Indiana Health Insurance Practice Exam Free - 2026

• A. 40 hours
• B. 24 hours
• C. 12 hours
• D. 20 hours

Correct answer: D. 20 hours

Explanation: IC 27-1-15.7-5(a)(2)(B) requires not less than twenty (20) hours of instruction for health insurance producers, covering ethics, Indiana insurance laws and principles of health insurance. Forty hours is the minimum for the combined life and health course or for property and casualty (A). Twenty-four hours is the biennial CE requirement under IC 27-1-15.7-2 (B). Twelve hours is not an Indiana prelicensing figure (C). See Ind. Code § 27-1-15.7-5.

• A. Within 10 days; failure is a felony
• B. Within 30 days; failure is grounds for a penalty under the licensing discipline section
• C. Within 60 days; there is no penalty for late notice
• D. At his next license renewal only

Correct answer: B. Within 30 days; failure is grounds for a penalty under the licensing discipline section

Explanation: IC 27-1-15.6-7(h) requires a licensee to inform the commissioner of a change of address not more than thirty (30) days after the change, and states that failure to timely report a change of legal name or address results in a penalty under IC 27-1-15.6-12, which lists the failure as a ground for discipline. Ten days is the deadline for furnishing an appointment report on request, and late notice is not a felony (A). Sixty days and renewal-time reporting are not the statutory rule (C, D). See Ind. Code § 27-1-15.6-7.

• A. Acceptable, because controlled business is limited only when it exceeds 50 percent of commissions
• B. Acceptable, because the rule applies only to insurance on the producer's own family
• C. The license is considered used for controlled business because controlled-business commissions exceeded 25 percent of all commissions in a 12-month period
• D. Acceptable, because employer coverage is exempt as a credit transaction

Correct answer: C. The license is considered used for controlled business because controlled-business commissions exceeded 25 percent of all commissions in a 12-month period

Explanation: IC 27-1-15.6-12(j) bars the commissioner from granting or renewing a license used for controlled business, which includes insurance on the interests of the licensee's employer, and deems a license so used if during any twelve (12) month period the aggregate commissions from controlled business exceeded twenty-five percent (25%) of all commissions earned. Fifty percent is not the statutory threshold (A). Controlled business covers the licensee, immediate family and employer, not family alone (B). The credit-transaction exception applies to insurance written in connection with credit transactions, not employer group health (D). See Ind. Code § 27-1-15.6-12.

• A. Not less than $50 and not more than $10,000
• B. Not less than $100 and not more than $5,000
• C. Not more than $25,000 per violation
• D. Not more than $1,000 per violation

Correct answer: A. Not less than $50 and not more than $10,000

Explanation: IC 27-1-15.6-12(f) allows the commissioner, after a hearing and in addition to or instead of denial, suspension or revocation, to impose a civil penalty of not less than fifty dollars ($50) and not more than ten thousand dollars ($10,000), enforceable like a civil judgment. The $100 to $5,000 and $1,000 figures are not Indiana ranges (B, D). Twenty-five thousand dollars per act is the unfair competition penalty under IC 27-4-1-6, not the licensing-law penalty (C). See Ind. Code § 27-1-15.6-12.

• A. Quarterly premiums, 31 days
• B. Annual premiums, 10 days
• C. Monthly premiums, 31 days
• D. Weekly premiums, 15 days

Correct answer: A. Quarterly premiums, 31 days

Explanation: The provision sets a graduated scale: 7 days for weekly premium policies, 10 days for monthly, and 31 days for any longer mode such as quarterly, semiannual, or annual. Monthly premiums get 10 days rather than 31, weekly get 7 rather than 15, and annual premiums get the full 31 days rather than 10. Coverage stays in force during the grace period, and any unpaid premium may be deducted from a claim paid in that window.

• A. Paid in full, because reinstatement restores coverage retroactively to the lapse date
• B. Denied, because sickness is covered only if it begins more than 10 days after the reinstatement date
• C. Paid at 50 percent, because benefits under a reinstated policy phase in gradually over the first 30 days
• D. Denied, because a reinstated policy excludes sickness for one year after the reinstatement date

Correct answer: B. Denied, because sickness is covered only if it begins more than 10 days after the reinstatement date

Explanation: The standard reinstatement provision covers accidental injury immediately upon reinstatement but imposes a short waiting period, typically 10 days, before sickness is covered, which discourages someone from reinstating only after symptoms appear. Reinstatement is prospective, so it never fills the gap during the lapse. There is no 50 percent phase-in and no one-year sickness bar in the uniform provision.

• A. Within 60 days after the insurer furnishes claim forms, and not before
• B. Within 3 years after the loss, the same outer limit for legal actions
• C. Within 20 days after the loss begins, or as soon as reasonably possible
• D. Within 90 days after the loss, with no allowance for late notice

Correct answer: C. Within 20 days after the loss begins, or as soon as reasonably possible

Explanation: Notice of claim is the first and quickest step, due within 20 days of the occurrence or start of the loss, with a reasonableness allowance for insureds who genuinely cannot comply. Proof of loss comes later, is more detailed, and carries a longer deadline that some states lengthen beyond the model's 90 days. The three-year period is the outer limit for bringing legal action, and 60 days is the waiting period before suit may be filed.

• A. The insurer must pay a statutory penalty directly to the claimant in addition to the claim benefit
• B. The claim is deemed approved and must be paid in full without any further proof from the claimant
• C. The claimant must wait until the forms actually arrive, and the proof of loss deadline is extended accordingly
• D. The claimant may submit written proof of the nature and extent of the loss in any reasonable form

Correct answer: D. The claimant may submit written proof of the nature and extent of the loss in any reasonable form

Explanation: If claim forms are not furnished within the stated period, commonly 15 days after notice, the claimant is deemed to have met the proof requirement by submitting written proof describing the occurrence, character, and extent of the loss. The insurer still gets to evaluate that proof, so the claim is not automatically payable. Forcing the claimant to wait would defeat the provision's purpose, and a direct fine to the claimant is not part of this provision.

• A. 20 days
• B. 45 days
• C. 90 days
• D. 180 days

Correct answer: C. 90 days

Explanation: The uniform provision sets proof of loss at 90 days, measured from the date of loss or, for periodic benefits such as disability income, from the end of each benefit period. Twenty days is the notice of claim deadline, not proof of loss. The provision also excuses late proof where it was not reasonably possible to comply, generally if furnished within about a year absent legal incapacity. Some states adopted a longer period than the model, so always confirm your own state's version.

• A. Suit may not be filed until 60 days after proof of loss is furnished, and not more than 3 years after proof of loss was required
• B. Suit may be filed as soon as proof of loss is furnished, but must be filed within 1 year after the date of the loss
• C. Suit may be filed only after the insurer issues a written denial of the claim, and must be filed within 90 days after the date of that denial
• D. Suit may not be filed until the policy is surrendered to the insurer, and not more than 5 years after the date of loss

Correct answer: A. Suit may not be filed until 60 days after proof of loss is furnished, and not more than 3 years after proof of loss was required

Explanation: The provision sets both a floor and a ceiling: a 60-day cooling-off window that gives the insurer time to investigate and pay, and an outer limit of about three years after proof of loss was due. Allowing immediate suit would remove the insurer's chance to settle voluntarily. The deadlines key off proof of loss rather than a written denial, and no surrender of the policy is required. States may adopt slightly different periods, so confirm your own state's version.

• A. Require the insured to undergo an annual wellness screening at the insured's expense as a condition of keeping the policy in force, and deny claims if it is skipped
• B. Examine the insured at the insurer's own expense as often as reasonably necessary while a claim is pending, and order an autopsy where not forbidden by law
• C. Examine the insured no more than once per policy year during a pending claim, with the insured paying the examiner's fee and any travel costs
• D. Order an autopsy in any death claim regardless of state law, and examine the insured at the insured's expense as often as the insurer chooses

Correct answer: B. Examine the insured at the insurer's own expense as often as reasonably necessary while a claim is pending, and order an autopsy where not forbidden by law

Explanation: The provision gives the insurer a reasonable investigative right during a pending claim, but expressly places the cost on the insurer and conditions autopsy on state law permitting it. Limiting exams to once a year or shifting cost to the insured contradicts the wording. Some states restrict or prohibit autopsies, so an unconditional autopsy right does not exist, and routine wellness screenings are unrelated to claim investigation.

• A. Delay payment of the entire benefit until an executor or administrator of the insured's estate has been formally appointed by the probate court
• B. Pay the entire benefit directly to the producer who wrote the policy, who then distributes it to the insured's heirs
• C. Substitute a lifetime annuity for any lump-sum benefit whenever the payee is a minor or the insured's estate
• D. Pay a limited amount to a relative by blood or marriage who appears equitably entitled, when no valid beneficiary exists

Correct answer: D. Pay a limited amount to a relative by blood or marriage who appears equitably entitled, when no valid beneficiary exists

Explanation: Facility of payment lets the insurer settle a limited amount with a relative by blood or marriage who appears equitably entitled when the benefit would otherwise be payable to the insured's estate, or to a payee who is a minor or otherwise unable to give a valid release. It exists to avoid forcing a probate proceeding over a small sum, which is the opposite of waiting for a court-appointed executor. Producers have no claim on policy benefits, and unilaterally converting a benefit into an annuity is not part of the provision.