ILHI - Indiana Life and Health Insurance Exam

Question 1: A universal life policyowner selects a design under which the beneficiary would receive the face amount together with whatever has built up in the cash account, so the amount payable climbs as the account climbs. Which design has been selected?

Option B, an increasing death benefit

Option A, a level death benefit

A term rider on the insured

The exchange privilege rider

Question 2: A policyowner is comparing annual, semi-annual, quarterly and monthly billing on the same contract and wants to know which schedule produces the smallest total outlay across one full year of coverage. Which of the following premium modes costs the policyowner least?

Monthly

Annual

Quarterly

Semi-annual

Question 3: Each month the insurer reaches into a universal life policy's accumulation account and removes two items before crediting interest. A producer is asked to name those two items during a policy review. Which pairing correctly states what is deducted?

Surrender charges and dividend credits

Policy loan interest and premium taxes

Guaranteed interest and separate account gains

Term cost of insurance and administrative fee

Question 4: A thirty-five-year-old applicant wants coverage for exactly twenty years, with a face amount that never changes and a premium that stays the same every year of that period. Which of the following term arrangements matches what this applicant is describing?

Decreasing term insurance

Increasing term insurance

Level term insurance

Annually renewable term insurance

Question 5: A client wants one contract that can be reshaped over the years, changing the face amount, the premium and the length of protection without replacing the policy, so it can behave like term now and like whole life later. Which policy allows that?

Modified premium whole life

Decreasing term insurance

Single premium whole life

Adjustable life

Question 6: A whole life contract keeps a fixed, level death benefit and a fixed payment timetable, yet its cash value may be credited with excess interest and rise above the guaranteed figure when economic conditions permit. Which contract best fits this description?

Interest-sensitive whole life

Indeterminate premium whole life

Modified premium whole life

Graded premium whole life

Question 7: A married couple buys a single policy covering both of them. The contract pays its death benefit when the first of the two insureds dies, and the coverage then ends. Which specialized policy have these two people purchased?

Survivorship life, or second-to-die

Joint life, or first-to-die

Juvenile life insurance

A family term rider

Question 8: A buyer hands the insurer one payment at purchase, and that payment together with its interest earnings covers every future cost of keeping the permanent contract in force. The policy has cash value immediately. Which whole life form is this?

Continuous premium whole life

Graded premium whole life

Modified premium whole life

Single premium whole life

Question 9: A borrower takes a thirty-year home loan and wants life coverage whose payable amount falls as the loan balance falls, reaching zero when the mortgage is fully repaid, while the premium stays the same each year. Which term policy fits?

Decreasing term

Increasing term

Level term

Return of premium term

Question 10: A universal life policyowner skips several scheduled deposits during a difficult year and asks the producer whether the coverage has ended. The producer explains the test the contract actually applies. Which statement describes what keeps this policy in force?

Payment of every scheduled premium notice

Continuous dividend credits from the insurer

Written approval from an executive officer

Cash value covering the monthly expenses

Question 11: A permanent contract credits its accumulation value according to the movement of a stock market index such as the Standard and Poor's five hundred, yet the crediting rate is never allowed to fall below zero. Which product works this way?

Variable universal life

Equity-indexed universal life

Graded premium whole life

Annually renewable term

Question 12: Among permanent contracts, one form opens with the lowest starting premium of all, then raises that premium every year for roughly five to ten years before it finally levels off for as long as coverage lasts. Which form is this?

Modified premium whole life

Single premium whole life

Continuous premium whole life

Graded premium whole life

Question 13: An annuity owner wants her contract values guaranteed against loss and a stated minimum interest rate written into the agreement, with the insurer carrying the investment risk in its general account. Which type of annuity product meets that description?

A variable annuity

A fixed annuity

A separate account annuity

A joint and survivor annuity

Question 14: In an annuity contract issued to a married couple, one party holds the right to name the beneficiary, select the payout option, take withdrawals during accumulation, and terminate the agreement. Which party to the contract holds those rights?

The contract owner

The annuitant

The beneficiary

The insurer

Question 15: A policyowner converting a term contract to permanent insurance may base the new premium on the age at which the original term policy was written. Choosing that basis requires an extra step from the owner. Which statement describes it?

A fresh medical examination is required

A new application must be signed

Coverage restarts a new suicide period

A lump sum payment is required

Question 16: In an annuity contract one named party has no control over investment choices, cannot request a withdrawal or a surrender, and simply receives the accumulated value if the contract owner dies before income payments have begun. Which party is described here?

The annuitant

The contract owner

The beneficiary

The trustee

Question 17: A company buys a policy on a vice president and remains the beneficiary. Nine months later that executive resigns, but the company keeps paying premiums. The executive dies two years afterward. Which rule determines whether the death benefit is payable?

Insurable interest must exist at death

Insurable interest must exist continuously

Insurable interest is never required

Insurable interest is required at application

Question 18: Six years into an adjustable life policy the owner asks to raise the death benefit substantially because a third child has arrived. The producer explains what the insurer will require before agreeing. Which requirement applies to this requested change?

A brand new application must be signed

The policy must first be surrendered

Proof of insurability must be provided

A waiting period of two years

Question 19: Christine owns a ten-year term policy and wants the right to exchange it for a permanent contract before the term runs out, without answering health questions or taking a medical exam. Which feature of her term policy gives her that right?

Renewability

Convertibility

Reinstatement

Nonforfeiture

Question 20: A variable annuity owner has been buying accumulation units for several years. She now elects to begin lifetime income, and the insurer converts her holdings into annuity units. Regarding those units, which statement describes the annuity period correctly?

Both the number and value vary

Both the number and value stay fixed

The number stays fixed, the value varies

The value stays fixed, the number varies

ILHI Indiana Life and Health Insurance Exam - Set 2 - Part 1

Question 1: A universal life policyowner selects a design under which the beneficiary would receive the face amount together with whatever has built up in the cash account, so the amount payable climbs as the account climbs. Which design has been selected?

Question 2: A policyowner is comparing annual, semi-annual, quarterly and monthly billing on the same contract and wants to know which schedule produces the smallest total outlay across one full year of coverage. Which of the following premium modes costs the policyowner least?

Question 3: Each month the insurer reaches into a universal life policy's accumulation account and removes two items before crediting interest. A producer is asked to name those two items during a policy review. Which pairing correctly states what is deducted?

Question 4: A thirty-five-year-old applicant wants coverage for exactly twenty years, with a face amount that never changes and a premium that stays the same every year of that period. Which of the following term arrangements matches what this applicant is describing?

Question 5: A client wants one contract that can be reshaped over the years, changing the face amount, the premium and the length of protection without replacing the policy, so it can behave like term now and like whole life later. Which policy allows that?

Question 6: A whole life contract keeps a fixed, level death benefit and a fixed payment timetable, yet its cash value may be credited with excess interest and rise above the guaranteed figure when economic conditions permit. Which contract best fits this description?

Question 7: A married couple buys a single policy covering both of them. The contract pays its death benefit when the first of the two insureds dies, and the coverage then ends. Which specialized policy have these two people purchased?

Question 8: A buyer hands the insurer one payment at purchase, and that payment together with its interest earnings covers every future cost of keeping the permanent contract in force. The policy has cash value immediately. Which whole life form is this?

Question 9: A borrower takes a thirty-year home loan and wants life coverage whose payable amount falls as the loan balance falls, reaching zero when the mortgage is fully repaid, while the premium stays the same each year. Which term policy fits?

Question 10: A universal life policyowner skips several scheduled deposits during a difficult year and asks the producer whether the coverage has ended. The producer explains the test the contract actually applies. Which statement describes what keeps this policy in force?

Question 11: A permanent contract credits its accumulation value according to the movement of a stock market index such as the Standard and Poor's five hundred, yet the crediting rate is never allowed to fall below zero. Which product works this way?

Question 12: Among permanent contracts, one form opens with the lowest starting premium of all, then raises that premium every year for roughly five to ten years before it finally levels off for as long as coverage lasts. Which form is this?

Question 13: An annuity owner wants her contract values guaranteed against loss and a stated minimum interest rate written into the agreement, with the insurer carrying the investment risk in its general account. Which type of annuity product meets that description?

Question 14: In an annuity contract issued to a married couple, one party holds the right to name the beneficiary, select the payout option, take withdrawals during accumulation, and terminate the agreement. Which party to the contract holds those rights?

Question 15: A policyowner converting a term contract to permanent insurance may base the new premium on the age at which the original term policy was written. Choosing that basis requires an extra step from the owner. Which statement describes it?

Question 16: In an annuity contract one named party has no control over investment choices, cannot request a withdrawal or a surrender, and simply receives the accumulated value if the contract owner dies before income payments have begun. Which party is described here?

Question 17: A company buys a policy on a vice president and remains the beneficiary. Nine months later that executive resigns, but the company keeps paying premiums. The executive dies two years afterward. Which rule determines whether the death benefit is payable?

Question 18: Six years into an adjustable life policy the owner asks to raise the death benefit substantially because a third child has arrived. The producer explains what the insurer will require before agreeing. Which requirement applies to this requested change?

Question 19: Christine owns a ten-year term policy and wants the right to exchange it for a permanent contract before the term runs out, without answering health questions or taking a medical exam. Which feature of her term policy gives her that right?

Question 20: A variable annuity owner has been buying accumulation units for several years. She now elects to begin lifetime income, and the insurer converts her holdings into annuity units. Regarding those units, which statement describes the annuity period correctly?

Need Guaranteed Results?