Louisiana Life and Health Insurance Complete
Exam Study Guide (Questions with Verified
Answers) | Latest Edition
1. How soon must the commissioner hold a hearing after receiving a request? -
ANSWER Within 30 days
2. Life & Health Guaranty Association - ANSWER The purpose is to protect
policy owners and beneficiaries against insurers who become financially
impaired or insolvent.
3. What is the total amount the guaranty association will be liable for ONE
individual? - ANSWER Up to $500,00 total
-$300,000 in life insurance death benefits
-$100,000 in cash surrender for life insurance
-$250,000 in present value annuity benefits
-$500,000 in health insurance benefits
4. What must you complete to acquire a producer license in Louisiana? -
ANSWER - complete application
- be 18 years of age
-reside in or principal place of business in Louisiana
-have not committed any act that is grounds for denial, suspension, or
revocation of a license
-complete the pre-licensing education requirement
-pass the pre-licensing exam
-submit to fingerprinting for a criminal history background check
,5. How often may the commissioner examine all domestic insurers? -
ANSWER -6 months for first 3 years
-1 year for the 4-6 years
-Every 5 years there after
6. What is insurance? - ANSWER The transfer of risk
7. What is a risk? - ANSWER The uncertainty or possibility of a loss
8. What are the types of risk? - ANSWER 2 types:
-Speculative risk: chance of loss or gain (not insurable because of gain)
-Pure risk: chance of loss only (insurable)
9. What is an exposure? - ANSWER The risks for which the insurance
company would be liable.
10.What is a peril? - ANSWER The cause of a loss
11.What is a hazard? - ANSWER something that causes an increase in the
chance of loss.
-Physical hazard: can be seen
-Moral hazard: a belief intentionally causing loss is acceptable
-Morale hazard: carelessness (leaving door unlocked)
12.Methods of handling risk: STARR - ANSWER Sharing
Transfer
Avoidance
Retention
Reduction
,13.A business entity acting as an insurance producer must obtain what? -
ANSWER - an insurance producers license
-they must file an entity application with commissioner plus required fee
-designate an individual licensed producer who will be responsible for
entity's compliance with laws and regulations
14.How much of your business can be controlled business? - ANSWER No
more than 25% in any year
15.How often does a producers license renew? - ANSWER Every 2 years in
birth month
-completed all continuing education requirements (24 hours every 2 years)
16.How soon must you notify the commissioner of a change of name or
address? - ANSWER Within 30 days
17.How long does a temporary producer license last? - ANSWER 180 days
-this is for a spouse or other designee who will handle insurance business
due to death or military service of the licensed producer
18.How soon must an insurance company notify the producer if they terminate
the producers appointment? - ANSWER Within 15 days if due to reason
that would suspend or revoke license
- 30 days for any other reason
, 19.What can the commissioner do about unfair trade practices? - ANSWER He
can investigate the fraud, as well as fine, suspend, or revoke the license
20.When must privacy policy notices be provided? - ANSWER -Customers: at
the time the relationship is established
-Consumers: before information is disclosed to a nonaffiliated third party
-Annually to customers
21.Advertisements: - ANSWER -Must be truthful & not misleading
-Must describe policy being advertised
-Must include insurer's name
-must keep file of extent and distribution of all ads
22.Insurable Interest: - ANSWER Minors age 15 or older may buy insurance
for:
-their own benefit
-benefit of family member
-any person with insurable interest
What is replacement? - ANSWER Any transaction in which life insurance or
annuity is being purchased and as part of purchase an existing contract will be
terminated in any way.
-Must provide 30 day free look on replacement
What exceptions are there for the LA health policy provisions? - ANSWER -
Time limit on certain defenses is 3 years
-Minimum grace period is 30 days after premium due date
-Legal actions may be initiated no earlier than 60 days and no later than one year
after written proof of loss
Exam Study Guide (Questions with Verified
Answers) | Latest Edition
1. How soon must the commissioner hold a hearing after receiving a request? -
ANSWER Within 30 days
2. Life & Health Guaranty Association - ANSWER The purpose is to protect
policy owners and beneficiaries against insurers who become financially
impaired or insolvent.
3. What is the total amount the guaranty association will be liable for ONE
individual? - ANSWER Up to $500,00 total
-$300,000 in life insurance death benefits
-$100,000 in cash surrender for life insurance
-$250,000 in present value annuity benefits
-$500,000 in health insurance benefits
4. What must you complete to acquire a producer license in Louisiana? -
ANSWER - complete application
- be 18 years of age
-reside in or principal place of business in Louisiana
-have not committed any act that is grounds for denial, suspension, or
revocation of a license
-complete the pre-licensing education requirement
-pass the pre-licensing exam
-submit to fingerprinting for a criminal history background check
,5. How often may the commissioner examine all domestic insurers? -
ANSWER -6 months for first 3 years
-1 year for the 4-6 years
-Every 5 years there after
6. What is insurance? - ANSWER The transfer of risk
7. What is a risk? - ANSWER The uncertainty or possibility of a loss
8. What are the types of risk? - ANSWER 2 types:
-Speculative risk: chance of loss or gain (not insurable because of gain)
-Pure risk: chance of loss only (insurable)
9. What is an exposure? - ANSWER The risks for which the insurance
company would be liable.
10.What is a peril? - ANSWER The cause of a loss
11.What is a hazard? - ANSWER something that causes an increase in the
chance of loss.
-Physical hazard: can be seen
-Moral hazard: a belief intentionally causing loss is acceptable
-Morale hazard: carelessness (leaving door unlocked)
12.Methods of handling risk: STARR - ANSWER Sharing
Transfer
Avoidance
Retention
Reduction
,13.A business entity acting as an insurance producer must obtain what? -
ANSWER - an insurance producers license
-they must file an entity application with commissioner plus required fee
-designate an individual licensed producer who will be responsible for
entity's compliance with laws and regulations
14.How much of your business can be controlled business? - ANSWER No
more than 25% in any year
15.How often does a producers license renew? - ANSWER Every 2 years in
birth month
-completed all continuing education requirements (24 hours every 2 years)
16.How soon must you notify the commissioner of a change of name or
address? - ANSWER Within 30 days
17.How long does a temporary producer license last? - ANSWER 180 days
-this is for a spouse or other designee who will handle insurance business
due to death or military service of the licensed producer
18.How soon must an insurance company notify the producer if they terminate
the producers appointment? - ANSWER Within 15 days if due to reason
that would suspend or revoke license
- 30 days for any other reason
, 19.What can the commissioner do about unfair trade practices? - ANSWER He
can investigate the fraud, as well as fine, suspend, or revoke the license
20.When must privacy policy notices be provided? - ANSWER -Customers: at
the time the relationship is established
-Consumers: before information is disclosed to a nonaffiliated third party
-Annually to customers
21.Advertisements: - ANSWER -Must be truthful & not misleading
-Must describe policy being advertised
-Must include insurer's name
-must keep file of extent and distribution of all ads
22.Insurable Interest: - ANSWER Minors age 15 or older may buy insurance
for:
-their own benefit
-benefit of family member
-any person with insurable interest
What is replacement? - ANSWER Any transaction in which life insurance or
annuity is being purchased and as part of purchase an existing contract will be
terminated in any way.
-Must provide 30 day free look on replacement
What exceptions are there for the LA health policy provisions? - ANSWER -
Time limit on certain defenses is 3 years
-Minimum grace period is 30 days after premium due date
-Legal actions may be initiated no earlier than 60 days and no later than one year
after written proof of loss
