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Free Life Laws & Regulations Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Life Laws & Regulations practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1Under Indiana law, who appoints the state insurance commissioner?

    1. A. The governor
    2. B. The state treasurer
    3. C. The attorney general
    4. D. The secretary of state

    Answer: A

    Explanation: IC 27-1-1-2 states that the "commissioner shall be appointed by the governor"; therefore the governor is the appointing official.

    Reference: Creator: PrintServer210 — IC 27-1-1-2

  2. 2How far may an Indiana life policy generally be backdated to save age?

    1. A. Three months
    2. B. Six months
    3. C. Nine months
    4. D. Twelve months

    Answer: B

    Explanation: IC 27-1-12-8(2) prohibits a policy that takes effect "more than six (6) months before the original application for insurance was made"; the limit is six months.

    Reference: Creator: PrintServer210 — IC 27-1-12-8(2)

  3. 3Which national insurance-regulator convention may Indiana's insurance commissioner attend and participate in?

    1. A. The national convention of insurance commissioners
    2. B. The North American Securities Administrators Association
    3. C. The Conference of State Bank Supervisors
    4. D. The National Association of Attorneys General

    Answer: A

    Explanation: IC 27-1-1-2 says the commissioner "is authorized to attend and participate in the meetings of the national convention of insurance commissioners"; that is the specified body.

    Reference: Creator: PrintServer210 — IC 27-1-1-2(b)

  4. 4What minimum return period must an Indiana individual life policy provide after delivery?

    1. A. 5 days
    2. B. 10 days
    3. C. 14 days
    4. D. 21 days

    Answer: B

    Explanation: IC 27-1-12-43(b) requires a right to return the policy "within ten (10) days after the policy is received by the policyholder" for a full refund; option B is correct.

    Reference: Creator: PrintServer210 — IC 27-1-12-43(b)

  5. 5Which Indiana official may adopt reasonable rules needed to administer the insurance laws?

    1. A. The insurance commissioner
    2. B. The state auditor
    3. C. The securities commissioner
    4. D. The attorney general

    Answer: A

    Explanation: IC 27-1-3-7 provides that "The department may promulgate rules and regulations" for enumerated insurance purposes; the commissioner exercises the department's powers under IC 27-1-1-1.

    Reference: Creator: PrintServer210 — IC 27-1-3-7

  6. 6A life policy names a trustee of an existing inter vivos trust as beneficiary. May proceeds be paid to that trustee under Indiana law?

    1. A. Yes, under the governing trust designation
    2. B. Only to the insured's estate
    3. C. Only to an individual contingent beneficiary
    4. D. Only to the policyowner personally

    Answer: A

    Explanation: IC 27-1-12-16(B) says proceeds payable to a named inter vivos trustee "shall be paid directly to the trustee or trustees" and disposed of under the trust; option A applies.

    Reference: Creator: PrintServer210 — IC 27-1-12-16(B)

  7. 7A domestic insurer refuses a lawful Indiana insurance examination. What regulatory action is available?

    1. A. Revoke or suspend its certificate of authority
    2. B. Issue a corrective-action order
    3. C. Place the insurer under administrative supervision
    4. D. Seek a civil enforcement order

    Answer: A

    Explanation: IC 27-1-3-10 authorizes the commissioner "to revoke or suspend the authority to do business in this state" when a company refuses the examination; option A applies that consequence.

    Reference: Creator: PrintServer210 — IC 27-1-3-10(1)

  8. 8After how long must an Indiana individual life policy generally become incontestable during the insured's lifetime?

    1. A. One year
    2. B. Two years
    3. C. Three years
    4. D. Four years

    Answer: B

    Explanation: IC 27-1-12-6 requires the contract to be incontestable after it has been in force "during the lifetime of the insured for two (2) years", subject to stated exceptions; option B is correct.

    Reference: Creator: PrintServer210 — IC 27-1-12-6(3)

  9. 9Before a foreign or alien insurer transacts insurance in Indiana, what authorization must it procure?

    1. A. A certificate of authority
    2. B. A certificate of compliance
    3. C. A certificate of deposit
    4. D. A power of attorney

    Answer: A

    Explanation: IC 27-1-17-1 says that before transacting business the company "shall procure a certificate of authority from the department"; the other documents are different admission instruments.

    Reference: Creator: PrintServer210 — IC 27-1-17-1

  10. 10Before an Indiana insurer performs an HIV test for underwriting, what must it obtain?

    1. A. The applicant's written consent
    2. B. The applicant's physician's written consent
    3. C. The producer's written consent
    4. D. The reinsurer's written consent

    Answer: A

    Explanation: 760 IAC 1-39-5(2) requires that the test be revealed to the applicant and "his or her written consent obtained"; option A identifies the required consent.

    Reference: Title 760, ARTICLE 1. GENERAL PROVISIONS | IARP — 760 IAC 1-39-5(2)

Topics in this practice bank

These topics describe the available practice for Life Laws & Regulations. Review the examination outline and its sources for scope and allocation details.

  • I. INDIANA LAWS AND DEPARTMENT RULES COMMON TO ALL LINES OF INSURANCE 20
    • A. Department of Insurance
    • A. Department of Insurance > 1. Insurance Commissioner
    • A. Department of Insurance > 1. Insurance Commissioner > a. Appointment by Governor
    • A. Department of Insurance > 1. Insurance Commissioner > b. Member of National Association of Insurance Commissioners (NAIC)
    • A. Department of Insurance > 1. Insurance Commissioner > c. Powers
    • A. Department of Insurance > 1. Insurance Commissioner > d. Duties
    • A. Department of Insurance > 2. Admission of Insurance Companies
    • A. Department of Insurance > 2. Admission of Insurance Companies > a. Certificate of Authority
    • A. Department of Insurance > 2. Admission of Insurance Companies > b. Admitted versus non-admitted companies
    • A. Department of Insurance > 2. Admission of Insurance Companies > c. Domestic, foreign, and aliencompanies
    • A. Department of Insurance > 3. Examination of Admitted Insurance Companies
    • A. Department of Insurance > 3. Examination of Admitted Insurance Companies > a. Fiscal examinations
    • A. Department of Insurance > 3. Examination of Admitted Insurance Companies > b. Waiving examinations of foreign and alien companies
    • A. Department of Insurance > 4. Insurance Guaranty Associations
    • A. Department of Insurance > 4. Insurance Guaranty Associations > a. Purpose
    • A. Department of Insurance > 4. Insurance Guaranty Associations > b. Policy benefits that are guaranteed
    • B. Producer Licensing Laws
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > a. Resident producer
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > b. Nonresident producer
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > c. Temporary producer
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > d. Consultant
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > e. Business entity
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > f. Limited Lines
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > f. Limited Lines > i. Travel
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > f. Limited Lines > ii. Title
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > f. Limited Lines > iii. Credit
    • B. Producer Licensing Laws > 1. Types of Insurance Licenses, Eligibility Requirements & Powers and Duties > f. Limited Lines > iv. Prearranged funeral insurance
    • B. Producer Licensing Laws > 2. Who must be licensed
    • B. Producer Licensing Laws > 2. Who must be licensed > a. Solicit, negotiate or sell contracts of insurance
    • B. Producer Licensing Laws > 3. Producer qualifications and the licensing process
    • B. Producer Licensing Laws > 3. Producer qualifications and the licensing process > a. Pre-licensing education, state exam, license application
    • B. Producer Licensing Laws > 15.6-9, 27-1-15.6-16
    • B. Producer Licensing Laws > 15.6-9, 27-1-15.6-16 > b. Denial of license application
    • B. Producer Licensing Laws > 15.6-9, 27-1-15.6-16 > b. Denial of license application > i. Appeals process/Notice of hearing
    • B. Producer Licensing Laws > 4. Insurance Company: Producer appointments and termination
    • B. Producer Licensing Laws > 5. Limitations of a Producer
    • B. Producer Licensing Laws > 5. Limitations of a Producer > a. Controlled business
    • B. Producer Licensing Laws > 5. Limitations of a Producer > b. Acting as a Consultant
    • B. Producer Licensing Laws > 5. Limitations of a Producer > c. Fees and commissions
    • B. Producer Licensing Laws > 6. Producer’s License Maintenance
    • B. Producer Licensing Laws > 6. Producer’s License Maintenance > a. Producer notification requirements
    • B. Producer Licensing Laws > 15.6-17
    • B. Producer Licensing Laws > 15.6-17 > i. Change of legal or assumed name
    • B. Producer Licensing Laws > 15.6-17 > ii. Change of contact information; business, email and/or residential address
    • B. Producer Licensing Laws > 15.6-17 > iii. Criminal or administrative action
    • B. Producer Licensing Laws > 15.6-17 > b. License renewal/reinstatement process
    • B. Producer Licensing Laws > 15.6-17 > c. Continuing Education (CE) requirements
    • B. Producer Licensing Laws > 15.6-17 > d. Sircon license & CE tracking system
    • B. Producer Licensing Laws > 15.6-17 > d. Sircon license & CE tracking system > i. Producer Responsibilities
    • C. Producer/Company Compliance
    • C. Producer/Company Compliance > 1. Producer Licensing Law &Violations
    • C. Producer/Company Compliance > 2. Unfair Competition Law &Violations
    • C. Producer/Company Compliance > 3. Definitions
    • C. Producer/Company Compliance > 3. Definitions > a. Twisting
    • C. Producer/Company Compliance > 3. Definitions > b. Rebating
    • C. Producer/Company Compliance > 3. Definitions > c. Sharing commissions with an unlicensed person
    • C. Producer/Company Compliance > 3. Definitions > d. Defamation
    • C. Producer/Company Compliance > 3. Definitions > e. False advertising
    • C. Producer/Company Compliance > 3. Definitions > f. Misrepresentation
    • C. Producer/Company Compliance > 3. Definitions > g. Boycott, coercion, and intimidation
    • C. Producer/Company Compliance > 3. Definitions > h. Unfair discrimination
    • C. Producer/Company Compliance > 4. Penalties/Disciplinary Actions
    • C. Producer/Company Compliance > 4. Penalties/Disciplinary Actions > a. Penalty for violating Licensing law
    • C. Producer/Company Compliance > 4. Penalties/Disciplinary Actions > b. Penalty for violating Unfair Competition Law
    • C. Producer/Company Compliance > 4. Penalties/Disciplinary Actions > c. Penalty for violating Cease and Desist Orders
    • C. Producer/Company Compliance > 4. Penalties/Disciplinary Actions > d. Criminal violations
    • D. Unfair Claims Settlement Practices
  • II. LIFE REGULATIONS 10
    • A. Policies and Contracts
    • A. Policies and Contracts > 1. Policy provisions
    • A. Policies and Contracts > 1. Policy provisions > a. Backdating
    • A. Policies and Contracts > 1. Policy provisions > b. Right to examine (Free Look)
    • A. Policies and Contracts > 1. Policy provisions > c. Payment of claims
    • A. Policies and Contracts > 1. Policy provisions > d. Incontestability
    • A. Policies and Contracts > 2. Underwriting restrictions
    • A. Policies and Contracts > 3. Interest on loans
    • A. Policies and Contracts > 4. Interest on death benefits
    • A. Policies and Contracts > 5. Accelerated death benefits
    • A. Policies and Contracts > 6. Viatical settlements
    • B. Marketing Practices
    • B. Marketing Practices > 1. Advertising
    • B. Marketing Practices > 2. Solicitation
    • B. Marketing Practices > 2. Solicitation > a. Purpose
    • B. Marketing Practices > 2. Solicitation > b. Documentation
    • B. Marketing Practices > 2. Solicitation > c. Buyer’s Guide and Policy Summary
    • B. Marketing Practices > 2. Solicitation > d. Duties of producers
    • B. Marketing Practices > 3. Replacement
    • B. Marketing Practices > 3. Replacement > a. Definition of replacement
    • B. Marketing Practices > 3. Replacement > b. Purpose
    • B. Marketing Practices > 3. Replacement > c. Free look
    • B. Marketing Practices > 3. Replacement > d. Duties of producers
    • B. Marketing Practices > 3. Replacement > e. Duties of insurers
    • C. Business and Group Life
    • C. Business and Group Life > 1. Eligible groups
    • C. Business and Group Life > 2. Conversion rights to individual policy
    • C. Business and Group Life > 3. Insurable Interest on Employees

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