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Final Exam - Louisiana Life and Health Questions
and Correct Answers/ Latest Update / Already Graded
When are group disability benefits considered to be tax-free to the insured?
Ans: When the recipient pays the premiums
An insurable interest in each other's lives may exist in absence of an economic
interest when the individuals are
Ans: Marriage partners
What is the elimination period of an individual disability policy?
Ans: Time period a disabled person must wait before benefits are paid
What happens to interest earned if the annuitant dies before the payout start
date?
Ans: It is taxable
In which of the following situations would the insurer be liable for a loss?
Ans: The insured suffered an injury as an innocent bystander during a bank
robbery
In what form do disability income policies typically pay benefits?
Ans: Periodic income
Which of the following is typically NOT eligible for coverage in a group health
policy?
Ans: Temporary employee
© 2025/ 2026 | ® All rights reserved
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Which of the following would be considered a possible applicant and contract
policyholder for group health benefits?
Ans: Employer
A Medicare Supplement Policy is
Ans: designed to fill in the gaps of Part A and Part B Medicare
Under a Modified Endowment Contract, what are the likely tax consequences?
Ans: Pre-death distributions will become taxable
In a Long-Term Care policy, activities of daily living (ADL's) can be each of the
following EXCEPT
Ans: Talking
Which of the following is an annuity that is linked to a market-related index?
Ans: Equity-indexed annuity
An insurer operating in the U.S. but headquartered outside the U.S. is
Ans: an alien insurer
Group dental plans will frequently place a limit on annual benefits in order to
minimize
Ans: adverse selection
All of the following are considered to be fraud EXCEPT
© 2025/ 2026 | ® All rights reserved
, 3 | Page
Ans: collecting a charge for insurance that is less than the charge applicable to
that insurance
A producer's license in Louisiana must be renewed every
Ans: Two years
An insured has a health plan that pays established amounts in accordance with a
list of injuries, surgical procedures, or other losses. This list is called a
Ans: benefit schedule
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a
terminated employee's benefits must
Ans: be the same and the premium cannot exceed 102%
If a producer has been engaged in an administrative action by any governmental
agency, within how many days following the final deposition must the producer
report the action to the Commissioner?
Ans: 30
Ownership of a life insurance policy may be temporarily transferred with a(n)
Ans: collateral assignment
Under a Traditional IRA, interest earned is taxed
Ans: upon distribution
When a Medicare Supplement insurance policy is being replaced, who must sign
the notice of replacement?
© 2025/ 2026 | ® All rights reserved
Final Exam - Louisiana Life and Health Questions
and Correct Answers/ Latest Update / Already Graded
When are group disability benefits considered to be tax-free to the insured?
Ans: When the recipient pays the premiums
An insurable interest in each other's lives may exist in absence of an economic
interest when the individuals are
Ans: Marriage partners
What is the elimination period of an individual disability policy?
Ans: Time period a disabled person must wait before benefits are paid
What happens to interest earned if the annuitant dies before the payout start
date?
Ans: It is taxable
In which of the following situations would the insurer be liable for a loss?
Ans: The insured suffered an injury as an innocent bystander during a bank
robbery
In what form do disability income policies typically pay benefits?
Ans: Periodic income
Which of the following is typically NOT eligible for coverage in a group health
policy?
Ans: Temporary employee
© 2025/ 2026 | ® All rights reserved
, 2 | Page
Which of the following would be considered a possible applicant and contract
policyholder for group health benefits?
Ans: Employer
A Medicare Supplement Policy is
Ans: designed to fill in the gaps of Part A and Part B Medicare
Under a Modified Endowment Contract, what are the likely tax consequences?
Ans: Pre-death distributions will become taxable
In a Long-Term Care policy, activities of daily living (ADL's) can be each of the
following EXCEPT
Ans: Talking
Which of the following is an annuity that is linked to a market-related index?
Ans: Equity-indexed annuity
An insurer operating in the U.S. but headquartered outside the U.S. is
Ans: an alien insurer
Group dental plans will frequently place a limit on annual benefits in order to
minimize
Ans: adverse selection
All of the following are considered to be fraud EXCEPT
© 2025/ 2026 | ® All rights reserved
, 3 | Page
Ans: collecting a charge for insurance that is less than the charge applicable to
that insurance
A producer's license in Louisiana must be renewed every
Ans: Two years
An insured has a health plan that pays established amounts in accordance with a
list of injuries, surgical procedures, or other losses. This list is called a
Ans: benefit schedule
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a
terminated employee's benefits must
Ans: be the same and the premium cannot exceed 102%
If a producer has been engaged in an administrative action by any governmental
agency, within how many days following the final deposition must the producer
report the action to the Commissioner?
Ans: 30
Ownership of a life insurance policy may be temporarily transferred with a(n)
Ans: collateral assignment
Under a Traditional IRA, interest earned is taxed
Ans: upon distribution
When a Medicare Supplement insurance policy is being replaced, who must sign
the notice of replacement?
© 2025/ 2026 | ® All rights reserved
