Free Indiana Accident & Health practice questions

Answer: A. Marcus must become licensed for the accident and health line of authority

Indiana's required licensing rule bars any person from selling, soliciting, or negotiating a class of insurance in Indiana unless licensed for that line of authority. Life and accident and health are separate lines of authority in the producer licensing chapter, so Marcus's life license does not let him solicit an accident and health policy. The rule ties the activity to the license for the line itself, so an insurer's appointment, another producer's countersignature, or a written notice to the commissioner cannot take the place of that license.

Answer: B. The insurer must provide the coverage in the employer-based policy and must offer it on the individual one.

Indiana requires an insurer to include breast cancer screening mammography coverage in the accident and sickness policies it issues in the state, subject to one exception: for a policy that is not employer based, the insurer must offer the coverage rather than build it in. So the employer-based group policy must carry the coverage, and the coverage must be offered on the individually purchased policy. Treating both policies as offer-only ignores the general mandate. Treating both as mandatory ignores the exception for policies that are not employer based. And the statute draws its line by whether the policy is employer based, not by exempting group plans.

Answer: B. At least 18 years of age

Among the findings the commissioner must make before approving a resident producer application, section 6(b)(1) requires that the individual be at least 18 years of age. The section does not set the minimum at 16, 19, or 21.

Answer: C. An unfair method of competition: an agreement to boycott that tends toward restraint

IC 27-4-1-4(a)(4) defines as an unfair method of competition entering into an agreement to commit, or committing alone or in concert, an act of boycott, coercion, or intimidation that results or tends to result in an unreasonable restraint of, or monopoly in, the insurance business. Because entering into the agreement is itself covered, the conduct is reached before any agency is turned away. The subdivision also reaches conduct that only tends toward restraint or monopoly, so the rival need not actually be driven out. A concerted refusal of this kind is the boycott the subdivision describes, so it is not protected as an ordinary choice of agencies.

Answer: A. A copy of the substance of the consumer's complaint, included or exhibited with it

Under IC 27-4-1-5(b), when a hearing involves a claim, averment or complaint made by someone other than an investigator, deputy, examiner or other department employee, a copy of the substance of it must be included in or exhibited with the notice. The consumer is an outside complainant, so the notice must carry that copy and cannot omit it. The duty does not wait for a written request from the producer, and it runs the opposite way from the examiner answer: complaints from department staff are the ones this requirement does not reach.

Answer: D. A personal representative whom a court has appointed for her

When a licensed individual producer dies or becomes mentally or physically disabled, the temporary license section names two people who may receive a temporary license without an examination: the surviving spouse and a court-appointed personal representative. Because this producer is living, the court-appointed personal representative is the named person who fits. An adult child without a court appointment is not one of the persons named for a producer's death or disability; the section has a separate catch-all for other circumstances in which the commissioner finds the public interest best served, but that is not a named category for this situation. The insurer is not named. The provision for a member or employee applies when a business entity licensed as a producer loses an individual designated in its application or license, not to an individual producer's agency staff.

Answer: C. Until the child becomes 26 years of age

Indiana bars issuing, delivering, amending, or renewing an accident and sickness policy unless, on the request of the policyholder or certificate holder, it covers a child of that person until the date the child becomes 26 years of age. Ages 18, 21, and 24 all fall short of the age the statute sets, so a policy ending a child's coverage at any of them on request would not comply.

Answer: A. Notify the commissioner of the proposed use of the assumed name

Indiana requires the producer to notify the commissioner of the proposed assumed name before doing business under it. The statute calls for notice to the commissioner, not approval from appointing insurers, a commissioner approval with a reissued license, or a publication or registry filing, so each of those options adds a step the law does not contain.

Answer: B. It is an unfair or deceptive practice, because it was made to induce a surrender.

IC 27-4-1-4(a)(1)(E) defines as an unfair or deceptive act any misrepresentation made to a policyholder to induce, or tending to induce, a lapse, forfeiture or surrender of the policyholder's insurance. The offense is the misrepresentation and its purpose, so it is complete even though the client kept her policy. Clause (E) speaks of a misrepresentation to a policyholder, not of public advertising, and it does not make a replacement sale an element.

Answer: B. It no longer continues once the child is removed before legal adoption.

Indiana requires coverage of a newly adopted child from the earlier of placement for adoption or a custody order for adoption, and that coverage continues unless the placement is disrupted before legal adoption and the child is removed from placement. Both conditions are met here, so the required coverage does not continue. Paying premium does not keep the required coverage going once the placement has been disrupted and the child removed, and the statute does not run coverage to an expected finalization date. The 31-day period in the adoption statute concerns notice and premium payment where a specific premium is required, not coverage after removal.