LOUISIANA LIFE AND HEALTH FINAL EXAM
WITH ALL CORRECT & VERIFIED ANSWERS
(UPDATED TO PASS)
When are group disability benefits considered to be tax-free to the insured? Correct answer-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 Correct answer-Marriage partners
What is the elimination period of an individual disability policy? Correct answer-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? Correct
answer-It is taxable
In which of the following situations would the insurer be liable for a loss? Correct answer-The
insured suffered an injury as an innocent bystander during a bank robbery
In what form do disability income policies typically pay benefits? Correct answer-Periodic income
Which of the following is typically NOT eligible for coverage in a group health policy? Correct
answer-Temporary employee
Which of the following would be considered a possible applicant and contract policyholder for group
health benefits? Correct answer-Employer
A Medicare Supplement Policy is Correct answer-designed to fill in the gaps of Part A and Part B
Medicare
Under a Modified Endowment Contract, what are the likely tax consequences? Correct answer-
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
Correct answer-Talking
Which of the following is an annuity that is linked to a market-related index? Correct answer-
Equity-indexed annuity
An insurer operating in the U.S. but headquartered outside the U.S. is Correct answer-an alien
insurer
Group dental plans will frequently place a limit on annual benefits in order to minimize Correct
answer-adverse selection
All of the following are considered to be fraud EXCEPT Correct answer-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 Correct answer-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 Correct answer-benefit schedule
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's
benefits must Correct answer-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?
Correct answer-30
Ownership of a life insurance policy may be temporarily transferred with a(n) Correct answer-
collateral assignment
Under a Traditional IRA, interest earned is taxed Correct answer-upon distribution
When a Medicare Supplement insurance policy is being replaced, who must sign the notice of
replacement? Correct answer-The producer and the applicant
In Louisiana, regulation for variable insurance contracts are set by all of the following EXCEPT:
Correct answer-State attorney general's office
Which of these factors help determine an insured's life insurance premium? Correct answer-
avocation (hobby)
In general practice, which statement is true of the powers of the Commissioner of Insurance with
respect to access to a producer's business records? Correct answer-Records must be produced
upon the request of the Commissioner to the producer
What is an insurer required to do when faced with an error made under the Misstatement of Age
provision? Correct answer-Pay age-corrected benefits
Backdating of life insurance policy applications is allowed if the policies are not backdated earlier
than Correct answer-6 months from the time the policy was applied for
The life insurance and annuity replacement regulation defines replacement as Correct answer-
exchanging an existing policy for a new policy
An example of a presumptive disability would be Correct answer-deafness
Respite care is able to provide Correct answer-temporary relief to the patient's primary caregiver
An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value
interest free. The provision that allows this is called Correct answer-Partial Surrender
Disability Income plans which require that the insurer can NEVER change or alter premium rates are
usually considered Correct answer-Noncancellable
A renewable Term Life insurance policy allows the policyowner the right to renew the policy
Correct answer-without producing proof of insurability
WITH ALL CORRECT & VERIFIED ANSWERS
(UPDATED TO PASS)
When are group disability benefits considered to be tax-free to the insured? Correct answer-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 Correct answer-Marriage partners
What is the elimination period of an individual disability policy? Correct answer-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? Correct
answer-It is taxable
In which of the following situations would the insurer be liable for a loss? Correct answer-The
insured suffered an injury as an innocent bystander during a bank robbery
In what form do disability income policies typically pay benefits? Correct answer-Periodic income
Which of the following is typically NOT eligible for coverage in a group health policy? Correct
answer-Temporary employee
Which of the following would be considered a possible applicant and contract policyholder for group
health benefits? Correct answer-Employer
A Medicare Supplement Policy is Correct answer-designed to fill in the gaps of Part A and Part B
Medicare
Under a Modified Endowment Contract, what are the likely tax consequences? Correct answer-
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
Correct answer-Talking
Which of the following is an annuity that is linked to a market-related index? Correct answer-
Equity-indexed annuity
An insurer operating in the U.S. but headquartered outside the U.S. is Correct answer-an alien
insurer
Group dental plans will frequently place a limit on annual benefits in order to minimize Correct
answer-adverse selection
All of the following are considered to be fraud EXCEPT Correct answer-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 Correct answer-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 Correct answer-benefit schedule
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's
benefits must Correct answer-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?
Correct answer-30
Ownership of a life insurance policy may be temporarily transferred with a(n) Correct answer-
collateral assignment
Under a Traditional IRA, interest earned is taxed Correct answer-upon distribution
When a Medicare Supplement insurance policy is being replaced, who must sign the notice of
replacement? Correct answer-The producer and the applicant
In Louisiana, regulation for variable insurance contracts are set by all of the following EXCEPT:
Correct answer-State attorney general's office
Which of these factors help determine an insured's life insurance premium? Correct answer-
avocation (hobby)
In general practice, which statement is true of the powers of the Commissioner of Insurance with
respect to access to a producer's business records? Correct answer-Records must be produced
upon the request of the Commissioner to the producer
What is an insurer required to do when faced with an error made under the Misstatement of Age
provision? Correct answer-Pay age-corrected benefits
Backdating of life insurance policy applications is allowed if the policies are not backdated earlier
than Correct answer-6 months from the time the policy was applied for
The life insurance and annuity replacement regulation defines replacement as Correct answer-
exchanging an existing policy for a new policy
An example of a presumptive disability would be Correct answer-deafness
Respite care is able to provide Correct answer-temporary relief to the patient's primary caregiver
An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value
interest free. The provision that allows this is called Correct answer-Partial Surrender
Disability Income plans which require that the insurer can NEVER change or alter premium rates are
usually considered Correct answer-Noncancellable
A renewable Term Life insurance policy allows the policyowner the right to renew the policy
Correct answer-without producing proof of insurability
