Indiana Life Pre-licensing

Which of the following statements is correct about the Insurance Commissioner's authority to examine the business records of a producer?

The Commissioner may examine them whenever it's deemed necessary

When must insurable interest be present in order for a life insurance policy to be valid?

when the application is made

what is the free look period for life insurance policies issued in indiana is___ Days.

10 Days

A return of premium life insurance policy is

Whole life and increasing term explanation.

K, age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers K's wife to age 64. All of these situations will pay a death benefit EXCEPT:

K's wife dies at age 66

T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?

Income that cannot be outlived by the owner

a group life insurance policy can be converted to an individual whole life policy under which circumstance?

employment termination

Which requirement must be met for an association to be eligible for a group life plan?

Group was formed for a purpose other than acquiring insurance

T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has received monthly payments since the inception of the annuity. If T dies, the insurance company

Does not have to make any further payments.

P is a producer who is licensed in Indiana, but a resident of michigan. in Indiana, p is considered to be a(n) _________ producer.

nonresident.

K has a life insurance policy where her husband is the beneficiary and her daughter is the contingent beneficiary. Under Common Disaster clause, if K and her husband where killed in a automobile accident, where would the death proceeds be directed?

Daughter

Who is the Commissioner appointed by?

State Senate

Which of the following is not situation that involves life insurance policy replacement

converting a term policy to a permanent policy with the same insurer.

Which of these would be considered a Limited-Pay Life policy?

Life Paid-Up at Age 70

An individual life insurance policy sold in Indiana can be contested by the insurer only during the first____years of the contract?

2

When must insurable interest exist for a life insurance contract to be valid?

Inception of the contract

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

Conversion provision

a group life insurance policy can be converted to an individual whole life policy under which circumstance?

employment termination

The type of annuity that can be purchased with one monetary deposit is called a(n)

Immediate annuity

Which of the following is NOT considered rebating?

Sharing commissions with an agent licensed in the same line of business

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

Extended Term

What kind of premium does a whole life policy have?

Level

An example of false advertising would be

An insurer exaggerating its dividends in a magazine advertisement

a(n) _______ of authority permits an insurance company to transact business in Indiana.

certificate

All of the following are considered to be typical characteristics describing the nature of an insurance contract EXCEPT?

Bilateral

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

Variable Life

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

Forward the application to the insurer without the initial premium

Which of these is considered a statement that is assured to be true in every respect?

Warranty

P has recently signed an application for insurance. The insurer MUST advise her in writing that investigative consumer report may be conducted according to the

Fair Credit Reporting Act

Which of the following would be a valid reason for suspending or revoking an insurance producer's license?

The producer has misappropriated money held in a fiduciary capacity

when a policy pays dividends to its policyholders it is said to be

participating

with whom may a producer share commission with

A licensed producer with the same licenese type

The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)

Insuring agreement

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?

Upon completion of the application

Which statement is TRUE regarding a Variable Whole Life policy?

A minimum guaranteed death benefit is provided

which of the following employees may not be excluded from a group life plan ?

Full-time employees after the probationary period

A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enable the policyowner to sell policy for more than cash value?

Life settlement

a producer must notify the commissioner within ___________ days of a felony conviction

30

quarterly premium payments increase the annual cost of insurance because

interest to the insurer is decreases while the administratice costs are increased

which of the following is an example of false advertising

An insurance company publishing misleading information about it policy's provisions

The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called?

reserves

what type of insurance company is domiciled in england, but conducts business in indiana

In a Key Employee life insurance policy, the third-party owner can be all of the following, EXCEPT:

insured

An insurer may normally delay the payment of a cash value loan or surrender value for up to?

6 months

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

P only

the insurance commissioner is authorized

To enforce state laws relating to insurance

What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained?

Fair Credit Reporting Act

a level premium indicates

the premium is fixed for the entire duration of the contract

what does the indiana life and health insurance guaranty association provide

Claim payments of admitted, insolvent insurance companies

at the very least, an admitted insurance company shall be examined once every ___ years.

5

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the

policy proceeds

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

Decreasing term

Which of the following is a requirement to be eligible for group health policy?

Group must be form for a purpose other than obtaining insurance

an insurer distribute public brochures that contain a false statement regarding a competitor's ability to pay claims. this act is considered an example of:

defamation

A licensee must notify the commissioner within ____ days of an address change,

30days

A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?

Income taxes plus a 10% penalty tax on $30,000

Variable Whole Life Insurance can be described as:

Both an insurance ans securities product

On January 8, an applicant filled out and application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?

January 26

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits?

5 months

In Indiana, what is the maximum percentage of controlled business a producer may produce over a 12 month period?

25%

a domestic insurance company in indiana must

Be incorporated and formed in Indiana

which of the following is not an unfair claim settlement practice

Needing written documentation of claim details

which of these is not considered to be an element of an insurance contract

Negotiating

A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, cost of insurance

Cost of insurance

which statement is true regarding a minor beneficiary

normally a guardian is required to be appointed in the beneficiary of the contract.

a life insurance policy would be considered a wagering contract without

insurable interest

according to indiana law group life insurance conversion privileges must not

require evidence of insurability

An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the?

Fair Credit Reporting Act

which of the following statements is correct about the indiana life and health insurance guaranty association

it protects indiana insurance policyowners in the event an insurance company becomes insolvent.

An insured's inability to perform two or more activities of daily living may trigger which type of policy rider?

Long term care

The combination of Whole Life and ______ Term insurance is referred to as a Family Income Policy.

Decreasing

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)?

extra premium

how often must an insurance producers license be renewed

every two years

A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as

a fraternal benefit society

producers must complete ___________ hours of continuing education every two years to keep their license active.

24 hours

Which of the following groups may NOT be insured by a group life insurance policy?

individuals who are related by blood

Rebating

Pay back