ILHI - Indiana Life and Health Insurance Exam

Question 1: An insurer denies a disability claim and sends a one-line letter that says only that the claim does not qualify, with no reference to policy language or facts. Which of the following listed practices in IC 27-4-1-4.5 does that letter illustrate?

Settling for less than advertising material promised

Appealing arbitration awards to force lower settlements

Adopting no standards for prompt claim investigation

Failing to explain the basis for denial

Question 2: An Indiana producer studying the Department chapter wants to know how long the Insurance Commissioner may hold that office before a new appointment must be made. Under IC 27-1-1-2, which of the following statements correctly describes the Commissioner's tenure in Indiana?

None; service at the Governor's pleasure

A fixed four-year term

A fixed two-year term, renewable once

A term ending with each state election

Question 3: A consumer in South Bend files a complaint with the Indiana Department of Insurance about a delayed claim. The Department forwards it to the insurer. Under IC 27-4-1-5.6, within what period must the insurer send the Department its written response?

Twenty calendar days

Thirty calendar days

Forty-five calendar days

Twenty business days

Question 4: A producer who moved to Indiana from a state that gives insurers fifteen days to acknowledge a claim looks for the equivalent Indiana deadline in the unfair claim settlement practices list. Which of the following describes what she will find there?

The same fifteen-day rule she knows

A twenty-day acknowledgment deadline

No day count; a reasonableness standard instead

A thirty-day deadline for every claim

Question 5: A licensed producer in Terre Haute dies, and his agency needs someone to service the book of business until a permanent arrangement is found. The Department agrees to issue a temporary resident producer license. Which of the following states the longest period Indiana allows that license to run?

Not more than ninety days

Not more than twelve months

Not more than sixty days

Not more than one hundred eighty days

Question 6: Indiana classifies the criminal consequence of a violation of the Indiana Insurance Law, and the mental state that matters there is recklessness rather than knowledge or intent. For a person with no prior adjudication, which classification does Indiana apply to that reckless violation?

A Class C infraction

A Class A misdemeanor

A Level 6 felony

A Class B misdemeanor

Question 7: A Fishers agency organized as a limited liability company wants to sell life and health insurance in the agency's own name and receive commissions from carriers. Which of the following does Indiana require of that agency before it may transact that business?

Post a fifty thousand dollar bond

Designate a responsible licensed producer

Obtain an insurer certificate of authority

Nothing beyond the owners' individual licences

Question 8: A Muncie producer opens certified mail and finds the insurer's notification that his appointment was terminated for cause. He wants his side placed on the record with the Department. Which of the following states the window Indiana gives him?

Fifteen days from receiving the notification

Sixty-three days from receiving the notification

He has no right to comment

Thirty days from receiving the notification

Question 9: An insurer notified the commissioner of a producer's termination on the tenth of June, some weeks after the termination took effect. Which of the following states the deadline for mailing the producer a copy of that notification, and what starts it?

Fifteen days from the termination date

Fifteen days from notifying the commissioner

Thirty days from the termination date

Fifteen days from the producer's receipt

Question 10: A Terre Haute insurer routinely offers claimants a fraction of what its own file supports, and those who sue regularly recover far more. The Department examines the pattern. Which of the following practices from IC 27-4-1-4.5 does that conduct match?

Compelling insureds to institute litigation

Delaying by demanding duplicate claim forms

Altering the application before settlement

Failing to adopt reasonable investigation standards

Question 11: An Indiana producer recklessly violates the Indiana Insurance Law. Roughly four years earlier the same producer was adjudicated for an unrelated violation of the same section. How does that earlier adjudication change the classification of the present violation?

It rises to a Class A misdemeanor

It stays a Class C infraction

It becomes a Level 6 felony

It rises to a Class C misdemeanor

Question 12: A producer in Bloomington wants to hand every prospect a branded travel mug during an open house, whether or not anyone applies for coverage. The Department has published guidance on when such a gift is not treated as a rebate. Which condition does that guidance set?

The item is disclosed to the commissioner

Fair market value twenty-five dollars or less

The gift is given only to applicants

The producer reports it as taxable income

Question 13: An Indianapolis financial planner confers directly with a prospective purchaser, offering advice about the substantive benefits, terms and conditions of a proposed health contract, and he also places coverage with insurers. Which of the three licensed activities describes what he is doing?

Negotiating

Selling

Soliciting

Adjusting

Question 14: The Indiana Insurance Commissioner sits as a member of the National Association of Insurance Commissioners, and the Department reports on the NAIC documents Indiana incorporates. Which of the following correctly states what that association does in relation to Indiana insurers?

It licenses Indiana resident insurance producers

It issues Indiana certificates of authority

It sets binding rates for Indiana insurers

It writes model laws states may adopt

Question 15: Indiana's Department of Insurance reviews an admitted life insurer's claim handling, policy forms and sales practices to see whether the company is following its contracts and state law. Which of the following names the type of examination the Department is performing?

A financial condition examination

A rate adequacy examination

A market conduct examination

A guaranty association examination

Question 16: A study group argues about which Indiana section actually forbids unfair claim settlement practices. One member points to the sixteen-item list, another to the enumerated unfair methods of competition. Which of the following correctly describes the role IC 27-4-1-4.5 plays in that scheme?

It sets the penalty for each violation

It creates a private lawsuit for insureds

It fixes deadlines for acknowledging every claim

It defines the practices; it prohibits nothing

Question 17: A retired teacher in Muncie holds a deferred annuity issued by a company now in rehabilitation. Naming the benefit type, which of the following states the Indiana guaranty association limit that applies to the present value of annuity benefits?

Two hundred fifty thousand dollars

Three hundred thousand dollars

Five million dollars

One hundred thousand dollars

Question 18: An insurer that has already been ordered to cease and desist from a claim practice keeps doing it anyway. The Department opens a second enforcement matter. Under IC 27-4-1-12, how does Indiana treat the insurer's violation of that standing order?

It merges into the original penalty

It is punished as a felony

It carries its own separate penalty

It ends the Commissioner's jurisdiction

Question 19: An Indiana producer whose license was denied makes a timely written demand for a hearing. Her attorney asks how soon the hearing must occur and which body of law governs it. Which of the following pairs the deadline with the governing statute correctly?

Sixty-three days; the unfair competition chapter

Thirty days; the administrative orders act

Thirty days; the unfair competition chapter

Sixty-three days; the administrative orders act

Question 20: An Indiana resident held a major medical policy with a health insurer that has now been placed in liquidation. Naming the benefit type precisely, which of the following is the association limit Indiana applies to basic hospital, medical and surgical coverage?

Five hundred thousand dollars