LOUISIANA LIFE, HEALTH & ACCIDENT INSURANCE ACTUAL
FINAL 350 REAL EXAM QUESTIONS WITH 100% RATED CORRECT
ANSWERS (ACCURATELY PASSED) 2025 LATEST UPDATED GET A+
which of the following best describes the aleatory nature of an insurance contract? -
(ANSWER)Exchange of unequal values
An insured purchased an insurance policy 5 years ago. Last year she received a dividend check,
this year she didn't what type of insurer? - (ANSWER)Mutual
What documentation grants express authority to an agent? - (ANSWER)Agents contract with
the principal
Because an agent is using stationery with the logo of an insurance company, applicants for
insurance assume that the agent is authorized to transact on behalf of that insurer. What type of
agent authority does this describe? - (ANSWER)Apparent
An insured pays a $100 premium, yet the insurer promises to pay $10,000 for covered loss. What
characteristic of insurance? - (ANSWER)Aleatory
Pertaining to insurance, what is the definition of a fiduciary responsibility? -
(ANSWER)Promptly forwarding premiums to the insurance company
Installing deadbolt locks on the doors of a home is an example of which method of handling
risk? - (ANSWER)Reduction
All of the following are examples of risk retention EXCEPT - (ANSWER)Premiums
Which of the following is an example of risk retention? - (ANSWER)To minimize the insured
is level of liability in the event of loss
,Which of the following would be considered risk-sharing? - (ANSWER)Reciprocal
If a court ordered payment for a loss that was not covered in the policy even if it was clearly
worded, it would be an example of which legal concept? - (ANSWER)Reasonable expectations
Which of the following is the basis for a claim against an insurance policy? - (ANSWER)Loss
The risk of loss may be classified as - (ANSWER)Pure risk and speculative risk
Something of value exchanged between the insurer & the insured is considered a -
(ANSWER)Consideration
Contracts that are prepared by 1 party on a-take-it-or-leave-it basis are classified as -
(ANSWER)Contracts of adhesion
A situation in which a person can only lose or have no change represents - (ANSWER)Pure risk
Units with the same or similar exposure to loss are referred to as - (ANSWER)Homogeneous
Events in which a person has both the chance of losing are classified as -
(ANSWER)speculative risk
an individuals tendency to be dishonest would be a - (ANSWER)Moral hazard
Insurance companies may be classified according to the legal form of their ownership. The
company organized to return any surplus money to the policyholders is - (ANSWER)a mutual
insurer
,In insurance transactions, fiduciary responsibility means? - (ANSWER)Handling insurer funds
in a trust capacity.
Which is an example of a producer's fiduciary duty? - (ANSWER)The trust that a client places
in the producer in regard to handling premiums.
In what way can an agent demonstrate a high standard of ethics? - (ANSWER)Putting client's
interest before their own.
What is the definition of of a unilateral contract? - (ANSWER)One-sided: only one party makes
an enforceable promise.
When would a misrepresentation on the insurance application be considered fraud? -
(ANSWER)If it is intentional & material
What statement regarding insurable risks is NOT correct? - (ANSWER)Insureds cannot be
randomly selected
The proposed insured makes the payment on an insurance policy. If the insured should die, the
death benefit will be paid if the policy is approved. What kind of contract? -
(ANSWER)Conditional
What is a material misrepresentation? - (ANSWER)A statement by the application that. upon
discovery, would affect the underwriting decision.
Which insurance principle states that if a policy allows for greater compensation than the
financial loss incurred, the insured may only receive benefits for the amount lost? -
(ANSWER)Indemnity
The reduction, decreases or disappearance of value of the person or property insured against is
known as - (ANSWER)Loss
, Which best describes the concept that the insured pays a small amount of premium for a large
amount of risk - (ANSWER)Aleatory
An insured wants to transfer his personal insurance policy to a friend. Under what conditions
would this be possible? - (ANSWER)The insured will need a written consent of the insurer
What is the term for the entity that an agent represents regarding contractual agreements with 3rd
parties? - (ANSWER)Principal
In case of a loss, the indemnity provision in insurance policies - (ANSWER)Restores an insured
person to the same financial state as before the loss
A participating insurance policy may do which of the following? - (ANSWER)Pay dividends to
the policyowner
In terms of parties to a contract, which of the following does NOT describe a competent party? -
(ANSWER)The person must have atleast completed secondary education
Which authority is NOT stated in an agent's contract but is required for the agent to conduct
business? - (ANSWER)Implied
Which of the following types of agent authority is called "perceived authority" -
(ANSWER)Apparent
On a participating insurance policy issued by a mutual insurance company, dividends paid to
policyholders are - (ANSWER)NOT taxable since the IRS treats them as a return of a premium
What is a major difference between a stock company & a mutual company? -
(ANSWER)Ownership
FINAL 350 REAL EXAM QUESTIONS WITH 100% RATED CORRECT
ANSWERS (ACCURATELY PASSED) 2025 LATEST UPDATED GET A+
which of the following best describes the aleatory nature of an insurance contract? -
(ANSWER)Exchange of unequal values
An insured purchased an insurance policy 5 years ago. Last year she received a dividend check,
this year she didn't what type of insurer? - (ANSWER)Mutual
What documentation grants express authority to an agent? - (ANSWER)Agents contract with
the principal
Because an agent is using stationery with the logo of an insurance company, applicants for
insurance assume that the agent is authorized to transact on behalf of that insurer. What type of
agent authority does this describe? - (ANSWER)Apparent
An insured pays a $100 premium, yet the insurer promises to pay $10,000 for covered loss. What
characteristic of insurance? - (ANSWER)Aleatory
Pertaining to insurance, what is the definition of a fiduciary responsibility? -
(ANSWER)Promptly forwarding premiums to the insurance company
Installing deadbolt locks on the doors of a home is an example of which method of handling
risk? - (ANSWER)Reduction
All of the following are examples of risk retention EXCEPT - (ANSWER)Premiums
Which of the following is an example of risk retention? - (ANSWER)To minimize the insured
is level of liability in the event of loss
,Which of the following would be considered risk-sharing? - (ANSWER)Reciprocal
If a court ordered payment for a loss that was not covered in the policy even if it was clearly
worded, it would be an example of which legal concept? - (ANSWER)Reasonable expectations
Which of the following is the basis for a claim against an insurance policy? - (ANSWER)Loss
The risk of loss may be classified as - (ANSWER)Pure risk and speculative risk
Something of value exchanged between the insurer & the insured is considered a -
(ANSWER)Consideration
Contracts that are prepared by 1 party on a-take-it-or-leave-it basis are classified as -
(ANSWER)Contracts of adhesion
A situation in which a person can only lose or have no change represents - (ANSWER)Pure risk
Units with the same or similar exposure to loss are referred to as - (ANSWER)Homogeneous
Events in which a person has both the chance of losing are classified as -
(ANSWER)speculative risk
an individuals tendency to be dishonest would be a - (ANSWER)Moral hazard
Insurance companies may be classified according to the legal form of their ownership. The
company organized to return any surplus money to the policyholders is - (ANSWER)a mutual
insurer
,In insurance transactions, fiduciary responsibility means? - (ANSWER)Handling insurer funds
in a trust capacity.
Which is an example of a producer's fiduciary duty? - (ANSWER)The trust that a client places
in the producer in regard to handling premiums.
In what way can an agent demonstrate a high standard of ethics? - (ANSWER)Putting client's
interest before their own.
What is the definition of of a unilateral contract? - (ANSWER)One-sided: only one party makes
an enforceable promise.
When would a misrepresentation on the insurance application be considered fraud? -
(ANSWER)If it is intentional & material
What statement regarding insurable risks is NOT correct? - (ANSWER)Insureds cannot be
randomly selected
The proposed insured makes the payment on an insurance policy. If the insured should die, the
death benefit will be paid if the policy is approved. What kind of contract? -
(ANSWER)Conditional
What is a material misrepresentation? - (ANSWER)A statement by the application that. upon
discovery, would affect the underwriting decision.
Which insurance principle states that if a policy allows for greater compensation than the
financial loss incurred, the insured may only receive benefits for the amount lost? -
(ANSWER)Indemnity
The reduction, decreases or disappearance of value of the person or property insured against is
known as - (ANSWER)Loss
, Which best describes the concept that the insured pays a small amount of premium for a large
amount of risk - (ANSWER)Aleatory
An insured wants to transfer his personal insurance policy to a friend. Under what conditions
would this be possible? - (ANSWER)The insured will need a written consent of the insurer
What is the term for the entity that an agent represents regarding contractual agreements with 3rd
parties? - (ANSWER)Principal
In case of a loss, the indemnity provision in insurance policies - (ANSWER)Restores an insured
person to the same financial state as before the loss
A participating insurance policy may do which of the following? - (ANSWER)Pay dividends to
the policyowner
In terms of parties to a contract, which of the following does NOT describe a competent party? -
(ANSWER)The person must have atleast completed secondary education
Which authority is NOT stated in an agent's contract but is required for the agent to conduct
business? - (ANSWER)Implied
Which of the following types of agent authority is called "perceived authority" -
(ANSWER)Apparent
On a participating insurance policy issued by a mutual insurance company, dividends paid to
policyholders are - (ANSWER)NOT taxable since the IRS treats them as a return of a premium
What is a major difference between a stock company & a mutual company? -
(ANSWER)Ownership
