LOUISIANA LIFE, ACCIDENT AND HEALTH PRACTICE EXAM TEST 800
QUESTIONS AND CORRECT ANSWERS COVERING ALL THE MOST AND
RECURENT QUESTIONS PERFECT FOR 2026_2027 EXAM TEST
GUARANTEE HIGH PASSMARK
OVERVIEW
This set of questions covers insurance principles, retirement planning,
healthcare coverage, and licensing regulations. It focuses on key concepts such
as risk types (e.g., speculative vs. pure risk), policy features, annuities, and tax
rules like 1035 exchanges and IRA penalties. It also includes health insurance
systems such as Medicare (Parts A, B, and Advantage), disability income
protection, and group insurance structures. Additionally, it emphasizes legal and
regulatory requirements for insurance producers, including licensing, continuing
education, ethical conduct (e.g., twisting), and compliance with laws like the Fair
Credit Reporting Act and Gramm-Leach-Bliley Act. Overall, the material prepares
learners to understand how insurance products work, how they are regulated, and
how professionals must operate within legal and ethical standards.
Select from the choices below the best description of a speculative risk? - correct answer -Involving
the possibility of a gain in addition to the uncertainty of loss
If there is a material change in an MEC contract, what is the first thing needing to be done? - correct
answer -Another 7 pay test
Which of the following is not taxable? - correct answer -Fixed amount installments
A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty tax
unless: - correct answer -It was used as a down payment on first home
Carlos cancels his life policy but instructs the insurance company to transfer the cash value of his
policy to an annuity. This non taxable transaction is called? - correct answer -1035 Exchange
,Which of the following is a disadvantage to setup and participate in a qualified retirement plan? -
correct answer -Immediate liquidity
All of these types of distributions that are exceptions to the 10% penalty rule except: - correct answer -
New car purchase
Which of the following does not describe a 401(K) characteristics - correct answer -Currently $49,000
maximum contribution
The following are examples of Qualified Retirement Plans except: - correct answer -501c(3)
Which of the following is not correct regarding Long Term Care - correct answer -It provides different
benefits for different levels of care
Medicare Select is a type of? - correct answer -Medicare Supplement plan offered by an HMO
Which of the following statements is correct regarding Medicare Advantage - correct answer -It can
offer benefits that ate not covered by regular Medicare
Which of the following is correct with regards to the hospital insurance Part A plan of Medicare -
correct answer -Insured must satisfy a deductible
Which of the following statements is correct about Part B of Medicare - correct answer -An annual
deductible is required
All of the following examples of groups that purchase group health insurance except: - correct answer -
MEWA
The following are example of limited health plans except: - correct answer -HMO
,Ally wants a rider that will pay disability that social security will pay for one year, assuming that social
security should begin then. What type of rider should she consider? - correct answer -Additional
monthly benefit (AMB)
How many QCs are necessary to be fully funded? - correct answer -40
If Bill has a type of disability plan that has benefits set at a percentage of income, what type is it? -
correct answer -Employer Group
Ally wants to make sure that her benefits for her disability policy keep up with the rate of inflation, what
type of rider should she consider - correct answer -COLA
How many QCs are necessary to be deemed partially insured - correct answer -6 in the last 13
If Jill has a type of disability plan that has benefits set at a flat amount per month, what type is it? -
correct answer -Individual
The period before benefits begin is termed as all of the following except: - correct answer -Pre-benefit
period
Which of the following does Coinsurance describe? - correct answer -a percentage the insured will pay
after the deductible
If a health insurer does not pay a claim more than how many days after required a 1% per month
penalty will begin? - correct answer -25 days
How many days after receiving notice of a claim does an insurer have to furnish proof of loss forms? -
correct answer -15
If Martha wants to pay her daughter's college tuition, which of the following can be used as an
education annuity? - correct answer -Annuity Certain
, The best description of a hazard is? - correct answer -Condition that may increase the chance that a
loss may occur
Choose from the following selections the best description of a premium? - correct answer -The amount
an insured pays for each unit of coverage. $7 for every $1,000 of coverage is an example.
Which of the following is correct about a Third-Party Administrator? - correct answer -It is an
independent company that provides administrative services for company's self-funded plans
A non-resident producer that is moving from one state to another state must submit? - correct answer
-a state-to-state transfer form within 30 days
If a producer changes their mailing, work, or home address, the Department must be notified
____________of the change on an official "Change of Address" form available on the LA Department of
Insurance website, or face a fine. - correct answer -within 10 days
Assuming CE requirements have been met, how is the life agent's license renewed? - correct answer -
Pay the renewal billing notice the Dept sends out 90 days before the renewal date
To renew a resident individual producer's license, you must complete _______ hours of continuing
education each renewal period. - correct answer -24 hours
The CE requirement does not apply to specialty or limited licenses, such as, industrial fire, credit life,
credit health, credit property, or accidental death and dismemberment. - correct answer -False
John became disabled and cannot conduct his insurance business. His legally appointed representative
may get a temporary license to handle the business for him for a period up to ____________________. -
correct answer -180 days
If a producer's license is revoked, it is not possible to reapply. - correct answer -False
QUESTIONS AND CORRECT ANSWERS COVERING ALL THE MOST AND
RECURENT QUESTIONS PERFECT FOR 2026_2027 EXAM TEST
GUARANTEE HIGH PASSMARK
OVERVIEW
This set of questions covers insurance principles, retirement planning,
healthcare coverage, and licensing regulations. It focuses on key concepts such
as risk types (e.g., speculative vs. pure risk), policy features, annuities, and tax
rules like 1035 exchanges and IRA penalties. It also includes health insurance
systems such as Medicare (Parts A, B, and Advantage), disability income
protection, and group insurance structures. Additionally, it emphasizes legal and
regulatory requirements for insurance producers, including licensing, continuing
education, ethical conduct (e.g., twisting), and compliance with laws like the Fair
Credit Reporting Act and Gramm-Leach-Bliley Act. Overall, the material prepares
learners to understand how insurance products work, how they are regulated, and
how professionals must operate within legal and ethical standards.
Select from the choices below the best description of a speculative risk? - correct answer -Involving
the possibility of a gain in addition to the uncertainty of loss
If there is a material change in an MEC contract, what is the first thing needing to be done? - correct
answer -Another 7 pay test
Which of the following is not taxable? - correct answer -Fixed amount installments
A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty tax
unless: - correct answer -It was used as a down payment on first home
Carlos cancels his life policy but instructs the insurance company to transfer the cash value of his
policy to an annuity. This non taxable transaction is called? - correct answer -1035 Exchange
,Which of the following is a disadvantage to setup and participate in a qualified retirement plan? -
correct answer -Immediate liquidity
All of these types of distributions that are exceptions to the 10% penalty rule except: - correct answer -
New car purchase
Which of the following does not describe a 401(K) characteristics - correct answer -Currently $49,000
maximum contribution
The following are examples of Qualified Retirement Plans except: - correct answer -501c(3)
Which of the following is not correct regarding Long Term Care - correct answer -It provides different
benefits for different levels of care
Medicare Select is a type of? - correct answer -Medicare Supplement plan offered by an HMO
Which of the following statements is correct regarding Medicare Advantage - correct answer -It can
offer benefits that ate not covered by regular Medicare
Which of the following is correct with regards to the hospital insurance Part A plan of Medicare -
correct answer -Insured must satisfy a deductible
Which of the following statements is correct about Part B of Medicare - correct answer -An annual
deductible is required
All of the following examples of groups that purchase group health insurance except: - correct answer -
MEWA
The following are example of limited health plans except: - correct answer -HMO
,Ally wants a rider that will pay disability that social security will pay for one year, assuming that social
security should begin then. What type of rider should she consider? - correct answer -Additional
monthly benefit (AMB)
How many QCs are necessary to be fully funded? - correct answer -40
If Bill has a type of disability plan that has benefits set at a percentage of income, what type is it? -
correct answer -Employer Group
Ally wants to make sure that her benefits for her disability policy keep up with the rate of inflation, what
type of rider should she consider - correct answer -COLA
How many QCs are necessary to be deemed partially insured - correct answer -6 in the last 13
If Jill has a type of disability plan that has benefits set at a flat amount per month, what type is it? -
correct answer -Individual
The period before benefits begin is termed as all of the following except: - correct answer -Pre-benefit
period
Which of the following does Coinsurance describe? - correct answer -a percentage the insured will pay
after the deductible
If a health insurer does not pay a claim more than how many days after required a 1% per month
penalty will begin? - correct answer -25 days
How many days after receiving notice of a claim does an insurer have to furnish proof of loss forms? -
correct answer -15
If Martha wants to pay her daughter's college tuition, which of the following can be used as an
education annuity? - correct answer -Annuity Certain
, The best description of a hazard is? - correct answer -Condition that may increase the chance that a
loss may occur
Choose from the following selections the best description of a premium? - correct answer -The amount
an insured pays for each unit of coverage. $7 for every $1,000 of coverage is an example.
Which of the following is correct about a Third-Party Administrator? - correct answer -It is an
independent company that provides administrative services for company's self-funded plans
A non-resident producer that is moving from one state to another state must submit? - correct answer
-a state-to-state transfer form within 30 days
If a producer changes their mailing, work, or home address, the Department must be notified
____________of the change on an official "Change of Address" form available on the LA Department of
Insurance website, or face a fine. - correct answer -within 10 days
Assuming CE requirements have been met, how is the life agent's license renewed? - correct answer -
Pay the renewal billing notice the Dept sends out 90 days before the renewal date
To renew a resident individual producer's license, you must complete _______ hours of continuing
education each renewal period. - correct answer -24 hours
The CE requirement does not apply to specialty or limited licenses, such as, industrial fire, credit life,
credit health, credit property, or accidental death and dismemberment. - correct answer -False
John became disabled and cannot conduct his insurance business. His legally appointed representative
may get a temporary license to handle the business for him for a period up to ____________________. -
correct answer -180 days
If a producer's license is revoked, it is not possible to reapply. - correct answer -False
