Practice Exam Test Questions &
Answers Latest Version Already Passed
What is the purpose of the free-look period in a life insurance policy?
✔✔ It allows the policyholder to review and cancel the policy for a full refund.
Who receives the death benefit in a life insurance policy?
✔✔ The beneficiary.
What happens if the insured dies during the grace period without paying the premium?
✔✔ The death benefit is paid, minus the unpaid premium.
What is the term used for the amount paid periodically for insurance coverage?
✔✔ Premium.
What is the benefit of whole life insurance over term life?
✔✔ It builds cash value and provides lifetime coverage.
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,What does the contestability period in a life policy refer to?
✔✔ The time during which the insurer can void the policy for misrepresentation, usually two
years.
What is the main purpose of life insurance?
✔✔ To provide financial protection to beneficiaries after the death of the insured.
Who regulates insurance companies in the state of Louisiana?
✔✔ The Louisiana Department of Insurance.
What type of insurance pays benefits if the insured is injured in an accident?
✔✔ Accident insurance.
What is the cash value in a life insurance policy?
✔✔ The savings component that builds over time in permanent life policies.
What is insurable interest?
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,✔✔ A financial or emotional connection that must exist between the policyholder and the
insured at the time of application.
What rider allows the insured to receive part of the death benefit if terminally ill?
✔✔ Accelerated death benefit rider.
What is the main purpose of disability income insurance?
✔✔ To replace income lost due to illness or injury.
What is a policy lapse?
✔✔ Termination of a policy due to nonpayment of premiums.
When must a Louisiana producer notify the Department of Insurance of a name change?
✔✔ Within 30 days.
What is the waiting period before disability benefits begin called?
✔✔ Elimination period.
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, What type of life insurance offers flexible premiums and death benefits?
✔✔ Universal life insurance.
What is a beneficiary?
✔✔ The person or entity who receives the death benefit when the insured dies.
What happens to the premium in a level term policy?
✔✔ It stays the same throughout the term.
What is a reinstatement clause?
✔✔ A provision that allows a lapsed policy to be restored under certain conditions.
What does AD\&D insurance stand for?
✔✔ Accidental Death and Dismemberment insurance.
What is the purpose of a coordination of benefits provision?
✔✔ To prevent overpayment of claims when an insured is covered by more than one policy.
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