LA SERIES 103 EXAM
What is an insurance policy's grace period? - ANSWERS-period of
time after the premium is due but the policy remains in force
What is an insurer required to do when faced with an error made
under the Misstatement of Age Provision? - ANSWERS-Pay age
corrected benefits
What is implied authority defined as? - ANSWERS-Authority that is
not specifically given to an agent in the agency contract, but that an
agent can reasonably assume to carry out his/her duties
What is involved when a life insurance policy has been backdated? -
ANSWERS-Making the policy effective on an earlier date than the
present
What is issued to each employee of an employer health plan? -
ANSWERS-certificate
What is known as the immediate specific even causing loss and giving
rise to risk? - ANSWERS-Peril
What is Medicare Part B also known as? - ANSWERS-Supplementary
medical insurance
,What is the automatic continuance of insurance coverage referred to
as? - ANSWERS-renewal
What is the contract called that is issued to an employer for a Group
Medical Insurance plan? - ANSWERS-Master Policy
What is the elimination period of an individual disability policy? -
ANSWERS-Time period a disabled person must wait before benefits
are paid.
What is the MINIMUM benefit period that must be offered by a
Long-Term Care policy? - ANSWERS-12 months
What is the nonforfeiture value of an annuity before annuititzation? -
ANSWERS-All premiums paid, plus interests, minus any withdrawals
and surrender charges
What is the primary factor that determines the benefits paid under a
disability income policy? - ANSWERS-Wages
What is the primary feature of a viatical settlement? - ANSWERS-
reduced death benefit prepayment
What is the primary purpose of a rating service company such as A.M
Best? - ANSWERS-Determine financial strength of an insurance
company
,What is the primary reason for buying an annuity? - ANSWERS-
Provide future economic security
What is the purpose for having an accelerated death benefit on a life
insurance policy? - ANSWERS-it allows for cash advances to be paid
against the death benefit if the insured becomes terminally ill
What is the purpose of a Disability Income Benefit? - ANSWERS-
provide money for living expenses
What is the purpose of the Louisiana Life and Health Insurance
guaranty association - ANSWERS-Ensures that claims filed against
insolvent insurance companies will be paid
What is the purpose of the Medical Information Bureau(MIB)? -
ANSWERS-to help underwriters evaluate risk
what is the tax liability for employer contributions in Health Savings
Accounts (HAS's) - ANSWERS-No tax payment needed
What kind of insurance provides coverage for one or more necessary
or appropriate diagnostic, preventive, therapeauit, rehabilitative,
maintenacne, or personal care services in a setting other than an acute
care unit of a hospital? - ANSWERS-long term care
, What kind of life insurance policy covers two or more people with the
death benefit payable upon the last person's death? - ANSWERS-Last
Survivor Life Insurance
What kind of life insurance policy issued by a mutual insurer provides
a return of dividend surplus? - ANSWERS-participating life insurance
policy
What makes an insurance policy a unilateral contract? - ANSWERS-
Only the insurer is legally bound
What percentage of a participant's income are group long-term
disability benefit amounts typically limited to? - ANSWERS-60%
What type of injury would NOT be covered under a health insurance
policy? - ANSWERS-Work-related
What type of policy would only provide coverage for specific types of
illnesses (cancer, stroke, etc.) - ANSWERS-Dread Disease Insurance
What types of life insurance are normally used for key employee
indemnification? - ANSWERS-term, whole, and universal life
insurance
What will the beneficiary receive if an annuitant dies during the
accumulation period? - ANSWERS-The greater of the accumulated
cash value oe the total premium paid
What is an insurance policy's grace period? - ANSWERS-period of
time after the premium is due but the policy remains in force
What is an insurer required to do when faced with an error made
under the Misstatement of Age Provision? - ANSWERS-Pay age
corrected benefits
What is implied authority defined as? - ANSWERS-Authority that is
not specifically given to an agent in the agency contract, but that an
agent can reasonably assume to carry out his/her duties
What is involved when a life insurance policy has been backdated? -
ANSWERS-Making the policy effective on an earlier date than the
present
What is issued to each employee of an employer health plan? -
ANSWERS-certificate
What is known as the immediate specific even causing loss and giving
rise to risk? - ANSWERS-Peril
What is Medicare Part B also known as? - ANSWERS-Supplementary
medical insurance
,What is the automatic continuance of insurance coverage referred to
as? - ANSWERS-renewal
What is the contract called that is issued to an employer for a Group
Medical Insurance plan? - ANSWERS-Master Policy
What is the elimination period of an individual disability policy? -
ANSWERS-Time period a disabled person must wait before benefits
are paid.
What is the MINIMUM benefit period that must be offered by a
Long-Term Care policy? - ANSWERS-12 months
What is the nonforfeiture value of an annuity before annuititzation? -
ANSWERS-All premiums paid, plus interests, minus any withdrawals
and surrender charges
What is the primary factor that determines the benefits paid under a
disability income policy? - ANSWERS-Wages
What is the primary feature of a viatical settlement? - ANSWERS-
reduced death benefit prepayment
What is the primary purpose of a rating service company such as A.M
Best? - ANSWERS-Determine financial strength of an insurance
company
,What is the primary reason for buying an annuity? - ANSWERS-
Provide future economic security
What is the purpose for having an accelerated death benefit on a life
insurance policy? - ANSWERS-it allows for cash advances to be paid
against the death benefit if the insured becomes terminally ill
What is the purpose of a Disability Income Benefit? - ANSWERS-
provide money for living expenses
What is the purpose of the Louisiana Life and Health Insurance
guaranty association - ANSWERS-Ensures that claims filed against
insolvent insurance companies will be paid
What is the purpose of the Medical Information Bureau(MIB)? -
ANSWERS-to help underwriters evaluate risk
what is the tax liability for employer contributions in Health Savings
Accounts (HAS's) - ANSWERS-No tax payment needed
What kind of insurance provides coverage for one or more necessary
or appropriate diagnostic, preventive, therapeauit, rehabilitative,
maintenacne, or personal care services in a setting other than an acute
care unit of a hospital? - ANSWERS-long term care
, What kind of life insurance policy covers two or more people with the
death benefit payable upon the last person's death? - ANSWERS-Last
Survivor Life Insurance
What kind of life insurance policy issued by a mutual insurer provides
a return of dividend surplus? - ANSWERS-participating life insurance
policy
What makes an insurance policy a unilateral contract? - ANSWERS-
Only the insurer is legally bound
What percentage of a participant's income are group long-term
disability benefit amounts typically limited to? - ANSWERS-60%
What type of injury would NOT be covered under a health insurance
policy? - ANSWERS-Work-related
What type of policy would only provide coverage for specific types of
illnesses (cancer, stroke, etc.) - ANSWERS-Dread Disease Insurance
What types of life insurance are normally used for key employee
indemnification? - ANSWERS-term, whole, and universal life
insurance
What will the beneficiary receive if an annuitant dies during the
accumulation period? - ANSWERS-The greater of the accumulated
cash value oe the total premium paid
