LA Life, Health & Accident Insurance Series 103
Practice Exam NEWEST 2026-2027 ACTUAL EXAM
COMPLETE 270 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ BRAND NEW!!
A ________ company is owned by its shareholders. - CORRECT ANSWER: Stock
A beneficiary change can occur - CORRECT ANSWER: normally at any time during the policy
term
A cost of living rider gives the insured: - CORRECT ANSWER: additional death benefits
A life insurance company has transferred some of its wrist to another insurer. The insurer,
assuming the wrist is called the: - CORRECT ANSWER: Reinsurer
A life insurance policy owner would like to take out a policy loan against the cash value in his
whole life policy. The interest rate applied to this loan may vary overtime. This is referred to as a
_____ rate loan. - CORRECT ANSWER: variable
A life insurance policy that contains a guaranteed interest rate with a chance to earn a rate that is
higher than the guaranteed rate is called: - CORRECT ANSWER: Universal Life
A long-term care writer in a life insurance policy pays a daily benefit in the event of which of the
following? - CORRECT ANSWER: Inability of the insured to perform more than two activities
of daily living
A non-participating company is sometimes called a: - CORRECT ANSWER: stock insurer
,A parcel surrender is allowed in which of the following life policies? - CORRECT ANSWER:
Universal life
A permanent life insurance policy where the policy owner pays premiums for a specified number
of years is called a: - CORRECT ANSWER: limited pay policy
A policy owner may generate taxable income from which of the following dividend options? -
CORRECT ANSWER: Accumulation at interest
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called: - CORRECT ANSWER: errors and omissions
A spouse and child can be added to the primary insured coverage as what kind of rider? -
CORRECT ANSWER: Family term
A type of insurer that is owned by its policy owners is called: - CORRECT ANSWER: Mutual
All of the following are examples of pure risk except: - CORRECT ANSWER: Losing money at
a casino
All of these are considered sources of information that can assist an underwriter and determining
whether or not to accept a risk except: - CORRECT ANSWER: National Association of
Insurance Underwriters
All of these are settlement options for life insurance policies, except: - CORRECT ANSWER:
Extended term
An applicant intentionally lying to an insurance company on an application in order to obtain a
cheaper premium as an example of: - CORRECT ANSWER: Fraud
, An attending physician statement would be appropriate for which life insurance purpose? -
CORRECT ANSWER: At the request of the insurer to assist in the underwriting decision
An example of naming a beneficiary by class would be: - CORRECT ANSWER: to the child
born of my union with Ned Jackson
An example of risk sharing would be: - CORRECT ANSWER: Doctors pulling their money to
cover malpractice exposures.
An individual who removes the risk of losing money in the stock market by never purchasing
stocks, is said to be engaging in: - CORRECT ANSWER: Risk avoidance
An insurer ability to make unpredictable payouts to policy owners is called: - CORRECT
ANSWER: Liquidity
An insurers claim settlement practices are regulated by the - CORRECT ANSWER: State
insurance departments
Bob and Tom start a business. Since each partner contributes an important element to the success
of the business, they decide to take out life insurance policies on each other, and name each other
as benefactors. Eventually, they retire and dissolve the business. Bob dies 12 months later.the
policies continue and force with no change. Both parties are still married at the time of Bob's
death. In the situation, who will receive Bob's policy proceeds? - CORRECT ANSWER: Tom
Carissa purchases a 10 year level term life insurance policy that has a death benefit of $200,000.
Which statement is true? - CORRECT ANSWER: The face amount and premium will remain
constant over the 10 year period.
Decreasing term life insurance, as often used to: - CORRECT ANSWER: Provide coverage for a
home mortgage
Practice Exam NEWEST 2026-2027 ACTUAL EXAM
COMPLETE 270 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ BRAND NEW!!
A ________ company is owned by its shareholders. - CORRECT ANSWER: Stock
A beneficiary change can occur - CORRECT ANSWER: normally at any time during the policy
term
A cost of living rider gives the insured: - CORRECT ANSWER: additional death benefits
A life insurance company has transferred some of its wrist to another insurer. The insurer,
assuming the wrist is called the: - CORRECT ANSWER: Reinsurer
A life insurance policy owner would like to take out a policy loan against the cash value in his
whole life policy. The interest rate applied to this loan may vary overtime. This is referred to as a
_____ rate loan. - CORRECT ANSWER: variable
A life insurance policy that contains a guaranteed interest rate with a chance to earn a rate that is
higher than the guaranteed rate is called: - CORRECT ANSWER: Universal Life
A long-term care writer in a life insurance policy pays a daily benefit in the event of which of the
following? - CORRECT ANSWER: Inability of the insured to perform more than two activities
of daily living
A non-participating company is sometimes called a: - CORRECT ANSWER: stock insurer
,A parcel surrender is allowed in which of the following life policies? - CORRECT ANSWER:
Universal life
A permanent life insurance policy where the policy owner pays premiums for a specified number
of years is called a: - CORRECT ANSWER: limited pay policy
A policy owner may generate taxable income from which of the following dividend options? -
CORRECT ANSWER: Accumulation at interest
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called: - CORRECT ANSWER: errors and omissions
A spouse and child can be added to the primary insured coverage as what kind of rider? -
CORRECT ANSWER: Family term
A type of insurer that is owned by its policy owners is called: - CORRECT ANSWER: Mutual
All of the following are examples of pure risk except: - CORRECT ANSWER: Losing money at
a casino
All of these are considered sources of information that can assist an underwriter and determining
whether or not to accept a risk except: - CORRECT ANSWER: National Association of
Insurance Underwriters
All of these are settlement options for life insurance policies, except: - CORRECT ANSWER:
Extended term
An applicant intentionally lying to an insurance company on an application in order to obtain a
cheaper premium as an example of: - CORRECT ANSWER: Fraud
, An attending physician statement would be appropriate for which life insurance purpose? -
CORRECT ANSWER: At the request of the insurer to assist in the underwriting decision
An example of naming a beneficiary by class would be: - CORRECT ANSWER: to the child
born of my union with Ned Jackson
An example of risk sharing would be: - CORRECT ANSWER: Doctors pulling their money to
cover malpractice exposures.
An individual who removes the risk of losing money in the stock market by never purchasing
stocks, is said to be engaging in: - CORRECT ANSWER: Risk avoidance
An insurer ability to make unpredictable payouts to policy owners is called: - CORRECT
ANSWER: Liquidity
An insurers claim settlement practices are regulated by the - CORRECT ANSWER: State
insurance departments
Bob and Tom start a business. Since each partner contributes an important element to the success
of the business, they decide to take out life insurance policies on each other, and name each other
as benefactors. Eventually, they retire and dissolve the business. Bob dies 12 months later.the
policies continue and force with no change. Both parties are still married at the time of Bob's
death. In the situation, who will receive Bob's policy proceeds? - CORRECT ANSWER: Tom
Carissa purchases a 10 year level term life insurance policy that has a death benefit of $200,000.
Which statement is true? - CORRECT ANSWER: The face amount and premium will remain
constant over the 10 year period.
Decreasing term life insurance, as often used to: - CORRECT ANSWER: Provide coverage for a
home mortgage
