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Life and Health Insurance Producer Exam

Conduct (IN): practice questions

Our Life & Health Insurance bank has 7 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Indiana

Indiana allows producers to give gifts tied to marketing the sale or retention of insurance. What is the limit per person?

  1. $25 per gift, no yearly cap
  2. $100 a year
  3. $500 per gift; cash if disclosed
  4. Total value of $250 a year, not in cash
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D. Total value of $250 a year, not in cash — IC 27-1-47-1(b)(1), (c).

Question 2 · Indiana

A producer misrepresents a policy to persuade a client to lapse it and buy a new one. What does Indiana law call this?

  1. An unfair claim settlement practice
  2. A misrepresentation to induce a lapse or surrender (twisting)
  3. A lawful conservation effort, if a sales proposal is left with the client
  4. Coercion
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B. A misrepresentation to induce a lapse or surrender (twisting) — IC 27-4-1-4(a)(1)(E); IC 27-1-12-25.

Question 3 · Indiana

When may an Indiana producer be named beneficiary or owner of a client's individual life policy?

  1. After two years in force
  2. Only when the producer has an insurable interest in the insured
  3. Never, whatever the family relationship
  4. Whenever the client signs a written consent naming the producer as beneficiary
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B. Only when the producer has an insurable interest in the insured — IC 27-1-15.6-31.

Question 4 · Indiana

A producer offers a client part of the commission back if the client buys a life policy. Under Indiana law this is:

  1. Legal for annuities but not for life policies
  2. Allowed up to 10% of premium
  3. Legal if disclosed in writing
  4. An illegal rebate, unless a specific law expressly allows it
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D. An illegal rebate, unless a specific law expressly allows it — IC 27-4-1-4(a)(8).

Question 5 · Indiana

Two producers agree to refuse to place business with an insurer in order to restrain competition. Which unfair practice is this?

  1. Rebating of commissions to the client
  2. Defamation of a competing insurer
  3. Boycott, coercion, or intimidation
  4. Unfair discrimination between insureds of the same class
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C. Boycott, coercion, or intimidation — IC 27-4-1-4(a)(4).

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