Indiana Life, Accident, & Health Insurance Law

An insurance consultant is a person who...

OFFERS ADVICE, COUNSEL, OR OPINION TO POLICYHOLDERS FOR A FEE.

What does NOT constitute an unfair or deceptive trade practice?

PAYING BONUSES TO ALL PARTICIPATING POLICYHOLDERS OUT OF SURPLUS WHEN DOING SO IS IN THE BEST INTERESTS OF THE POLICYHOLDERS AND THE COMPANY.

A Medicare supplement insurer cannot deny claims for losses occurring more than how long after the effective date of coverage because of a preexisting condition?

6 MONTHS.

With a medical expense policy, proof of loss generally must be furnished to the insurer within how many days after the date of such loss?

90 DAYS.

It's illegal for an insurer or producer to make a false material statement or report, with the intent to deceive and influence the actions of an insurance regulatory official or agency. The insurer could face a federal penalty of...

A FINE, IMPRISONMENT OF UP TO 10 YEARS, OR BOTH.

A producer qualified to sell flight, industrial, crop, and title insurance is called...

A LIMITED LINES PRODUCER.

A viatical settlements provider is also known as...

A LIVING BENEFITS PROVIDER.

What policy cannot deny claims for losses incurred more than 6 months from the effective date of coverage for a preexisting condition?

A MEDICARE SUPPLEMENT POLICY.

In general, an insurer may not transact insurance in Indiana unless they have a certificate of authority. Any insurer who knowingly, intentionally, or recklessly violates this provision is...

GUILTY OF A CLASS D FELONY AND A CIVIL PENALTY OF UP TO $25,000.

Sandra is 44 years old and accidentally put that she was 46 years old when she filled out her life insurance application. What action will happen to Sandra's policy?

HER BENEFITS WILL BE INCREASED ACCORDINGLY.

How much of a grace period must all group life insurance police's delivered or issued in Indiana include?

31 DAYS.

Newborns are covered on group health insurance policies from birth. How long after birth does the insured have to notify the insurer of the child's birth and pay the first premium?

31 DAYS.

Alex prospects young families for new insurance policies. In order to comply with disclosure requirements, he must deliver what kind of documents to all applicants?

"BUYER'S GUIDE" AND POLICY SUMMARY.

What is the MAXIMUM fine assessed against producers who are found guilty of engaging in unfair marketing practices?

$25,000 PER VIOLATION, OR $50,000 IF THE PERSON KNEW OR SHOULD HAVE KNOWN THAT THE ACT WAS ILLEGAL.

The prelicensing education requirements for life and health insurance producers in Indiana include...

40 HOURS OF SELF-STUDY OR CLASSROOM INSTRUCTION.

With few exceptions, annuity contracts must provide that the purchaser may return the contract for a full refund within...

10 DAYS.

The minimum number of members of any trade or occupational or professional association that can be insured under a franchise health insurance is...

10 MEMBERS.

The maximum contestable period, or time limit on certain defenses, required in accident and health insurance policies is...

2 YEARS.

An annuity contract must show the policy's cash surrender values for at least the first...

20 CONTRACT YEARS.

In Indiana, a minimum requirement of health policies is that the insured must normally give written notice of accident or illness to the insurer within...

20 DAYS AFTER THE ACCIDENT OR ILLNESS OCCURS.

For how many days must a replacing insurer allow the applicant to review the policy, during which time the policy may be returned for a full premium refund?

20 DAYS.

How many hours of continuing education must a resident producer complete to qualify for license renewal?

24 HOURS EVERY 2 YEARS.

In Indiana, an insurance producer's license normally is subject to renewal every...

24 MONTHS.

A producer may write controlled business insurance as long as it does NOT exceed what percentage of commissions earned in a 12-month period?

25%.

For renewals that occur after June 30, 2014, all resident insurance producers licensed with Life, Health, Variable Life & Annuity, and Life, Accident & Health lines of authority must have...

3 HOURS (OF THE 24) OF CONTINUING EDUCATION IN ETHICS.

Every insurer providing long term care insurance must keep copies of all advisements used for...

3 YEARS FROM THE DATE THE ADVERTISEMENT WAS USED.

Individual life insurance policies in Indiana must include all of the following EXCEPT... A) A provision that the policy may be reinstated within 10 years from the due date of the premium in default if the policyowner provides satisfactory evidence of insurability and pays past-due premiums plus interest. B) A payment of claims provision stating that all claims are to be payable within 2 months of proof of loss. C) A provision stating the premiums are allowed to be paid in advance. D) A provision that, in the absence of fraud, all statements made by an insured in the application are considered to be representations, not warranties.

A) A PROVISION THAT THE POLICY MAY BE REINSTATED WITHIN 10 YEARS FROM THE DUE DATE OF THE PREMIUM IN DEFAULT IF THE POLICYOWNER PROVIDES SATISFACTORY EVIDENCE OF INSURABILITY AND PAYS PAST-DUE PREMIUMS PLUS INTEREST.

Which one of the following individuals would be safe from having their license suspended, revoked, or denied by the Commissioner? A) Allison was cited for having an open alcohol container in her vehicle and convicted of a misdemeanor. B) Jeremy violated just one of the Indiana insurance laws. C) Angela submitted a fraudulent license application. D) Timothy failed to pay court-ordered child support.

A) ALLISON WAS CITED FOR HAVING AN OPEN ALCOHOL CONTAINER IN HER VEHICLE AND CONVICTED OF A MISDEMEANOR.

Which of the following can NOT be limited or excluded under a Medicare supplement policy? A) Cosmetic surgery to correct a deformity resulting from trauma or illness. B) Routine physical examinations. C) Chiropractic treatment. D) Dental care.

A) COSMETIC SURGERY TO CORRECT A DEFORMITY RESULTING FROM TRAUMA OR ILLNESS.

All of the following acts by a producer would violate Indiana insurance law EXCEPT... A) Readjusting group premium rates based on the current year's losses or expenses. B) Making defamatory comments about a competing insurance company. C) Misrepresenting the nature of an insurance policy's provisions. D) Offering monetary compensation, such as a rebate, as an inducement to buy a policy.

A) READJUSTING GROUP PREMIUM RATES BASED ON THE CURRENT YEAR'S LOSSES OR EXPENSES.

When a life insurance policy will be replaced, what person(S) must sign the replacement notice?

AGENT AND APPLICANT.

Regarding replacement, which of the following statements is NOT true? A) The applicant must sign a Notice Regarding Replacement at the time of application. B) In Indiana, replacement is illegal. C) Replacement is prohibited when it's not warranted; it then becomes twisting. D) The replacing insurer must notify, in writing, the existing insurer of the proposed replacement.

B) IN INDIANA, REPLACEMENT IS ILLEGAL.

All of the following statements about long-term care insurance providers are correct EXCEPT... A) They must create marketing procedures to ensure that excessive insurance is not sold. B) They must obtain written statements from each applicant stating that the applicant doesn't have any other type of long-term care insurance. C) They must submit their advertisements to the Insurance Commissioner's office for approval. D) They must display a notice on the policy stating that it might not cover all costs associated with long-term care.

B) THEY MUST OBTAIN WRITTEN STATEMENTS FROM EACH APPLICANT STATING THAT THE APPLICANT DOESN'T HAVE ANY OTHER TYPE OF LONG-TERM CARE INSURANCE.

Which of the following statements regarding Medicare supplement policies is NOT correct? A) A buyer's guide and outline of coverage must be provided to the applicant before accepting the application. B) They must provide policyowners with a minimum free look period of 10 days. C) The loss ratio for group policies must be at least equal to 75%. D) The loss ratio for individual policies must be at least equal to 60%.

B) THEY MUST PROVIDE POLICYOWNERS WITH A MINIMUM FREE LOOK PERIOD OF 10 DAYS.

If a life insurance policyowner elects to collect benefits under the accelerated death benefit provision, they must...

BE ALLOWED TO USE THE PROCEEDS WITHOUT RESTRICTION.

An insured has submitted a complaint to the Commissioner of Insurance. Which of the following statements is accurate? A) A complaint may be oral or in writing. The insurer must reply within 10 business days from the date of receipt of the complaint. B) A written complaint must be replied to within 30 days. C) A complaint is in writing. The insurer must reply within 20 business days from the date of receipt of the complaint. D) An oral complaint must be replied to within 30 days.

C) A COMPLAINT IS IN WRITING. THE INSURER MUST REPLY WITHIN 20 BUSINESS DAYS FROM THE DATE OF RECEIPT OF THE COMPLAINT.

An individual deferred annuity must provide all of the following EXCEPT... A) Sufficient reserves. B) Guaranteed cash surrender values. C) A paid-up deferred annuity option. D) A 20-day free-look provision.

D) A 20-DAY FREE-LOOK PROVISION.

All of the following statements about insurance consultants are correct EXCEPT... A) Prospective consultants must pass a written examination. B) A consultant may not be licensed simultaneously as an insurance agent. C) Consultant applicants are subject to investigation and interrogation by the Commissioner. D) A consultant earns a commission, as opposed to charging a fee.

D) A CONSULTANT EARNS A COMMISSION, AS OPPOSED TO CHARGING A FEE.

All of the following statements about group life insurance are correct EXCEPT... A) Proceeds are exempt from the claims of creditors. B) Any life insurance company may issue group life insurance. C) Retroactive rate adjustments are prohibited. D) A group life insurance plan may not cover dependents or spouses.

D) A GROUP LIFE INSURANCE PLAN MAY NOT COVER DEPENDENTS OR SPOUSES.

Which of the following statements about genetic screening or testing in for health care coverage is NOT correct? A) An insurer may not inquire about the results on any genetic testing or screening. B) In processing an application for health care coverage, an insurer may not require either an applicant or any member of his family to undergo genetic screening or testing. C) An insurer may not require the applicant or any member of his family to undergo testing. D) An insurer may require the applicant or any member of his family to undergo testing.

D) AN INSURER MAY REQUIRE THE APPLICANT OR ANY MEMBER OF HIS FAMILY TO UNDERGO TESTING.

To obtain a license to sell insurance in Indiana, an individual must comply with all of the following licensing requirements EXCEPT... A) Satisfy the state's prelicensing education requirements. B) Possess a good business reputation. C) Pass the licensing exam. D) Be at least 21 years old.

D) BE AT LEAST 21 YEARS OLD.

Which of the following statements concerning the Indiana Life and Health Insurance Guaranty Association is CORRECT? A) The association protects the insurance interests of all Indiana residents as well as non-residents who purchase insurance from domestic insurers. B) Only domestic insurance companies must belong to the association. C) If an insurer becomes impaired or insolvent, the association may reinsure policies, provide loans and guarantee the insurer's contractual obligations, but the association's aggregate liability cannot exceed $500,000 per policy for all benefits. D) It's purpose is to protect Indiana's policyholders if an insurer becomes insolvent or impaired.

D) IT'S PURPOSE IS TO PROTECT INDIANA'S POLICYHOLDERS IF AN INSURER BECOMES INSOLVENT OR IMPAIRED.

An insurance company organized and headquartered in Indiana can be described as what type of company in Indiana?

DOMESTIC.

If an Indiana LTC partnership policyholder purchased an amount of coverage above the state-specified dollar amount, and exhausts all their benefits will...

EARN TOTAL ASSET PROTECTION.

A person who violates a cease and desist order may, after notice and hearing, be...

FINED UP TO $25,000 FOR EACH VIOLATION AND HAVE THEIR LICENSE OR CERTIFICATE OF AUTHORITY SUSPENDED OR REVOKED.

A producer desiring to sell prearranged funeral programs must obtain the appropriate limited lines license or a...

LIFE INSURANCE PRODUCER LICENSE.

Which of the following statements concerning long-term care insurance is CORRECT?

LTC PREMIUM RATES MUST BE BASED ON THE ISSUE AGE OF THE APPLICANT, NOT THE ATTAINED AGE.

An agent who may lawfully place a policy for an insurance company that is NOT licensed to do business in Indiana is known as a(N)...

SURPLUS LINES PRODUCER.

What is NOT a requirement for a person applying for an Indiana license who was previously licensed in the same line of authority in another state?

THE INDIVIDUAL MUST PASS THE INDIANA INSURANCE EXAM IN THEIR LINE OF AUTHORITY.

Richard just purchased a Medicare supplement policy. How many days does he have to review this policy and get a full refund of premium if he decides it's not exactly what he needs?

30

Long-term care insurance policies must provide applicants with a free-look period equal to or greater than...

30 DAYS.

Ronald is entitled to a $100,000 from his deceased wife's group life insurance policy. How many days does the insurer have to pay the claim after they receive Ronald's proof of loss?

30 DAYS.

A nonresident license holder in Indiana must notify the Commissioner if they move to another address or state within how many days?

30.

In Indiana, all life insurance policies must contain a provision limiting the interest rate on policy loans to a maximum of...

8% PER YEAR.

All of the following statements regarding Medicare supplement policies are correct EXCEPT... A) Dental care must be a covered expense. B) Policies may not pay benefits for sickness on a different basis than benefits for accidents. C) Benefits must be adjusted to adapt to change in the Medicare deductible and copayment amounts. D) Policies must provide a 30 day free-look.

A) DENTAL CARE MUST BE A COVERED EXPENSE.

The Indiana replacement regulations don't apply to all of the following EXCEPT... A) Life insurance for seniors. B) Individual credit life insurance. C) Group life insurance. D) Group credit life insurance.

A) LIFE INSURANCE FOR SENIORS.

All of the following statements concerning long-term care policies that are advertised or solicited in Indiana are correct EXCEPT... A) Long-term care policies must include a 30-day reinstatement privilege for policies that have lapsed because of nonpayment of the premium. B) The policy must express maximum benefit amounts as dollars and not as days of care. C) Long-term care policies don't have to pay benefits in excess of the actual charges. D) The owner must be able to reduce coverage at least once during the policy's lifetime.

A) LONG-TERM CARE POLICIES MUST INCLUDE A 30-DAY REINSTATEMENT PRIVILEGE FOR POLICIES THAT HAVE LAPSED BECAUSE OF NONPAYMENT OF THE PREMIUM.

Before approving an application from a individual to become an insurance producer, the Commissioner must verify all of the following EXCEPT... A) That the applicant has lived in Indiana for at least one year. B) That the applicant has completed pre licensing education. C) That the applicant is at least 18 years of age. D) That the applicant has passed the state examination.

A) THAT THE APPLICANT HAS LIVED IN INDIANA FOR AT LEAST ONE YEAR.

Which of the statements regarding a temporary license in Indiana is NOT correct? A) The Commissioner may issue, without examination, a temporary license for a period not more than 120 days. B) The Commissioner may revoke a temporary license if the interests of the insureds or the public are endangered. C) The Commissioner may limit the authority of a temporary license in order to protect the insureds and the public. D) The surviving spouse or court appointed personal representative of a producer who dies or becomes disabled may be issued a temporary license.

A) THE COMMISSIONER MAY ISSUE, WITHOUT EXAMINATION, A TEMPORARY LICENSE FOR A PERIOD NOT MORE THAN 120 DAYS.

Which of the following statements regarding penalties that could be imposed on a producer is NOT correct? A) The Commissioner may not penalize a producer for failing to pay child support. B) The Commissioner may penalize a producer for failing to pay child support. C) The Commissioner may penalize a producer for failing to pay state income taxes. D) The Commissioner may suspend or revoke, or refuse to issue or renew a license if a producer fails to pay child support.

A) THE COMMISSIONER MAY NOT PENALIZE A PRODUCER FOR FAILING TO PAY CHILD SUPPORT.

Which of the following activities by an insurance agent would not be considered rebating? A) Tom gave a pen and paper with his logo on it to all individuals who complete a questionnaire. B) Julianne offered to pay the first month's premium for the first person who signed up for a new life insurance policy with her. C) Alex offered 10% of his commission to a new client. D) Eduardo offered a season golf pass to all of his new clients in the month of July.

A) TOM GAVE A PEN AND PAPER WITH HIS LOGO ON IT TO ALL INDIVIDUALS WHO COMPLETE A QUESTIONNAIRE.

An insurer who is potentially unable to fulfill its contractual obligations to its policyholders is called...

AN IMPAIRED INSURER.

An insurer who has become insolvent and has been placed under a final order of liquidation, rehabilitation, or conservation by the court is...

AN INSOLVENT INSURER.

Like most states, Indiana places age restrictions on persons wishing to enter into an insurance contract. What kind of individuals would most likely not be able to enter into a contract?

ANDY, A 15 YEAR OLD STUDENT, WHO WOULD LIKE TO DESIGNATE HIS BENEFICIARY AS HIS MOTHER.

A certificate of authority is issued for the purpose of...

AUTHORIZING AN INSURANCE COMPANY TO CONDUCT INSURANCE BUSINESS IN THE STATE.

Susan and Frank started a company and as of right now they are the only two employees. They would like to make franchise life insurance available to them and all future employees. In this situation, which of the following statements is NOT correct? A) If this plan could be established, it would have all the rights and benefits of regular group term life insurance except the right to convert to individual policies under specified conditions. B) A franchise life insurance plan can be established if two or more of the employees would be insured. C) Franchise life insurance cannot be offered to them because such insurance requires that three or more employees of a business participate. D) If this plan could be established, it's not mandatory that their premiums get deducted from their payroll.

B) A FRANCHISE LIFE INSURANCE PLAN CAN BE ESTABLISHED IF TWO OR MORE OF THE EMPLOYEES WOULD BE INSURED.

Which of the following statements about long-term care insurance is NOT correct? A) For the purposes of long term care insurance, the activities of daily living (ADLs) are defined as eating, transferring, dressing, bathing, and toileting or continence. B) A long-term care policy will not provide coverage for community care benefits. C) The free look period for along term care policy is 30 days. D) The typical setting for long term care is in a nursing home facility.

B) A LONG-TERM CARE POLICY WILL NOT PROVIDE COVERAGE FOR COMMUNITY CARE BENEFITS.

To obtain a license to sell insurance in Indiana, an individual must comply with all of the following licensing requirements EXCEPT... A) Pass the licensing exam. B) Possess a good business reputation. C) Be at least 21 years old. D) Satisfy the stateâ™️s prelicensing education requirements.

C) BE AT LEAST 21 YEARS OLD.

All of the following statements about a temporary license are correct EXCEPT... A) The Indiana Insurance Commissioner can issue a temporary license to any person when it will be in the public's best interest. B) It's valid for 180 days. C) It will be issued only after a person passes a special licensing examination. D) It can be issued to help a person (such as a spouse or estate administrator) wind down the affairs of a producer who has died.

C) IT WILL BE ISSUED ONLY AFTER A PERSON PASSES A SPECIAL LICENSING EXAMINATION.

All of the following activities constitute unfair or deceptive trade practices EXCEPT... A) Omitting relevant information during the sales presentation. B) Making misleading statements about a producer's business in reply to a form letter. C) Paying bonuses to all participating policyholders out of surplus when doing so is in the best interests of the policyholders and the insurance company. D) Offering an applicant an expensive briefcase as an inducement to purchase a policy.

C) PAYING BONUSES TO ALL PARTICIPATING POLICYHOLDERS OUT OF SURPLUS WHEN DONG SO IS IN THE BEST INTERESTS OF THE POLICYHOLDERS AND THE INSURANCE COMPANY.

Which of the following statements regarding the examination of records is NOT correct? A) The Commissioner has the right to examine the records of an insurer whenever he feels. B) The Commissioner must examine the affairs of an insurer doing business in Indiana at least once every five years. C) The Commissioner must exam the records foreign and alien insurers at least once every year. D) Instead of examining a foreign or alien insurer, the Commissioner may accept a report from the insurer's state of domicile.

C) THE COMMISSIONER MUST EXAM THE RECORDS FOREIGN AND ALIEN INSURERS AT LEAST ONCE EVERY YEAR.

Which of the following statements regarding an insurance producer's license is CORRECT? A) The license expires every four years and must be renewed. B) The license remains in effect indefinitely, with fees paid annually. C) The license remains in effect until revoked or suspended, with fees paid and continuing education completed every two years. D) The renewal fees must be paid every year.

C) THE LICENSE REMAINS IN EFFECT UNTIL REVOKED OR SUSPENDED, WITH FEES PAID AND CONTINUING EDUCATION COMPLETED EVERY TWO YEARS.

All of the following actions by an insurance producer are prohibited by Indiana's insurance law EXCEPT... A) Giving an applicant any special advantage in dating the application. B) Returning one month of a premium payment to a new applicant or policyowner. C) Sharing up to 10% the producer's commission with a policyowner. D) Pay bonuses fairly to all nonparticipating policyholders out of surplus.

D) PAY BONUSES FAIRLY TO ALL NONPARTICIPATING POLICYHOLDERS OUT OF SURPLUS.

Which of the following individuals would be eligible for health insurance from their small employer? A) Will works in the office to cover the vacation days of the administrative assistant. B) Amy works full time while she is on summer break from college. C) Jill accepted a temporary position for 6 months. D) Shawn works 32 hours a week in 3 days.

D) SHAWN WORKS 32 HOURS A WEEK IN 3 DAYS.

Which of the following statements concerning the Indiana Life and Health Insurance Guaranty Association is NOT correct? A) The purpose of the Indiana Life and Health Insurance Guaranty Association is to protect Indiana's policyholders if an insurer becomes insolvent or impaired. B) The aggregate liability of the Association is not to exceed $300,000 in total benefits, including cash values, with respect to any insured individual. C) It's violation of any state's insurance code to use the association's existence as an endorsement for a particular policy. D) The Association's authority applies to all life and health insurance and annuities, including variable contracts.

D) THE ASSOCIATION'S AUTHORITY APPLIES TO ALL LIFE AND HEALTH INSURANCE AND ANNUITIES, INCLUDING VARIABLE CONTRACTS.

Which one of the following statements regarding insurance laws and regulations is NOT correct? A) The Commissioner overseas the insurance business to ensure it's conducted in accordance with state law and the best interests of the public. B) The Commissioner writes rules and regulations to enforce insurance laws. C) The state legislature enacts insurance laws. D) The Commissioner writes insurance laws.

D) THE COMMISSIONER WRITES INSURANCE LAWS.

All of the following may be issued a temporary license to service insurance business without an examination EXCEPT... A) The designee of a licensed individual insurance producer entering active service in the armed forces of the United States. B) An employee of a business entity licensed as an insurance producer upon the death of the individual designated in the business entity application. C) The surviving spouse of a licensed insurance producer who dies. D) The personal representative named by the spouse of a licensed insurance producer who becomes mentally disabled.

D) THE PERSONAL REPRESENTATIVE NAMED BY THE SPOUSE OF A LICENSED INSURANCE PRODUCER WHO BECOMES MENTALLY DISABLED.

Life insurance cost indexes illustrate to a consumer that...

POLICIES WITH LOW INDEX NUMBERS GENERALLY ARE BETTER PURCHASES.

A policy written by a producer on which of the following people could be considered controlled business?

PRODUCERS'S SISTER.