Life and heath exam

Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income? a) 5% b) 7% c) 10% d) 15%

10%

f a person is disabled at age 27 and meets Social Security's definition of total disability, how many work credits must he/she have earned to receive benefits? (Choose from the following options) 1. 20 credits 2. 6 credits 3. 40 credits 4. 12 credits

12 credits

In order to collect Social Security disability benefits, the claimant must be able to demonstrate that the disability will last at least a) Until age 65. b) For life. c) 12 months. d) 24 months.

12 months

Which of the following disability income policies would have the highest premium? a) 15-day waiting period / 5-year benefit period b) 15-day waiting period / 10-year benefit period c) 30-day waiting period / 10-year benefit period d) 30-day waiting period / 5-year benefit period

15-day waiting period / 10-year benefit period

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years? a) 1 b) 3 c) 5 d) 10

5

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years? (Choose from the following options) 1. 1 2. 3 3. 5 4. 10

5

What is the waiting period on a Waiver of Premium rider in life insurance policies? (Choose from the following options) 1. 30 days 2. 3 months 3. 5 months 4. 6 months

6 months

Benefit periods for individual short-term disability policies will usually continue from (Choose from the following options) 1. 2 years to age 65. 2. 1 week to 4 weeks. 3. 3 months to 3 years. 4. 6 months to 2 years.

6 months to 2 years.

At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized? a) 55 b) 59 1/2 c) 62 d) 65

65

A hospital indemnity policy will pay (Choose from the following options) 1. Income lost while the insured is in the hospital. 2. All expenses incurred by the stay in the hospital. 3. Any expenses incurred by the stay in the hospital, minus coinsurance payments and deductibles. 4. A benefit for each day the insured is in a hospital.

A benefit for each day the insured is in a hospital.

All of the following may be exempt from the whole or part of the Indiana licensing examination EXCEPT a) A resident producer in another state under certain conditions. b) A person selling credit life and credit health insurance. c) A candidate applying for a surplus lines producer license. d) A Chartered Life Underwriter applying for a Life license.

A candidate applying for a surplus lines producer license.

All of the following may be exempt from the whole or part of the Indiana licensing examination EXCEPT (Choose from the following options) 1. A resident producer in another state under certain conditions. 2. A person selling credit life and credit health insurance. 3. A candidate applying for a surplus lines producer license. 4. A Chartered Life Underwriter applying for a Life license.

A candidate applying for a surplus lines producer license.

When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by a) A paramedic or examining physician at the insurer's expense. b) The agent. c) A physician of the applicant's choice and at his expense. d) A home office underwriter.

A paramedic or examining physician at the insurer's expense.

When does a person qualify to receive disability-related income? (Choose from the following options) 1. When an insured is hospitalized for more than one week 2. When the insured is unable to perform his/her job duties 3. When the disability reaches a designated state of severity 4. When an injury is severe and the insured is not a dependent

When the insured is unable to perform his/her job duties

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as (Choose from the following options) 1. Coercion. 2. Rebating. 3. Misleading advertising. 4. Defamation.

Coercion.

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? (Choose from the following options) 1. Consideration 2. Legal purpose 3. Contract of adhesion 4. Acceptance

Consideration

Mortality - Interest + Expense = (Choose from the following options) 1. Gross premium 2. Benefits budget 3. Operating expenses 4. Net premium

Gross premium

Courts will interpret any ambiguity in an insurance contract (Choose from the following options) 1. In favor of the insurer. 2. Through arbitration. 3. Based on the prudent person rule. 4. In favor of the insured.

In favor of the insured.

In long-term care (LTC) policies, as the benefit period lengthens, the premium a) LTC premiums are not based on benefit periods. b) Decreases. c) Increases. d) Remains unchanged.

Increases

Which of the following is true regarding a term health policy? a) It is noncancellable. b) It is nonrenewable. c) It is conditionally renewable. d) It is guaranteed renewable.

It is nonrenewable.

Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary? (Choose from the following options) 1. It will reduce the benefits by 70%. 2. It will increase the benefits paid to the beneficiary. 3. It will decrease the benefits paid to the beneficiary. 4. It will not affect the benefits paid to the beneficiary.

It will decrease the benefits paid to the beneficiary.

What is a definition of a unilateral contract? (Choose from the following options) 1. If one party makes a condition, the other party can counteroffer. 2. One-sided: only one party makes an enforceable promise. 3. Two or more parties go into a contract understanding there may be an unequal exchange of value. 4. One author: the company wrote the contract; the insured must accept it as written.

One-sided: only one party makes an enforceable promise.

Which Universal Life option has a gradually increasing cash value and a level death benefit? a) Juvenile life b) Term insurance c) Option B d) Option A

Option A

What is the typical deductible for basic surgical expense insurance? a) $0 b) $100 c) $200 d) $500

$0

. How long can a person hold a consultant's license before it expires? (Choose from the following options) 1. 1 year 2. 2 years 3. 3 years 4. 5 years

2 years

How long can a person hold a consultant's license before it expires? (Choose from the following options) 1. 1 year 2. 2 years 3. 3 years 4. 5 years

2 years

How long can a person hold a consultant's license before it expires? a) 1 year b) 2 years c) 3 years d) 5 years

2 years

What is a free look period for replacement of policies? (Choose from the following options) 1. 30 day 2. 3 working days 3. 20 day 4. 10 day

20 day

The Commissioner last examined an insurance company in 2005. When is the next latest date for the Commissioner to examine the same company? (Choose from the following options) 1. 2010 2. 2015 3. 2006 4. 2008

2010

The Commissioner last examined an insurance company in 2005. When is the next latest date for the Commissioner to examine the same company? a) 2008 b) 2010 c) 2015 d) 2006

2010

The Medicare supplement renewal commissions paid in the third year must be as high as the commission of which year? (Choose from the following options) 1. 1st 2. 2nd 3. 3rd 4. 4th

2nd

If a new individual long-term care policyholder is not satisfied with a new policy, within how many days can the insured return the policy for a full premium refund? a) 30 b) 7 c) 10 d) 90

30

To qualify for group health insurance coverage with a small employer, the employee must work how many hours a week? (Choose from the following options) 1. 15 2. 20 3. 30 4. 40

30

What is the duration of the free-look period for Medicare supplement policies? (Choose from the following options) 1. 10 days 2. 15 days 3. 30 days 4. 60 days

30 days

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance? (Choose from the following options) 1. Business partners have an insurable interest in each other. 2. A husband or wife has an insurable interest in their spouse. 3. An individual has an insurable interest in his or her own life. 4. A debtor has an insurable interest in the life of a lender.

A debtor has an insurable interest in the life of a lender.

What kind of policy allows withdrawals or partial surrenders? a) Term policy b) Variable whole life c) Universal life d) 20-pay life

Universal life

Both Universal Life and Variable Universal Life have a (Choose from the following options) 1. Flexible premium. 2. Level fixed premium. 3. Decreasing premium. 4. Increasing premium.

Flexible premium.

How long will the beneficiary receive payments under the single life settlement option? (Choose from the following options) 1. For a specified period of time 2. Until the insured's age 100 3. Until the beneficiary's death 4. Until the insured's death

Until the beneficiary's death

All of the following are characteristics of a Major Medical Expense policy EXCEPT a) Blanket coverage. b) Coinsurance. c) Low maximum limits. d) Deductibles

Low maximum limits.

In Modified Life policies, what happens to the premium? (Choose from the following options) 1. It varies at the beginning, but levels out by the end of the third year. 2. It is level at the beginning and increases after the first few years. 3. It always remains level. 4. It is higher during the first policy years.

It is level at the beginning and increases after the first few years.

In Modified Life policies, what happens to the premium? a) It is higher during the first policy years. b) It varies at the beginning, but levels out by the end of the third year. c) It is level at the beginning and increases after the first few years. d) It always remains level.

It is level at the beginning and increases after the first few years.

Which of the following statements concerning a Simplified Employee Pension plan (SEP) is INCORRECT? a) SEPs have a higher tax deductible contribution limit than an IRA. b) Employer contributions are not included in the employee's gross income. c) SEPs are suitable for large companies. d) SEPs allow the employer to make annual tax deductible contributions up to 25% of an employee's earned income.

SEPs are suitable for large companies.

Which type of life insurance policy generates immediate cash value? (Choose from the following options) 1. Decreasing Term 2. Continuous Premium 3. Single Premium 4. Level Term

Single Premium

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? a) Policy loans are taxable distributions. b) Accumulations are tax deferred. c) Withdrawals are not taxable. d) Distributions before age 59 1/2 incur a 10% penalty on policy gains.

Withdrawals are not taxable.

Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's right to change premium amounts? a) Premium provision b) Insurer's rights c) Coverage limitations d) Continuation provision

Continuation provision

A producer has completed all of his continuing education hours, but his license has just lapsed. Within what timeframe must the producer reinstate his license if he wants to avoid taking an exam to regain his licensed status? (Choose from the following options) 1. 2 years 2. 12 months 3. 30 days 4. 6 weeks

12 months

What is the maximum age for qualifying for a catastrophic plan? (Choose from the following options) 1. 26 2. 30 3. 45 4. 62

30

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive? a) $0 b) $50,000 (50% of the policy value) c) $100,000 d) $300,000 (triple the amount of policy value)

$100,000

If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually? a) $7,000 b) $3,000 c) $13,000 d) $10,000

$3,000

An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles, how much will the excess plan pay? (Choose from the following options) 1. $10,000 2. $7,500 3. $5,000 4. $0

$5,000

If the Commissioner issues a cease and desist order, but the producer continues the same activities, the producer can face a fine up to which of the following amounts per violation? (Choose from the following options) 1. $5,000 2. $10,000 3. $25,000 4. $50,000

$50,000

An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer? a) $0 b) $500 c) $1,000 d) $2,000

$500

What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit rider? a) For the duration of the disability or the contract, depending on which ends first b) 1 month c) 1 year d) 2 years

1 year

Under SIMPLE plans, participating employees may defer up to a specified amount each year, and the employer then makes a matching contribution up to an amount equal to what percent of the employee's annual wages? (Choose from the following options) 1. 5 2. 7 3. 10 4. 3

10

Assuming they are provided by a prescribed physician, which of the following claims is NOT covered under an association policy? a) 30 visits for the treatment of a mental condition each year b) 180 days of skilled nursing care facility services each year c) 270 days of home health agency services each year d) 180 days of hospital services each year

30 visits for the treatment of a mental condition each year

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? (Choose from the following options) 1. 5 days 2. 7 days 3. 10 days 4. 3 days

5 days

The two types of assignments are (Choose from the following options) 1. Absolute and partial. 2. Complete and partial. 3. Complete and proportionate. 4. Absolute and collateral.

Absolute and collateral.

. If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following? (Choose from the following options) 1. Cancel the policy 2. Increase the premium 3. Exclude coverage for on-the-job injury 4. Adjust the benefit in accordance with the increased risk

Adjust the benefit in accordance with the increased risk

If a person purchases a Flexible Premium Deferred Annuity, when is the soonest that income payouts will begin? a) After 1 year b) No sooner than 3 years after the purchase c) Immediately d) Within the first year

After 1 year

A business entity may be licensed as an insurance producer if (Choose from the following options) 1. A business entity is a brokerage firm. 2. A business entity is in good standing with the Commissioner of Insurance. 3. All employees of the business entity are licensed as insurance producers. 4. An employee who holds a producer's license is designated as a compliance officer.

An employee who holds a producer's license is designated as a compliance officer.

In disability income insurance, if an insured is considered disabled if they cannot perform any job they are suited for by prior education, training or experience, they fall under which definition of total disability? (Choose from the following options) 1. Typical 2. Statutory 3. Own occupation 4. Any occupation

Any occupation

Which of the following is NOT correct regarding qualifications for a resident producer license in Indiana? (Choose from the following options) 1. Applicants are required to pass the examination. 2. Applicants must have not committed any act that would be considered grounds for denial of license. 3. Applicants have received a Certificate of Completion no longer than 6 months prior to the date of application for a license. 4. Applicants must be at least 21 years old.

Applicants must be at least 21 years old.

Which of the following is NOT correct regarding qualifications for a resident producer license in Indiana? a) Applicants are required to pass the examination. b) Applicants must have not committed any act that would be considered grounds for denial of license. c) Applicants have received a Certificate of Completion no longer than 6 months prior to the date of application for a license. d) Applicants must be at least 21 years old.

Applicants must be at least 21 years old.

Which of the following provisions in annuity contracts allow the owner to surrender the annuity if interest rates drop to a specified level? a) Nonforfeiture b) Annuitization c) Bail-out d) Surrender

Bail-out

Graded-Premium Whole Life policy premiums are typically lower initially, but gradually increase for a period of 5 to 10 years. After the period of increase the premiums will (Choose from the following options) 1. Be level thereafter. 2. Continue to increase. 3. Return to the initial premium amount. 4. Decrease again.

Be level thereafter.

Which of the following best describes fixed-period settlement option? a) The death benefit must be paid out in a lump sum within a certain time period. b) Income is guaranteed for the life of the beneficiary. c) Both the principal and interest will be liquidated over a selected period of time. d) Only the principal amount will be paid out within a specified period of time.

Both the principal and interest will be liquidated over a selected period of time.

Which of the following includes information regarding a person's credit, character, reputation, and habits? (Choose from the following options) 1. Agent's report 2. Consumer report 3. Consumer history 4. Insurability report

Consumer report

Which of the following would be considered a violation of Rule 13: Life Insurance Advertising? (Choose from the following options) 1. Calling an insurance policy an investment plan 2. Not guaranteeing dividends 3. Making oral sales presentations 4. Informing the applicant the sole subject of the sale is insurance

Calling an insurance policy an investment plan

The act of voluntarily giving up insurance by the insured is called a) Cancellation b) Rescission c) Reinstatement d) Termination

Cancellation

Which of the following is NOT a characteristic or a service of an HMO plan? (Choose from the following options) 1. Providing care on an outpatient basis 2. Contracting with insurance companies 3. Providing free annual checkups 4. Encouraging early treatment

Contracting with insurance companies

A 70-year-old individual who bought a Part B Medicare policy 2 months ago just began kidney dialysis treatments this week. The individual is now applying for a Medicare supplement policy, which would begin in 8 months. Which of the following could the insurer do to avoid paying for the dialysis? a) Declare a pre-existing condition b) Permanently exclude coverage for dialysis c) Deny the supplement policy d) Charge a higher premium

Declare a pre-existing condition

Which of the following is considered a qualifying event under COBRA? (Choose from the following options) 1. Relocation 2. Promotion 3. Divorce 4. Marriage

Divorce

The death benefit under the Universal Life Option B (Choose from the following options) 1. Gradually increases each year by the amount that the cash value increases. 2. Decreases by the amount that the cash value increases. 3. Increases for the first few years of the policy, and then levels off. 4. Remains level.

Gradually increases each year by the amount that the cash value increases.

Medicaid provides all of the following benefits EXCEPT (Choose from the following options) 1. Eyeglasses. 2. Family planning services. 3. Income assistance for work-related injury. 4. Home health care services.

Income assistance for work-related injury.

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? a) Insurer to the insured b) Insured to the insurer c) Insurer to the Department of Insurance d) Insured to the Department of Insurance

Insurer to the insured

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? (Choose from the following options) 1. Insurer to the insured 2. Insured to the insurer 3. Insurer to the Department of Insurance 4. Insured to the Department of Insurance

Insurer to the insured

Which of the following is true regarding the taxation of the premium in group accidental death and dismemberment policies? a) It is deductible by the employees. b) It is taxed to the employee as ordinary income. c) It is received tax-free by the employees. d) It is deductible as an ordinary business expense.

It is deductible as an ordinary business expense.

Which of the following is true regarding a temporary insurance producer's license? (Choose from the following options) 1. It may not exceed 180 days. 2. It is available to individuals in the process of completing their prelicensing requirements. 3. It allows a resident producer to do business temporarily in another state. 4. It requires passing a limited examination.

It may not exceed 180 days.

. If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this? (Choose from the following options) 1. Jumping juvenile policy 2. Limited pay whole life policy 3. Modified life insurance policy 4. Single premium policy

Jumping juvenile policy

The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as (Choose from the following options) 1. Proof of loss. 2. Legal actions. 3. Time limit on certain defenses. 4. Payment of claims.

Legal actions.

A fixed annuity contract provides for (Choose from the following options) 1. Investing in stocks and bonds. 2. Protection from inflation. 3. Level benefit payment. 4. An increasing payment amount.

Level benefit payment.

Which type of care is NOT covered by Medicare? a) Respite b) Hospital c) Long-term care d) Hospice

Long-term care

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes (Choose from the following options) 1. Coercion. 2. Misrepresentation. 3. Defamation. 4. Twisting.

Misrepresentation.

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of a) Rebating. b) Misrepresentation. c) Concealment. d) Unfair claim practice.

Misrepresentation.

B just bought a new car, which he anticipates will be paid for 4 years from now. He also wants to buy a life insurance policy, but is financially limited until the car is paid off. Which of the following types of policies would be best for B? (Choose from the following options) 1. Limited Term 2. Limited Pay 3. Interest-sensitive Whole Life 4. Modified Life

Modified Life

Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the (Choose from the following options) 1. Buyer's Guide. 2. Certificate of Coverage. 3. Notice Regarding Replacement. 4. Policy application.

Notice Regarding Replacement.

Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the a) Buyer's Guide. b) Certificate of Coverage. c) Notice Regarding Replacement. d) Policy application.

Notice Regarding Replacement.

Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the a) Policy application. b) Buyer's Guide. c) Certificate of Coverage. d) Notice Regarding Replacement.

Notice Regarding Replacement.

When is the annual open enrollment for state insurance exchanges? a) December 1 through December 31 b) January 1 through February 28 c) December 1 through March 1 d) November 1 through January 31

November 1 through January 31

All of the following are characteristics of group life insurance EXCEPT (Choose from the following options) 1. Amount of coverage is determined according to nondiscriminatory rules. 2. Individuals covered under the policy receive a certificate of insurance. 3. Certificate holders may convert coverage to an individual policy without evidence of insurability. 4. Premiums are determined by the age, sex and occupation of each individual certificate holder.

Premiums are determined by the age, sex and occupation of each individual certificate holder.

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? a) Premiums are not tax deductible as a business expense. b) Premiums are tax deductible by the key employee. c) Premiums are tax deductible as a business expense. d) Premiums are taxable to the employee.

Premiums are not tax deductible as a business expense.

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? (Choose from the following options) 1. Premiums are tax deductible by the key employee. 2. Premiums are tax deductible as a business expense. 3. Premiums are taxable to the employee. 4. Premiums are not tax deductible as a business expense.

Premiums are not tax deductible as a business expense.

Which of the following is correct regarding the taxation of group medical expense premiums and benefits? a) Premiums are not tax deductible and benefits are taxed. b) Premiums are not tax deductible and benefits are not taxed. c) Premiums are tax deductible and benefits are taxed. d) Premiums are tax deductible and benefits are not taxed.

Premiums are tax deductible and benefits are not taxed.

Which of the following would be in violation of producer's duties under Rule 24, Life Insurance Solicitation? (Choose from the following options) 1. Implying to the applicant that the dividends are not guaranteed 2. Providing the policy summary at the time of application 3. Producer referring to him/herself as financial consultant 4. Producer disclosing the insurance company name

Producer referring to him/herself as financial consultant

When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis? (Choose from the following options) 1. Limited 2. Scheduled 3. Reimbursement 4. Service

Reimbursement

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the (Choose from the following options) 1. Revocable beneficiary. 2. Secondary beneficiary. 3. Primary beneficiary. 4. Irrevocable beneficiary.

Revocable beneficiary.

When a life insurance policy stipulates that the beneficiary will receive payments in specified installments or for a specified number of years, what provision prevents the beneficiary from changing or borrowing from the planned installments? (Choose from the following options) 1. Spendthrift provision 2. Settlement option 3. Accelerated benefit provision 4. Loan provision

Spendthrift provision

All of the following are unfair claims settlement practices EXCEPT a) Failing to adopt and implement reasonable standards for settling claims. b) Failing to acknowledge pertinent communication pertaining to a claim. c) Suggesting negotiations in settling the claim. d) Refusing to pay claims without conducting a reasonable investigation.

Suggesting negotiations in settling the claim.

All of the following are unfair claims settlement practices EXCEPT (Choose from the following options) 1. Failing to acknowledge pertinent communication pertaining to a claim. 2. Suggesting negotiations in settling the claim. 3. Refusing to pay claims without conducting a reasonable investigation. 4. Failing to adopt and implement reasonable standards for settling claims.

Suggesting negotiations in settling the claim.

Traditional IRA contributions are (Choose from the following options) 1. Partially tax deductible depending on the income level. 2. Tax deductible. 3. Deducted based on the income level. 4. Never tax deductible.

Tax deductible.

The interest earned on policy dividends is a) Tax deductible. b) 40% taxable, similar to a capital gain. c) Taxable. d) Nontaxable.

Taxable

The interest earned on policy dividends is (Choose from the following options) 1. 40% taxable, similar to a capital gain. 2. Taxable. 3. Nontaxable. 4. Tax deductible.

Taxable.

Which of the following may NOT be included in an insurance company's advertisement? a) That its policies are covered by a state Guaranty Association b) Their policies' limitations or exclusions c) The name of a specific agent d) An identification of a limited policy as a limited policy

That its policies are covered by a state Guaranty Association

Which of the following is NOT correct regarding examination of companies? (Choose from the following options) 1. All domestic companies are subject to fiscal examination. 2. The Commissioner must examine all alien companies. 3. The Commissioner may examine a company doing business in this state at any time. 4. The Commissioner may waive examination of foreign companies under certain circumstances.

The Commissioner must examine all alien companies.

. If an insurer becomes insolvent, which of the following would pay benefits to policyholders? (Choose from the following options) 1. The NAIC fund 2. The State 3. A federal reserve fund 4. The Guaranty Association

The Guaranty Association

If a life insurance policy has an irrevocable beneficiary designation, (Choose from the following options) 1. The owner can always change the beneficiary at will. 2. The beneficiary cannot be changed. 3. The beneficiary can only be changed with written permission of the beneficiary. 4. The beneficiary cannot be changed for at least 2 years.

The beneficiary can only be changed with written permission of the beneficiary.

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change? (Choose from the following options) 1. The death benefit can be increased by providing evidence of insurability. 2. The death benefit cannot be increased. 3. The death benefit can be increased only when the policy has developed a cash value. 4. The death benefit can be increased only by exchanging the existing policy for a new one.

The death benefit can be increased by providing evidence of insurability.

In a group policy, the contract is between (Choose from the following options) 1. The individual and the insurance company. 2. The employer and the union. 3. The employee and the employer. 4. The employer and the insurance company.

The employer and the insurance company.

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to (Choose from the following options) 1. The spouse of the insured. 2. The insured. 3. Creditors. 4. Beneficiary of the death benefit.

The insured.

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to a) The spouse of the insured. b) The insured. c) Creditors. d) Beneficiary of the death benefit.

The insured.

Which of the following is NOT a feature of a noncancellable policy? (Choose from the following options) 1. The insurer may terminate the contract only at renewal for certain conditions. 2. The premiums cannot be increased beyond the amount stated in the policy. 3. The guarantee to renew coverage usually applies until the insured reaches certain age. 4. The insured has the right to renew the policy for the life of the contract.

The insurer may terminate the contract only at renewal for certain conditions.

In insurance policies, contract ambiguities are automatically ruled in the favor of the insured. What privilege does the insurer have in order to balance this? (Choose from the following options) 1. The right to raise premiums as a result of court rulings 2. The right to determine the wording of a policy 3. The right to refute the rulings 4. The right to revoke the policy

The right to determine the wording of a policy

Under the application of state law provision, which of the following will determine the state under which the insurance policy will be enforced? (Choose from the following options) 1. The insured's residence state 2. The applicant's home state 3. The insurer's home state 4. The state in which the policy is sold

The state in which the policy is sold

Which of the following is TRUE for both equity indexed annuities and fixed annuities? (Choose from the following options) 1. They are both tied to an equity index. 2. Both are considered to be more risky than variable annuities. 3. They invest on a conservative basis. 4. They have a guaranteed minimum interest rate.

They have a guaranteed minimum interest rate.

Who has the legal title of the property in a trust? a) Guardian b) Trustee c) Grantor d) Beneficiary

Trustee

Which of the following is NOT true regarding regulations of viatical settlements? (Choose from the following options) 1. Providers must disclose information on alternatives to a viatical settlement. 2. Regulations apply to contracts, companies and providers. 3. Viatical brokers do not need to be licensed insurance producers. 4. Providers are subject to examinations.

Viatical brokers do not need to be licensed insurance producers.

All of the following are true regarding viatical settlement regulations in Indiana EXCEPT (Choose from the following options) 1. Insureds are required to submit a disclosure on their medical condition and competence. 2. Producers must provide the insured with the information on alternatives to a viatical settlement. 3. All viatical producers must be licensed. 4. Viatical contracts allow for a 10-day free-look period.

Viatical contracts allow for a 10-day free-look period.

An insurance company receives an application with some information missing and issues the policy anyway. What is this called? a) Aleatory b) Waiver c) Estoppel d) Subrogation

Waiver

Once a complaint has been filed with the Commissioner regarding an unfair claims practice, the Commissioner a) Within 20 business days will inform the complaining party of the action taken. b) Within 20 days will suspend the company's certificate of authority. c) Within 10 days request a report from the company in violation. d) Within 10 business days will send a copy of the complaint to the company involved.

Within 10 business days will send a copy of the complaint to the company involved.

Within what timeframe should an applicant or a producer request a hearing before the Commissioner regarding the notice of denial or nonrenewal of a license? a) Within 30 days after the license is denied b) Within 30 days after the application for renewal is received by the Commissioner c) Within 63 days after the notice of denial is mailed

Within 63 days after the notice of denial is mailed

How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company? (Choose from the following options) 1. As soon as possible 2. Within 20 days 3. Within 60 days 4. Within 90 days or as soon as reasonably possible, but not to exceed 1 year

Within 90 days or as soon as reasonably possible, but not to exceed 1 year

Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce (Choose from the following options) 1. Without receiving written consent from a Federal Judge. 2. Without receiving written consent from an insurance regulatory authority. 3. Under any circumstances. 4. Unless they have served an appropriate prison sentence.

Without receiving written consent from an insurance regulatory authority.

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive? (Choose from the following options) 1. $0 2. $50,000 (50% of the policy value) 3. $100,000 4. $300,000 (triple the amount of policy value)

$100,000

An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer? (Choose from the following options) 1. $0 2. $500 3. $1,000 4. $2,000

$500

An insured's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security benefits begin? a) 5 b) 3 c) 2 d) 1

1

An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy? a) 7 days b) 10 days c) 31 days d) 60 days

10 days

Individuals who itemize deductions can claim deductions for medical expenses not covered by health insurance that exceed what percent of their adjusted gross income? (Choose from the following options) 1. 5% 2. 7% 3. 10% 4. 15%

10%

In the event of a loss, business overhead insurance will pay for (Choose from the following options) 1. Medical bills of the business owner. 2. Rent. 3. Loss of profits. 4. Salary of the business owner.

Rent

Every company possessing a certificate of authority must notify the Commissioner of the election or appointment of every new director or principal officer within a) 10 days. b) 30 days. c) 60 days. d) 90 days.

30 days.

. What is the period of coverage for events such as death or divorce under COBRA? (Choose from the following options) 1. 60 days 2. 31 days 3. 12 months 4. 36 months

36 months

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? (Choose from the following options) 1. 7 days 2. 10 days 3. 3 days 4. 5 days

5 days

How long is an open enrollment period for Medicare supplement policies? (Choose from the following options) 1. 6 months 2. 1 year 3. 30 days 4. 90 days

6 months

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within (Choose from the following options) 1. 90 days of a loss. 2. 20 days of a loss. 3. 30 days of a loss. 4. 60 days of a loss.

90 days of a loss.

Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within (Choose from the following options) 1. 30 days. 2. 60 days. 3. 90 days. 4. 120 days.

90 days.

If an insurance company offers Medicare supplement policies, it must offer which of the following plans? a) B-N b) A-D c) A d) A & B

A

All of the following may be exempt from the whole or part of the Indiana licensing examination EXCEPT (Choose from the following options) 1. A person selling credit life and credit health insurance. 2. A candidate applying for a surplus lines producer license. 3. A Chartered Life Underwriter applying for a Life license. 4. A resident producer in another state under certain conditions.

A candidate applying for a surplus lines producer license.

According to the Entire Contract provision, a policy must contain (Choose from the following options) 1. Buyer's guide to life insurance. 2. Listing of the insured's former insurer(s) for incontestability provisions. 3. A copy of the original application for insurance. 4. A declarations page with a summary of insureds.

A copy of the original application for insurance.

A Straight Life policy has what type of premium? (Choose from the following options) 1. An increasing annual premium for the life of the insured 2. A decreasing annual premium for the life of the insured 3. A variable annual premium for the life of the insured 4. A level annual premium for the life of the insured

A level annual premium for the life of the insured

Which of the following is NOT an example of controlled business? (Choose from the following options) 1. A licensee writes policies solely for his immediate family. 2. A licensee writes policies solely for his employer. 3. A licensee writes policies solely for friends and their families. 4. A licensee writes policies solely for himself.

A licensee writes policies solely for friends and their families.

Which of the following will be EXEMPT from continuing education requirements? (Choose from the following options) 1. An attorney in good standing 2. A limited lines credit producer 3. A 65-year-old insurance producer who has been licensed for over 20 years 4. A producer who is licensed in more than one line of authority

A limited lines credit producer

Which of the following does the Insuring Clause NOT specify? (Choose from the following options) 1. A list of available doctors 2. Covered perils 3. The insurance company 4. The name of the insured

A list of available doctors

How is emergency care covered for a member of an HMO? (Choose from the following options) 1. An HMO emergency specialist will cover the patient. 2. A member of an HMO can receive care in or out of the HMO service area, but care is preferred in the service area. 3. A member of an HMO may receive care at any emergency facility, at the same cost as if in his or her own service area. 4. HMOs have salaried member physicians, but they do not cover emergency care.

A member of an HMO can receive care in or out of the HMO service area, but care is preferred in the service area.

All of the following statements are true regarding tax-qualified annuities EXCEPT a) Withdrawals are taxed. b) Employer contributions are not tax deductible. c) Annuity earnings are tax deferred. d) They must be approved by the IRS.

Employer contributions are not tax deductible.

How is emergency care covered for a member of an HMO? a) An HMO emergency specialist will cover the patient. b) A member of an HMO can receive care in or out of the HMO service area, but care is preferred in the service area. c) A member of an HMO may receive care at any emergency facility, at the same cost as if in his or her own service area. d) HMOs have salaried member physicians, but they do not cover emergency care.

A member of an HMO can receive care in or out of the HMO service area, but care is preferred in the service area.

. A temporary license may be obtained for all of the following situations EXCEPT (Choose from the following options) 1. A producer's disability. 2. A producer's time in the military service. 3. A producer's retirement. 4. The death of a producer.

A producer's retirement.

What is the difference between the Medicare approved amount for a service or supply and the actual charge? (Choose from the following options) 1. Excess charge 2. Actual charge 3. Limiting charge 4. Coinsurance

Excess charge

When transacting business in this state an insurer formed under the laws of another country is known as a/an (Choose from the following options) 1. Alien insurer. 2. Domestic insurer. 3. Foreign insurer. 4. Admitted insurer.

Alien insurer.

All of the following would NOT be considered eligible expenses under an ICHIA policy EXCEPT a) Medicare services. b) AIDS treatment. c) A workers compensation claim. d) A military service disability.

AIDS treatment.

Which of the following is NOT true regarding coverage for adopted children? a) Adopted children are covered for an unlimited period of time. b) Coverage for adopted children is the same as for other dependents. c) Premium must be received by the insurance company no later than 31 days from the date of adoption for the coverage to continue. d) Adopted children are automatically covered for 31 days without a premium payment.

Adopted children are covered for an unlimited period of time.

Which of the following is a program for 6 or more individuals, consisting of social and health-related services provided during the day in a community setting for the purpose of supporting frail, impaired individuals outside of their home setting? (Choose from the following options) 1. Skilled nursing care 2. Personal care 3. Intermediate care 4. Adult day care

Adult day care

According to the Law of Agency, a principal is represented by a/an a) Broker. b) Insured. c) Agent. d) Insurer.

Agent

What documentation grants express authority to an agent? a) Agent's insurance license b) Fiduciary contract c) State provisions d) Agent's contract with the principal

Agent's contract with the principal

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? (Choose from the following options) 1. Warranty 2. Aleatory 3. Adhesion 4. Subrogation

Aleatory

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean? a) All plans must include basic benefits A-N. b) Coverage options and conditions are developed for average individuals. c) All providers will have the same coverage options and conditions for each plan. d) Coverage options and conditions comply with the law, but will vary from provider to provider.

All providers will have the same coverage options and conditions for each plan.

An agent is acting ethically in all of the following situations EXCEPT (Choose from the following options) 1. Keeping customers' best interests in mind. 2. Always representing the insured. 3. Working within the conditions of his/her contract. 4. Representing the insurer, not the insured.

Always representing the insured.

Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account? (Choose from the following options) 1. Joe is 40 and is not covered by any other health insurance 2. Amanda is 67 and is covered by a basic medical expense policy 3. Andy is 55 and is covered under a dental care policy 4. Jenny is 60 and also has a long-term care insurance plan

Amanda is 67 and is covered by a basic medical expense policy

Under which condition would an employee's group medical benefits be exempt from income taxes? a) When the premiums and other unreimbursed medical expenses exceed 10% of the employee's adjusted gross income b) An employee's group medical benefits are generally exempt from taxation as income. c) An employee's group medical benefits are never exempt from taxation as income. d) When the premiums and other unreimbursed medical expenses exceed 5% of the employee's adjusted gross income

An employee's group medical benefits are generally exempt from taxation as income.

Under which condition would an employee's group medical benefits be exempt from income taxes? (Choose from the following options) 1. When the premiums and other unreimbursed medical expenses exceed 10% of the employee's adjusted gross income 2. An employee's group medical benefits are generally exempt from taxation as income. 3. An employee's group medical benefits are never exempt from taxation as income. 4. When the premiums and other unreimbursed medical expenses exceed 5% of the employee's adjusted gross income

An employee's group medical benefits are generally exempt from taxation as income.

Under which condition would an employee's group medical benefits be exempt from income taxes? a) An employee's group medical benefits are generally exempt from taxation as income. b) An employee's group medical benefits are never exempt from taxation as income. c) When the premiums and other unreimbursed medical expenses exceed 5% of the employee's adjusted gross income d) When the premiums and other unreimbursed medical expenses exceed 10% of the employee's adjusted gross income

An employee's group medical benefits are generally exempt from taxation as income.

While a claim is pending, an insurance company may require (Choose from the following options) 1. An independent examination only once every 45 days. 2. An independent examination as often as reasonably required. 3. The insured to be examined only within the first 30 days. 4. The insured to be examined only once annually.

An independent examination as often as reasonably required.

Who can make a fully deductible contribution to a traditional IRA? a) Someone making contributions to an educational IRA b) A person whose contributions are funded by a return on investment c) An individual not covered by an employer-sponsored plan who has earned income d) Anybody: all IRA contributions are fully deductible regardless of income level

An individual not covered by an employer-sponsored plan who has earned income

Under HIPAA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy? a) An individual who was previously covered by group health insurance for 6 months is eligible. b) An individual who has used up COBRA continuation coverage is eligible. c) An individual who doesn't qualify for Medicare may be eligible. d) The gap of coverage for eligibility is a period of 63 or less days.

An individual who was previously covered by group health insurance for 6 months is eligible.

Under HIPAA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy? a) The gap of coverage for eligibility is a period of 63 or less days. b) An individual who was previously covered by group health insurance for 6 months is eligible. c) An individual who has used up COBRA continuation coverage is eligible. d) An individual who doesn't qualify for Medicare may be eligible.

An individual who was previously covered by group health insurance for 6 months is eligible.

Under which of the following circumstances would an insurer pay accelerated benefits? (Choose from the following options) 1. A couple wants to build a house and would like to make a larger down payment. 2. An insured is diagnosed with cancer and needs help paying for her medical treatment. 3. A couple is nearing retirement and needs a steady stream of income. 4. An insured is looking for a way to put her daughter through college.

An insured is diagnosed with cancer and needs help paying for her medical treatment.

Which of the following types of agent authority is also called "perceived authority"? a) Fiduciary b) Apparent c) Express d) Implied

Apparent

Which is the primary source of information used for insurance underwriting? (Choose from the following options) 1. Medical records 2. Private investigations 3. Application 4. Applicant interviews

Application

In order to get a non-resident license in this state, producers must (Choose from the following options) 1. Pass the non-resident state exam and satisfy their continuing education requirements. 2. Represent an agency located in this state. 3. Surrender their licenses in their state of residence. 4. Apply and pay a fee to a non-resident state that reciprocates.

Apply and pay a fee to a non-resident state that reciprocates.

Employer contributions made to a qualified plan (Choose from the following options) 1. Are taxed annually as salary. 2. Are subject to vesting requirements. 3. May discriminate in favor of highly paid employees. 4. Are after-tax contributions.

Are subject to vesting requirements.

Employer contributions made to a qualified plan a) Are subject to vesting requirements. b) May discriminate in favor of highly paid employees. c) Are after-tax contributions. d) Are taxed annually as salary.

Are subject to vesting requirements.

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? (Choose from the following options) 1. As of the first of the month after the policy issue 2. As of the policy issue date 3. As of the application date 4. As of the policy delivery date

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? (Choose from the following options) 1. As of the policy delivery date 2. As of the first of the month after the policy issue 3. As of the policy issue date 4. As of the application date

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? a) As of the policy delivery date b) As of the first of the month after the policy issue c) As of the policy issue date d) As of the application date

As of the application date

If a complaint has been filed against a producer who has been implicated in an unfair trade practice, the Commissioner will hold a hearing. When must the producer be notified of the charges? a) At least 5 days prior to hearing b) Not more than 63 days after the complaint review c) No later than 20 business days from the file of complaint d) 10 days from the receipt of complaint by the Commissioner

At least 5 days prior to hearing

All admitted insurance companies in Indiana are subject to fiscal examinations by the Commissioner (Choose from the following options) 1. Every three years. 2. At least every five years. 3. Once a year. 4. Biennially.

At least every five years.

. If a death benefit is not paid out in a timely manner, the interest begins to accrue (Choose from the following options) 1. At a rate determined by the insurance company. 2. After 2 months from the date the proof of death is received. 3. 60 days after the death of the insured. 4. At the same rate as the policy loan.

At the same rate as the policy loan.

When must the Medicare Supplement Buyer's Guide be presented? (Choose from the following options) 1. When the prospective policyholder inquires about a policy or at the time of application, depending on which occurs first. 2. At the time of application 3. When the policy is delivered 4. Within 30 days of policy delivery

At the time of application

An underwriter is reviewing the medical questions in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require? (Choose from the following options) 1. Statement of Continued Good Health 2. Attending Physician Statement 3. A complete medical record 4. Sworn health affidavit from the applicant

Attending Physician Statement

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision? (Choose from the following options) 1. Assignment 2. Automatic premium loan 3. Waiver of premium 4. Incontestability period

Automatic premium loan

The factor added to the net premium to cover the costs of the insurer in obtaining and maintaining the business is called (Choose from the following options) 1. Legal reserve. 2. Dividend accumulation. 3. Premium tax. 4. Expenses.

Expenses.

The accelerated benefits provision will provide for an early payment of the death benefit when the insured (Choose from the following options) 1. Becomes terminally ill. 2. Needs to borrow money. 3. Has earned enough credits. 4. Becomes disabled.

Becomes terminally ill.

Which of the following is a feature of a variable annuity? (Choose from the following options) 1. Securities license is not required. 2. Benefit payment amounts are not guaranteed. 3. Payments into the annuity are kept in the company's general account. 4. Interest rate is guaranteed.

Benefit payment amounts are not guaranteed.

Which of the following statements regarding Business Overhead Expense policies is NOT true? (Choose from the following options) 1. Benefits are usually limited to six months. 2. Premiums paid for BOE are tax-deductible. 3. Any benefits received are taxable to the business. 4. Leased equipment expenses are covered by the plan.

Benefits are usually limited to six months.

In terms of Social Security, what is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse may receive retirement benefits? (Choose from the following options) 1. Blackout period 2. Nonpayment interval 3. Benefit reduction 4. Accumulation period

Blackout period

A man bought an individual health insurance policy for himself. Which of the following roles does he now legally have? a) Broker b) Subscriber only c) Insured only d) Both subscriber and insured

Both subscriber and insured

Who must sign the notice regarding replacement? (Choose from the following options) 1. Applicant only 2. Agent only 3. Both the applicant and agent 4. Both the agent and the insurer

Both the applicant and agent

Which of the following best describes fixed-period settlement option? (Choose from the following options) 1. Both the principal and interest will be liquidated over a selected period of time. 2. Only the principal amount will be paid out within a specified period of time. 3. The death benefit must be paid out in a lump sum within a certain time period. 4. Income is guaranteed for the life of the beneficiary.

Both the principal and interest will be liquidated over a selected period of time.

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process? a) Illustrations b) Buyer's Guide c) Insurance Index d) Policy Summary

Buyer's Guide

Kevin and Nancy are married; Kevin is the primary breadwinner and has a health insurance policy that covers both him and his wife. Nancy has an illness that requires significant medical attention. Kevin and Nancy decide to legally separate, which means that Nancy will no longer be eligible for health insurance coverage under Kevin. Which of the following options would be best for Nancy at this point? (Choose from the following options) 1. COBRA 2. Apply for social security benefits 3. Apply for coverage under the same group policy that covers Kevin 4. Convert to an individual insurance policy with 31 days so she won't have to provide evidence of insurability

COBRA

When an insurer offers services like preadmission testing, second opinions regarding surgery, and preventative care, which term would best apply? (Choose from the following options) 1. Claims reduction 2. Claims discrimination 3. Case management provision 4. Cost reduction

Case management provision

An insured receives an annual life insurance dividend check. What term best describes this arrangement? (Choose from the following options) 1. Reduction of Premium 2. Annual Dividend Provision 3. Accumulation at Interest 4. Cash option

Cash option

An insured receives an annual life insurance dividend check. What term best describes this arrangement? a) Cash option b) Reduction of Premium c) Annual Dividend Provision d) Accumulation at Interest

Cash option

What type of annuity guarantees to pay an income to the annuitant each year as long as he lives, and upon death, the annuity will refund the remaining payments to a beneficiary? a) Joint and survivor annuity b) Cash refund annuity c) Temporary annuity d) Installment refund annuity

Cash refund annuity

What type of annuity promises to pay to a beneficiary, in a lump sum, the difference between the amount paid into the contract and the benefits received prior to the annuitant's death? a) Installment refund annuity b) Joint and survivor annuity c) Pure life annuity d) Cash refund annuity

Cash refund annuity

According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT (Choose from the following options) 1. Cervical cancer exams for all women starting at age 40. 2. Diet counseling for adults. 3. Well-woman visits and counseling. 4. Screenings for autism and behavioral disorders in children.

Cervical cancer exams for all women starting at age 40.

Which of the following would define delinquency on child support and may result in producer license revocation? (Choose from the following options) 1. Child support payments 6 months past due. 2. Past due payment of $1,000 3. Past due payment of $1,500 4. Child support payments 3 months past due.

Child support payments 3 months past due.

Which of the following would define delinquency on child support and may result in producer license revocation? a) Child support payments 3 months past due. b) Child support payments 6 months past due. c) Past due payment of $1,000 d) Past due payment of $1,500

Child support payments 3 months past due.

The provision that provides for the sharing of expenses between the insured and the insurance company is (Choose from the following options) 1. Deductible. 2. Divided cost. 3. Coinsurance. 4. Stop-loss.

Coinsurance.

A producer who fails to segregate premium monies from his own personal funds is guilty of (Choose from the following options) 1. Commingling. 2. Larceny. 3. Embezzlement. 4. Theft.

Commingling.

Which of the following is the chief executive and administrative officer of the Insurance Department? (Choose from the following options) 1. Chief Officer 2. President 3. Commissioner 4. Director

Commissioner

Which of the following is the chief executive and administrative officer of the Insurance Department? a) Commissioner b) Director c) Chief Officer d) President

Commissioner

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is (Choose from the following options) 1. Aleatory. 2. Personal. 3. Unilateral. 4. Conditional.

Conditional.

What is the contract provision that allows the insurer to nonrenew health coverage if certain events occur? (Choose from the following options) 1. Optionally renewable 2. Noncancellable 3. Guaranteed renewable 4. Conditionally renewable

Conditionally renewable

In reference to fixed annuities, what comprises most of a life insurance company's general account? a) Aggressive stocks and bonds b) Company stock c) S&P 500 index d) Conservative investments like bonds

Conservative investments like bonds

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? (Choose from the following options) 1. Contract of adhesion 2. Acceptance 3. Consideration 4. Legal purpose

Consideration

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? a) Legal purpose b) Contract of adhesion c) Acceptance d) Consideration

Consideration

Which of the following is NOT a characteristic or a service of an HMO plan? a) Providing care on an outpatient basis b) Contracting with insurance companies c) Providing free annual checkups d) Encouraging early treatment

Contracting with insurance companies

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as (Choose from the following options) 1. Aleatory contracts. 2. Binding contracts. 3. Contracts of adhesion. 4. Unilateral contracts.

Contracts of adhesion.

The purpose of managed care health insurance plans is to (Choose from the following options) 1. Provide access to the largest number of physicians as possible. 2. Coordinate benefits. 3. Control health insurance claims expenses. 4. Provide for the continuation of coverage when an employee leaves the plan.

Control health insurance claims expenses.

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a (Choose from the following options) 1. Decreasing Term Policy. 2. Whole Life Policy. 3. Convertible Term Policy. 4. Renewable Term Policy.

Convertible Term Policy.

After a year of receiving disability income benefits, the insured notices that her monthly benefit has increased slightly. What rider does the policy most likely have that would cause this? a) Social Security Rider b) Additional Monthly Benefit Rider c) Cost of Living Adjustment Rider (COLA) d) Annual Renewable Term Rider

Cost of Living Adjustment Rider (COLA)

Which of the following is NOT true of basic medical expense plans? (Choose from the following options) 1. No deductibles 2. First-dollar coverage 3. Low dollar limits 4. Coverage for catastrophic medical expenses

Coverage for catastrophic medical expenses

. All of the following statements concerning Accidental Death and Dismemberment coverage are correct EXCEPT (Choose from the following options) 1. Dismemberment benefits are paid for certain disabilities that are presumed to be total and permanent. 2. Accidental death and dismemberment insurance is considered to be limited coverage. 3. Death benefits are paid only if death occurs within 24 hours of an accident. 4. Accidental death benefits are paid only if death results from accidental bodily injury as defined in the policy.

Death benefits are paid only if death occurs within 24 hours of an accident.

As deductible amounts increase, premium amounts change in what way? a) Either increase or decrease. b) Decrease c) Increase d) Remain the same. Changes in premium amounts do not affect deductible amounts.

Decrease

Which of the following types of insurance policies is most commonly used in credit life insurance? a) Equity indexed life b) Decreasing term c) Increasing term d) Whole life

Decreasing term

. Under which of the following employer-provided plans are the benefits taxable to an employee in proportion to the amount of premium paid by the employer? (Choose from the following options) 1. Dental Expense 2. Basic Medical Expense 3. Disability Income 4. Major Medical

Disability Income

Life Insurance Replacement Rule 16.1 is considered which of the following? (Choose from the following options) 1. Advertising rule 2. Solicitation rule 3. Disclosure rule 4. Privacy protection rule

Disclosure rule

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? (Choose from the following options) 1. Law of large numbers 2. Misrepresentation 3. Adverse selection 4. Discrimination

Discrimination

According to the Fair Credit Reporting Act, all of the following would be considered negative information about a consumer EXCEPT (Choose from the following options) 1. Late payments. 2. Failure to pay off a loan. 3. Disputes regarding consumer report information. 4. Tax delinquencies.

Disputes regarding consumer report information.

Which of the following terms is used to name the nontaxed return of unused premiums? (Choose from the following options) 1. Surrender 2. Dividend 3. Premium return 4. Interest

Dividend

Which of the following terms is used to name the nontaxed return of unused premiums? a) Dividend b) Premium return c) Interest d) Surrender

Dividend

Which of the following is true regarding taxation of dividends in participating policies? (Choose from the following options) 1. Dividends are taxable only after a certain amount is accumulated annually. 2. Dividends are taxable in some life insurance policies and nontaxable in others. 3. Dividends are considered income for tax purposes. 4. Dividends are not taxable.

Dividends are not taxable.

All of the following violations may result in an agent's imprisonment EXCEPT (Choose from the following options) 1. Engaging in the business of insurance after being convicted of breach of trust. 2. Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction. 3. Embezzling funds from the insurer. 4. Knowingly obtaining information about a consumer under false pretenses.

Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.

A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy? a) Level Term Policy b) Family (Protection) Policy c) Universal Life Policy d) Family Income Policy

Family (Protection) Policy

Which of the following types of insurance covers the whole family in a single contract? a) Whole Life Policy b) Family Policy c) Family Income Policy d) Survivorship Policy

Family Policy

Which of the following types of insurance covers the whole family in a single contract? (Choose from the following options) 1. Family Income Policy 2. Survivorship Policy 3. Whole Life Policy 4. Family Policy

Family Policy

Which of the following is NOT a government-funded insurance program? a) Old-age, Survivors and Disability Insurance (Social Security) b) Medicare c) Medicaid d) Federal Deposit Insurance Corporation (FDIC)

Federal Deposit Insurance Corporation (FDIC)

If a person feels that he has become a victim of an unfair claims practice, which of the following would be the most effective action? a) Write a letter to the insurance company b) Consult the Commissioner's annual reports to choose a better insurance company c) File a complaint with the Commissioner d) File a police report

File a complaint with the Commissioner

f a person feels that he has become a victim of an unfair claims practice, which of the following would be the most effective action? (Choose from the following options) 1. Write a letter to the insurance company 2. Consult the Commissioner's annual reports to choose a better insurance company 3. File a complaint with the Commissioner 4. File a police report

File a complaint with the Commissioner

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid (Choose from the following options) 1. For 20 years or until death, whichever occurs first. 2. Until the policyowner reaches age 65. 3. For 20 years. 4. Until the policyowner's age 100, when the policy matures.

For 20 years or until death, whichever occurs first.

. When an employee terminates coverage under a group insurance policy, coverage continues in force (Choose from the following options) 1. For 60 days. 2. Until the employee can obtain coverage under a new group plan. 3. Until the employee notifies the group insurance provider that coverage conversion policy is issued. 4. For 31 days.

For 31 days.

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer? (Choose from the following options) 1. Alien 2. Nonadmitted 3. Foreign 4. Domestic

Foreign

An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? (Choose from the following options) 1. Defamation 2. Unfair discrimination 3. Errors and omissions 4. Fraud

Fraud

Life insurance death proceeds are a) Taxable to the extent that they exceed 7.5% of the beneficiary's adjusted gross income. b) Taxed as a capital gain. c) Taxed as ordinary income. d) Generally not taxed as income.

Generally not taxed as income.

Rule 38.1 is also known as (Choose from the following options) 1. Employee-sponsored groups. 2. Individual employer plans. 3. No-loss, no-gain insurance. 4. Group Coordination of Benefits.

Group Coordination of Benefits.

According to Rule 38.1: Coordination of Benefits, all of the following are true EXCEPT (Choose from the following options) 1. This rule helps insurance companies establish the order for payment of claims. 2. Group health insurance plans must include a coordination of benefits provision. 3. Coordination of benefits allows insurers to reduce the number of duplicate claim payments. 4. Coordination of benefits provision protects consumers from delays on payment of claims.

Group health insurance plans must include a coordination of benefits provision.

A Universal Life insurance policy has two types of interest rates that are called (Choose from the following options) 1. Guaranteed and Current. 2. Option A and Option B. 3. Fixed and Variable. 4. Minimum and Target.

Guaranteed and Current.

. Which of the following policy components contains the company's promise to pay? (Choose from the following options) 1. Insuring clause 2. Premium mode 3. Consideration clause 4. Entire contract provision

Insuring clause

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? a) Guaranteed insurability option b) Dividend options c) Guaranteed renewable option d) Nonforfeiture options

Guaranteed insurability option

Most LTC plans have which of the following features? (Choose from the following options) 1. Variable premiums 2. Open enrollment 3. Guaranteed renewability 4. No elimination period

Guaranteed renewability

Which of the following statements is correct? (Choose from the following options) 1. Medicare Advantage is Medicare provided by an approved Health Maintenance Organization only. 2. All HMOs and PPOs charge premiums beyond what is paid by Medicare. 3. HMOs may pay for services not covered by Medicare. 4. HMOs do not pay for services covered by Medicare.

HMOs may pay for services not covered by Medicare.

Which of the following statements is correct? a) Medicare Advantage is Medicare provided by an approved Health Maintenance Organization only. b) All HMOs and PPOs charge premiums beyond what is paid by Medicare. c) HMOs may pay for services not covered by Medicare. d) HMOs do not pay for services covered by Medicare.

HMOs may pay for services not covered by Medicare.

In insurance transactions, fiduciary responsibility means (Choose from the following options) 1. Being liable with respect to payment of claims. 2. Commingling premiums with agent's personal funds. 3. Handling insurer funds in a trust capacity. 4. Maintaining a good credit record.

Handling insurer funds in a trust capacity.

. An insured becomes disabled at age 22 and can no longer work. She meets the definition of total disability under Social Security. What other requirement must the insured have met to receive Social Security disability benefits? (Choose from the following options) 1. Have reached the age of 25. 2. Have accumulated 6 work credits in the past 3 years 3. Have accumulated 20 work credits in the past 10 years 4. Have accumulated 40 work credits

Have accumulated 6 work credits in the past 3 years

What are the three basic coverages for medical expense insurance? (Choose from the following options) 1. Medical, Dental, Vision 2. Reimbursement, Preventive, Service 3. Hospital, Surgical, Medical 4. Basic, Major, Overhead

Hospital, Surgical, Medical

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium? (Choose from the following options) 1. If the daughter is disabled for more than 3 months 2. If the daughter is disabled for any length of time 3. If the father is disabled for more than 6 months 4. If the father is disabled for at least a year

If the father is disabled for more than 6 months

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice? (Choose from the following options) 1. A legal advertising strategy 2. Unfair Discrimination 3. Defamation 4. Illegal

Illegal

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? (Choose from the following options) 1. Assumed 2. Express 3. Implied 4. Apparent

Implied

Which of the following is a feature of a single premium immediate annuity? a) It is also referred to as a deferred annuity. b) Income payments start within one year. c) It is purchased through periodic payments. d) Income payments start at age 65.

Income payments start within one year.

In long-term care (LTC) policies, as the benefit period lengthens, the premium (Choose from the following options) 1. LTC premiums are not based on benefit periods. 2. Decreases. 3. Increases. 4. Remains unchanged.

Increases.

What type of insurance would be used for a Return of Premium rider? a) Annually Renewable Term b) Increasing Term c) Level Term d) Decreasing Term

Increasing Term

What type of insurance would be used for a Return of Premium rider? (Choose from the following options) 1. Level Term 2. Decreasing Term 3. Annually Renewable Term 4. Increasing Term

Increasing Term

What type of insurance would be used for a Return of Premium rider? a) Annually Renewable Term b) Increasing Term c) Level Term d) Decreasing Term

Increasing Term

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital? (Choose from the following options) 1. Surgical 2. Blanket 3. Medigap 4. Indemnity

Indemnity

What type of annuity guarantees to pay an income to the annuitant each year as long as he lives, and upon death, the annuity will refund the remaining payments to a beneficiary? a) Installment refund annuity b) Joint and survivor annuity c) Cash refund annuity d) Temporary annuity

Installment refund annuity

What type of annuity guarantees to pay an income to the annuitant each year as long as he lives, and upon death, the annuity will refund the remaining payments to a beneficiary? (Choose from the following options) 1. Installment refund annuity 2. Joint and survivor annuity 3. Cash refund annuity 4. Temporary annuity

Installment refund annuity

A life insurance policy has a legal purpose if both of which of the following elements exist? (Choose from the following options) 1. Underwriting and reciprocity 2. Offer and counteroffer 3. Policyowners and named beneficiaries 4. Insurable interest and consent

Insurable interest and consent

#160. Which of the following is responsible for the powers, duties, management, and control of the Insurance Department? a) NAIC b) Governor c) Insurance Commissioner d) Federal Insurance Regulation Bureau

Insurance Commissioner

Which of the following entities must approve all Medicare supplement advertisements? a) NAIC b) Federal Association of Insurers c) Consumer Protection Agency d) Insurance Commissioner or Director

Insurance Commissioner or Director

According to agency law, the producer always represents the (Choose from the following options) 1. Public. 2. State Insurance Department. 3. Insurance company. 4. Client.

Insurance company.

Which of the following types of license is most suitable for an individual or corporation that, for compensation, acts or aids in any manner in soliciting applications for a policy of insurance on behalf of an insurance company admitted to do business in Indiana? a) Insurance consultant b) Surplus lines insurance producer c) Limited insurance producer d) Insurance producer

Insurance producer

Which of the following types of license is most suitable for an individual or corporation that, for compensation, acts or aids in any manner in soliciting applications for a policy of insurance on behalf of an insurance company admitted to do business in Indiana? (Choose from the following options) 1. Surplus lines insurance producer 2. Limited insurance producer 3. Insurance producer 4. Insurance consultant

Insurance producer

Which of the following types of license is most suitable for an individual or corporation that, for compensation, acts or aids in any manner in soliciting applications for a policy of insurance on behalf of an insurance company admitted to do business in Indiana? a) Insurance consultant b) Surplus lines insurance producer c) Limited insurance producer d) Insurance producer

Insurance producer

Insured A recently purchased an individual health policy. Insured B purchased the same policy, but did so as the result of a direct response solicitation. Which of these two insureds has a longer free look period? a) Insured A b) Both have the same free look period c) Neither has a free look period d) Insured B

Insured B

Which statement regarding insurable risks is NOT correct? (Choose from the following options) 1. The insurable risk needs to be statistically predictable. 2. An insurable risk must involve a loss that is definite as to cause, time, place and amount. 3. Insureds cannot be randomly selected. 4. Insurance cannot be mandatory.

Insureds cannot be randomly selected.

Who is responsible for making sure that agents are properly trained in the use of the suitability standards for LTC policies? (Choose from the following options) 1. Each individual agent 2. Guaranty Association 3. Insurer 4. Commissioner

Insurer

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity? a) Investment performance of the insured b) Statewide predetermined annual interest rate c) Insurer's guaranteed minimum rate of interest d) Investment performance of the company

Insurer's guaranteed minimum rate of interest

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity? a) Investment performance of the insured b) Statewide predetermined annual interest rate c) Insurer's guaranteed minimum rate of interest d) Investment performance of the company

Insurer's guaranteed minimum rate of interest

When agents are acting within the scope of their contract, their actions will be assumed to be the acts of the (Choose from the following options) 1. Policyowner. 2. Department of Insurance. 3. Insured. 4. Insurer.

Insurer.

Which of the following policy components contains the company's promise to pay? a) Premium mode b) Consideration clause c) Entire contract provision d) Insuring clause

Insuring clause

Which of the following policy components contains the company's promise to pay? (Choose from the following options) 1. Entire contract provision 2. Insuring clause 3. Premium mode 4. Consideration clause

Insuring clause

Which of the following policy components contains the company's promise to pay? a) Premium mode b) Consideration clause c) Entire contract provision d) Insuring clause

Insuring clause

The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the (Choose from the following options) 1. Incontestability clause. 2. Consideration clause. 3. Probationary period. 4. Insuring clause.

Insuring clause.

When a beneficiary receives payments consisting of both principal and interest portions, which parts are taxable as income? (Choose from the following options) 1. Interest only 2. Both principal and interest 3. Neither principal nor interest 4. Principal only

Interest only

A guaranteed renewable disability insurance policy (Choose from the following options) 1. Cannot be cancelled by the insured before age 65. 2. Is renewable at the insured's option to a specified age. 3. Is renewable at the option of the insurer to a specified age of the insured. 4. Is guaranteed to have a level premium for the life of the policy.

Is renewable at the insured's option to a specified age.

What is the benefit of experience rating? (Choose from the following options) 1. It helps employers with high claims experience to get group coverage. 2. It helps employees with low claims experience to become exempt from group premiums. 3. It allows employers with high claims experience to obtain insurance. 4. It allows employers with low claims experience to get lower premiums.

It allows employers with low claims experience to get lower premiums.

What is the benefit of choosing extended term as a nonforfeiture option? (Choose from the following options) 1. It matures at age 100. 2. It allows for coverage to continue beyond maturity date. 3. It can be converted to a fixed annuity. 4. It has the highest amount of insurance protection.

It has the highest amount of insurance protection.

What is the benefit of choosing extended term as a nonforfeiture option? a) It allows for coverage to continue beyond maturity date. b) It can be converted to a fixed annuity. c) It has the highest amount of insurance protection. d) It matures at age 100.

It has the highest amount of insurance protection.

Which of the following is true regarding the taxation of the premium in group accidental death and dismemberment policies? (Choose from the following options) 1. It is deductible by the employees. 2. It is taxed to the employee as ordinary income. 3. It is received tax-free by the employees. 4. It is deductible as an ordinary business expense.

It is deductible as an ordinary business expense.

Concerning Medicare Part B, which statement is INCORRECT? (Choose from the following options) 1. It offers limited prescription drug coverage. 2. It provides partial coverage for medical expenses not fully covered by Part A. 3. It is fully funded by Social Security taxes (FICA). 4. It is known as medical insurance.

It is fully funded by Social Security taxes (FICA).

Concerning Medicare Part B, which statement is INCORRECT? a) It provides partial coverage for medical expenses not fully covered by Part A. b) It is fully funded by Social Security taxes (FICA). c) It is known as medical insurance. d) It offers limited prescription drug coverage.

It is fully funded by Social Security taxes (FICA).

What is franchise insurance? (Choose from the following options) 1. It is health coverage for small groups whose numbers are too small to qualify for true group insurance 2. It provides insurance for franchises, such as a restaurant or hotel chain 3. It is group insurance 4. It is blanket insurance

It is health coverage for small groups whose numbers are too small to qualify for true group insurance

What is the purpose of a conditional receipt? a) It is given by the agent only to applicants who fully prepay all scheduled premiums in advance of policy issue. b) It is intended to provide coverage on a date earlier than the date of the issuance of the policy. c) It guarantees the applicant that a policy will be issued in the amount applied for in the application. d) It serves as proof that the agent has determined the applicant to be fully insurable for coverage by the insurance company.

It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy? (Choose from the following options) 1. It is reduced to the amount of what the cash value would buy as a single premium. 2. It is increased when extra premiums are paid. 3. It decreases over the term of the policy. 4. It remains the same as the original policy, regardless of any differences in value.

It is reduced to the amount of what the cash value would buy as a single premium.

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy? a) It decreases over the term of the policy. b) It remains the same as the original policy, regardless of any differences in value. c) It is reduced to the amount of what the cash value would buy as a single premium. d) It is increased when extra premiums are paid.

It is reduced to the amount of what the cash value would buy as a single premium.

An insurer invests the money it receives from premiums paid by its insureds. Which of the following is TRUE regarding the interest earned on these investments? (Choose from the following options) 1. It is paid out as dividends. 2. It is used to fund executive bonuses 3. It is used to increase the death benefit. 4. It is used to lower premiums.

It is used to lower premiums.

Which of the following is true regarding a single life settlement option? a) Payments continue until the entire principal is exhausted. b) Proceeds are paid out in a lump sum. c) It provides income for a specified period of time. d) It provides income the beneficiary cannot outlive.

It provides income the beneficiary cannot outlive.

Sue has an HSA and is planning to leave her current job for a new job. When she leaves her job, what will happen to her HSA? (Choose from the following options) 1. It will revert back to the employer's ownership 2. It will continue because it is owned by Sue, not her employer 3. It will stay with the employer for the person who fills Sue's position 4. It will be canceled

It will continue because it is owned by Sue, not her employer

Which of the following statements is TRUE concerning the Accidental Death Rider? (Choose from the following options) 1. It is only available in group insurance. 2. It will pay double or triple the face amount. 3. It is also known as a triple indemnity rider. 4. This rider is only available to insureds over the age of 65.

It will pay double or triple the face amount.

Which of the following is NOT true regarding the accumulation period of an annuity? (Choose from the following options) 1. It would not occur in a deferred annuity. 2. It is the period during which the annuity payments earn interest. 3. It is the period over which the owner makes payments into an annuity. 4. It is also known as the pay-in period.

It would not occur in a deferred annuity.

Which of the following is true of a PPO? a) Claim forms are completed by members on each claim. b) No copayment fees are involved. c) Its goal is to channel patients to providers that discount services. d) The most common type of PPO is the staff model.

Its goal is to channel patients to providers that discount services.

What type of benefit helps to pay for accidental injuries that are not severe enough to qualify as disabilities? (Choose from the following options) 1. Basic Accidental Injury 2. Accidental Death & Dismemberment 3. Medical Reimbursement Benefit 4. Partial Disability

Medical Reimbursement Benefit

Elijah and Mary are to receive the proceeds of a life insurance policy jointly until the first one dies. If either one should die within a specified time, the other one will receive benefits until the end of the specified time. This settlement option is known as: a) Joint Life with Term Certain b) Joint Life c) Joint and Survivor d) Joint and Last Survivor

Joint Life with Term Certain

A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select? (Choose from the following options) 1. Joint and survivor 2. Joint annuity 3. Cash refund annuity 4. Straight life

Joint and survivor

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called a) Fixed period. b) Fixed amount. c) Joint life. d) Joint and survivor.

Joint and survivor.

Which of the following is NOT true regarding penalties for violation of the rules and regulations of the Insurance Code? (Choose from the following options) 1. Commissioner may issue a cease-and-desist order 2. License may not be revoked 3. Fine up to $50,000 4. License may be suspended for several years

License may not be revoked

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary? a) Single life b) Fixed-amount c) Life income with period certain d) Joint and survivor

Life income with period certain

An insurance organization that does not issue insurance policies but provides a meeting place for underwriters to conduct business is known as a (Choose from the following options) 1. Capital stock company. 2. Lloyd's association. 3. Fraternal society. 4. Mutual company.

Lloyd's association.

. Which type of care is NOT covered by Medicare? (Choose from the following options) 1. Hospital 2. Long-term care 3. Hospice 4. Respite

Long-term care

In a Disability Income policy, all of the following are considered presumptive disabilities EXCEPT (Choose from the following options) 1. Loss of hearing. 2. Loss of two limbs. 3. Loss of speech. 4. Loss of one eye.

Loss of one eye.

. In franchise insurance, premiums are usually (Choose from the following options) 1. Lower than individual policies, but higher than group policies. 2. Lower than individual policies or group policies. 3. Higher than individual policies or than group policies. 4. Higher than individual policies, but lower than group policies.

Lower than individual policies, but higher than group policies.

If a settlement option is not chosen by the beneficiary or policyowner, which option will be used? (Choose from the following options) 1. Life income 2. Fixed period 3. Fixed amount 4. Lump sum

Lump sum

All of the following statements describe a MEWA EXCEPT (Choose from the following options) 1. MEWAs can be sponsored by insurance companies. 2. MEWA employers retain full responsibility for any unpaid claims. 3. MEWAs can be self-insured. 4. MEWAs are groups of at least 3 employers.

MEWAs are groups of at least 3 employers.

All of the following are characteristics of a Major Medical Expense policy EXCEPT a) Coinsurance. b) Low maximum limits. c) Deductibles d) Blanket coverage.

Major medical expense contracts are characterized by high maximum limits, blanket coverage, coinsurance, and a deductible.

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? (Choose from the following options) 1. Waiver 2. Utmost Good Faith 3. Estoppel 4. Material misrepresentation

Material misrepresentation

One of the advantages of a family life insurance policy that provides coverage for children is that it (Choose from the following options) 1. Allows any income the children make to be included in coverage. 2. May be converted to permanent insurance for the children without requiring evidence of insurability. 3. Covers children for free. 4. Allows the spouse extra coverage for every child covered.

May be converted to permanent insurance for the children without requiring evidence of insurability.

Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs? (Choose from the following options) 1. Grandfathered and nongrandfathered 2. Risk classification 3. Metal level classification 4. Guaranteed and nonguaranteed

Metal level classification

What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military? (Choose from the following options) 1. Limited 2. Aviation 3. Hazardous occupation 4. Military service or war

Military service or war

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes a) Defamation. b) Twisting. c) Coercion. d) Misrepresentation.

Misrepresentation

Which of the following is NOT true regarding policy loans? a) An insurer can charge interest on outstanding policy loans. b) A policy loan may be repaid after the policy is surrendered. c) Money borrowed from the cash value is taxable. d) Policy loans can be repaid at death.

Money borrowed from the cash value is taxable.

Which of the following is NOT true regarding policy loans? (Choose from the following options) 1. A policy loan may be repaid after the policy is surrendered. 2. Money borrowed from the cash value is taxable. 3. Policy loans can be repaid at death. 4. An insurer can charge interest on outstanding policy loans.

Money borrowed from the cash value is taxable.

After a back injury, an insured is disabled for a year. His insurance policy carries a Disability Income Benefit rider. Which of the following benefits will he receive? (Choose from the following options) 1. Payments for life 2. Yearly premium waiver and income 3. Monthly premium waiver and monthly income 4. Percentage of medical costs paid by the insurer

Monthly premium waiver and monthly income

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report a) Must be informed of the source of the report. b) Are entitled to obtain a copy of the report from the party who ordered it. c) Must be advised that a copy of the report is available to anyone who requests it. d) May sue the reporting agency in order to get inaccurate data corrected.

Must be informed of the source of the report.

The primary eligibility requirement for Medicaid benefits is based upon (Choose from the following options) 1. Need. 2. Whether the claimant is insurable on the private market. 3. Age. 4. Number of dependents.

Need.

Jack is licensed as a life producer and Jill is licensed as a property and casualty producer. Jack sends one of his life insurance clients to Jill to buy automobile insurance. Jill makes the sale and sends a portion of her commission to Jack as a finder's fee. Which is true concerning these events? (Choose from the following options) 1. Both Jack and Jill are guilty of rebating. 2. Neither is guilty of rebating. 3. Only Jill is guilty of rebating. 4. Only Jack is guilty of rebating.

Neither is guilty of rebating.

In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received? a) No tax b) Tax deductible c) State income tax d) Federal income tax

No tax

The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called (Choose from the following options) 1. Nonoccupational coverage. 2. Unemployment coverage. 3. Occupational coverage. 4. Workers compensation.

Nonoccupational coverage.

Premium payments for personally-owned disability income policies are (Choose from the following options) 1. Eligible for tax credits. 2. Tax deductible. 3. Tax deductible to the extent that they exceed 10% of the adjusted gross income of those itemizing deductions. 4. Not tax deductible.

Not tax deductible.

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are (Choose from the following options) 1. Not taxable since the IRS treats them as a return of a portion of the premium paid. 2. Paid at a fixed rate every year. 3. Taxable as ordinary income. 4. Guaranteed.

Not taxable since the IRS treats them as a return of a portion of the premium paid.

A 55-year-old employee has worked part-time for his new employer for 3 months now, but has not been offered health insurance. What factor has limited the employee's eligibility? (Choose from the following options) 1. Number of hours worked per week 2. The total amount of time worked for the company 3. Age 4. Income

Number of hours worked per week

All of the following are qualifications of a resident producer EXCEPT a) Paying a nonrefundable fee for each license. b) Being 18 years old. c) Having submitted a uniform application to the Commissioner. d) Obtaining a sponsorship of an admitted insurance company.

Obtaining a sponsorship of an admitted insurance company.

All of the following statements are correct according to the Life Insurance Advertising Rule 13, EXCEPT a) Producer must tell the applicant that the subject of the sale is insurance only b) Advertising material must make it clear that dividends are not guaranteed c) Only written presentations by the producers are considered advertising d) Insurance policies may not be called investment plans

Only written presentations by the producers are considered advertising

All of the following statements are correct according to the Life Insurance Advertising Rule 13, EXCEPT (Choose from the following options) 1. Advertising material must make it clear that dividends are not guaranteed 2. Only written presentations by the producers are considered advertising 3. Insurance policies may not be called investment plans 4. Producer must tell the applicant that the subject of the sale is insurance only

Only written presentations by the producers are considered advertising

Which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insureds? (Choose from the following options) 1. Guaranteed renewable 2. Optionally renewable 3. Conditionally renewable 4. Cancellable

Optionally renewable

. Which of the following statements is INCORRECT concerning Medicare Part B coverage? (Choose from the following options) 1. Part B will pay 80% of covered expenses, subject to Medicare's standards for reasonable charges. 2. It is a voluntary program designed to provide supplementary medical insurance to cover physician services, medical services and supplies not covered under Part A. 3. Part B coverage is provided free of charge when an individual turns age 65. 4. Participants under Part B are responsible for an annual deductible.

Part B coverage is provided free of charge when an individual turns age 65.

Which of the following statements is INCORRECT concerning Medicare Part B coverage? a) Part B coverage is provided free of charge when an individual turns age 65. b) Participants under Part B are responsible for an annual deductible. c) Part B will pay 80% of covered expenses, subject to Medicare's standards for reasonable charges. d) It is a voluntary program designed to provide supplementary medical insurance to cover physician services, medical services and supplies not covered under Part A.

Part B coverage is provided free of charge when an individual turns age 65.

An insured has a Level Term Life Insurance policy that is guaranteed renewable and also includes a re-entry provision. The re-entry provision would allow the insured to renew the policy and (Choose from the following options) 1. Change the type of insurance without evidence of insurability. 2. Pay a lower renewal premium by proving insurability. 3. Change the type of insurance by proving insurability. 4. Pay a lower renewal premium without evidence of insurability.

Pay a lower renewal premium by proving insurability.

An insured has a Level Term Life Insurance policy that is guaranteed renewable and also includes a re-entry provision. The re-entry provision would allow the insured to renew the policy and (Choose from the following options) 1. Pay a lower renewal premium by proving insurability. 2. Change the type of insurance by proving insurability. 3. Pay a lower renewal premium without evidence of insurability. 4. Change the type of insurance without evidence of insurability.

Pay a lower renewal premium by proving insurability.

A participating insurance policy may do which of the following? (Choose from the following options) 1. Pay dividends to the policyowner 2. Provide group coverage 3. Pay dividends to the stockholder 4. Require 80% participation

Pay dividends to the policyowner

An insured pays her Major Medical Insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On March 19, she had an accident and broke her leg. The insurance company would (Choose from the following options) 1. Hold the claim as pending until the end of the grace period. 2. Deny the claim. 3. Pay half of her claim because the insured had an outstanding premium. 4. Pay the claim.

Pay the claim.

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do? (Choose from the following options) 1. Pay a decreased death benefit 2. Sue for the right to not pay the death benefit 3. Pay the death benefit 4. Refuse to pay the death benefit because of the fraud

Pay the death benefit

Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner? (Choose from the following options) 1. Entire Contract Clause 2. Proof of Loss 3. Payment of Claims 4. Change of beneficiary

Payment of Claims

Which of the following riders would NOT cause the Death Benefit to increase? (Choose from the following options) 1. Cost of Living Rider 2. Accidental Death Rider 3. Payor Benefit Rider 4. Guaranteed Insurability Rider

Payor Benefit Rider

The causes of loss insured against in an insurance policy are known as (Choose from the following options) 1. Perils 2. Losses 3. Risks 4. Hazards

Perils

An applicant wants to buy a policy that has a cash value element. Which type should she buy? a) Term b) Permanent c) Stock d) Investment

Permanent

Which of the following provisions is mandatory for health insurance policies? (Choose from the following options) 1. Intoxicants and narcotics 2. Physical examination and autopsy 3. Recurrent disability 4. Unpaid premiums

Physical examination and autopsy

Which of the following has the right to convert the existing term coverage to permanent insurance? (Choose from the following options) 1. Producer 2. Policyowner 3. Insurer 4. Beneficiary

Policyowner

Which of the following is correct regarding the taxation of group medical expense premiums and benefits? (Choose from the following options) 1. Premiums are not tax deductible and benefits are not taxed. 2. Premiums are tax deductible and benefits are taxed. 3. Premiums are tax deductible and benefits are not taxed. 4. Premiums are not tax deductible and benefits are taxed.

Premiums are tax deductible and benefits are not taxed.

After the elimination period, a totally disabled insured qualified and started receiving benefits from his disability income policy that has a waiver of premium rider. What will most likely happen to the premiums paid into the policy during the elimination period? a) Premiums will be retained by the company, but no further premium will be required for the duration of the disability. b) Premiums will be prorated. c) Premiums will be waived. d) Premiums will be refunded.

Premiums will be refunded.

A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called

Prepaid plan.

Which of the following is the most common way to transfer risk? (Choose from the following options) 1. Increase control of claims 2. Lessen the possibility of loss 3. Name a beneficiary 4. Purchase insurance

Purchase insurance

An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information? a) Receive a signed statement from the insured which authorizes the investigation b) Sign a waiver that the information will be kept confidential c) Present the insured with a Disclosure Authorization Notice d) Receive written permission from the Department of Insurance

Present the insured with a Disclosure Authorization Notice

An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information? (Choose from the following options) 1. Sign a waiver that the information will be kept confidential 2. Present the insured with a Disclosure Authorization Notice 3. Receive written permission from the Department of Insurance 4. Receive a signed statement from the insured which authorizes the investigation

Present the insured with a Disclosure Authorization Notice

Which of the following is NOT among the goals of a Medicare supplement application? (Choose from the following options) 1. Advising applicants regarding the availability of counseling services 2. Presuming the applicant is eligible for Medicaid, based on the nature of the policy 3. Determining whether or not an applicant has an existing Medicare supplement policy 4. Determining whether or not the policy will replace another accident and health policy

Presuming the applicant is eligible for Medicaid, based on the nature of the policy

Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death? (Choose from the following options) 1. Double the amount of the death benefit 2. Refund of premiums 3. Principal sum 4. Capital sum

Principal sum

A long-term care shopper's guide must be presented at what point? (Choose from the following options) 1. Prior to the time of application 2. At the time of application 3. Between the completion of the application and the delivery of the policy 4. At the time of policy delivery

Prior to the time of application

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called? (Choose from the following options) 1. HR 10 plan 2. Profit sharing plan 3. 401(k) plan 4. Tax-sheltered account plan

Profit sharing plan

In respect to the consideration clause, which of the following is consideration on the part of the insurer? (Choose from the following options) 1. Promising to pay in accordance with the contract terms 2. Offering a secondary policy to the applicant 3. Offering an unconditional contract 4. Explaining policy revisions to the applicant

Promising to pay in accordance with the contract terms

A policyholder with a dependent child who needs hospital and medical coverage past a limiting age due to physical or mental handicap must furnish which of the following for continued coverage? (Choose from the following options) 1. All pertinent medical records relating to the disabled dependent 2. Proof of incapacity for self-sustaining employment and dependency upon the policyholder for support and maintenance 3. A petition of dependency 4. An affidavit by an attending physician outlining the necessity of coverage due to the child's disability

Proof of incapacity for self-sustaining employment and dependency upon the policyholder for support and maintenance

What would a physician utilize if he/she wanted to know if a treatment is covered under an insured's plan and at what rate it will be paid? (Choose from the following options) 1. Supplementary chart 2. Prospective review 3. Concurrent review 4. Comprehensive review

Prospective review

When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT a) Obtain from the producer a list of the applicant's life insurance or annuity contracts to be replaced. b) Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. c) Sending the existing insurance company a written notice of replacement. d) Include a policy summary on the proposed life insurance in the communication with the existing company.

Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant.

Under Rule 24, Life Insurance Solicitation, producer's duties include all of the following EXCEPT (Choose from the following options) 1. Clarifying to the applicant that the producer will be receiving a commission for the transaction. 2. Informing the applicant of the name of the company that the producer represents. 3. Advising the applicant that the dividends in the policy are not guaranteed. 4. Providing the applicant with a signed copy of the Important Notice Regarding Replacement.

Providing the applicant with a signed copy of the Important Notice Regarding Replacement.

Which of the following Life Insurance policies would be considered interest sensitive? a) Increasing term b) Universal life c) Adjustable life d) Whole life

Universal life

All of the following are true regarding rebates EXCEPT a) Rebates are only allowed if specifically stated in the policy. b) Rebating can be anything of economic value, given as an inducement to buy. c) Dividends are not considered to be rebates. d) Rebates are allowed if it's in the best interest of the client.

Rebates are allowed if it's in the best interest of the client.

Which of the following factors determines the amount of each installment paid in a Life Income Option arrangement? (Choose from the following options) 1. Projected income 2. Recipient's health and death benefits 3. Projected life insurance and health insurance 4. Recipient's life expectancy and amount of principal

Recipient's life expectancy and amount of principal

Which of the following is NOT specifically prohibited by state law as an unfair trade practice? (Choose from the following options) 1. Reducing the premiums paid by employers for group insurance based on loss experience 2. Using misleading representations to induce uncalled-for action by the insured 3. Using incomplete comparisons of policies to induce uncalled-for action by the insured 4. Failing to disclose that the solicitations of an insurance contract are the result of a marketing method

Reducing the premiums paid by employers for group insurance based on loss experience

An insured committed suicide one year after his life insurance policy was issued. The insurer will (Choose from the following options) 1. Refund the premiums paid. 2. Pay the policy's cash value. 3. Pay the full death benefit to the beneficiary. 4. Pay nothing.

Refund the premiums paid.

Which of the following statements is true regarding AIDS & HIV underwriting (Rule 39)? (Choose from the following options) 1. Companies may deny applicants if they based on the fact that the applicants sought AIDS testing. 2. Reports to the MIB may only include information about abnormal blood test results, and not references to AIDS. 3. During the application process, the insurer may seek information about an applicant's sexual orientation. 4. Genetic testing is required for all applicants.

Reports to the MIB may only include information about abnormal blood test results, and not references to AIDS.

In case of a loss, the indemnity provision in insurance policies (Choose from the following options) 1. Pays the insured a percentage of the loss above and beyond the loss. 2. Pays the insured as much as 95% of the loss. 3. Restores an insured person to the same financial state as before the loss. 4. Allows the insured to collect 20% more than the actual loss.

Restores an insured person to the same financial state as before the loss.

To sell variable life insurance policies, an agent must receive all of the following EXCEPT a) A life insurance license. b) SEC registration. c) FINRA registration. d) A securities license.

SEC registration

To sell variable life insurance policies, an agent must receive all of the following EXCEPT (Choose from the following options) 1. A securities license. 2. A life insurance license. 3. SEC registration. 4. FINRA registration.

SEC registration.

To sell variable life insurance policies, an agent must receive all of the following EXCEPT a) A securities license. b) A life insurance license. c) SEC registration. d) FINRA registration.

SEC registration.

Who may contribute to an HR-10 plan? (Choose from the following options) 1. Self-employed plumber 2. Manager of a store 3. Corporate executive 4. Partner with at least 5% ownership

Self-employed plumber

An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy? (Choose from the following options) 1. She will still be covered under the group plan, but will have to pay an individual policy premium. 2. She can only convert her coverage without proof of insurability if she has the master policy. 3. She must apply for a new policy, which requires her to provide proof of insurability. 4. She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan.

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan.

When the insured initiates the cancellation of a policy, the unearned premium will be refunded on a (Choose from the following options) 1. Extended term basis. 2. Pro rata basis. 3. Per occurrence basis. 4. Short rate basis.

Short rate basis.

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT a) Payment of premium. b) Delivery receipt. c) Signed waiver of premium. d) Statement of good health.

Signed waiver of premium.

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT (Choose from the following options) 1. Signed waiver of premium. 2. Statement of good health. 3. Payment of premium. 4. Delivery receipt.

Signed waiver of premium.

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT a) Delivery receipt. b) Signed waiver of premium. c) Statement of good health. d) Payment of premium.

Signed waiver of premium.

Regarding long-term care policies, which of the following would NOT be included in activities of daily living? (Choose from the following options) 1. Dressing 2. Eating 3. Sleeping 4. Bathing

Sleeping

Regarding long-term care policies, which of the following would NOT be included in activities of daily living? a) Dressing b) Eating c) Sleeping d) Bathing

Sleeping

Which benefit is based on the person's Primary Insurance Amount (PIA)? (Choose from the following options) 1. Social Security disability benefit 2. Death benefit in a universal life policy 3. Accidental death benefit 4. Long-term care benefit

Social Security disability benefit

Which of the following applicants would NOT qualify for a Keogh Plan? (Choose from the following options) 1. Someone who works 400 hours per year 2. Someone who has been employed for more than 12 months 3. Someone who is over 25 years of age 4. Someone who works for a self-employed individual

Someone who works 400 hours per year

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the (Choose from the following options) 1. Beneficiary protection clause. 2. Spendthrift clause. 3. Benefit protection clause. 4. Incontestability clause.

Spendthrift clause.

What characteristic must an annuity have if it is used to accumulate funds in an IRA? a) Tax-deductible b) Tax-qualified c) Fixed income d) Fixed premium

Tax-qualified

Which of the following is an example of a producer being involved in an unfair trade practice of rebating? a) Making deceptive statements about a competitor b) Telling a client that his first premium will be waived if he purchased the insurance policy today c) Inducing the insured to drop a policy in favor of another one when it's not in the insured's best interest d) Charging a client a higher premium for the same policy as another client in the same insuring class

Telling a client that his first premium will be waived if he purchased the insurance policy today

Which of the following may NOT be included in an insurance company's advertisement? (Choose from the following options) 1. That its policies are covered by a state Guaranty Association 2. Their policies' limitations or exclusions 3. The name of a specific agent 4. An identification of a limited policy as a limited policy

That its policies are covered by a state Guaranty Association

What authority is responsible for examining the operations of insurance companies in this state? (Choose from the following options) 1. The Governor 2. The NAIC 3. The Insurance Guaranty Association 4. The Commissioner

The Commissioner

Which of the following is NOT correct regarding examination of companies? a) The Commissioner must examine all alien companies. b) The Commissioner may examine a company doing business in this state at any time. c) The Commissioner may waive examination of foreign companies under certain circumstances. d) All domestic companies are subject to fiscal examination.

The Commissioner must examine all alien companies.

All of the following entities regulate variable life policies EXCEPT a) The Guaranty Association. b) Federal government. c) The SEC. d) The Insurance Department.

The Guaranty Association.

If an Indiana family has a low level of income and cannot afford health insurance, what program could help? (Choose from the following options) 1. The Indiana Health Insurance Pool 2. The Federal Insurance Assistance Program 3. The Guaranty Association Fund 4. The Indiana Children's Health Insurance Program

The Indiana Children's Health Insurance Program

Which of the following is NOT covered under Plan A in Medigap insurance? a) The 20% Part B coinsurance amounts for Medicare approved services b) The first three pints of blood each year c) The Medicare Part A deductible d) Approved hospital costs for 365 additional days after Medicare benefits end

The Medicare Part A deductible

Which of the following is NOT covered under Plan A in Medigap insurance? a) The Medicare Part A deductible b) Approved hospital costs for 365 additional days after Medicare benefits end c) The 20% Part B coinsurance amounts for Medicare approved services d) The first three pints of blood each year

The Medicare Part A deductible

Which of the following is TRUE regarding variable annuities? (Choose from the following options) 1. A person selling variable annuities is required to have only a life agent's license. 2. The annuitant assumes the risks on investment. 3. The funds are invested in the company's general account. 4. The company guarantees a minimum interest rate.

The annuitant assumes the risks on investment.

All of the following statements about equity index annuities are correct EXCEPT a) The annuitant receives a fixed amount of return. b) They have a guaranteed minimum interest rate. c) The interest rate is tied to an index such as the Standard & Poor's 500. d) They invest on a more aggressive basis aiming for higher returns.

The annuitant receives a fixed amount of return.

All of the following statements about equity index annuities are correct EXCEPT a) The interest rate is tied to an index such as the Standard & Poor's 500. b) They invest on a more aggressive basis aiming for higher returns. c) The annuitant receives a fixed amount of return. d) They have a guaranteed minimum interest rate.

The annuitant receives a fixed amount of return.

If a beneficiary is NOT named for annuity benefits, to which entity will the benefit be paid? (Choose from the following options) 1. The state government 2. The insurance company 3. The annuitant's estate 4. The next of kin

The annuitant's estate

Which of the following is NOT the consideration in a policy? (Choose from the following options) 1. The promise to pay covered losses 2. The application given to a prospective insured 3. Something of value exchanged between parties 4. The premium amount paid at the time of application

The application given to a prospective insured

Which of the following is NOT the consideration in a policy? a) The application given to a prospective insured b) Something of value exchanged between parties c) The premium amount paid at the time of application d) The promise to pay covered losses

The application given to a prospective insured

All of the following are ways in which a Major Medical policy premium is determined EXCEPT (Choose from the following options) 1. The average age of the group. 2. The amount of the deductible. 3. The coinsurance percentage. 4. The stop-loss amount.

The average age of the group.

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back? (Choose from the following options) 1. The policy beneficiary takes over the loan payments. 2. The policy is rendered null and void. 3. The balance of the loan will be taken out of the death benefit. 4. The policy beneficiary receives the full death benefit.

The balance of the loan will be taken out of the death benefit.

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE? a) The money will continue to grow tax-deferred until the liquidation period, and then will be paid to the beneficiary. b) The beneficiary will receive the greater of the money paid into the annuity or the cash value. c) Because the annuitization period has not started, the owner's estate will receive the money paid into the annuity. d) The insurance company will retain the cash value and pay back the premiums to the owner's estate.

The beneficiary will receive the greater of the money paid into the annuity or the cash value.

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then a) The benefit is received tax free. b) The benefit is subject to the exclusionary rule. c) IRS has no jurisdiction. d) The benefit is received as taxable income.

The benefit is received tax free.

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then (Choose from the following options) 1. IRS has no jurisdiction. 2. The benefit is received as taxable income. 3. The benefit is received tax free. 4. The benefit is subject to the exclusionary rule.

The benefit is received tax free.

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then a) The benefit is subject to the exclusionary rule. b) IRS has no jurisdiction. c) The benefit is received as taxable income. d) The benefit is received tax free.

The benefit is received tax free.

Which of the following is true under Rule 48: Accelerated Death Benefits? (Choose from the following options) 1. Any insurance policy must contain an Accelerated Death Benefit rider. 2. The accelerated death benefit must be paid out in a lump sum. 3. The benefit may only be used for medical expenses. 4. The benefit may be triggered by a terminal illness.

The benefit may be triggered by a terminal illness.

The annuity owner dies during the accumulation period of his annuity. The cash value of his annuity exceeds the premiums he paid. There is no named beneficiary. Which of the following is true? (Choose from the following options) 1. The premium value will be paid to the annuitant's estate. 2. The state government will receive the amount of premiums paid. 3. The state government will receive the cash value of the annuity. 4. The cash value will be paid to the annuitant's estate.

The cash value will be paid to the annuitant's estate.

An insurance producer has not been appointed to an insurance company. Who is the producer considered to represent? (Choose from the following options) 1. The state's Guaranty Fund 2. The Department of Insurance 3. The insurer 4. The client

The client

An insurance producer has not been appointed to an insurance company. Who is the producer considered to represent? a) The insurer b) The client c) The state's Guaranty Fund d) The Department of Insurance

The client

What may happen if the Commissioner determines that the insurance company knew about the producer's violation of the licensing law and did not report it? (Choose from the following options) 1. The company's license may be suspended or revoked. 2. The Commissioner will order an investigation of all producers in the company. 3. The company may be fined up to $10,000. 4. Nothing; the company is not responsible for producer's actions.

The company's license may be suspended or revoked.

What may happen if the Commissioner determines that the insurance company knew about the producer's violation of the licensing law and did not report it? a) The company's license may be suspended or revoked. b) The Commissioner will order an investigation of all producers in the company. c) The company may be fined up to $10,000. d) Nothing; the company is not responsible for producer's actions.

The company's license may be suspended or revoked.

In insurance, an offer is usually made when (Choose from the following options) 1. The completed application is submitted. 2. The insurer approves the application and receives the initial premium. 3. The agent hands the policy to the policyholder. 4. An agent explains a policy to a potential applicant.

The completed application is submitted.

What type of information is NOT included in a certificate of insurance? a) The procedures for filing a claim b) The length of coverage c) The cost the company is paying for monthly premiums d) The policy benefits and exclusions

The cost the company is paying for monthly premiums

What type of information is NOT included in a certificate of insurance? (Choose from the following options) 1. The procedures for filing a claim 2. The length of coverage 3. The cost the company is paying for monthly premiums 4. The policy benefits and exclusions

The cost the company is paying for monthly premiums

In a group policy, the contract is between a) The employer and the union. b) The employee and the employer. c) The employer and the insurance company. d) The individual and the insurance company.

The employer and the insurance company.

How do employer contributions to a Health Savings Account affect the insured's taxes? (Choose from the following options) 1. The employer contributions are deducted from the individual insured's tax calculations. 2. The employer contributions are not included in the individual insured's taxable income. 3. The employer contributions are taxed at the same rate as the Social Security tax rate. 4. The employer contributions are taxed to the individual insured as earned income.

The employer contributions are not included in the individual insured's taxable income.

In a disability policy, the elimination (or waiting) period refers to the period between a) Coverage under a disability policy and coverage under Social Security. b) During which any specific illness or accident is excluded from coverage. c) The first day of disability and the day the insured starts receiving benefits. d) The effective date of the policy and the date the first premium is due.

The first day of disability and the day the insured starts receiving benefits.

An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true? (Choose from the following options) 1. The group plan will pay depending on the employee's recovery. 2. The group plan will not pay because the employee was injured at work. 3. The group plan will pay. 4. The group plan will pay a portion of the employee's expenses.

The group plan will not pay because the employee was injured at work.

The Affordable Care Act requires all U.S. citizens and legal residents to have qualifying health care coverage. This is known as (Choose from the following options) 1. Special enrollment. 2. The individual mandate. 3. The Insurance Marketplace. 4. Safe Harbor mandate.

The individual mandate.

A man works for Company A and his wife works for Company B. The spouses are covered by health plans through their respective companies that also cover the other spouse. If the husband files a claim, (Choose from the following options) 1. The insurance plans will split the coverage evenly. 2. Both plans will pay the full amount of the claim. 3. The insurance through his company is primary. 4. The insurance through his wife's company is primary.

The insurance through his company is primary.

Which of the following best describes the "first-dollar coverage" principle in basic medical insurance? (Choose from the following options) 1. Deductibles and coinsurance are taxed first. 2. The insured is not required to pay a deductible. 3. The insured must first pay a deductible. 4. The insurer covers the first claim on the policy.

The insured is not required to pay a deductible.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? a) The insured may choose to convert to term or permanent individual coverage. b) The insured would not need to prove insurability for a conversion policy. c) The insured may convert coverage to an individual policy within 31 days. d) The premium for individual coverage will be based upon the insured's attained age.

The insured may choose to convert to term or permanent individual coverage.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? (Choose from the following options) 1. The insured would not need to prove insurability for a conversion policy. 2. The insured may convert coverage to an individual policy within 31 days. 3. The premium for individual coverage will be based upon the insured's attained age. 4. The insured may choose to convert to term or permanent individual coverage.

The insured may choose to convert to term or permanent individual coverage.

What is necessary in order to be eligible to receive benefits from a long-term care policy? a) The insured must meet certain economic standards. b) The insured must have been receiving disability benefits for 6 months. c) Age is the only requirement; upon reaching age 65, LTC benefits are available. d) The insured must be unable to perform some activities of daily living.

The insured must be unable to perform some activities of daily living.

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to a) Creditors. b) Beneficiary of the death benefit. c) The spouse of the insured. d) The insured.

The insured.

Regarding the return of premium option for LTC policies, what happens to the premium if the policy lapses? a) The insurer will not return any premiums in the case the policy is allowed to lapse. b) The premium will only be returned if the insured dies. c) The insurer will return all of the premiums paid. d) The insurer will return a percentage of the premiums paid.

The insurer will return a percentage of the premiums paid.

Regarding the return of premium option for LTC policies, what happens to the premium if the policy lapses? (Choose from the following options) 1. The insurer will not return any premiums in the case the policy is allowed to lapse. 2. The premium will only be returned if the insured dies. 3. The insurer will return all of the premiums paid. 4. The insurer will return a percentage of the premiums paid.

The insurer will return a percentage of the premiums paid.

Which of the following is true about an insurance producer license? (Choose from the following options) 1. The license expires every 2 years; it is the producer's responsibility to apply for a license renewal. 2. The license remains in effect as long as the renewal fee is paid and continuing education requirements are met by the due date. 3. The license is renewed every four years when all the fees are paid. 4. Producer license cannot be revoked until expired.

The license remains in effect as long as the renewal fee is paid and continuing education requirements are met by the due date.

The insuring clause of a disability policy usually states all of the following EXCEPT (Choose from the following options) 1. The method of premium payment. 2. The identities of the insurance company and the insured. 3. That insurance against loss is provided. 4. The types of losses covered.

The method of premium payment.

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 (Choose from the following options) 1. The partnership itself. 2. The partners' spouses. 3. A court appointed representative. 4. The company's compliance officer.

The partnership itself.

All of the following statements are true regarding installments for a fixed amount EXCEPT a) Value of the account and future earnings will determine the time period for the benefits. b) This option pays a specific amount until the funds are exhausted. c) The annuitant may select how big the payments will be. d) The payments will stop when the annuitant dies.

The payments will stop when the annuitant dies.

All of the following statements are true regarding installments for a fixed amount EXCEPT (Choose from the following options) 1. This option pays a specific amount until the funds are exhausted. 2. The annuitant may select how big the payments will be. 3. The payments will stop when the annuitant dies. 4. Value of the account and future earnings will determine the time period for the benefits.

The payments will stop when the annuitant dies.

All of the following statements are true regarding installments for a fixed amount EXCEPT a) This option pays a specific amount until the funds are exhausted. b) The annuitant may select how big the payments will be. c) The payments will stop when the annuitant dies. d) Value of the account and future earnings will determine the time period for the benefits.

The payments will stop when the annuitant dies.

Which of the following best describes what the annuity period is? (Choose from the following options) 1. The period of time from the accumulation period to the annuitization period 2. The period of time during which money is accumulated in an annuity 3. The period of time from the effective date of the contract to the date of its termination 4. The period of time during which accumulated money is converted into income payments

The period of time during which accumulated money is converted into income payments

In terms of parties to a contract, which of the following does NOT describe a competent party? (Choose from the following options) 1. The person must be mentally competent to understand the contract. 2. The person must have at least completed secondary education. 3. The person must not be under the influence of drugs or alcohol. 4. The person must be of legal age.

The person must have at least completed secondary education.

All of the following are true of key person insurance EXCEPT (Choose from the following options) 1. The plan is funded by permanent insurance only. 2. There is no limitation on the number of key employee plans in force at any one time. 3. The employer is the owner, payor and beneficiary of the policy. 4. The key employee is the insured.

The plan is funded by permanent insurance only.

All of the following are true of key person insurance EXCEPT a) The plan is funded by permanent insurance only. b) There is no limitation on the number of key employee plans in force at any one time. c) The employer is the owner, payor and beneficiary of the policy. d) The key employee is the insured.

The plan is funded by permanent insurance only.

An agent tries to sell insurance over the phone to an applicant who appears to be confused, but is eventually able to give enough information for the application to be completed. After the policy was issued, the agent talked to the insured's family, and they explained that the insured was recovering from a surgery and might have been under the influence of medication at the time of application. Which of the following is true? (Choose from the following options) 1. The policy may be voided if it can be proven that the applicant was not capable of making a buying decision at the time of application. 2. The policy will remain in force as long as there are no material misrepresentations on the application. 3. The policy is legal since the applicant was able to give all required information. 4. The policy is not legal; agents cannot sell insurance over the phone.

The policy may be voided if it can be proven that the applicant was not capable of making a buying decision at the time of application.

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen? (Choose from the following options) 1. The insurer will sue the insured for committing fraud. 2. Because the insured is currently not a drug user, his policy will not be affected. 3. The policy will not be affected. 4. The policy will be voided.

The policy will not be affected.

If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true? (Choose from the following options) 1. The premium will be taken out of the Guaranty Association funds. 2. The agent's license will be automatically revoked. 3. The policy will lapse since the premium was not received by the insurer. 4. The policy will not lapse since payment to the agent is the same as a payment to the insurer.

The policy will not lapse since payment to the agent is the same as a payment to the insurer.

If an insured continually uses the automatic premium loan option to pay the policy premium, (Choose from the following options) 1. The cash value will continue to increase. 2. The insurer will increase the premium amount. 3. The policy will terminate when the cash value is reduced to nothing. 4. The face amount of the policy will be reduced by the automatic premium loan amount.

The policy will terminate when the cash value is reduced to nothing.

All of the following would be eligible to establish a Keogh retirement plan EXCEPT (Choose from the following options) 1. A hair dresser who operates her business at her house. 2. The president and employee of a family corporation. 3. A sole proprietor of a service station who employs four employees. 4. A sole proprietor of film development store with no employees.

The president and employee of a family corporation.

When a producer is trying to reinstate a lapsed license, what kind of fees would he be required to pay? (Choose from the following options) 1. The producer must pay all past and current renewal fees. 2. The producer will have to pay a penalty 3 times the unpaid renewal fees. 3. The renewal fee for a lapsed policy is an additional 10%. 4. There is no monetary penalty if the continuing education requirement is met.

The producer will have to pay a penalty 3 times the unpaid renewal fees.

All of the following are characteristics of a group life insurance plan EXCEPT (Choose from the following options) 1. The participants receive a Certificate of Insurance as their proof of insurance. 2. A minimum number of participants is required in order to underwrite the plan. 3. The cost of the plan is determined by the average age of the group. 4. There is a requirement to prove insurability on the part of the participants.

There is a requirement to prove insurability on the part of the participants.

An HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense. Which of the following is true? (Choose from the following options) 1. There will be no taxes and no penalties. 2. There will be a tax and a 20% penalty. 3. There will be a 20% penalty. 4. There will be a tax.

There will be a tax.

Under a SIMPLE plan, which of the following is TRUE regarding taxation on both contributions and earnings? (Choose from the following options) 1. 75% of employee's contributions are taxed. 2. They are tax deferred until withdrawn. 3. Taxes must be paid in full. 4. Employer's matching contribution can be 50% of employee's salary.

They are tax deferred until withdrawn.

When the breadwinner that is insured by a Family Policy dies, what rights are provided to other family members that are covered under the policy? (Choose from the following options) 1. They can convert their coverage to permanent life insurance without evidence of insurability. 2. They can convert their coverage to permanent life insurance with evidence of insurability. 3. Family members are not provided any rights. 4. They can surrender the coverage for its cash value.

They can convert their coverage to permanent life insurance without evidence of insurability.

All of the following statements about Medicare supplement insurance policies are correct EXCEPT a) They cover the cost of extended nursing home care. b) They cover Medicare deductibles and copayments. c) They supplement Medicare benefits. d) They are issued by private insurers.

They cover the cost of extended nursing home care.

All of the following are requirements for life insurance illustrations EXCEPT (Choose from the following options) 1. They must differentiate between guaranteed and projected amounts. 2. They must be part of the contract. 3. They may only be used as approved. 4. They must identify nonguaranteed values.

They must be part of the contract.

All of the following are requirements for life insurance illustrations EXCEPT a) They must differentiate between guaranteed and projected amounts. b) They must be part of the contract. c) They may only be used as approved. d) They must identify nonguaranteed values.

They must be part of the contract.

What is the purpose of a suicide provision within a life insurance policy? (Choose from the following options) 1. To protect the insurer from persons who purchase life insurance with the intention of committing suicide 2. To limit the insurer's liability after the 2 year waiting period 3. To deter the policyowner from committing suicide 4. To protect the policyowner

To protect the insurer from persons who purchase life insurance with the intention of committing suicide

Income replacement contracts agree (Choose from the following options) 1. To replace income if the head of the household is the primary insured, and he/she loses income due to a lay-off. 2. To cover any accident on the job, but not accidents outside of his/her job. 3. To replace the insured for his/her company, including hiring and training wages. 4. To replace the insured's income up to a stated percentage if the insured suffers a loss due to a covered accident or sickness.

To replace the insured's income up to a stated percentage if the insured suffers a loss due to a covered accident or sickness.

The Waiver of Cost of Insurance rider is found in what type of insurance? a) Joint and Survivor b) Juvenile Life c) Universal Life d) Whole Life

Universal Life

The Waiver of Cost of Insurance rider is found in what type of insurance? (Choose from the following options) 1. Juvenile Life 2. Universal Life 3. Whole Life 4. Joint and Survivor

Universal Life

The Waiver of Cost of Insurance rider is found in what type of insurance? a) Joint and Survivor b) Juvenile Life c) Universal Life d) Whole Life

Universal Life

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? (Choose from the following options) 1. Universal Life - Option B 2. Equity Indexed Universal Life 3. Variable Universal Life 4. Universal Life - Option A

Universal Life - Option A

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? a) Universal Life - Option A b) Universal Life - Option B c) Equity Indexed Universal Life d) Variable Universal Life

Universal Life - Option A

. What kind of policy allows withdrawals or partial surrenders? (Choose from the following options) 1. Term policy 2. Variable whole life 3. Universal life 4. 20-pay life

Universal life

Which of the following Life Insurance policies would be considered interest sensitive? (Choose from the following options) 1. Adjustable life 2. Whole life 3. Increasing term 4. Universal life

Universal life

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? (Choose from the following options) 1. Variable life 2. Decreasing term 3. Straight whole life 4. Universal life

Variable life

All of the following are true regarding viatical settlement regulations in Indiana EXCEPT a) Producers must provide the insured with the information on alternatives to a viatical settlement. b) All viatical producers must be licensed. c) Viatical contracts allow for a 10-day free-look period. d) Insureds are required to submit a disclosure on their medical condition and competence.

Viatical contracts allow for a 10-day free-look period.

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called a) Guaranteed insurability. b) Waiver of cost of insurance. c) Payor benefit. d) Waiver of premium.

Waiver of premium.

Rule 18 governing Accident and Sickness Insurance Advertising includes all of the following EXCEPT (Choose from the following options) 1. Want ads soliciting new agents. 2. Sales aids issued by an insurer for presentation to the public. 3. Any printed or published literature. 4. Prepared sales talks.

Want ads soliciting new agents.

An agent is completing an application for a long-term care policy. The agent is required to do all of the following EXCEPT (Choose from the following options) 1. Warn the applicant about the 10-day free-look period. 2. Make sure the policy is appropriate for the applicant's needs. 3. Provide the applicant with the Outline of Coverage. 4. Ask where the applicant has another LTC policy in force.

Warn the applicant about the 10-day free-look period.

When does a person qualify to receive disability-related income? a) When the disability reaches a designated state of severity b) When an injury is severe and the insured is not a dependent c) When an insured is hospitalized for more than one week d) When the insured is unable to perform his/her job duties

When the insured is unable to perform his/her job duties

When would a 20-pay whole life policy endow? (Choose from the following options) 1. When the insured reaches age 100 2. At the insured's age 65 3. After 20 payments 4. In 20 years

When the insured reaches age 100

Which of the following determines whether disability insurance benefits are taxed? (Choose from the following options) 1. Whether the premiums were tax deductible 2. State statutes 3. Contract provisions 4. If the total of benefits paid meets the minimum state taxation standard

Whether the premiums were tax deductible

Which of the following types of insurance policies would perform the function of cash accumulation? a) Credit life b) Increasing term c) Whole life d) Term life

Whole life

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? (Choose from the following options) 1. Distributions before age 59 1/2 incur a 10% penalty on policy gains. 2. Policy loans are taxable distributions. 3. Accumulations are tax deferred. 4. Withdrawals are not taxable.

Withdrawals are not taxable.

Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? a) Distributions before age 59 1/2 incur a 10% penalty on policy gains. b) Policy loans are taxable distributions. c) Accumulations are tax deferred. d) Withdrawals are not taxable.

Withdrawals are not taxable.

Which of the following describes the taxation of an annuity when money is withdrawn during the accumulation phase? (Choose from the following options) 1. Withdrawn amounts are taxed on a first in, last out basis. 2. Taxes are deferred on withdrawn amounts, but a flat penalty is charged. 3. Taxes are deferred on withdrawn amounts. 4. Withdrawn amounts are taxed on a last in, first out basis.

Withdrawn amounts are taxed on a last in, first out basis.