Life, Health, and Accident Insurance Exam
Louisiana (With Rationale)
An agent is completing an application for a long-term care policy. The agent is
required to do all of the following EXCEPT
(Choose from the following options)
1. Warn the applicant about the 10-day free-look period.
2. Make sure the policy is appropriate for the applicant's needs.
3. Provide the applicant with the Outline of Coverage.
4. Ask where the applicant has another LTC policy in force.
Warn the applicant about the 10-day free-look period.
An insured has an Accidental Death & Dismemberment policy with a principal
value of $50,000. He loses sight in both eyes in a hunting accident. How much will
he receive?
(Choose from the following options)
1. $25,000
2. $0
3. $50,000
4. $100,000
$50,000
The policy will usually pay the principal amount for the loss of both eyes, or two or more
limbs.
At what age may an individual make withdrawals from an HSA for nonhealth
purposes without being penalized?
(Choose from the following options)
1. 55
2. 59 1/2
3. 62
4. 65
65
After age 65, a withdrawal from an HSA used for a nonhealth purposes will be without a
penalty, although taxed.
Which of the following is NOT true regarding uniform mandatory provisions
concerning claims?
(Choose from the following options)
1. If the insured is 2 years late in filing a proof of loss, the claim can be denied.
,2. An insured must notify the insurer of a claim on forms prescribed by the
insurer.
3. If the insured is several days late in filing proof of loss form, the claim cannot
be denied if the insured can show good cause.
4. The insured is customarily required to give notice of claim within 20 days.
An insured must notify the insurer of a claim on forms prescribed by the insurer.
If forms are not furnished, written proof of the occurrence, nature of the loss, and extent
of loss must be submitted to the insurer.
The provision in a health insurance policy that ensures that the insurer cannot
refer to any document that is not contained in the contract is the
(Choose from the following options)
1. Time limit on certain defenses clause.
2. Incontestability clause.
3. Legal action against us clause.
4. Entire contract clause.
Entire contract clause.
Entire contract is a mandatory provision that is required by law.
The amount of disability benefits that an insured receives often depends upon the
insured's
(Choose from the following options)
1. Income at the time of the application.
2. Marital status at the time of the application.
3. Number of children at the time of the application.
4. Medical history at the time of the application.
Income at the time of the application.
A producer has been notified by the Commissioner to stop using an unapproved
trade name. How many days does the producer have to change the trade name
before facing a fine?
(Choose from the following options)
1. 30 days
2. The name must be changed immediately.
3. 5 business days
4. 10 days
10 days
A producer who continues to use a unapproved trade name for 10 or more days after
being notified will face a fine of up to $5,000.
,What was created to keep telemarketers from calling consumers who do not wish
contacted?
(Choose from the following options)
1. Call Control Registry
2. National Do Not Call Registry
3. Confidential No Call Act
4. Freedom of Information Act
National Do Not Call Registry
The National Do Not Call Registry was created to allow consumers the choice to not be
contacted by telemarketers
Regarding long-term care policies, which of the following would NOT be included
in activities of daily living?
(Choose from the following options)
1. Eating
2. Sleeping
3. Bathing
4. Dressing
Sleeping
Normally to be eligible for benefits from a long-term care policy, the insured must be
unable to perform some of their activities of daily living (ADLs). ADLs include bathing,
dressing, toileting, transferring (or mobility), continence, and eating.
Which of the following is true regarding a single life settlement option?
(Choose from the following options)
1. Payments continue until the entire principal is exhausted.
2. Proceeds are paid out in a lump sum.
3. It provides income for a specified period of time.
4. It provides income the beneficiary cannot outlive.
It provides income the beneficiary cannot outlive.
The Single Life Option can provide a single beneficiary income for the rest of his/her life.
Upon the death of the beneficiary, the payments stop.
Which of the following reports will provide the underwriter with the information
about an insurance applicant's credit?
(Choose from the following options)
1. Inspection report
2. Agent's report
, 3. Any federal report
4. Consumer report
Consumer report
Consumer reports include written and/or oral information regarding a consumer's credit,
character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources
An insurance company forwards fixed annuity premiums to their general account,
where the money is invested. The guaranteed minimum interest is set at 3%.
During an economic downswing, the investments only drew 2.5%. What interest
rate will the insurer pay to its policyholders?
(Choose from the following options)
1. 3% this payment. The overpayment this time will be subtracted from the next
time the rate exceeds 3%.
2. 3% regardless of what the investment draws since that's the guaranteed rate
3. 2.5%
4. 3%
3%
Insurance companies promise guaranteed minimums on the fixed annuities (3% in this
scenario). This means that if the investments draw less than 3%, the company will have
to pay 3% anyway. If the investments earn over 3%, the company will pay that excess.
In long-term care (LTC) policies, as the benefit period lengthens, the premium
(Choose from the following options)
1. LTC premiums are not based on benefit periods.
2. Decreases.
3. Increases.
4. Remains unchanged.
Increases.
LTC policies define the benefit period for how long coverage applies, after the
elimination period. The longer the benefit period, the higher the premium will be.
The annuity purchased with multiple payments, whose benefit is paid more than
one year after the purchase is known as which type of annuity?
(Choose from the following options)
1. Single Premium Deferred Annuity
2. Flexible Premium Deferred Annuity
3. Single Premium Immediate Annuity
4. Flexible Premium Immediate Annuity
Louisiana (With Rationale)
An agent is completing an application for a long-term care policy. The agent is
required to do all of the following EXCEPT
(Choose from the following options)
1. Warn the applicant about the 10-day free-look period.
2. Make sure the policy is appropriate for the applicant's needs.
3. Provide the applicant with the Outline of Coverage.
4. Ask where the applicant has another LTC policy in force.
Warn the applicant about the 10-day free-look period.
An insured has an Accidental Death & Dismemberment policy with a principal
value of $50,000. He loses sight in both eyes in a hunting accident. How much will
he receive?
(Choose from the following options)
1. $25,000
2. $0
3. $50,000
4. $100,000
$50,000
The policy will usually pay the principal amount for the loss of both eyes, or two or more
limbs.
At what age may an individual make withdrawals from an HSA for nonhealth
purposes without being penalized?
(Choose from the following options)
1. 55
2. 59 1/2
3. 62
4. 65
65
After age 65, a withdrawal from an HSA used for a nonhealth purposes will be without a
penalty, although taxed.
Which of the following is NOT true regarding uniform mandatory provisions
concerning claims?
(Choose from the following options)
1. If the insured is 2 years late in filing a proof of loss, the claim can be denied.
,2. An insured must notify the insurer of a claim on forms prescribed by the
insurer.
3. If the insured is several days late in filing proof of loss form, the claim cannot
be denied if the insured can show good cause.
4. The insured is customarily required to give notice of claim within 20 days.
An insured must notify the insurer of a claim on forms prescribed by the insurer.
If forms are not furnished, written proof of the occurrence, nature of the loss, and extent
of loss must be submitted to the insurer.
The provision in a health insurance policy that ensures that the insurer cannot
refer to any document that is not contained in the contract is the
(Choose from the following options)
1. Time limit on certain defenses clause.
2. Incontestability clause.
3. Legal action against us clause.
4. Entire contract clause.
Entire contract clause.
Entire contract is a mandatory provision that is required by law.
The amount of disability benefits that an insured receives often depends upon the
insured's
(Choose from the following options)
1. Income at the time of the application.
2. Marital status at the time of the application.
3. Number of children at the time of the application.
4. Medical history at the time of the application.
Income at the time of the application.
A producer has been notified by the Commissioner to stop using an unapproved
trade name. How many days does the producer have to change the trade name
before facing a fine?
(Choose from the following options)
1. 30 days
2. The name must be changed immediately.
3. 5 business days
4. 10 days
10 days
A producer who continues to use a unapproved trade name for 10 or more days after
being notified will face a fine of up to $5,000.
,What was created to keep telemarketers from calling consumers who do not wish
contacted?
(Choose from the following options)
1. Call Control Registry
2. National Do Not Call Registry
3. Confidential No Call Act
4. Freedom of Information Act
National Do Not Call Registry
The National Do Not Call Registry was created to allow consumers the choice to not be
contacted by telemarketers
Regarding long-term care policies, which of the following would NOT be included
in activities of daily living?
(Choose from the following options)
1. Eating
2. Sleeping
3. Bathing
4. Dressing
Sleeping
Normally to be eligible for benefits from a long-term care policy, the insured must be
unable to perform some of their activities of daily living (ADLs). ADLs include bathing,
dressing, toileting, transferring (or mobility), continence, and eating.
Which of the following is true regarding a single life settlement option?
(Choose from the following options)
1. Payments continue until the entire principal is exhausted.
2. Proceeds are paid out in a lump sum.
3. It provides income for a specified period of time.
4. It provides income the beneficiary cannot outlive.
It provides income the beneficiary cannot outlive.
The Single Life Option can provide a single beneficiary income for the rest of his/her life.
Upon the death of the beneficiary, the payments stop.
Which of the following reports will provide the underwriter with the information
about an insurance applicant's credit?
(Choose from the following options)
1. Inspection report
2. Agent's report
, 3. Any federal report
4. Consumer report
Consumer report
Consumer reports include written and/or oral information regarding a consumer's credit,
character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources
An insurance company forwards fixed annuity premiums to their general account,
where the money is invested. The guaranteed minimum interest is set at 3%.
During an economic downswing, the investments only drew 2.5%. What interest
rate will the insurer pay to its policyholders?
(Choose from the following options)
1. 3% this payment. The overpayment this time will be subtracted from the next
time the rate exceeds 3%.
2. 3% regardless of what the investment draws since that's the guaranteed rate
3. 2.5%
4. 3%
3%
Insurance companies promise guaranteed minimums on the fixed annuities (3% in this
scenario). This means that if the investments draw less than 3%, the company will have
to pay 3% anyway. If the investments earn over 3%, the company will pay that excess.
In long-term care (LTC) policies, as the benefit period lengthens, the premium
(Choose from the following options)
1. LTC premiums are not based on benefit periods.
2. Decreases.
3. Increases.
4. Remains unchanged.
Increases.
LTC policies define the benefit period for how long coverage applies, after the
elimination period. The longer the benefit period, the higher the premium will be.
The annuity purchased with multiple payments, whose benefit is paid more than
one year after the purchase is known as which type of annuity?
(Choose from the following options)
1. Single Premium Deferred Annuity
2. Flexible Premium Deferred Annuity
3. Single Premium Immediate Annuity
4. Flexible Premium Immediate Annuity
