2024 Indiana Life Insurance Practice Exam with Answers (75 Solved Questions)

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2024 Indiana Life Insurance Practice Exam with Answers (75 Solved Questions) - Page 1 preview image

Indiana Life Insurance Exam With Correct Questions & AnswersLatest UPDATED 2024Which of the following statements is true about the Group Lifeconversion privilege?a. Death during the conversion period is covered even if thedeparting employee chooses NOT to convert to an individual policy.b. The departing employee must pay the premium if they elect to becovered during the conversion period.c. If a departing employee elects to convert their life insurance, thecompany must offer Term insurance as a choice.d. Under the COBRA laws a departing employee may elect to remaina member of the Group Life plan for a limited period of time. - A.Death during the conversion period is covered even if the departingemployee chooses NOT to convert to an individual policy.Which of the following is a combination of Decreasing Term andWhole Life?a. Family Income Policyb. Family Maintenance Policyc. Modified Lifed. Family Policy - A. Family Income Policy

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A type of Annuity in which the cash values are invested in securitiesis called:a. Variableb. Deferredc. Joint and Survivorshipd. Flexible premium - VariableWhich of the following is NOT a characteristic of a Variable Annuity?A. Premium Payments may be level or flexible or single premiumB. The cash values are invested in securities.C. The non-forfeiture values will provide for the return of the cashvalue should the annuitant die during the accumulation period.D. It provides for a tax-free death benefit. - D. It provides for a tax-free death benefit.All of the following policies provide for the tax deferredaccumulation of cash value EXCEPT:A. Interest Sensitive Whole LifeB. Single Premium Variable AnnuityC. Variable Universal LifeD. Term Life - D. Term LifeAll of the following are true statements about the taxation of lifeinsurance benefits except:

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A. Policy loans are taxed as ordinary incomeB. The cash value in a life insurance policy grows on a tax deferredbasis.C. The interest earned on the "interest" Settlement Option is taxedas ordinary income.D. The death benefit of a life policy is received by the beneficiaryfederal income tax free. - A. Policy loans are taxed as ordinaryincomeMary is receiving an annuity payout from her Variable Straight LifeAnnuity. Upon her death, which of the following will be payable to herestate?a. Nothingb. The policy death benefitc. The remaining value of her accountd. The total premiums paid into the account, less the amount paid toMary in benefits - A. NothingWhat is decreasing in a Decreasing Term policy?a. The cash valueb. The premiumc. The face amountd. The nonforfeiture values - The Face AmountEndowment policies can mature in two ways. What are they?

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a. The insured dies during the policy period or annuitizes the policyafter age 59&1/2.b. The insured dies during the policy period or reaches theendowment age as designated in the policy.c. The insured dies during the policy period or retires at age59&1/2.d. The insured dies or reaches age 100. - B. The insured dies duringthe policy period or reaches the endowment age as designated inthe policy.At age 30, Joe Insured purchases a 20 Pay Whole Life Policy. Whichof the following statements is true regarding Joe's policy coverage?a. Joe's death protection will end at age 50.b. Joe's nonforfeiture values will end at age 50.c. Joe will be able to stop paying the premiums at age 50, but hisdeath protection will run through age 100.d. At age 50, Joe's cash value will equal the face value of hiscontract. - C. Joe will be able to stop paying the premiums at age50, but his death protection will run through age 100.Warranties are:a. The same as representations.b. Statements that are absolutely true.c. Statements that are believed to be true.

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d. Critical to the formation of a life insurance contractualagreement. - B. Statements that are absolutely true.All the following are reasons why an insurance company may notpay a death benefit under a Term life insurance policy EXCEPT:a. A suicide before the end of the first two policy years.b. Non payment of premium.c. An accidental death resulting from drowning.d. A material misrepresentation on the application discoveredbefore the end of the contestable period. - C. An accidental deathresulting from drowning.Which of the following life insurance policies offers the build up ofcash value on an interest-sensitive basis and the right to makepartial withdrawals of that cash value without interest?a. Universal Lifeb. Adjustable Lifec. Variable Universal Lifed. Variable Whole Life - A. Universal LifeYou own a Life Annuity. Which of the following settlement optionswould guarantee that at least the value of your Annuity would bepaid to you or to your estate?a. Straight Life Annuity

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b. Life Annuity with Period Certainc. Joint and Survivorship Life Annuityd. Refund Life Annuity - D. Refund Life AnnuityWhich of the following statements is NOT true about Fixed Annuities?a. A securities license is necessary to sell Fixed Annuities.b. There will be a guaranteed minimum rate of return payable on theinvestment.c. Monies cannot be withdrawn prior to age 59 1/2 without penalty.d. The monies invested will be in the company's General Account. - A.A securities license is necessary to sell Fixed AnnuitiesAgent Steve takes a prepaid application from applicant Cindy andissues a 30 day Interim Term insurance receipt to Cindy. Theeffective date of the interim coverage will be on the:a. policy delivery date.b. date of application or date of the medical exam, which everoccurs last, if the proposed insured is insurable on that key date.c. date of application.d. policy issue date. - C. Date of ApplicationWhich of the following regulates Group Life insurance conversionprivileges?a. State Law

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b. HIPAAc. COBRAd. HCFA - A. State LawWhich of the following is true of a Whole Life policy purchased with asingle premium?a. The incontestable period will be shorter than it otherwise wouldhave been.b. The cash values will be larger than they otherwise would havebeen in the earlier policy years.c. The suicide clause will be waived.d. The death benefit will be larger than if the policy was purchasedwith a limited pay system. - B. The cash values will be larger thanthey otherwise would have been in the earlier policy years.The Reinstatement provision in a Whole Life policy states all thefollowing EXCEPT that the:a. policy on Extended Term may not be reinstated.b. insured must pay all past due premiums plus interest.c. reinstatement must occur within a designated period of time(such as three years).d. insured must provide proof of insurability. - A. The policy onExtended Term may not be reinstated.

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Which of the following types of life insurance would use a PayorBenefit rider?a. Survivorship Lifeb. Family Policyc. Family Income Policyd. Juvenile Life - D. Juvenile LifeWhich of the following premium payments for a business related lifeinsurance policy would be tax deductible as an ordinary businessexpense?a. Split Dollarb. Key Employeec. Buy and Selld. Group Life - D. Group LifeWhich of the following does NOT provide a taxable income?a. The interest earned on a death benefit under the Interest Onlysettlement option.b. The interest earned on the Accumulate At Interest dividend option.c. The receipt of dividends paid by a mutual company to thepolicyowner.d. The receipt of an annuity payment under a Joint and SurvivorshipLife Annuity contract. - C. The receipt of dividends paid by a mutualcompany to the policyowner.

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A contract sold by an insurance company that promises to pay anincome to the policyowner until his/her death is called a:a. Survivorship Lifeb. Family Income Policyc. Straight Life Annuityd. Modified Endowment - C. Straight Life AnnuityAn Immediate Life Annuity provides for:a. A level death benefit.b. The systematic liquidation of the principal and interest over thelifetime of the annuitant.c. The accumulation of retirement funds.d. Cost of living increases in benefit payments. - B. The systematicliquidation of the principal and interest over the lifetime of theannuitantWhich of the following life insurance policy provisions allow thepolicyowner the right to name and change beneficiaries, to assignthe policy to another person, to obtain a policy loan or to surrenderthe policy for its cash value?a. Entire Contractb. Settlementc. Assignment

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