Louisiana Life and Health Simulator
A licensee just renewed his license. How much time will pass before he will have to renew it again? -
Answer -2 years
How many eligible employees must be included in a contributory plan? - Answer -75%
All of the following are Nonforfeiture options EXCEPT - Answer -Interest only
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust
to work in the business of insurance affecting interstate commerce - Answer -Without receiving written
consent from an insurance regulatory authority.
Which type of life insurance policy allows the policyowner to pay more or less than the planned
premium? - Answer -Universal life
If a consumer requests additional information concerning an investigative consumer report, how long
does the insurer or reporting agency have to comply? - Answer -5 days
How often must producer licenses renew in Louisiana? - Answer -Every 2 years
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that
should one of them die prematurely, the other would be financially able to buy the interest of the
deceased partner. What type of insurance policy may be used to fund this agreement? - Answer -Any
form of life insurance
,All of the following are TRUE statements regarding the accumulation at interest option EXCEPT - Answer
-The interest is not taxable since it remains inside the insurance policy.
All of the following are correct about the required provisions of a health insurance policy EXCEPT -
Answer -A reinstated policy provides immediate coverage for an illness.
An insurer conducts business in Louisiana without a certificate of authority. Hundreds of policies are
sold, and claims start rolling in. Which of the following is true? - Answer -The insurer will have to pay the
claims anyway.
Which of the following would not be a violation of Louisiana insurance regulations? - Answer -Producer
C uses her license to write uncontrolled business only.
All of the following statements are true regarding installments for a fixed amount EXCEPT - Answer -The
payments will stop when the annuitant dies.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following
statements is correct regarding this change? - Answer -The death benefit can be increased by providing
evidence of insurability.
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and
exercise the extended term option for the policy's cash value, which is currently $20,000. What would
be the face amount of the new term policy? - Answer -$50,000
How long must an insurer retain an advertisement for its long-term care policies? - Answer -3 years
An agent selling variable annuities must be registered with - Answer -FINRA.
Which of the following products requires a securities license? - Answer -Variable annuity
In insurance, an offer is usually made when - Answer -The completed application is submitted.
, Under which of the following employer-provided plans are the benefits taxable to an employee in
proportion to the amount of premium paid by the employer? - Answer -Disability Income
What is the term used for an applicant's written request to an insurer for the company to issue a
contract, based on the information provided? - Answer -Application
The Affordable Care Act requires all U.S. citizens and legal residents to have qualifying health care
coverage. This is known as - Answer -The individual mandate.
Evaluating information that establishes adverse selection risk is the purpose of which stage of
insurance? - Answer -Underwriting
A producer didn't realize that he had committed an act in violation of the Insurance Code. How much
would he probably be penalized? - Answer -$1,000
Which of the following insurance options would be considered a risk-sharing arrangement? - Answer -
Reciprocal
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that
the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this
change? - Answer -Cost of Living Rider
An insured receives a monthly summary for his life insurance policy. He notices that the cash value of
the policy is significantly lower this month than it was last month. What type of policy does the insured
have? - Answer -Variable
Which of the following is NOT a feature of a noncancellable policy? - Answer -The insurer may terminate
the contract only at renewal for certain conditions.
During replacement of life insurance, a replacing insurer must do which of the following? - Answer -
Obtain a list of all life insurance policies that will be replaced
A licensee just renewed his license. How much time will pass before he will have to renew it again? -
Answer -2 years
How many eligible employees must be included in a contributory plan? - Answer -75%
All of the following are Nonforfeiture options EXCEPT - Answer -Interest only
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust
to work in the business of insurance affecting interstate commerce - Answer -Without receiving written
consent from an insurance regulatory authority.
Which type of life insurance policy allows the policyowner to pay more or less than the planned
premium? - Answer -Universal life
If a consumer requests additional information concerning an investigative consumer report, how long
does the insurer or reporting agency have to comply? - Answer -5 days
How often must producer licenses renew in Louisiana? - Answer -Every 2 years
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that
should one of them die prematurely, the other would be financially able to buy the interest of the
deceased partner. What type of insurance policy may be used to fund this agreement? - Answer -Any
form of life insurance
,All of the following are TRUE statements regarding the accumulation at interest option EXCEPT - Answer
-The interest is not taxable since it remains inside the insurance policy.
All of the following are correct about the required provisions of a health insurance policy EXCEPT -
Answer -A reinstated policy provides immediate coverage for an illness.
An insurer conducts business in Louisiana without a certificate of authority. Hundreds of policies are
sold, and claims start rolling in. Which of the following is true? - Answer -The insurer will have to pay the
claims anyway.
Which of the following would not be a violation of Louisiana insurance regulations? - Answer -Producer
C uses her license to write uncontrolled business only.
All of the following statements are true regarding installments for a fixed amount EXCEPT - Answer -The
payments will stop when the annuitant dies.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following
statements is correct regarding this change? - Answer -The death benefit can be increased by providing
evidence of insurability.
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and
exercise the extended term option for the policy's cash value, which is currently $20,000. What would
be the face amount of the new term policy? - Answer -$50,000
How long must an insurer retain an advertisement for its long-term care policies? - Answer -3 years
An agent selling variable annuities must be registered with - Answer -FINRA.
Which of the following products requires a securities license? - Answer -Variable annuity
In insurance, an offer is usually made when - Answer -The completed application is submitted.
, Under which of the following employer-provided plans are the benefits taxable to an employee in
proportion to the amount of premium paid by the employer? - Answer -Disability Income
What is the term used for an applicant's written request to an insurer for the company to issue a
contract, based on the information provided? - Answer -Application
The Affordable Care Act requires all U.S. citizens and legal residents to have qualifying health care
coverage. This is known as - Answer -The individual mandate.
Evaluating information that establishes adverse selection risk is the purpose of which stage of
insurance? - Answer -Underwriting
A producer didn't realize that he had committed an act in violation of the Insurance Code. How much
would he probably be penalized? - Answer -$1,000
Which of the following insurance options would be considered a risk-sharing arrangement? - Answer -
Reciprocal
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that
the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this
change? - Answer -Cost of Living Rider
An insured receives a monthly summary for his life insurance policy. He notices that the cash value of
the policy is significantly lower this month than it was last month. What type of policy does the insured
have? - Answer -Variable
Which of the following is NOT a feature of a noncancellable policy? - Answer -The insurer may terminate
the contract only at renewal for certain conditions.
During replacement of life insurance, a replacing insurer must do which of the following? - Answer -
Obtain a list of all life insurance policies that will be replaced
