XCELL TESTING SOLUTIONS LIFE AND HEALTH
FINAL 2026 REVISION NOTES AND
STRUCTURED INSURANCE OVERVIEW GUIDE
◉ A whole life policy option where extended term insurance is
selected is called a(n). Answer: nonforfeiture option
A nonforfeiture provision in a whole life policy that uses cash value
to purchase term insurance equal to the existing amount of life
insurance is called the extended term option.
◉ The Commissioner must examine the financial affairs of each
admitted insurer operating in Louisiana at least once every how
many years?. Answer: 5
At the very least, an admitted company shall be examined once every
5 years by the Commissioner.
◉ When a Medicare supplement policy is purchased during the open
enrollment period. Answer: the policy must be issued regardless of
health status
During open enrollment for Medicare supplements, policies will be
issued regardless of health status.
,◉ Which of the following actions may an insurance company NOT do
in a health policy that contains a guaranteed renewable premium
benefit?. Answer: Increase the premiums on an individual basis
A guaranteed renewable policy CANNOT increase the premiums on
an individual basis, only on the basis of an entire classification.
◉ A nonresident of Louisiana who has satisfied the licensing
requirements for a line of insurance in the licensee's state and who
wishes to sell that line of insurance in Louisiana, must meet all of the
following requirements EXCEPT:. Answer: Take the appropriate
Louisiana licensing examination
A nonresident licensee from another state is not required to take a
licensing examination if they are already in good standing with their
state of residence.
◉ A life insurance policy that has premiums fully paid up within a
stated time period is called. Answer: limited payment insurance
Limited payment insurance is characterized by premiums that are
fully paid up within a stated period, after which no further
premiums are required.
◉ The taxable portion of each annuity payment is calculated using
which method?. Answer: Exclusion Ratio
The Exclusion Ratio is used to determine the taxable portion of each
annuity payment.
,◉ How are annuities given favorable tax treatment?. Answer: Gains
are taxed at distribution
Annuity gains are typically tax deferred until distribution.
◉ All _____ policies must be guaranteed renewable.. Answer: long-
term care
All long-term care policies must be guaranteed renewable.
◉ Which type of business insurance is meant to cover the costs of
continuing to do business while the owner is disabled?. Answer:
Business overhead expense policy
A form of business disability insurance that is designed to cover the
actual costs of continuing to do business while an insured business
owner is disabled is called a business overhead expense policy.
◉ Which of these is NOT a characteristic of the Accelerated Death
Benefit option?. Answer: The benefit can be offered as a rider at a
specific extra cost or may be at no cost
Accelerated Death Benefit options are offered with NO increase in
premium.
◉ What is a condition for which medical advice or treatment was
recommended by or received from a provider of health care service
, within six months preceding the effective date of an individual long-
term care policy?. Answer: Pre-existing condition
In an individual long-term care policy, a pre-existing condition is a
condition for which medical advice or treatment was recommended
by or received from a provider of health care service within six
months preceding the effective date.
◉ A producer who is licensed in Louisiana but resident in another
state is called a. Answer: nonresident producer
A producer licensed in Louisiana but a resident in another state is
called a nonresident producer.
◉ The typical long-term care insurance policy is designed to provide
a minimum of __ year(s) of coverage.. Answer: 1
Long-term care insurance in any insurance policy is designed to
provide coverage for a minimum benefit period of 1 year.
◉ To receive an insurance license an applicant must. Answer: Apply
for the license after passing the appropriate examination
An applicant must apply for the license after passing the
appropriate examination in order to receive an insurance license.
◉ A cease and desist order issued against a producer. Answer:
Prohibits a specific practice listed in the order
FINAL 2026 REVISION NOTES AND
STRUCTURED INSURANCE OVERVIEW GUIDE
◉ A whole life policy option where extended term insurance is
selected is called a(n). Answer: nonforfeiture option
A nonforfeiture provision in a whole life policy that uses cash value
to purchase term insurance equal to the existing amount of life
insurance is called the extended term option.
◉ The Commissioner must examine the financial affairs of each
admitted insurer operating in Louisiana at least once every how
many years?. Answer: 5
At the very least, an admitted company shall be examined once every
5 years by the Commissioner.
◉ When a Medicare supplement policy is purchased during the open
enrollment period. Answer: the policy must be issued regardless of
health status
During open enrollment for Medicare supplements, policies will be
issued regardless of health status.
,◉ Which of the following actions may an insurance company NOT do
in a health policy that contains a guaranteed renewable premium
benefit?. Answer: Increase the premiums on an individual basis
A guaranteed renewable policy CANNOT increase the premiums on
an individual basis, only on the basis of an entire classification.
◉ A nonresident of Louisiana who has satisfied the licensing
requirements for a line of insurance in the licensee's state and who
wishes to sell that line of insurance in Louisiana, must meet all of the
following requirements EXCEPT:. Answer: Take the appropriate
Louisiana licensing examination
A nonresident licensee from another state is not required to take a
licensing examination if they are already in good standing with their
state of residence.
◉ A life insurance policy that has premiums fully paid up within a
stated time period is called. Answer: limited payment insurance
Limited payment insurance is characterized by premiums that are
fully paid up within a stated period, after which no further
premiums are required.
◉ The taxable portion of each annuity payment is calculated using
which method?. Answer: Exclusion Ratio
The Exclusion Ratio is used to determine the taxable portion of each
annuity payment.
,◉ How are annuities given favorable tax treatment?. Answer: Gains
are taxed at distribution
Annuity gains are typically tax deferred until distribution.
◉ All _____ policies must be guaranteed renewable.. Answer: long-
term care
All long-term care policies must be guaranteed renewable.
◉ Which type of business insurance is meant to cover the costs of
continuing to do business while the owner is disabled?. Answer:
Business overhead expense policy
A form of business disability insurance that is designed to cover the
actual costs of continuing to do business while an insured business
owner is disabled is called a business overhead expense policy.
◉ Which of these is NOT a characteristic of the Accelerated Death
Benefit option?. Answer: The benefit can be offered as a rider at a
specific extra cost or may be at no cost
Accelerated Death Benefit options are offered with NO increase in
premium.
◉ What is a condition for which medical advice or treatment was
recommended by or received from a provider of health care service
, within six months preceding the effective date of an individual long-
term care policy?. Answer: Pre-existing condition
In an individual long-term care policy, a pre-existing condition is a
condition for which medical advice or treatment was recommended
by or received from a provider of health care service within six
months preceding the effective date.
◉ A producer who is licensed in Louisiana but resident in another
state is called a. Answer: nonresident producer
A producer licensed in Louisiana but a resident in another state is
called a nonresident producer.
◉ The typical long-term care insurance policy is designed to provide
a minimum of __ year(s) of coverage.. Answer: 1
Long-term care insurance in any insurance policy is designed to
provide coverage for a minimum benefit period of 1 year.
◉ To receive an insurance license an applicant must. Answer: Apply
for the license after passing the appropriate examination
An applicant must apply for the license after passing the
appropriate examination in order to receive an insurance license.
◉ A cease and desist order issued against a producer. Answer:
Prohibits a specific practice listed in the order
