Evergreen Insurance Prep

Indiana Life & Health Insurance License, Practice Exams

Indiana Life and Accident & Health producer licensing (Pearson VUE). General insurance knowledge plus Indiana insurance law (Indiana Code Title 27), authored from public-domain statutes.
Content last updated 15 July 2026

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Each module is scored separately here so you know exactly where you stand. To pass the real Indiana exam you need 70% on each section.

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The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

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Frequently asked questions

How is the Indiana producer licensing exam structured?

Indiana licenses Life and Accident & Health producers through Pearson VUE. Each exam has a national section (100 questions) and an Indiana state-law section (about 30 questions), and you need 70% to pass. This bank covers the general insurance material and the Indiana law (Indiana Code Title 27 and 760 IAC rules) for both lines.

What score do I need to pass?

You need 70% on each section. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Indiana Code (Title 27) for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Indiana bank contains 917 questions (general insurance plus Indiana law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

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Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

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Sample Indiana Life & Health Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

Under IC 27-8-19.8-6, a 'viatical settlement contract' involves consideration that is:

  1. equal to the annual premium
  2. less than the expected death benefit ✓
  3. greater than the face amount
  4. equal to the cash surrender value

Why: IC 27-8-19.8-6 defines the contract as an agreement for a portion of the death benefit or ownership for consideration that is less than the expected death benefit — therefore less than the expected death benefit.

A 'mutual' insurance company is:

  1. Owned by its policyholders, who may receive policy dividends ✓
  2. Owned by outside stockholders seeking profit
  3. A government agency that pays claims of insolvent insurers
  4. A producer-owned brokerage firm

Why: A mutual insurer is owned by its policyowners; dividends paid to them are treated as a nontaxable return of premium.

Under IC 27-1-15.7-2, CE credit for an approved classroom ethics course may not exceed how many hours in a renewal period?

  1. One (1) hour
  2. Two (2) hours
  3. Three (3) hours
  4. Four (4) hours ✓

Why: IC 27-1-15.7-2(k) limits classroom ethics-course credit to not more than four (4) hours in a renewal period — therefore four hours.

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Under IC 27-8-13-9, a Medicare supplement policy in force in Indiana may not contain benefits that do what?

  1. Cover skilled nursing care
  2. Pay the Part B premium
  3. Duplicate benefits under Medicare ✓
  4. Exceed the Part A deductible

Why: IC 27-8-13-9(a) prohibits benefits that duplicate benefits provided by Medicare — therefore duplicate benefits under Medicare.

Under IC 27-8-8-6, unpaid Guaranty Association assessments accrue interest at what annual rate on and after the due date?

  1. 6% per annum ✓
  2. 4% per annum
  3. 8% per annum
  4. 10% per annum

Why: IC 27-8-8-6(a) states assessments are due not less than 30 days after notice and accrue interest at six percent (6%) per annum on and after the due date — therefore 6% per annum.

A producer holds qualifications in several lines of authority. Under IC 27-1-15.7-2, the total CE required to renew is capped at:

  1. Twenty-four (24) hours total ✓
  2. Forty-eight (48) hours total
  3. Twelve (12) hours per line
  4. Thirty-six (36) hours total

Why: IC 27-1-15.7-2(e) provides that a producer with more than one line of authority is not required to complete more than twenty-four (24) hours total — therefore 24 hours.

Under 760 IAC 1-13, a producer who violates the insurance advertising rule is:

  1. fined a flat fee only
  2. exempt if unintentional
  3. subject to license revocation ✓
  4. immune from any penalty

Why: 760 IAC 1-13 deems a violation to be a violation of the state's insurance laws, subjecting the licensee to proceedings for suspension or revocation of license — therefore subject to license revocation.

An Indiana resident's life insurance claim event occurs May 1. Under IC 27-1-12-35, the insurer owes interest if payment is not received by:

  1. May 31 ✓
  2. May 15
  3. June 30
  4. May 11

Why: IC 27-1-12-35(a) entitles a resident to interest if payment is not received within thirty (30) days after the event giving rise to the obligation. Thirty days from May 1 is about May 31.

To be 'fully insured' for Social Security retirement benefits, a worker generally needs:

  1. 40 quarters (about 10 years) of covered earnings ✓
  2. 20 quarters earned within the most recent five-year period
  3. A minimum of 30 years of continuous full-time employment
  4. Only a single quarter of covered earnings at any point in life

Why: Fully insured status requires 40 quarters of coverage (roughly 10 years of work in covered employment).

Mental health parity requires a group plan that covers mental health to apply treatment and financial limits that are:

  1. No more restrictive than those for medical/surgical benefits ✓
  2. Stricter than those for medical/surgical benefits
  3. Limited to a maximum of five visits per year
  4. Applied only to inpatient psychiatric care

Why: Parity requires mental health/substance use cost-sharing and limits be no more restrictive than comparable medical/surgical benefits.

Under IC 27-8-5.6-3, when a specific premium is required for a newborn, notice of birth and payment must be furnished within how many days after birth to continue coverage beyond that period?

  1. 10 days
  2. 31 days ✓
  3. 60 days
  4. 90 days

Why: IC 27-8-5.6-3 permits the insurer to require notice and premium within 31 days after the date of birth — therefore 31 days.

Under IC 27-1-15.6-7, holding the variable products line requires the life qualification, FINRA registration, and a:

  1. Certified financial planner designation
  2. State securities administrator license
  3. Bachelor's degree in insurance study
  4. FINRA Series 6 or Series 7 registration ✓

Why: IC 27-1-15.6-7(b) requires the life qualification plus FINRA registration and either a Series 6 or Series 7 to sell variable products.

Under IC 27-8-5-3, a reinstated individual policy covers sickness that begins how long after the reinstatement date?

  1. More than 10 days after ✓
  2. Immediately on that date
  3. More than 30 days after
  4. More than 60 days after

Why: IC 27-8-5-3(a)(4) (REINSTATEMENT) covers sickness beginning more than 10 days after reinstatement — therefore more than 10 days after.

Under IC 27-1-3.5-2, in the annual audited financial report law, a 'domestic insurer' is an insurer organized under the laws of:

  1. Indiana ✓
  2. Any accredited state
  3. The insurer's port-of-entry state
  4. The NAIC compact

Why: IC 27-1-3.5-2 defines a domestic insurer as one organized under the laws of Indiana, and also includes controlling persons and certain affiliates.

Under IC 27-8-5-19, benefits other than loss of time on a claim filed by the policyholder must be paid not more than how many days after the insurer receives written proof of loss?

  1. 45 days ✓
  2. 30 days
  3. 60 days
  4. 90 days

Why: IC 27-8-5-19(c)(12) requires payment not more than 45 days after receipt of proof when filed by the policyholder — therefore 45 days.

A modern whole life policy 'matures' (endows) when the:

  1. Insured reaches the maturity age and the cash value equals the face amount ✓
  2. The policy has been continuously in force for a period of exactly twenty full years
  3. Insured makes the final scheduled premium payment
  4. Policyowner first takes a loan against the cash value

Why: At the maturity age (commonly 121, formerly 100), the cash value equals the face amount and the policy endows, paying the face to a living insured.

A state insurance guaranty association exists to:

  1. Pay covered claims of insurers that become insolvent, up to set limits ✓
  2. Set the premium rates that all insurers in the state must charge
  3. Guarantee that every applicant will be approved for coverage
  4. Provide free legal representation to policyholders in disputes

Why: Guaranty associations protect policyholders by covering claims (within statutory limits) when a member insurer becomes insolvent; their existence may not be used in advertising or sales.

Under IC 27-1-15.6-9, a bachelor's degree in insurance gives a prelicensing exemption (Indiana-law exam only) for:

  1. Only the life and health lines
  2. Only the property and casualty lines
  3. All nine listed lines of authority
  4. Lines 7(a)(1) through 7(a)(6) ✓

Why: IC 27-1-15.6-9(e) gives a bachelor's degree in insurance the prelicensing exemption (Indiana-law portion only) for lines 7(a)(1) through 7(a)(6).

Under IC 27-8-15-27, a small employer plan may not exclude benefits because of a preexisting condition for more than how long after the effective date of coverage?

  1. 9 months ✓
  2. 6 months
  3. 12 months
  4. 18 months

Why: IC 27-8-15-27 caps a preexisting-condition exclusion at no more than 9 months after the effective date — therefore 9 months.

Unlike Original Medicare, a Medicare Advantage (Part C) plan must include:

  1. An annual out-of-pocket maximum ✓
  2. Coverage with no provider network at all
  3. Free long-term custodial nursing care
  4. A guaranteed cash rebate each year

Why: Medicare Advantage plans must cap annual out-of-pocket costs for Part A and B services; Original Medicare has no such maximum.

Under IC 27-4-1-5.6, the commissioner must deliver a copy of a written complaint to the insurer within:

  1. Five (5) business days
  2. Thirty (30) business days
  3. Ten (10) business days ✓
  4. Twenty (20) business days

Why: IC 27-4-1-5.6(c) requires the commissioner to deliver the complaint to the insurer within ten (10) business days of receipt — therefore ten business days.

Under IC 27-1-15.7-3, after a licensee files a CE extension request, the license:

  1. Is automatically suspended
  2. Lapses until the fee is paid
  3. Expires on the renewal date
  4. Remains in effect pending decision ✓

Why: IC 27-1-15.7-3(c) provides that the license remains in effect until the commissioner makes a decision on the request — therefore it stays in effect.

Under IC 27-1-15.6-19.5, before selling annuities a producer must complete a one-time annuity training course of:

  1. Two (2) hours
  2. Eight (8) hours
  3. Six (6) hours
  4. Four (4) hours ✓

Why: IC 27-1-15.6-19.5(b)(4) requires a single four (4) hour annuity training course approved by the department — therefore four hours.

A long-term care policy has a 90-day elimination period. Benefits begin:

  1. After 90 days of qualifying care the insured pays for ✓
  2. Immediately on the first day of any care
  3. Only after the insured turns 80
  4. After a one-year waiting period

Why: The elimination period is a deductible in days; the insured covers care during it, and benefits start afterward.

In an annuity contract, the person whose life expectancy determines the income payments is the:

  1. Owner, who holds the contractual rights to the annuity in the policy
  2. Annuitant, whose age and life expectancy set the payout ✓
  3. Beneficiary, who receives any remaining value at death
  4. Insurer's actuary, who designs the payout schedule

Why: The annuitant is the measuring life; the owner holds the rights, and the beneficiary receives any death proceeds.

A client deposits a single $100,000 premium and wants income to start in 15 years. The product is a:

  1. Single-premium deferred annuity ✓
  2. Single-premium immediate annuity
  3. Flexible-premium deferred annuity
  4. Variable life insurance policy

Why: One lump sum with income deferred to a future date is a single-premium deferred annuity (SPDA).

An insurer holding a certificate of authority to transact business in a state is said to be:

  1. Admitted (authorized) ✓
  2. Nonadmitted (unauthorized)
  3. Alien
  4. Reciprocal

Why: An admitted/authorized insurer holds a certificate of authority; a nonadmitted insurer does not.

The National Association of Insurance Commissioners (NAIC) primarily:

  1. Develops model laws and standards that states may choose to adopt ✓
  2. Directly licenses every insurance producer in the United States
  3. Sets and enforces nationwide insurance premium rates
  4. Pays claims when an insurance company becomes insolvent

Why: The NAIC is a coordinating body of state regulators that drafts model laws and promotes uniformity; it has no direct regulatory authority of its own.

A withdrawal of gain from a nonqualified deferred annuity before age 59½ generally triggers:

  1. A 10% IRS penalty plus ordinary income tax on the gain ✓
  2. Tax-free treatment because annuities are always exempt
  3. A flat 20% capital-gains tax on the entire account value
  4. Loss of the contract and forfeiture of all principal paid in

Why: Premature distributions of annuity gain before 59½ incur a 10% penalty plus ordinary income tax; nonqualified annuity earnings come out LIFO (gain first).

Several agencies agree to pressure an insurer out of the market by refusing to place business with it. Under IC 27-4-1-4 this is:

  1. Fair competitive conduct
  2. Boycott, coercion, or intimidation ✓
  3. A permissible trade association
  4. Unfair rate discrimination

Why: IC 27-4-1-4(a)(4) defines a concerted agreement to boycott, coerce, or intimidate that restrains the business of insurance — therefore boycott, coercion, or intimidation.