LA Life, Health & Accident Insurance
Series 103 Practice Exam ACTUAL
QUESTIONS AND CORRECT ANSWERS
Under which situation must insurable interest exist between the applicant and insured at the
time of application? - CORRECT ANSWERS✅✅When a third-party applicant names
themselves beneficiary.
Which of the following is true about a decreasing term life policy? - CORRECT
ANSWERS✅✅The face amount reaches zero at policy expiration.
Which of the following occurs immediately after the application is submitted and the initial
premium paid? - CORRECT ANSWERS✅✅The underwriting process begins
For an individual long-term care policy there is an annual dollar limit for tax deductions that
is based on which of the following? - CORRECT ANSWERS✅✅Age
All of the following are TRUE regarding incomplete applications EXCEPT - CORRECT
ANSWERS✅✅The incomplete application can be accepted with the missing information
added later.
Which of the following is exempted from the incontestability provision in insurance policies?
- CORRECT ANSWERS✅✅Fraudulent misstatements
All of the following statements define preexisting conditions EXCEPT - CORRECT
ANSWERS✅✅Any chronic health condition that presents symptoms and which was
unknown at the time of application.
At which point are contractual death benefit settlement options determined and by whom? -
CORRECT ANSWERS✅✅At the time the policy is purchased by the owner of the policy
All of the following are tax qualified retirement plans EXCEPT - CORRECT
ANSWERS✅✅Section 529 plan
, In which of the following does a covered employee agree to a reduction in compensation so
the amount can be used to cover medical expenses? - CORRECT ANSWERS✅✅Flexible
Spending Account (FSA)
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT - CORRECT ANSWERS✅✅Medical underwriting exam.
Which policy provision permits the policyowner to take a specified number of days to
examine the contract, and allows for cancellation and a full refund if the policyowner rejects
the terms or costs? - CORRECT ANSWERS✅✅Free look
All of the following are required signatures on a life insurance application EXCEPT -
CORRECT ANSWERS✅✅The minor in a juvenile policy.
Why is rehabilitation considered worthy of federal help under workers' compensation? -
CORRECT ANSWERS✅✅It reduces insurance losses and helps regain the worker's dignity
All of the following are characteristics of variable whole life EXCEPT - CORRECT
ANSWERS✅✅There is no guaranteed minimum death benefit.
Why is the accidental death benefit referred to as double indemnity? - CORRECT
ANSWERS✅✅It provides twice the face value in the policy for death due to accident
What is a MIB report? - CORRECT ANSWERS✅✅Medical information on an applicant for
assessing life or health insurance risk
In noncontributory plans, which percentage of eligible members must participate? -
CORRECT ANSWERS✅✅100%
When should a buy-sell agreement include a provision for the buy-out of an owner's business
interest in the event of a disability? - CORRECT ANSWERS✅✅When there is a buy-sell
agreement funded with life insurance to buyout the interest of a deceased owner or partner.
Series 103 Practice Exam ACTUAL
QUESTIONS AND CORRECT ANSWERS
Under which situation must insurable interest exist between the applicant and insured at the
time of application? - CORRECT ANSWERS✅✅When a third-party applicant names
themselves beneficiary.
Which of the following is true about a decreasing term life policy? - CORRECT
ANSWERS✅✅The face amount reaches zero at policy expiration.
Which of the following occurs immediately after the application is submitted and the initial
premium paid? - CORRECT ANSWERS✅✅The underwriting process begins
For an individual long-term care policy there is an annual dollar limit for tax deductions that
is based on which of the following? - CORRECT ANSWERS✅✅Age
All of the following are TRUE regarding incomplete applications EXCEPT - CORRECT
ANSWERS✅✅The incomplete application can be accepted with the missing information
added later.
Which of the following is exempted from the incontestability provision in insurance policies?
- CORRECT ANSWERS✅✅Fraudulent misstatements
All of the following statements define preexisting conditions EXCEPT - CORRECT
ANSWERS✅✅Any chronic health condition that presents symptoms and which was
unknown at the time of application.
At which point are contractual death benefit settlement options determined and by whom? -
CORRECT ANSWERS✅✅At the time the policy is purchased by the owner of the policy
All of the following are tax qualified retirement plans EXCEPT - CORRECT
ANSWERS✅✅Section 529 plan
, In which of the following does a covered employee agree to a reduction in compensation so
the amount can be used to cover medical expenses? - CORRECT ANSWERS✅✅Flexible
Spending Account (FSA)
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT - CORRECT ANSWERS✅✅Medical underwriting exam.
Which policy provision permits the policyowner to take a specified number of days to
examine the contract, and allows for cancellation and a full refund if the policyowner rejects
the terms or costs? - CORRECT ANSWERS✅✅Free look
All of the following are required signatures on a life insurance application EXCEPT -
CORRECT ANSWERS✅✅The minor in a juvenile policy.
Why is rehabilitation considered worthy of federal help under workers' compensation? -
CORRECT ANSWERS✅✅It reduces insurance losses and helps regain the worker's dignity
All of the following are characteristics of variable whole life EXCEPT - CORRECT
ANSWERS✅✅There is no guaranteed minimum death benefit.
Why is the accidental death benefit referred to as double indemnity? - CORRECT
ANSWERS✅✅It provides twice the face value in the policy for death due to accident
What is a MIB report? - CORRECT ANSWERS✅✅Medical information on an applicant for
assessing life or health insurance risk
In noncontributory plans, which percentage of eligible members must participate? -
CORRECT ANSWERS✅✅100%
When should a buy-sell agreement include a provision for the buy-out of an owner's business
interest in the event of a disability? - CORRECT ANSWERS✅✅When there is a buy-sell
agreement funded with life insurance to buyout the interest of a deceased owner or partner.
