LOUISIANA LIFE AND HEALTH INSURANCE EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2027 |INSTANT DOWNLOAD PDF
1. What is the primary purpose of life insurance?
A. To create investment income only
B. To provide financial protection against premature death
C. To eliminate all taxes
D. To guarantee retirement income
Correct Answer: B. To provide financial protection against
premature death
Rationale: Life insurance provides a death benefit to help
beneficiaries manage financial losses resulting from the
insured's death.
2. Which party receives the death benefit under a life
insurance policy?
A. The producer
B. The insurer
C. The beneficiary
D. The underwriter
Correct Answer: C. The beneficiary
,Rationale: The beneficiary is the person or entity designated to
receive policy proceeds upon the insured's death.
3. In a life insurance contract, who makes the promise to pay
the death benefit?
A. Beneficiary
B. Insured
C. Insurer
D. Producer
Correct Answer: C. Insurer
Rationale: The insurer agrees to pay the policy benefit in
accordance with the contract.
4. Which type of life insurance provides protection for a
specified period?
A. Whole life
B. Term life
C. Endowment
D. Universal life
Correct Answer: B. Term life
Rationale: Term insurance provides coverage for a stated
period, such as 10, 20, or 30 years.
,5. Which policy generally provides lifetime protection and a
cash value?
A. Term life
B. Whole life
C. Travel insurance
D. Major medical insurance
Correct Answer: B. Whole life
Rationale: Whole life normally provides lifetime coverage with
a guaranteed cash-value component, subject to policy terms.
6. What is the primary characteristic of level term insurance?
A. Premiums increase every month
B. Death benefit remains level during the specified term
C. Cash value is guaranteed to double
D. Coverage automatically becomes universal life
Correct Answer: B. Death benefit remains level during the
specified term
Rationale: Level term insurance generally keeps the death
benefit constant throughout the stated term.
7. Which policy allows the policyowner to adjust the death
benefit and premium within specified limits?
A. Universal life
B. Decreasing term
, C. Credit life
D. Straight whole life
Correct Answer: A. Universal life
Rationale: Universal life provides flexibility in premiums and,
subject to policy provisions, death benefits.
8. What is the cash value of a permanent life insurance policy?
A. The policy's death claim only
B. A living benefit that may accumulate according to the policy
C. The producer's commission
D. The beneficiary's income
Correct Answer: B. A living benefit that may accumulate
according to the policy
Rationale: Permanent life policies may accumulate cash value
that can be accessed or used according to policy provisions.
9. Which type of term insurance has a death benefit that
decreases over time?
A. Level term
B. Increasing term
C. Decreasing term
D. Renewable term
Correct Answer: C. Decreasing term
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) Q&A 2027 |INSTANT DOWNLOAD PDF
1. What is the primary purpose of life insurance?
A. To create investment income only
B. To provide financial protection against premature death
C. To eliminate all taxes
D. To guarantee retirement income
Correct Answer: B. To provide financial protection against
premature death
Rationale: Life insurance provides a death benefit to help
beneficiaries manage financial losses resulting from the
insured's death.
2. Which party receives the death benefit under a life
insurance policy?
A. The producer
B. The insurer
C. The beneficiary
D. The underwriter
Correct Answer: C. The beneficiary
,Rationale: The beneficiary is the person or entity designated to
receive policy proceeds upon the insured's death.
3. In a life insurance contract, who makes the promise to pay
the death benefit?
A. Beneficiary
B. Insured
C. Insurer
D. Producer
Correct Answer: C. Insurer
Rationale: The insurer agrees to pay the policy benefit in
accordance with the contract.
4. Which type of life insurance provides protection for a
specified period?
A. Whole life
B. Term life
C. Endowment
D. Universal life
Correct Answer: B. Term life
Rationale: Term insurance provides coverage for a stated
period, such as 10, 20, or 30 years.
,5. Which policy generally provides lifetime protection and a
cash value?
A. Term life
B. Whole life
C. Travel insurance
D. Major medical insurance
Correct Answer: B. Whole life
Rationale: Whole life normally provides lifetime coverage with
a guaranteed cash-value component, subject to policy terms.
6. What is the primary characteristic of level term insurance?
A. Premiums increase every month
B. Death benefit remains level during the specified term
C. Cash value is guaranteed to double
D. Coverage automatically becomes universal life
Correct Answer: B. Death benefit remains level during the
specified term
Rationale: Level term insurance generally keeps the death
benefit constant throughout the stated term.
7. Which policy allows the policyowner to adjust the death
benefit and premium within specified limits?
A. Universal life
B. Decreasing term
, C. Credit life
D. Straight whole life
Correct Answer: A. Universal life
Rationale: Universal life provides flexibility in premiums and,
subject to policy provisions, death benefits.
8. What is the cash value of a permanent life insurance policy?
A. The policy's death claim only
B. A living benefit that may accumulate according to the policy
C. The producer's commission
D. The beneficiary's income
Correct Answer: B. A living benefit that may accumulate
according to the policy
Rationale: Permanent life policies may accumulate cash value
that can be accessed or used according to policy provisions.
9. Which type of term insurance has a death benefit that
decreases over time?
A. Level term
B. Increasing term
C. Decreasing term
D. Renewable term
Correct Answer: C. Decreasing term
