their license?

Meet continuing education requirements

A policyowner is allowed to pay premiums more than once a year under which provision?

Mode of Premium

When a life insurance policy exceeds certain IRS table values, the result will create which of the following?

Modified Endowment Contract (MEC)

Which of these is NOT considered to be a right given to a policyowner?

Modify a provision in the insurance contract

What must a producer sign when an existing life insurance policy is being reissued with a reduction in cash value?

Notice Regarding Replacement

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

P only

Who has the right to change a revocable beneficiary?

Policyowner

What benefit does the payor clause on a juvenile Life policy provide?

Premiums are waived if the payor becomes disabled

The individual who provides general medical care for a patient as well as the referral for specialized care is known as:

Primary Care Physician

Which of the following will happen if a licensed resident insurance producer moves to another state?

Producer's license shall terminate immediately

According to Indiana Law, group life insurance conversion privileges must NOT:

Require evidence of insurability

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:

Reserves

An example of rebating would be:

Returning a portion of a premium as inducement to purchase insurance

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?

Split-Dollar Plan

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

To an individual policy upon employment termination

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

Usual, customary, and reasonable expenses

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:

Waiting Period

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.

30

The Affordable Care act (ACA) provides health coverage to dependents up to the age of:

26

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?

$720 (4400 deductible + 20% of remaining medical bill)

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?

10 years

An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?

20% is withheld for income taxes

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?

20-pay life

When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

Conversion Provision

Which of these actions does NOT constitute life insurance policy replacement?

Convert term coverage to a whole life policy

Additional coverage can be added to a Whole Life policy by adding a(n):

Decreasing term rider

How are surrender charges deducted in a life policy with a rear-end loaded provision?

Deducted when the policy is discontinued

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:

Determine if the applicant is an acceptable risk by completing standard underwriting procedures

Variable Life products require a producer to

hold a Life Insurance license and a Securities license