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 3 August 2026

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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.

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

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$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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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 27-1-15.7-3, 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 27-1-15.6-2, an 'insurance producer' is a person required to be licensed to:

  1. Sell, solicit, or negotiate insurance ✓
  2. Underwrite and rate insurance risks
  3. Adjust and settle insurance claims
  4. Examine and audit licensed insurers

Why: IC 27-1-15.6-2 defines an insurance producer as a person required to be licensed under Indiana law to sell, solicit, or negotiate insurance.

Under IC 27-1-1-2, the insurance commissioner must give bond for the faithful performance of duties in what sum?

  1. Ten thousand dollars ($10,000)
  2. Twenty thousand dollars ($20,000)
  3. One hundred thousand dollars ($100,000)
  4. Fifty thousand dollars ($50,000) ✓

Why: IC 27-1-1-2 requires the commissioner to give bond in the sum of fifty thousand dollars ($50,000), with surety approved by the governor.

Show more sample questions with answers & explanations

A waiver of premium provision in a long-term care policy:

  1. Stops premium payments while the insured is receiving covered benefits ✓
  2. Refunds every premium the insured has paid once they reach the age of eighty
  3. Cancels the policy automatically after the first claim
  4. Lowers the premium each year the insured stays healthy

Why: LTC waiver of premium suspends premium payments while the insured is confined or receiving qualifying benefits.

A juvenile policy has a payor benefit rider. The premium-paying parent dies while the child is 8. The rider:

  1. Waives the premiums until the child reaches a stated age ✓
  2. Pays the death benefit to the child immediately
  3. Cancels the child's coverage at once
  4. Converts the policy into an annuity

Why: A payor rider waives premiums if the premium-paying adult dies or becomes disabled, keeping the child's coverage in force.

Under IC 27-1-17-2, a foreign or alien insurer may not be admitted to transact a kind of insurance in Indiana that:

  1. Exceeds ten million dollars in premium
  2. A domestic company is not permitted to transact ✓
  3. Is written on a surplus lines basis
  4. Is not sold in its home state

Why: IC 27-1-17-2 bars admitting a foreign/alien insurer for a kind of business a domestic company may not transact — therefore that limit.

Under IC 27-4-1-7, a person ordered to cease and desist may obtain judicial review of the order under:

  1. The federal district courts
  2. IC 4-21.5-5 ✓
  3. The insurance guaranty act
  4. A jury trial de novo

Why: IC 27-4-1-7(a) provides that judicial review of a cease and desist order is obtained under IC 4-21.5-5 — therefore IC 4-21.5-5.

To close a sale, a producer offers to personally pay the client's first premium installment. Under IC 27-4-1-4 this is:

  1. A lawful sales incentive
  2. An approved premium discount
  3. A prohibited rebate ✓
  4. A permitted policy dividend

Why: IC 27-4-1-4(a)(8) prohibits giving a valuable consideration not specified in the contract as an inducement; paying the client's premium is a prohibited rebate.

Under IC 27-8-5-20, an individual accident and health policy that is NOT sold by direct response must give the policyholder a right to return the policy within how many days of delivery?

  1. 10 days ✓
  2. 20 days
  3. 30 days
  4. 31 days

Why: IC 27-8-5-20(a) gives a 10-day right to return for individual policies (30 days for direct response) — therefore 10 days.

Under IC 27-1-15.6-12, a business entity's license may be revoked when a producer's violation was known to a manager and:

  1. The entity earned excess profit
  2. The producer later resigned
  3. It was not reported and uncorrected ✓
  4. The client filed a civil lawsuit

Why: IC 27-1-15.6-12(e) allows action against a business entity when a manager knew of the violation, it was not reported, and no corrective action was taken — therefore unreported and uncorrected.

Under IC 27-1-12-6, a life insurance policy must provide a grace period for payment of every premium after the first of not less than:

  1. Sixty (60) days
  2. Thirty (30) days ✓
  3. Ten (10) days
  4. Fifteen (15) days

Why: IC 27-1-12-6(a)(2) requires a grace period of not less than thirty (30) days during which the insurance continues in force — therefore 30 days.

A deferred income (longevity) annuity is designed to:

  1. Begin income at an advanced age to guard against outliving assets ✓
  2. Pay income immediately after a single premium
  3. Provide a death benefit with no income option
  4. Return all premiums if the owner stays healthy under the policy's terms

Why: A longevity/deferred income annuity starts payments at an advanced age (e.g., 80+), hedging the risk of outliving one's savings.

Under IC 27-1-15.6-7, which of the following is a listed line of authority for a producer license?

  1. Personal lines ✓
  2. Reinsurance placement
  3. Independent claims adjusting
  4. Managing general agency

Why: IC 27-1-15.6-7(a) lists the lines of authority, including life, accident and health, property, casualty, variable products, personal lines, credit, and title.

Which type of life insurance provides lifelong coverage with a level premium and a guaranteed cash value?

  1. Annually renewable term
  2. Whole (ordinary) life ✓
  3. Level term to age 65
  4. Credit life

Why: Whole life is permanent coverage with a level premium and a guaranteed, tax-deferred cash value. Term provides only temporary coverage with no cash value.

Under IC 27-1-12-43, the notice of the right to return the policy must be printed:

  1. prominently on the policy's first page ✓
  2. in the application only
  3. on the back cover of the policy
  4. printed only inside the buyer's guide booklet

Why: IC 27-1-12-43(c) requires the return-right notice to be prominently printed on the first page of the policy — therefore the policy's first page.

Under IC 27-4-1-8, the commissioner may act against a method or practice NOT defined in section 4 when it is unfair or deceptive and:

  1. It caused actual monetary loss
  2. A proceeding would be in the public interest ✓
  3. Three complaints have been filed
  4. The NAIC has adopted a model rule

Why: IC 27-4-1-8 lets the commissioner proceed against undefined practices found unfair/deceptive when a proceeding is in the public interest — therefore public interest.

Under IC 27-4-1-12, a person who violates a final cease and desist order may face a civil penalty of not more than what amount per violation?

  1. $10,000
  2. $5,000
  3. $50,000
  4. $25,000 ✓

Why: IC 27-4-1-12(1) authorizes a civil penalty of not more than twenty-five thousand dollars ($25,000) per act or violation — therefore $25,000.

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.

Under IC 27-8-26-6, when developing medical-history questions for an applicant, an insurer may not ask:

  1. About the applicant's current medications
  2. For the results of genetic screening or testing ✓
  3. About a family history of diabetes
  4. About the applicant's tobacco use

Why: IC 27-8-26-6 prohibits asking for, or questions designed to ascertain, the results of genetic screening or testing — therefore that answer.

An agent is soliciting an individual LTC policy for a prospect. Under IC 27-8-12-14, when must the producer deliver the outline of coverage?

  1. Before presenting the application ✓
  2. After the first premium
  3. At the time of the first claim
  4. Within 30 days of issue

Why: IC 27-8-12-14(c) requires the producer to deliver the outline of coverage before presentation of an application or enrollment form — therefore before presenting the application.

An Indiana producer's flyer states, 'Your annuity is protected by the state Guaranty Association if the insurer fails.' Under IC 27-8-8-18, this statement is:

  1. permitted if the insurer is solvent
  2. required disclosure at point of sale
  3. prohibited use of the Association in solicitation ✓
  4. permitted with the commissioner's written approval

Why: IC 27-8-8-18(a) prohibits using the existence of the Association to sell, solicit, or induce the purchase of insurance — therefore it is a prohibited use in solicitation.

Under IC 27-8-5-20, a health policy issued through a direct response solicitation must allow the policyholder to return it within how many days of delivery?

  1. 7 days
  2. 10 days
  3. 30 days ✓
  4. 45 days

Why: IC 27-8-5-20(b) requires a 30-day return period for direct response policies — therefore 30 days.

A family applies for Indiana CHIP. Under IC 12-17.6-3-2, eligibility requires family income above 150% and not more than what percentage of the federal poverty level?

  1. 200%
  2. 300%
  3. 250% ✓
  4. 400%

Why: IC 12-17.6-3-2(2) sets the band above 150% and not more than 250% of the federal poverty level — therefore 250%.

A Medicare Part A benefit period begins when a patient is admitted and ends:

  1. 60 days after the patient has been discharged ✓
  2. On the last calendar day of that same month
  3. After exactly one full year from the admission date
  4. Only when the patient changes to a different hospital

Why: A benefit period starts at admission and ends after the patient has been out of a hospital/SNF for 60 consecutive days; a new period (and deductible) can then begin.

Under IC 27-1-2-3, an 'insurance solicitor' aids a producer in placing contracts of insurance:

  1. Only for life insurance
  2. Other than life insurance ✓
  3. Only for annuity products
  4. For any line without limitation

Why: IC 27-1-2-3 defines an insurance solicitor as a natural person employed to aid a producer in soliciting, negotiating, or effecting contracts of insurance other than life.

Under IC 27-8-8-2, an 'insolvent insurer' is a member insurer placed under a court order of:

  1. rehabilitation or conservation
  2. liquidation with a finding of insolvency ✓
  3. administrative supervision by the commissioner
  4. voluntary market withdrawal

Why: IC 27-8-8-2(r) defines an insolvent insurer as one placed under an order of liquidation with a finding of insolvency by a court with jurisdiction; rehabilitation/conservation describes an impaired insurer under (q).

Under IC 27-1-15.6-10, a producer's notice of intent to use an assumed name must be given to whom?

  1. The NAIC
  2. The commissioner ✓
  3. The secretary of state
  4. The appointing insurer

Why: IC 27-1-15.6-10 directs the notice to the commissioner — therefore the commissioner.

An annuitant has a $30,000 basis and a $120,000 expected return. Of each $6,000 payment, the taxable amount is:

  1. $4,500 ✓
  2. $1,500
  3. $6,000
  4. $3,000

Why: Exclusion ratio = 30,000/120,000 = 25%; $1,500 excluded, $4,500 taxable.

Which of the following is a ground for license action under IC 27-1-15.6-12?

  1. Earning commissions above a cap
  2. Having been convicted of a felony ✓
  3. Selling for multiple insurers
  4. Advertising through social media

Why: IC 27-1-15.6-12(b)(6) lists having been convicted of a felony as a cause for license action — therefore a felony conviction.

Under IC 27-1-3-7, a rule adopted under IC 4-22-2 may simplify the terms and coverage of which policies?

  1. Medicare supplement accident and sickness policies ✓
  2. Individual variable annuity investment contracts
  3. Commercial surplus lines insurance policies for business
  4. Group credit life insurance certificates

Why: IC 27-1-3-7(b) lets the department adopt a rule simplifying individual and group Medicare supplement accident and sickness policies and subscriber contracts.