Final Exam - Louisiana Life and Health
Questions and Answers
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
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 - 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? - ANS-The producer and the applicant
In Louisiana, regulation for variable insurance contracts are set by all of the following
EXCEPT: - ANS-State attorney general's office
Which of these factors help determine an insured's life insurance premium? - ANS-
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? - ANS-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? - ANS-Pay age-corrected benefits
Backdating of life insurance policy applications is allowed if the policies are not
backdated earlier than - ANS-6 months from the time the policy was applied for
The life insurance and annuity replacement regulation defines replacement as - ANS-
exchanging an existing policy for a new policy
An example of a presumptive disability would be - ANS-deafness
Questions and Answers
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
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 - 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? - ANS-The producer and the applicant
In Louisiana, regulation for variable insurance contracts are set by all of the following
EXCEPT: - ANS-State attorney general's office
Which of these factors help determine an insured's life insurance premium? - ANS-
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? - ANS-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? - ANS-Pay age-corrected benefits
Backdating of life insurance policy applications is allowed if the policies are not
backdated earlier than - ANS-6 months from the time the policy was applied for
The life insurance and annuity replacement regulation defines replacement as - ANS-
exchanging an existing policy for a new policy
An example of a presumptive disability would be - ANS-deafness
