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Indiana Life Insurance Exam with 100% Verified Questions and Answers.
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Indiana Life Insurance Exam with 100- Verified Questions and Answers.
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Indiana Life Insurance Exam with 100% Verified Questionsand Answers
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 .ac
cumulation .period.
D. .It .provides .for .a .tax-free .death .benefit. .- .(correct .answer) .-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 .answer) .-D. .Term .Life
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
.answer) .-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 .co
nvert .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 .insur
ance .as .a .choice.
d. .Under .the .COBRA .laws .a .departing .employee .may .elect .to .remain .a .member .of .the .Group .Life .pl
an .for .a .limited .period .of .time. .- .(correct .answer) .-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 .answer) .-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 .answer) .-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 .answer) .-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 .answer) .-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 .pol
icy.
c. .The .insured .dies .during .the .policy .period .or .retires .at .age .59&1/2.
d. .The .insured .dies .or .reaches .age .100. .- .(correct .answer) .-
B. .The .insured .dies .during .the .policy .period .or .reaches .the .endowment .age .as .designated .in .the .pol
icy.
At .age .30, .Joe .Insured .purchases .a .20 .Pay .Whole .Life .Policy. .Which .of .the .following .statements .is .t
rue .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 .answer) .-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 .answer) .-
B. .Statements .that .are .absolutely .true.
All .the .following .are .reasons .why .an .insurance .company .may .not .pay .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 .discovered .before .the .end .of .the .contestable .per
iod. .- .(correct .answer) .-C. .An .accidental .death .resulting .from .drowning.
Which .of .the .following .life .insurance .policies .offers .the .build .up .of .cash .value .on .an .interest-
sensitive .basis .and .the .right .to .make .partial .withdrawals .of .that .cash .value .without .interest?
a. .Universal .Life
b. .Adjustable .Life
c. .Variable .Universal .Life
d. .Variable .Whole .Life .- .(correct .answer) .-A. .Universal .Life
Joel .owns .a .$100,000 .face .amount .Whole .Life .policy .which .has .a .cash .value .of .
$11,000. .There .is .also .an .outstanding .loan .of .
$4,000. .If .Joel .dies, .how .much .would .the .insurance .company .pay .to .his .beneficiary?
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