LA Series 103 Exam Questions with All
Correct Answers
Maximum benefit refers to the - ANS -upper limit of the total lifetime
benefits the insurance company will pay
____ is NOT an element of a valid contract - ANS -Countersignature
______ life is designed to pay the balance of a loan if the insured dies before
repayment of the loan - ANS -Credit
A 10% excise tax is normally applied to an early withdrawal from an IRA.
According to HIPPA, this tax will not be applied if the withdrawal is used for
medical expenses that exceed ___ of the individual's adjusted gross income. -
ANS -7.50%
A beneficiary change can occur: - ANS -normally at any time during the
policy term.
A beneficiary has just received a claim payment for a life insurance policy.
Which of the following is TRUE regarding federal income tax liability. -
ANS -No federal income tax is owed on the life insurance proceeds.
A business entity wishing to act as an insurance producer MUST - ANS -
obtain a producer's license.
1
Page
,A business will will typically use which type of life insurance to cover their
employees? - ANS -Group Policy
A cease and decist order - ANS -forbids a stated practice listed in the
order.
A change in an insurance application requires - ANS -an initial made by
the applicant.
A clause that allows an insurer the right to terminate coverage at any
anniversary date is called a(n) - ANS -optional renewability clause
A comman exclusion with Vision plans is - ANS -lasik surgery
A company that is authorized by the Commissioner to transact insurance
business in Louisiana is called a(n) - ANS -authorized insurer
A dependent child may remain on a parents health insurance beyond the age
of 26 if the child - ANS -has a mental or physical handicap and remains
dependent on the parent
A disability elimination period is best described as - ANS -time
deductible
2
Page
,A disability income policy can prevent an insured from earning a higher
income than if he/she were working by utilizing - ANS -benefit limits
A doctor who accepts Medicare Assignment agrees to which of the following?
- ANS -Doctor cannot charge more than Medicare's scheduled coverage
A domestic insurance company in Louisiana MUST - ANS -be organized
under Louisiana insurance laws
A field underwriter's main task is - ANS -to ensure an applicant's
medical information is accurate and complete.
A foreign insurance company doing business in Louisiana - ANS -is a
company that was formed under the laws of another state.
A form of medical health insurance covering the treatment and care of gum -
ANS -Dental expense insurance
A group Disability Income plan that pays tax-free benefits to covered
employees is considered - ANS -fully contributory
A guaranteed issued insurance policy has no - ANS -medical
underwriting
3
Page
, A health care provider claim may be settled using which of the following
payment methods? - ANS -Fee-for service
A health insurance policy where the insurer has the right to terminate the
policy owner's premiums, but NOT cancel the policy is called a(n) -
ANS -guaranteed renewable policy
A health insurance policy where the insurer has the right to terminate the
policy for reasons other than the insured's health is called - ANS -
conditionally renewable
A health insurance policy will typically cover - ANS -preventative health
services
A licensed producer MUST be _____ by an insurer to be eligible for soliciting
insurance contracts - ANS -appointed
A life insurance claim which involves a per capita distribution of policy
proceeds would be payable to the - ANS -named living primary
beneficiaries
A life insurance company has transferred some of its risk to another insurer.
The insurer assuming the risk is called the - ANS -reinsurer
4
Page
Correct Answers
Maximum benefit refers to the - ANS -upper limit of the total lifetime
benefits the insurance company will pay
____ is NOT an element of a valid contract - ANS -Countersignature
______ life is designed to pay the balance of a loan if the insured dies before
repayment of the loan - ANS -Credit
A 10% excise tax is normally applied to an early withdrawal from an IRA.
According to HIPPA, this tax will not be applied if the withdrawal is used for
medical expenses that exceed ___ of the individual's adjusted gross income. -
ANS -7.50%
A beneficiary change can occur: - ANS -normally at any time during the
policy term.
A beneficiary has just received a claim payment for a life insurance policy.
Which of the following is TRUE regarding federal income tax liability. -
ANS -No federal income tax is owed on the life insurance proceeds.
A business entity wishing to act as an insurance producer MUST - ANS -
obtain a producer's license.
1
Page
,A business will will typically use which type of life insurance to cover their
employees? - ANS -Group Policy
A cease and decist order - ANS -forbids a stated practice listed in the
order.
A change in an insurance application requires - ANS -an initial made by
the applicant.
A clause that allows an insurer the right to terminate coverage at any
anniversary date is called a(n) - ANS -optional renewability clause
A comman exclusion with Vision plans is - ANS -lasik surgery
A company that is authorized by the Commissioner to transact insurance
business in Louisiana is called a(n) - ANS -authorized insurer
A dependent child may remain on a parents health insurance beyond the age
of 26 if the child - ANS -has a mental or physical handicap and remains
dependent on the parent
A disability elimination period is best described as - ANS -time
deductible
2
Page
,A disability income policy can prevent an insured from earning a higher
income than if he/she were working by utilizing - ANS -benefit limits
A doctor who accepts Medicare Assignment agrees to which of the following?
- ANS -Doctor cannot charge more than Medicare's scheduled coverage
A domestic insurance company in Louisiana MUST - ANS -be organized
under Louisiana insurance laws
A field underwriter's main task is - ANS -to ensure an applicant's
medical information is accurate and complete.
A foreign insurance company doing business in Louisiana - ANS -is a
company that was formed under the laws of another state.
A form of medical health insurance covering the treatment and care of gum -
ANS -Dental expense insurance
A group Disability Income plan that pays tax-free benefits to covered
employees is considered - ANS -fully contributory
A guaranteed issued insurance policy has no - ANS -medical
underwriting
3
Page
, A health care provider claim may be settled using which of the following
payment methods? - ANS -Fee-for service
A health insurance policy where the insurer has the right to terminate the
policy owner's premiums, but NOT cancel the policy is called a(n) -
ANS -guaranteed renewable policy
A health insurance policy where the insurer has the right to terminate the
policy for reasons other than the insured's health is called - ANS -
conditionally renewable
A health insurance policy will typically cover - ANS -preventative health
services
A licensed producer MUST be _____ by an insurer to be eligible for soliciting
insurance contracts - ANS -appointed
A life insurance claim which involves a per capita distribution of policy
proceeds would be payable to the - ANS -named living primary
beneficiaries
A life insurance company has transferred some of its risk to another insurer.
The insurer assuming the risk is called the - ANS -reinsurer
4
Page
