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 17 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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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 961 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 27-1-15.7-2, how many continuing education hours must a resident producer complete to renew a license?

  1. Twelve (12) hours annually
  2. Sixteen (16) hours annually
  3. Twenty-four (24) hours per renewal ✓
  4. Forty (40) hours per renewal

Why: IC 27-1-15.7-2(a) requires a resident producer to complete at least twenty-four (24) hours of continuing education per renewal — therefore 24 hours.

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.

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.

Show more sample questions with answers & explanations

Under IC 27-8-5.6-2, newborn coverage of medically diagnosed congenital defects must include benefits for which specific condition?

  1. Adult onset diabetes
  2. Recreational injuries
  3. Elective cosmetic surgery
  4. Cleft lip and cleft palate ✓

Why: IC 27-8-5.6-2(c) expressly includes management of the birth defects cleft lip and cleft palate — therefore cleft lip and cleft palate.

Under IC 27-8-12-12, the 30-day right-to-return notice for an individual LTC policy must appear where?

  1. In the annual statement
  2. In a separate mailing
  3. On or attached to the first page ✓
  4. In the application only

Why: IC 27-8-12-12(b) requires the notice prominently printed on or attached to the first page of the policy — therefore on or attached to the first page.

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.

A reciprocal insurer is:

  1. An unincorporated group of members who insure each other through an attorney-in-fact ✓
  2. A stock company owned entirely by outside investors unless an exception clearly applies
  3. A federal agency regulating the insurance industry
  4. A nonprofit lodge providing fraternal benefits

Why: A reciprocal is an unincorporated association whose subscribers exchange insurance among themselves, managed by an attorney-in-fact.

Under Indiana's insurance advertising rules (760 IAC 1-13), an 'advertisement' includes:

  1. only newspaper display ads
  2. only the signed application in most situations
  3. only the policy contract
  4. printed materials and radio or TV scripts ✓

Why: Indiana's advertising rules define 'advertisement' broadly to include printed and published material, descriptive literature, and radio and television scripts and similar sales aids — therefore printed materials and radio/TV scripts.

Under IC 27-8-19.8-3, the 'insured' in a viatical settlement is:

  1. the person buying the policy
  2. the settlement provider's agent
  3. the beneficiary of the estate
  4. the individual whose life the policy covers ✓

Why: IC 27-8-19.8-3 defines 'insured' as the individual whose life is the subject of insurance under the policy or contract — therefore the individual whose life the policy covers.

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.

Under IC 27-8-15-8.5, an 'eligible employee' generally must be employed to work at least how many hours each week?

  1. 20 hours
  2. 25 hours
  3. 30 hours ✓
  4. 40 hours

Why: IC 27-8-15-8.5 defines an eligible employee as one employed to work at least 30 hours each week — therefore 30 hours.

Before recommending an annuity, a producer learns the client needs the money within a year for living expenses. The producer should:

  1. Conclude the annuity is likely unsuitable and not recommend it ✓
  2. Recommend the annuity with the highest surrender charges
  3. Sell the annuity anyway to meet a monthly sales quota
  4. Recommend it only if the client signs a liability waiver

Why: Suitability rules require matching the product to the client's situation; an annuity (with surrender charges and a long horizon) is unsuitable for funds needed immediately.

Under IC 27-1-15.7-2, CE credit for courses on sales technique, motivation, or psychology is limited to how many hours?

  1. No more than two (2) hours
  2. No more than four (4) hours ✓
  3. No more than six (6) hours
  4. No more than ten (10) hours

Why: IC 27-1-15.7-2(a) caps credit for sales promotion, sales technique, motivation, psychology, or time management courses at not more than four (4) hours — therefore four hours.

Under IC 27-1-2-3, an 'alien company' is organized under the laws of:

  1. A country other than the United States ✓
  2. Another U.S. state
  3. A U.S. territory or possession
  4. This state (Indiana)

Why: IC 27-1-2-3 defines an alien company as one organized under the laws of any country other than the United States or its territories.

To open and contribute to a Health Savings Account (HSA), an individual must be:

  1. Enrolled in a qualified high-deductible health plan ✓
  2. Covered by Medicare Part A and Part B already
  3. Over the age of sixty-five and fully retired from work
  4. Enrolled in a low-deductible managed-care HMO plan

Why: HSA eligibility requires coverage under a qualified high-deductible health plan and no disqualifying coverage; HSAs offer a triple tax advantage.

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 27-1-15.6-17, a producer must report an administrative action taken in another jurisdiction within:

  1. Fifteen (15) days of final disposition
  2. Thirty (30) days of final disposition ✓
  3. Sixty (60) days of final disposition
  4. Ninety (90) days of final disposition

Why: IC 27-1-15.6-17(a) requires the report not more than thirty (30) days after final disposition of the matter — therefore thirty days.

A travel accident policy is delivered on April 10 and the insured's departure is much later. Under IC 27-8-5-20, the return period runs until the earlier of departure or 30 days after delivery — what is the last day to return it?

  1. April 20
  2. April 30
  3. May 1
  4. May 10 ✓

Why: IC 27-8-5-20 sets a travel-accident return period of the earlier of departure or 30 days after delivery; 30 days after April 10 is May 10 — therefore May 10.

A director knowingly has the company transact insurance in Indiana before obtaining a certificate of authority. Under IC 27-1-3-20, this is:

  1. A Class A infraction
  2. A Class B misdemeanor
  3. A noncriminal license bar
  4. A Level 6 felony ✓

Why: IC 27-1-3-20(e) provides a director or officer who knowingly, intentionally, or recklessly transacts insurance without a certificate of authority commits a Level 6 felony.

'Twisting' is an unfair trade practice defined as:

  1. Using misrepresentation to induce a client to replace an existing policy ✓
  2. Charging two clients different premiums for identical coverage by mistake
  3. Sharing a small portion of one's commission with a licensed co-agent
  4. Recommending the lowest-cost policy a client genuinely qualifies for

Why: Twisting is inducing a policy replacement through misrepresentation or incomplete comparisons; doing so within the same insurer is called churning.

A state Long-Term Care Partnership program allows a policyholder to:

  1. Protect an amount of assets equal to the benefits the policy paid, if they later need Medicaid ✓
  2. Buy long-term care coverage with no medical underwriting whatsoever, at any age the applicant chooses
  3. Receive double benefits from both the insurer and the state at once
  4. Avoid ever having to pay any long-term care premiums

Why: Partnership policies let insureds shelter assets equal to the LTC benefits paid when qualifying for Medicaid, encouraging private LTC coverage.

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.

A client exchanges an existing cash-value life insurance policy directly for an annuity contract. Under IRC Section 1035, this is:

  1. A tax-free exchange ✓
  2. A fully taxable surrender
  3. Taxed only on the cash value
  4. An illegal transaction

Why: A life-to-annuity exchange qualifies for tax-free treatment under Section 1035 (an annuity-to-life exchange would not).

An Indiana insurer receives due proof of the insured's death on April 10. Under IC 27-1-12-6, settlement must be made no later than about:

  1. May 10
  2. June 10 ✓
  3. April 25
  4. July 10

Why: IC 27-1-12-6(a)(10) requires settlement upon due proof and not later than two (2) months after receipt of proof. Two months from April 10 is about June 10.

A key feature of convertible term insurance is that it can be changed to a permanent policy:

  1. Only after a new medical exam
  2. Without providing evidence of insurability ✓
  3. Only if the insured becomes disabled
  4. Only in the first policy year

Why: Convertible term can be converted to permanent coverage without evidence of insurability.

A producer writes mostly policies on his own family and employer, earning 40% of commissions from them. Under IC 27-1-15.6-12, this is:

  1. Permitted if disclosed to insurer
  2. Prohibited controlled business ✓
  3. Allowed under the credit rule
  4. Subject only to a written warning

Why: IC 27-1-15.6-12(j) prohibits using a license to write controlled business; exceeding the 25% threshold on family/employer business makes it prohibited controlled business.

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.

Modified whole life insurance is characterized by:

  1. A premium that is higher in the first years and then drops sharply
  2. A lower premium for an initial period, then a higher level premium for life ✓
  3. Coverage that decreases steadily until it reaches zero at age 65
  4. Premiums that fluctuate yearly based on the insurer's investment returns

Why: Modified whole life charges a reduced premium for the first few years, then a higher level premium for the remainder of life.

Under IC 27-8-15-14, a 'small employer' is one that employed at least two (2) but not more than how many eligible employees?

  1. Fifty (50) ✓
  2. Twenty-five (25)
  3. One hundred (100)
  4. Seventy-five (75)

Why: IC 27-8-15-14 defines a small employer as employing at least 2 but not more than fifty (50) eligible employees — therefore 50.

A 68-year-old retiree wants income payments to begin next month from a lump sum. The suitable product is a(n):

  1. Single-premium immediate annuity ✓
  2. Flexible-premium deferred annuity
  3. 20-year level term policy
  4. Variable universal life policy

Why: A single-premium immediate annuity converts a lump sum into income beginning within one payment period.