Louisiana Life, Accident and Health
Practice Exam Test Questions &
Answers
Select from the choices below the best description of a speculative risk? - Answer -Involving the
possibility of a gain in addition to the uncertainty of loss
If there is a material change in an MEC contract, what is the first thing needing to be done? - Answer -
Another 7 pay test
Which of the following is not taxable? - Answer -Fixed amount installments
A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty tax
unless: - Answer -It was used as a down payment on first home
Carlos cancels his life policy but instructs the insurance company to transfer the cash value of his policy
to an annuity. This non taxable transaction is called? - Answer -1035 Exchange
Which of the following is a disadvantage to setup and participate in a qualified retirement plan? -
Answer -Immediate liquidity
All of these types of distributions that are exceptions to the 10% penalty rule except: - Answer -New car
purchase
,Which of the following does not describe a 401(K) characteristics - Answer -Currently $49,000 maximum
contribution
The following are examples of Qualified Retirement Plans except: - Answer -501c(3)
Which of the following is not correct regarding Long Term Care - Answer -It provides different benefits
for different levels of care
Medicare Select is a type of? - Answer -Medicare Supplement plan offered by an HMO
Which of the following statements is correct regarding Medicare Advantage - Answer -It can offer
benefits that ate not covered by regular Medicare
Which of the following is correct with regards to the hospital insurance Part A plan of Medicare - Answer
-Insured must satisfy a deductible
Which of the following statements is correct about Part B of Medicare - Answer -An annual deductible is
required
All of the following examples of groups that purchase group health insurance except: - Answer -MEWA
The following are example of limited health plans except: - Answer -HMO
Ally wants a rider that will pay disability that social security will pay for one year, assuming that social
security should begin then. What type of rider should she consider? - Answer -Additional monthly
benefit (AMB)
How many QCs are necessary to be fully funded? - Answer -40
If Bill has a type of disability plan that has benefits set at a percentage of income, what type is it? -
Answer -Employer Group
,Ally wants to make sure that her benefits for her disability policy keep up with the rate of inflation, what
type of rider should she consider - Answer -COLA
How many QCs are necessary to be deemed partially insured - Answer -6 in the last 13
If Jill has a type of disability plan that has benefits set at a flat amount per month, what type is it? -
Answer -Individual
The period before benefits begin is termed as all of the following except: - Answer -Pre-benefit period
Which of the following does Coinsurance describe? - Answer -a percentage the insured will pay after the
deductible
If a health insurer does not pay a claim more than how many days after required a 1% per month
penalty will begin? - Answer -25 days
How many days after receiving notice of a claim does an insurer have to furnish proof of loss forms? -
Answer -15
If Martha wants to pay her daughter's college tuition, which of the following can be used as an
education annuity? - Answer -Annuity Certain
The best description of a hazard is? - Answer -Condition that may increase the chance that a loss may
occur
Choose from the following selections the best description of a premium? - Answer -The amount an
insured pays for each unit of coverage. $7 for every $1,000 of coverage is an example.
Which of the following is correct about a Third-Party Administrator? - Answer -It is an independent
company that provides administrative services for company's self-funded plans
, A non-resident producer that is moving from one state to another state must submit? - Answer -a state-
to-state transfer form within 30 days
If a producer changes their mailing, work, or home address, the Department must be notified
____________of the change on an official "Change of Address" form available on the LA Department of
Insurance website, or face a fine. - Answer -within 10 days
Assuming CE requirements have been met, how is the life agent's license renewed? - Answer -Pay the
renewal billing notice the Dept sends out 90 days before the renewal date
To renew a resident individual producer's license, you must complete _______ hours of continuing
education each renewal period. - Answer -24 hours
The CE requirement does not apply to specialty or limited licenses, such as, industrial fire, credit life,
credit health, credit property, or accidental death and dismemberment. - Answer -False
John became disabled and cannot conduct his insurance business. His legally appointed representative
may get a temporary license to handle the business for him for a period up to ____________________. -
Answer -180 days
If a producer's license is revoked, it is not possible to reapply. - Answer -False
A District Court Judge found James, a producer, guilty of a misdemeanor petty theft. James must -
Answer -Report the ruling to the Commissioner within 30 days.
To maintain your license, every licensee must: - Answer -Select one:
a. complete a certain number of hours in continuing education.
b. maintain satisfactory conduct.
c. send in the renewal application and pay renewal fees.
d. All of the above
Practice Exam Test Questions &
Answers
Select from the choices below the best description of a speculative risk? - Answer -Involving the
possibility of a gain in addition to the uncertainty of loss
If there is a material change in an MEC contract, what is the first thing needing to be done? - Answer -
Another 7 pay test
Which of the following is not taxable? - Answer -Fixed amount installments
A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty tax
unless: - Answer -It was used as a down payment on first home
Carlos cancels his life policy but instructs the insurance company to transfer the cash value of his policy
to an annuity. This non taxable transaction is called? - Answer -1035 Exchange
Which of the following is a disadvantage to setup and participate in a qualified retirement plan? -
Answer -Immediate liquidity
All of these types of distributions that are exceptions to the 10% penalty rule except: - Answer -New car
purchase
,Which of the following does not describe a 401(K) characteristics - Answer -Currently $49,000 maximum
contribution
The following are examples of Qualified Retirement Plans except: - Answer -501c(3)
Which of the following is not correct regarding Long Term Care - Answer -It provides different benefits
for different levels of care
Medicare Select is a type of? - Answer -Medicare Supplement plan offered by an HMO
Which of the following statements is correct regarding Medicare Advantage - Answer -It can offer
benefits that ate not covered by regular Medicare
Which of the following is correct with regards to the hospital insurance Part A plan of Medicare - Answer
-Insured must satisfy a deductible
Which of the following statements is correct about Part B of Medicare - Answer -An annual deductible is
required
All of the following examples of groups that purchase group health insurance except: - Answer -MEWA
The following are example of limited health plans except: - Answer -HMO
Ally wants a rider that will pay disability that social security will pay for one year, assuming that social
security should begin then. What type of rider should she consider? - Answer -Additional monthly
benefit (AMB)
How many QCs are necessary to be fully funded? - Answer -40
If Bill has a type of disability plan that has benefits set at a percentage of income, what type is it? -
Answer -Employer Group
,Ally wants to make sure that her benefits for her disability policy keep up with the rate of inflation, what
type of rider should she consider - Answer -COLA
How many QCs are necessary to be deemed partially insured - Answer -6 in the last 13
If Jill has a type of disability plan that has benefits set at a flat amount per month, what type is it? -
Answer -Individual
The period before benefits begin is termed as all of the following except: - Answer -Pre-benefit period
Which of the following does Coinsurance describe? - Answer -a percentage the insured will pay after the
deductible
If a health insurer does not pay a claim more than how many days after required a 1% per month
penalty will begin? - Answer -25 days
How many days after receiving notice of a claim does an insurer have to furnish proof of loss forms? -
Answer -15
If Martha wants to pay her daughter's college tuition, which of the following can be used as an
education annuity? - Answer -Annuity Certain
The best description of a hazard is? - Answer -Condition that may increase the chance that a loss may
occur
Choose from the following selections the best description of a premium? - Answer -The amount an
insured pays for each unit of coverage. $7 for every $1,000 of coverage is an example.
Which of the following is correct about a Third-Party Administrator? - Answer -It is an independent
company that provides administrative services for company's self-funded plans
, A non-resident producer that is moving from one state to another state must submit? - Answer -a state-
to-state transfer form within 30 days
If a producer changes their mailing, work, or home address, the Department must be notified
____________of the change on an official "Change of Address" form available on the LA Department of
Insurance website, or face a fine. - Answer -within 10 days
Assuming CE requirements have been met, how is the life agent's license renewed? - Answer -Pay the
renewal billing notice the Dept sends out 90 days before the renewal date
To renew a resident individual producer's license, you must complete _______ hours of continuing
education each renewal period. - Answer -24 hours
The CE requirement does not apply to specialty or limited licenses, such as, industrial fire, credit life,
credit health, credit property, or accidental death and dismemberment. - Answer -False
John became disabled and cannot conduct his insurance business. His legally appointed representative
may get a temporary license to handle the business for him for a period up to ____________________. -
Answer -180 days
If a producer's license is revoked, it is not possible to reapply. - Answer -False
A District Court Judge found James, a producer, guilty of a misdemeanor petty theft. James must -
Answer -Report the ruling to the Commissioner within 30 days.
To maintain your license, every licensee must: - Answer -Select one:
a. complete a certain number of hours in continuing education.
b. maintain satisfactory conduct.
c. send in the renewal application and pay renewal fees.
d. All of the above
