Final Exam - Louisiana Life and Health
When are group disability benefits considered to be tax-free to the insured? - Answer -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 - Answer -Marriage partners
What is the elimination period of an individual disability policy? - Answer -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? - Answer -It is
taxable
In which of the following situations would the insurer be liable for a loss? - Answer -The insured suffered
an injury as an innocent bystander during a bank robbery
In what form do disability income policies typically pay benefits? - Answer -Periodic income
Which of the following is typically NOT eligible for coverage in a group health policy? - Answer -
Temporary employee
, Which of the following would be considered a possible applicant and contract policyholder for group
health benefits? - Answer -Employer
A Medicare Supplement Policy is - Answer -designed to fill in the gaps of Part A and Part B Medicare
Under a Modified Endowment Contract, what are the likely tax consequences? - Answer -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 - Answer
-Talking
Which of the following is an annuity that is linked to a market-related index? - Answer -Equity-indexed
annuity
An insurer operating in the U.S. but headquartered outside the U.S. is - Answer -an alien insurer
Group dental plans will frequently place a limit on annual benefits in order to minimize - Answer -
adverse selection
All of the following are considered to be fraud EXCEPT - Answer -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 - Answer -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 - Answer -benefit schedule
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits
must - Answer -be the same and the premium cannot exceed 102%
When are group disability benefits considered to be tax-free to the insured? - Answer -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 - Answer -Marriage partners
What is the elimination period of an individual disability policy? - Answer -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? - Answer -It is
taxable
In which of the following situations would the insurer be liable for a loss? - Answer -The insured suffered
an injury as an innocent bystander during a bank robbery
In what form do disability income policies typically pay benefits? - Answer -Periodic income
Which of the following is typically NOT eligible for coverage in a group health policy? - Answer -
Temporary employee
, Which of the following would be considered a possible applicant and contract policyholder for group
health benefits? - Answer -Employer
A Medicare Supplement Policy is - Answer -designed to fill in the gaps of Part A and Part B Medicare
Under a Modified Endowment Contract, what are the likely tax consequences? - Answer -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 - Answer
-Talking
Which of the following is an annuity that is linked to a market-related index? - Answer -Equity-indexed
annuity
An insurer operating in the U.S. but headquartered outside the U.S. is - Answer -an alien insurer
Group dental plans will frequently place a limit on annual benefits in order to minimize - Answer -
adverse selection
All of the following are considered to be fraud EXCEPT - Answer -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 - Answer -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 - Answer -benefit schedule
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits
must - Answer -be the same and the premium cannot exceed 102%
