ILHI - Indiana Life and Health Insurance Exam

Question 21: A South Bend producer wants to pay a local accountant a flat one hundred dollar thank you for each client name he passes along. Which of the following conditions must hold before Indiana treats that payment as a lawful referral fee?

The accountant must hold a licence

The fee must rise with premium volume

He must not sell, solicit or negotiate

The insurer must approve each referral

Question 22: An Indiana resident producer is charged with a felony and attends her first pretrial hearing in March. No trial has been held and no conviction has been entered. Which of the following starts the thirty-day period for reporting the prosecution to the Commissioner?

The date the charges were filed

The date of the initial pretrial hearing

The final disposition of the case

The date of a conviction or plea

Question 23: Two Indiana producers compare notes at a Noblesville seminar: one holds only a property and casualty licence, the other holds life and accident and health. Which of the following correctly describes how Indiana's three hour ethics requirement applies to each of them?

Both producers must complete three ethics hours

Neither producer must complete ethics hours

Only the life and health producer must

Only the property and casualty producer must

Question 24: An Indiana life insurer charges two applicants different premium rates although both belong to the same underwriting class and have an equal expectation of life. The difference rests on no actuarial support. Which Indiana unfair practice does the insurer's rating decision illustrate?

Rebating of premium

Defamation of a competitor

Twisting

Unfair discrimination

Question 25: The Commissioner mails an Indiana producer notice that his license is being revoked for cause. He wants a hearing. Under Indiana law, within what period after that notice is mailed must he make written demand to the commissioner for one?

Sixty-three days

Thirty days

Sixty days

Ninety days

Question 26: A resident Indiana producer keeps an unblemished insurance record but falls behind on court ordered child support payments, and a court issues an order to the commissioner about the delinquency. What does Indiana law direct the commissioner to do with that producer's license?

Nothing, since insurance conduct is unaffected

Refer the producer for criminal charges

The commissioner shall suspend the license

Impose a ten thousand dollar penalty

Question 27: A chartered life underwriter moving her practice to Carmel emails the Department a photocopy of her designation and asks for relief from Indiana's entry requirements. Which of the following describes what the waiver under IC 27-1-15.6-9 actually removes for her?

The examination, but not the prelicensing course

Both the course and the examination

The application fee and the examination

The prelicensing course, but not the examination

Question 28: Two insurers write coverage affecting Hoosiers: one holds an Indiana certificate of authority, and the other is a non-admitted carrier reached through a surplus lines placement. Which of the following correctly states a consequence of that difference for policyholders?

Both carriers receive guaranty association protection

Neither carrier is subject to Indiana regulation

Only the admitted carrier carries guaranty protection

The non-admitted carrier posts a larger bond

Question 29: A producer in Anderson lets his resident insurance producer licence lapse and then asks the Department what lateness will cost him beyond the ordinary forty dollar renewal charge. Which of the following states the late renewal penalty Indiana's published schedule imposes?

Twice the unpaid renewal fee

Three times the unpaid renewal fee

A flat fifty dollar surcharge

No penalty, only the renewal fee

Question 30: An Indiana employer's group life master policy premium is due on the first of the month and is not paid. The plan administrator asks how long the contract must stay in force before it lapses. Which of the following states the group life grace period required by IC 27-1-12-41?

Thirty days

Twenty days

Ten days

Thirty-one days

Question 31: A policyowner in Bloomington misses the premium due date on an individual life policy issued in Indiana. Indiana's standard provisions give a period during which the policy stays in force and the overdue premium may still be paid. How long is that period?

Seven days

Ten days

Thirty days

Thirty-one days

Question 32: A promoter offers to pay the premiums on a new life policy insuring a Carmel retiree who has no need for coverage, on the understanding that the policy will be transferred to the promoter's investors after issue. Which of the following names that arrangement?

A viatical settlement

An accelerated death benefit

A third party ownership arrangement

Stranger originated life insurance

Question 33: Indiana's standard provisions for life policies place an outer limit on how long an insurer may challenge a policy on the ground of a material misstatement in the application. Which of the following states that maximum period under Indiana law?

Two years from issue

One year from issue

Three years from issue

The life of the policy

Question 34: The Department finds that a licensed viatical settlement provider has repeatedly violated Indiana's viatical settlement chapter, and the provider's license is now under review. Which of the following describes the action Indiana authorizes the Department to take against that provider?

Order restitution to every viator involved

Refer the provider for criminal prosecution

Require the provider to post a bond

Suspend, revoke or refuse to renew licensure

Question 35: A beneficiary complains that an Indiana insurer has not yet paid a life insurance death benefit, and the delay is now well past a month. Which of the following correctly describes when Indiana requires the insurer to add interest to those proceeds?

From receipt of the completed death claim

Two months after the date of death

Thirty days after the date of death

Only when a court orders payment

Question 36: A financial adviser in Elkhart wants to represent viators in negotiating the sale of their existing life policies to settlement providers. Which of the following licensing requirements does Indiana place on a person who acts as a viatical settlement broker?

Life insurance producer licensing

No licence of any kind

A property and casualty licence

A consultant licence only

Question 37: A settlement involves the sale of an existing life policy by an insured who is terminally or chronically ill, at a discount from the face amount, to a licensed purchaser. Which of the following names that transaction under Indiana law?

A life settlement

A viatical settlement

An accelerated death benefit

A policy loan

Question 38: A policyowner in Zionsville reads her newly delivered individual life policy, decides against keeping it, and learns the producer who sold it has left the business. Which of the following describes where Indiana lets her deliver the returned policy under the right to examine provision?

The insurer or any of its agents

Only the insurer's home office

Only the agent who sold it

Only the Department of Insurance

Question 39: A retiree in Bloomington receives an individual annuity contract and, after reading it, decides she wants her money back. Indiana requires the right to return notice to appear on the front cover of the contract. Which of the following states how long she has to return it?

Sixty days

Fifteen days

Ten days

Thirty days

Question 40: A Goshen viator with several unpaid judgments against her is weighing a viatical settlement offer. Indiana's viatical chapter requires written disclosures to reach her before the application is made. Which of the following must those disclosures tell her about the settlement proceeds?

They are shielded from every creditor

They are held by the Department

They are always free of income tax

They may be subject to creditors' claims

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

Question 21: A South Bend producer wants to pay a local accountant a flat one hundred dollar thank you for each client name he passes along. Which of the following conditions must hold before Indiana treats that payment as a lawful referral fee?

Question 22: An Indiana resident producer is charged with a felony and attends her first pretrial hearing in March. No trial has been held and no conviction has been entered. Which of the following starts the thirty-day period for reporting the prosecution to the Commissioner?

Question 23: Two Indiana producers compare notes at a Noblesville seminar: one holds only a property and casualty licence, the other holds life and accident and health. Which of the following correctly describes how Indiana's three hour ethics requirement applies to each of them?

Question 24: An Indiana life insurer charges two applicants different premium rates although both belong to the same underwriting class and have an equal expectation of life. The difference rests on no actuarial support. Which Indiana unfair practice does the insurer's rating decision illustrate?

Question 25: The Commissioner mails an Indiana producer notice that his license is being revoked for cause. He wants a hearing. Under Indiana law, within what period after that notice is mailed must he make written demand to the commissioner for one?

Question 26: A resident Indiana producer keeps an unblemished insurance record but falls behind on court ordered child support payments, and a court issues an order to the commissioner about the delinquency. What does Indiana law direct the commissioner to do with that producer's license?

Question 27: A chartered life underwriter moving her practice to Carmel emails the Department a photocopy of her designation and asks for relief from Indiana's entry requirements. Which of the following describes what the waiver under IC 27-1-15.6-9 actually removes for her?

Question 28: Two insurers write coverage affecting Hoosiers: one holds an Indiana certificate of authority, and the other is a non-admitted carrier reached through a surplus lines placement. Which of the following correctly states a consequence of that difference for policyholders?

Question 29: A producer in Anderson lets his resident insurance producer licence lapse and then asks the Department what lateness will cost him beyond the ordinary forty dollar renewal charge. Which of the following states the late renewal penalty Indiana's published schedule imposes?

Question 30: An Indiana employer's group life master policy premium is due on the first of the month and is not paid. The plan administrator asks how long the contract must stay in force before it lapses. Which of the following states the group life grace period required by IC 27-1-12-41?

Question 31: A policyowner in Bloomington misses the premium due date on an individual life policy issued in Indiana. Indiana's standard provisions give a period during which the policy stays in force and the overdue premium may still be paid. How long is that period?

Question 32: A promoter offers to pay the premiums on a new life policy insuring a Carmel retiree who has no need for coverage, on the understanding that the policy will be transferred to the promoter's investors after issue. Which of the following names that arrangement?

Question 33: Indiana's standard provisions for life policies place an outer limit on how long an insurer may challenge a policy on the ground of a material misstatement in the application. Which of the following states that maximum period under Indiana law?

Question 34: The Department finds that a licensed viatical settlement provider has repeatedly violated Indiana's viatical settlement chapter, and the provider's license is now under review. Which of the following describes the action Indiana authorizes the Department to take against that provider?

Question 35: A beneficiary complains that an Indiana insurer has not yet paid a life insurance death benefit, and the delay is now well past a month. Which of the following correctly describes when Indiana requires the insurer to add interest to those proceeds?

Question 36: A financial adviser in Elkhart wants to represent viators in negotiating the sale of their existing life policies to settlement providers. Which of the following licensing requirements does Indiana place on a person who acts as a viatical settlement broker?

Question 37: A settlement involves the sale of an existing life policy by an insured who is terminally or chronically ill, at a discount from the face amount, to a licensed purchaser. Which of the following names that transaction under Indiana law?

Question 38: A policyowner in Zionsville reads her newly delivered individual life policy, decides against keeping it, and learns the producer who sold it has left the business. Which of the following describes where Indiana lets her deliver the returned policy under the right to examine provision?

Question 39: A retiree in Bloomington receives an individual annuity contract and, after reading it, decides she wants her money back. Indiana requires the right to return notice to appear on the front cover of the contract. Which of the following states how long she has to return it?

Question 40: A Goshen viator with several unpaid judgments against her is weighing a viatical settlement offer. Indiana's viatical chapter requires written disclosures to reach her before the application is made. Which of the following must those disclosures tell her about the settlement proceeds?

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