ILHI Indiana Life and Health Insurance Exam - Set 3 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A producer moves a client from one policy to another within the very same insurance company, funding the new contract entirely from the old one's values, and makes no false statement at any point during the sale. Which label best fits this conduct?

Churning

Twisting

Concealment

Permissible internal conservation

Question 42: A sixty-year-old client with a twenty-year-old whole life policy asks whether she should surrender it and buy a new one. Which consideration is most central to the producer's suitability duty before recommending that she give up the existing coverage?

Whether the commission is higher

Whether the new insurer is larger

Whether the change benefits the client

Whether the paperwork is simpler

Question 43: During the application appointment a client asks what happens to the medical details she is disclosing. The producer explains the federal health privacy rules that govern how providers, insurers and producers may handle that information. Which right must the notice give her?

The right to set her own premium

The right to refuse release of information

The right to see the producer's report

The right to skip the medical examination

Question 44: A producer assures a client during the sale that a certain treatment will be covered, submits the application, and the issued policy excludes it. The client sues the producer personally for the loss. Which exposure does this situation illustrate?

Errors and omissions exposure

Adverse selection exposure

Commingling exposure

Reinsurance exposure

Question 45: An applicant hands the producer a check for the first premium and tells him about a recent hospital stay. The producer pockets the check for a week and writes nothing down. Which principle of agency law works against the insurer here?

The applicant warrants every statement made

The producer alone bears every loss

The agent's knowledge is the insurer's knowledge

Silence by the agent voids coverage

Question 46: One section of a life insurance application is written entirely by the producer, is never shown to the proposed insured, and is not attached to the policy when it is issued. Which of the following describes that section correctly?

The producer's report, signed by the producer

The health information section

The investigative consumer report

The applicant's privacy authorization

Question 47: A producer orders business cards carrying the insurer's logo, sets up sales appointments, walks prospects through applications and collects initial premiums. None of these acts is written into her agency contract, yet all are customary. Which type of authority covers them?

Express authority

Apparent authority

Statutory authority

Implied authority

Question 48: An application reaches the insurer with no money attached. The company approves the case, prints the contract, and the producer collects the first premium when handing it over. Which date becomes the effective date of coverage in this sequence?

The date the application was signed

The date underwriting approved the case

The date the policy was delivered

The date the contract was printed

Question 49: An applicant signs a life application on March second, pays the first premium and receives a conditional receipt. The company requires a medical examination, which she completes on March nineteenth. Under most conditional receipts, which date becomes the effective date of coverage?

March nineteenth, the examination date

March second, the application date

The date the policy is issued

The date the first premium clears

Question 50: A producer submits an application that will replace a policy the client holds with a different company. Beyond notifying the applicant, industry replacement rules require the replacing insurer to take one further step involving the other carrier. Which step is that?

Obtain the existing insurer's written consent

Pay the existing insurer any lost commission

Cancel the existing policy for the client

Notify the existing insurer of the replacement

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