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2024 INDIANA LIFE INSURANCE EXAM WITH VERIFIED SOLUTIONS
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2024 INDIANA LIFE INSURANCE EXAM WITH VERIFIED SOLUTIONS
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2024 INDIANA LIFE INSURANCEEXAM WITH VERIFIED SOLUTIONS
Which of the following types of life insurance would use a Payor Benefit
rider?
a. Survivorship Life
b. Family Policy
c. Family Income Policy
d. Juvenile Life - CORRECT ANSWERS-D. Juvenile Life
Which of the following premium payments for a business related life
insurance policy would be tax deductible as an ordinary business expense?
a. Split Dollar
b. Key Employee
c. Buy and Sell
d. Group Life - CORRECT ANSWERS-D. Group Life
Which of the following is NOT a characteristic of a Variable Annuity?
A. Premium Payments may be level or flexible or single premium
B. The cash values are invested in securities.
C. The non-forfeiture values will provide for the return of the cash value
should the annuitant die during the accumulation period.
D. It provides for a tax-free death benefit. - CORRECT ANSWERS-D. It
provides for a tax-free death benefit.
All of the following policies provide for the tax deferred accumulation of cash
value EXCEPT:
A. Interest Sensitive Whole Life
B. Single Premium Variable Annuity
C. Variable Universal Life
D. Term Life - CORRECT ANSWERS-D. Term Life
You own a Life Annuity. Which of the following settlement options would
guarantee that at least the value of your Annuity would be paid to you or to
your estate?
,a. Straight Life Annuity
b. Life Annuity with Period Certain
c. Joint and Survivorship Life Annuity
d. Refund Life Annuity - CORRECT ANSWERS-D. Refund Life Annuity
Which 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 the
investment.
c. Monies cannot be withdrawn prior to age 59 1/2 without penalty.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. - CORRECT
ANSWERS-A. A securities license is necessary to sell Fixed Annuities
Agent Steve takes a prepaid application from applicant Cindy and issues a 30
day Interim Term insurance receipt to Cindy. The effective date of the
interim coverage will be on the:
a. policy delivery date.
b. date of application or date of the medical exam, which ever occurs last, if
the proposed insured is insurable on that key date.
c. date of application.
d. policy issue date. - CORRECT ANSWERS-C. Date of Application
Which of the following regulates Group Life insurance conversion privileges?
a. State Law
b. HIPAA
c. COBRA
d. HCFA - CORRECT ANSWERS-A. State Law
Which of the following is true of a Whole Life policy purchased with a single
premium?
a. The incontestable period will be shorter than it otherwise would have
been.
b. The cash values will be larger than they otherwise would have been in the
earlier policy years.
c. The suicide clause will be waived.
d. The death benefit will be larger than if the policy was purchased with a
limited pay system. - CORRECT ANSWERS-B. The cash values will be larger
than they otherwise would have been in the earlier policy years.
The Reinstatement provision in a Whole Life policy states all the following
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. - CORRECT ANSWERS-A. The
policy on Extended Term may not be reinstated.
All of the following are true statements about the taxation of life insurance
benefits except:
A. Policy loans are taxed as ordinary income
B. The cash value in a life insurance policy grows on a tax deferred basis.
C. The interest earned on the "interest" Settlement Option is taxed as
ordinary income.
D. The death benefit of a life policy is received by the beneficiary federal
income tax free. - CORRECT ANSWERS-A. Policy loans are taxed as ordinary
income
Which of the following statements is true about the Group Life conversion
privilege?
a. Death during the conversion period is covered even if the departing
employee chooses NOT to convert to an individual policy.
b. The departing employee must pay the premium if they elect to be covered
during the conversion period.
c. If a departing employee elects to convert their life insurance, the company
must offer Term insurance as a choice.
d. Under the COBRA laws a departing employee may elect to remain a
member of the Group Life plan for a limited period of time. - CORRECT
ANSWERS-A. Death during the conversion period is covered even if the
departing employee chooses NOT to convert to an individual policy.
Which of the following is a combination of Decreasing Term and Whole Life?
a. Family Income Policy
b. Family Maintenance Policy
c. Modified Life
d. Family Policy - CORRECT ANSWERS-A. Family Income Policy
A type of Annuity in which the cash values are invested in securities is called:
a. Variable
b. Deferred
c. Joint and Survivorship
d. Flexible premium - CORRECT ANSWERS-Variable
, Mary is receiving an annuity payout from her Variable Straight Life Annuity.
Upon her death, which of the following will be payable to her estate?
a. Nothing
b. The policy death benefit
c. The remaining value of her account
d. The total premiums paid into the account, less the amount paid to Mary in
benefits - CORRECT ANSWERS-A. Nothing
What is decreasing in a Decreasing Term policy?
a. The cash value
b. The premium
c. The face amount
d. The nonforfeiture values - CORRECT ANSWERS-The Face Amount
Endowment policies can mature in two ways. What are they?
a. The insured dies during the policy period or annuitizes the policy after age
59&1/2.
b. The insured dies during the policy period or reaches the endowment age
as designated in the policy.
c. The insured dies during the policy period or retires at age 59&1/2.
d. The insured dies or reaches age 100. - CORRECT ANSWERS-B. The insured
dies during the policy period or reaches the endowment age as designated in
the policy.
At age 30, Joe Insured purchases a 20 Pay Whole Life Policy. Which of 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 his death
protection will run through age 100.
d. At age 50, Joe's cash value will equal the face value of his contract. -
CORRECT ANSWERS-C. Joe will be able to stop paying the premiums at age
50, 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.
d. Critical to the formation of a life insurance contractual agreement. -
CORRECT ANSWERS-B. Statements that are absolutely true.
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