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Indiana State Life and Health Insurance Exam Questions and Answers Latest Version Already Passed

Who regulates insurance companies in Indiana?

• Indiana Insurance Department
• U.S. Treasury

✔✔ C. Indiana Department of Insurance

• Indiana Department of Health

What does a term life insurance policy provide?

• Cash value accumulation
• Permanent coverage

✔✔ C. Temporary coverage for a set period

• Investment returns

Which of the following riders waives premium payments when the insured becomes disabled?

• Accidental death benefit rider

✔✔ B. Waiver of premium rider 1 / 4

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• Return of premium rider
• Guaranteed insurability rider

In Indiana, the free-look period for life insurance policies is:

• 5 days

✔✔ B. 10 days

• 15 days
• 30 days

What is the purpose of insurable interest?

• To determine the premium cost
• To identify the beneficiary

✔✔ C. To prove the policyholder would suffer financial loss if the insured dies

• To limit coverage amount

Which type of life insurance offers both death benefit and cash value growth?

• Term life insurance
• Universal health insurance 2 / 4

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✔✔ C. Whole life insurance

• Group insurance

What happens if a life insurance policy lapses due to nonpayment of premium?

• The death benefit doubles
• The policy is automatically converted to term

✔✔ C. Coverage ends unless reinstated

• The insurer refunds all premiums

What is a health maintenance organization (HMO)?✔✔ A. A managed care plan requiring use of network providers

• A federal insurance program
• A policy that covers only accidents
• An employer-sponsored retirement plan

The elimination period in disability insurance refers to:

• The policy expiration date

✔✔ B. The waiting period before benefits begin 3 / 4

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• The deductible amount
• The grace period

What does the incontestability clause in a life insurance policy do?

• Allows the insurer to cancel anytime
• Removes all premiums

✔✔ C. Prevents insurer from contesting claims after a certain period

• Eliminates death benefit

In Indiana, how often must insurance producers renew their licenses?

• Every year
• Every three years

✔✔ C. Every two years

• Every five years

Which of the following best describes a disability income policy?

• Pays medical bills only

✔✔ B. Provides income replacement when insured is disabled

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