Indiana Insurance Test Set
An insured purchased a 15-year level term life insurance policy with the face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from injuries. How much will the beneficiary receive?
$200,000
The Commissioner last examined an insurance company in 2017. When is the next latest date for the Commissioner to examine the same company?
2022 (every 5 years)
In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?
45 days
Which of the following will be EXEMPT from continuing requirements
A limited lines credit producer
The term "illustration" in a life insurance policy refers to
A presentation of non guaranteed elements of a policy
When an insured purchase her disability income policy, she misstated her age to the agent. She told the agent she was 30 but she was 37. If the policy contains the optional misstatement of age provision
Amounts payable under the policy will reflect her correct age
While a claim is pending, an insurance company may require
An independent examination as often as reasonably required
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration Consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application.
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as
Contracts of Adhesion
Which of the following terms describes a specified dollar amount of the cost of care that must be paid by the member?
Copayment
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited for the situation?
Decreasing Term
A waiver of premium provision may be included with which kind of health insurance policy?
Disability Income
Which policy component decreases in decreasing term insurance?
Face amount
All of the following violations may result in agents imprisonment EXCEPT
Failing to report to the department a criminal prosecution against the agent in another jurisdiction
Which provision allows a person to return a Medicare supplement policy within 30 days for a full premium refund
Free look
Which of the following riders would NOT increase the premium for a policy owner
Impairment rider
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
Installments for a fixed period
In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?
Insurer to the insured
Which of the following is NOT true of a major medical health insurance policy
It is designed to pay on a first dollar of expense basis.
Which statement is NOT true regarding Straight Life Policy
Its premium steadily decreases over time, in response to its growing cash value.
A married couple owns a permanent policy which covers both lives and pays the benefit only upon the death of the first insured. Which policy is this?
Joint Life Policy
Insurance that would pay for hiring a replacement for an important employee who becomes disabled is called
Key employee disability insurance
An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?
Neither approved the application nor issued the policy
All of the following are qualifications of a resident producer EXCEPT
Obtaining a sponsorship of an admitted insurance company
Which of the following documents delivered to the policy owner I Clyde's info about premium amounts, cash values, surrender values and dea to benefits for specific policy years?
Policy Summary
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
The Ownership provision entitled the policy owner to do all of the following EXCEPT
Set premium rates
What type of Insurance Policy generates immediate cash value?
Single Premium
The legal process that gives the insurer, after payment of a loss, the right to seek recovery from a third party that was responsible for the loss is known as
Subrogation
Which statement is true regarding qualifications for Social Security disability benefits is NOT true?
The individual must be at least 65
A 30-year-old "woman at risk" is covered under an accident and sickness policy. How will this policy respond to claims related to mammography?
The insured will be covered for 1 screening each year
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premium?
The insureds premiums will be waived until she is 21
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
The interest is not taxable since it remains inside the insurance policy.
Hospital indemnity/hospital confinement indemnity policy will provide payment based on
The number of days confined in a hospital.
Which of the following best defines the "owner" as it pertains to life settlement contracts?
The policy owner of the life insurance policy
An expired license can be reinstated within 12 months without requirement of an examination if
The producer met the continuing education requirements before license expiration
How is health coverage for newly-adopted children under a parents policy different from health coverage for newborns?
There is no difference
Which of the follow is true regarding taxation of accelerated benefits under a life insurance policy?
They are tax free to terminally ill insured
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parents of the policy owner?
Third-party Ownership
A policy owner has a health policy with his wife listed and primary beneficiary. He would like to change the primary beneficiary to his sister. Which of the following is true?
Unless the policy designated the current beneficiary as irrevocable, the policy owner can maybe the change anytime.
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
With the policy
Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?
attending physician
Which of the following components must a life insurance policy have to allow policy loans?
cash value
A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT
income
Which of the following applies to the 10-day free-look privilege?
it permits the insured to return the policy for a full refund of premiums paid
Hospice care is intended for
terminally ill
John Sims and Steve Becker have formed a partnership known as the Sims & Becker Insurance Agency. After a serious car accident, one of the partners was deceased and the other became totally disabled. To finish servicing the company's existing accounts, the Commissioner could grant a temporary license to all of the following EXCEPT
the partnership itself
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
warranty
