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LA Life Insurance Series 101 Exam Study 2026 Actual
Complete Real Verified Exam Questions And Verified
Answers | 100% Correct Answers Graded A+
Guaranteed Success!! Newest Exam!!!
The primary use of an annuity is to provide funds for
A. education
B. long-term care
C. retirement
D. burial - Answer-C. retirement
The process by which an insurer decides to whom to issue
a policy is known as
A. adverse selection
B. risk classification
C. assignment
D. underwriting - Answer-D. underwriting
Before receiving an insurance license, an applicant must
A. swear an oath before a judge
B. provide a copy of their high-school diploma
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C. post a $10,000 bond to guarantee faithful performance
D. pay a license application fee to the Louisiana
Department of Insurance - Answer-D. pay a license
application fee to the Louisiana Department of Insurance
What is the purpose of a grace period in life insurance
policies?
A. to guarantee the insured's right for a premium refund
B. to prevent unintentional policy lapse
C. to reinstate the policy after it has been surrendered
D. to allow the insurer to waive the premium - Answer-B.
to prevent unintentional policy lapse
In order to transact the business of insurance for an
insurer, a producer needs to be able to carry out activities
not stipulated in the agency contract. This type of authority
is referred to as
A. applied
B. expressed
C. implied
D. fiduciary - Answer-D. fiduciary
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An insured has a 20-pay life policy with a paid-up dividend
option. In this option, the insured may
A. use policy dividends to reduce the premium after 20
years
B. pay up policy early by using policy dividends
C. pay up the policy early by using accumulated cash
values
D. waive premium payments until the policy has
accumulated enough cash values to pay it a up for 20
years. - Answer-B. pay up policy early by using policy
dividends
A primary advantage of a limited payment policy over a
continuous premium whole life policy is that a limited
payment policy
A. is a nonparticipating contract paying higher dividends
than a continuous pay policy
B. guarantees renewal
C. includes nontaxable dividends
D. allows the policy owner to pay for the entire policy in a
shorter period of time - Answer-D. allows the policy owner
to pay for the entire policy in a shorter period of time
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Earned income is a requirement for contributing to all the
following retirement plans except
A. variable annuities
B. traditional IRA
C. Roth IRA
D. 403b - Answer-C. Roth IRA
Which type of beneficiary cannot be changed without
consent?
A. There are more than two beneficiaries
B. The beneficiary is the spouse
C. The beneficiary is a child of the member
D. The beneficiary is irrevocable - Answer-D. The
beneficiary is irrevocable
As a form of level premium permanent insurance, ordinary
life insurance accumulates a reserve that eventually
A. equals the face amount of the policy
B. results in a dividend payment to the policyowner
C. ceases to earn interest or grow in a positive earnings
direction
LA Life Insurance Series 101 Exam Study 2026 Actual
Complete Real Verified Exam Questions And Verified
Answers | 100% Correct Answers Graded A+
Guaranteed Success!! Newest Exam!!!
The primary use of an annuity is to provide funds for
A. education
B. long-term care
C. retirement
D. burial - Answer-C. retirement
The process by which an insurer decides to whom to issue
a policy is known as
A. adverse selection
B. risk classification
C. assignment
D. underwriting - Answer-D. underwriting
Before receiving an insurance license, an applicant must
A. swear an oath before a judge
B. provide a copy of their high-school diploma
,2|Page
C. post a $10,000 bond to guarantee faithful performance
D. pay a license application fee to the Louisiana
Department of Insurance - Answer-D. pay a license
application fee to the Louisiana Department of Insurance
What is the purpose of a grace period in life insurance
policies?
A. to guarantee the insured's right for a premium refund
B. to prevent unintentional policy lapse
C. to reinstate the policy after it has been surrendered
D. to allow the insurer to waive the premium - Answer-B.
to prevent unintentional policy lapse
In order to transact the business of insurance for an
insurer, a producer needs to be able to carry out activities
not stipulated in the agency contract. This type of authority
is referred to as
A. applied
B. expressed
C. implied
D. fiduciary - Answer-D. fiduciary
,3|Page
An insured has a 20-pay life policy with a paid-up dividend
option. In this option, the insured may
A. use policy dividends to reduce the premium after 20
years
B. pay up policy early by using policy dividends
C. pay up the policy early by using accumulated cash
values
D. waive premium payments until the policy has
accumulated enough cash values to pay it a up for 20
years. - Answer-B. pay up policy early by using policy
dividends
A primary advantage of a limited payment policy over a
continuous premium whole life policy is that a limited
payment policy
A. is a nonparticipating contract paying higher dividends
than a continuous pay policy
B. guarantees renewal
C. includes nontaxable dividends
D. allows the policy owner to pay for the entire policy in a
shorter period of time - Answer-D. allows the policy owner
to pay for the entire policy in a shorter period of time
, 4|Page
Earned income is a requirement for contributing to all the
following retirement plans except
A. variable annuities
B. traditional IRA
C. Roth IRA
D. 403b - Answer-C. Roth IRA
Which type of beneficiary cannot be changed without
consent?
A. There are more than two beneficiaries
B. The beneficiary is the spouse
C. The beneficiary is a child of the member
D. The beneficiary is irrevocable - Answer-D. The
beneficiary is irrevocable
As a form of level premium permanent insurance, ordinary
life insurance accumulates a reserve that eventually
A. equals the face amount of the policy
B. results in a dividend payment to the policyowner
C. ceases to earn interest or grow in a positive earnings
direction
