LA LIFE INSURANCE SERIES 101 FINAL PAPER
2026 EXAM QUESTIONS AND SOLUTIONS
100% CORRECT
◍ When a life insurance policy was issued, the policyowner designated
a primary and a contingent beneficiary. Several years later, both the
insured and the primary beneficiary died in the same car accident, and it
was impossible to determine who died first. Which of the following
would receive the death benefit? . Answer: **1. The insured's contingent
beneficiary
2. The insurance company
3. The insured's estate
4. The primary beneficiary's estate
◍ The causes of loss insured against in an insurance policy are known as
. Answer: **1. Perils
2. Losses
3. Risks
4. Hazards
,◍ When the policyowner specifies a dollar amount in which
installments are to be paid, he/she has chosen which settlement option? .
Answer: 1. Fixed period
2. Life income period certain
3. Extended term
**4. Fixed amount
◍ An agent offers his client free tickets to a sporting event in exchange
for the purchase of an insurance policy. The agent is guilty of . Answer:
**1. Rebating.
2. Coercion.
3. Twisting.
4. Controlled business.
◍ Which is the appropriate action by the insurer if a prospective insured
submitted an incomplete application? . Answer: 1. Fill in the blanks to
the best of the insurer's knowledge
- 2. Return the application to the applicant for completion
3. Issue a policy anyway since the application has been submitted
4. Ask the producer who solicited the policy to complete and resign the
application
◍ At age 30, a man wants to start an insurance program, but realizing
that his insurance needs will likely change, he wants a policy that can be
,modified to accommodate those changes as they occur. Which of the
following policies would most likely fit his needs? . Answer: **1.
Adjustable Life
2. Single Premium Whole Life
3. Interest-sensitive Whole Life
4. Decreasing Term
◍ During a pre-selection interview, an agent is allowed to do all of the
following EXCEPT . Answer: 1. Inquire about specific details of the
applicant's health history.
2. Terminate the interview and reject the applicant.
- 3. Ask questions that are not on the application but that are important
for underwriting.
4. Provide the applicants with negative information regarding their risk.
◍ All of the following actions by a person could be described as risk
avoidance EXCEPT . Answer: 1. Never flying in an airplane.
2. Taking a flu shot each year.
**3. Investing in the stock market.
4. Refusing to scuba dive.
◍ An insurer wants to begin underwriting procedures for an applicant.
What source will it consult for the majority of its underwriting
information? . Answer: 1. Interviews
, 2. State records
3. Medical records
- 4. Application
◍ The paid-up addition option uses the dividend . Answer: 1. To
purchase a one-year term insurance in the amount of the cash value.
2. To reduce the next year's premium.
3. To accumulate additional savings for retirement.
- 4. To purchase a smaller amount of the same type of insurance as the
original policy.
◍ An agent is a legal person who acts on behalf of . Answer: 1.
Himself/herself.
- 2. The principal.
3. The applicant.
4. The beneficiary.
◍ The notice to senior consumers regarding their right to cancel a policy
must be printed on the cover or policy jacket in at least what type of
print? . Answer: 1. 12-point standard print
- 2. 12-point bold print
3. 14-point standard print
4. 14-point bold print
2026 EXAM QUESTIONS AND SOLUTIONS
100% CORRECT
◍ When a life insurance policy was issued, the policyowner designated
a primary and a contingent beneficiary. Several years later, both the
insured and the primary beneficiary died in the same car accident, and it
was impossible to determine who died first. Which of the following
would receive the death benefit? . Answer: **1. The insured's contingent
beneficiary
2. The insurance company
3. The insured's estate
4. The primary beneficiary's estate
◍ The causes of loss insured against in an insurance policy are known as
. Answer: **1. Perils
2. Losses
3. Risks
4. Hazards
,◍ When the policyowner specifies a dollar amount in which
installments are to be paid, he/she has chosen which settlement option? .
Answer: 1. Fixed period
2. Life income period certain
3. Extended term
**4. Fixed amount
◍ An agent offers his client free tickets to a sporting event in exchange
for the purchase of an insurance policy. The agent is guilty of . Answer:
**1. Rebating.
2. Coercion.
3. Twisting.
4. Controlled business.
◍ Which is the appropriate action by the insurer if a prospective insured
submitted an incomplete application? . Answer: 1. Fill in the blanks to
the best of the insurer's knowledge
- 2. Return the application to the applicant for completion
3. Issue a policy anyway since the application has been submitted
4. Ask the producer who solicited the policy to complete and resign the
application
◍ At age 30, a man wants to start an insurance program, but realizing
that his insurance needs will likely change, he wants a policy that can be
,modified to accommodate those changes as they occur. Which of the
following policies would most likely fit his needs? . Answer: **1.
Adjustable Life
2. Single Premium Whole Life
3. Interest-sensitive Whole Life
4. Decreasing Term
◍ During a pre-selection interview, an agent is allowed to do all of the
following EXCEPT . Answer: 1. Inquire about specific details of the
applicant's health history.
2. Terminate the interview and reject the applicant.
- 3. Ask questions that are not on the application but that are important
for underwriting.
4. Provide the applicants with negative information regarding their risk.
◍ All of the following actions by a person could be described as risk
avoidance EXCEPT . Answer: 1. Never flying in an airplane.
2. Taking a flu shot each year.
**3. Investing in the stock market.
4. Refusing to scuba dive.
◍ An insurer wants to begin underwriting procedures for an applicant.
What source will it consult for the majority of its underwriting
information? . Answer: 1. Interviews
, 2. State records
3. Medical records
- 4. Application
◍ The paid-up addition option uses the dividend . Answer: 1. To
purchase a one-year term insurance in the amount of the cash value.
2. To reduce the next year's premium.
3. To accumulate additional savings for retirement.
- 4. To purchase a smaller amount of the same type of insurance as the
original policy.
◍ An agent is a legal person who acts on behalf of . Answer: 1.
Himself/herself.
- 2. The principal.
3. The applicant.
4. The beneficiary.
◍ The notice to senior consumers regarding their right to cancel a policy
must be printed on the cover or policy jacket in at least what type of
print? . Answer: 1. 12-point standard print
- 2. 12-point bold print
3. 14-point standard print
4. 14-point bold print
