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
Of the items listed below, which are requirements for a life & disability insurance analyst
license? - Answer -a. The applicant must have a good general reputation
b. The applicant must be at least 18 years of age
c. The applicant must have a thorough knowledge of life & disability insurance
d. These are all required
Sam's appointment to sell insurance for XYZ Insurance Company has been terminated
by the company after the company found evidence Sam committed fraud. XYZ has
_________ to notify the Insurance Department of the termination. - Answer -10 Days
, Unless the Commissioner decides to revoke, non-renew or suspend your license, it will
expire _____________. - Answer -Every two years
When someone accuses a producer of violating the Insurance Code and demands a
hearing, that hearing must be held within ______ days of the demand. - Answer -30
days
_____________ - when a producer influences a consumer to replace a present policy
with a different one. This is only acceptable if the producer gave the consumer better
coverage or a better deal. - Answer -Twisting
This federal law was enacted in 1971 and administered by the Federal Trade
Commission. It makes clear that consumers have the right to know what information is
being circulated about them and that the information is accurate and relevant for
purposes that it is being accessed? - Answer -Fair Credit Reporting Act (FCRA)
The federal act that mandates that a credit reporting company responds to a consumer
complaint when the company's credit report inaccurately reflects information about the
consumer is known as: - Answer -Fair Credit Reporting Act (FCRA)
An applicant for the Individual Producer license must complete pre-licensing education
required to prepare for the state required exam. - Answer -True
A legal business entity, such as a corporation, partnership, limited liability company,
may also be a producer and conduct insurance business in this state. - Answer -True
An applicant for a Louisiana Insurance Producer's License must do all of the following
EXCEPT: - Answer -Successfully pass their required exam with 80% or higher.
An applicant for a Louisiana Insurance Producer's License must do all of the following
EXCEPT: - Answer -Currently maintain a license as a Property and Casualty producer.
A qualified person may hold both a Life & Disability and a Property & Casualty license.
This is called a ___________________ license. - Answer -Concurrent license
An annuity which may be used to help fund retirement in a few years maintains a
"separate account." The owner purchases "accumulation units." This is called a
_______
Annuity. - Answer -Variable
Variable life insurance policies and variable annuities are primarily governed by which
agency? - Answer -SEC
Louisiana will grant a producer a Variable products license to those that have a -
Answer -Select one:
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
Of the items listed below, which are requirements for a life & disability insurance analyst
license? - Answer -a. The applicant must have a good general reputation
b. The applicant must be at least 18 years of age
c. The applicant must have a thorough knowledge of life & disability insurance
d. These are all required
Sam's appointment to sell insurance for XYZ Insurance Company has been terminated
by the company after the company found evidence Sam committed fraud. XYZ has
_________ to notify the Insurance Department of the termination. - Answer -10 Days
, Unless the Commissioner decides to revoke, non-renew or suspend your license, it will
expire _____________. - Answer -Every two years
When someone accuses a producer of violating the Insurance Code and demands a
hearing, that hearing must be held within ______ days of the demand. - Answer -30
days
_____________ - when a producer influences a consumer to replace a present policy
with a different one. This is only acceptable if the producer gave the consumer better
coverage or a better deal. - Answer -Twisting
This federal law was enacted in 1971 and administered by the Federal Trade
Commission. It makes clear that consumers have the right to know what information is
being circulated about them and that the information is accurate and relevant for
purposes that it is being accessed? - Answer -Fair Credit Reporting Act (FCRA)
The federal act that mandates that a credit reporting company responds to a consumer
complaint when the company's credit report inaccurately reflects information about the
consumer is known as: - Answer -Fair Credit Reporting Act (FCRA)
An applicant for the Individual Producer license must complete pre-licensing education
required to prepare for the state required exam. - Answer -True
A legal business entity, such as a corporation, partnership, limited liability company,
may also be a producer and conduct insurance business in this state. - Answer -True
An applicant for a Louisiana Insurance Producer's License must do all of the following
EXCEPT: - Answer -Successfully pass their required exam with 80% or higher.
An applicant for a Louisiana Insurance Producer's License must do all of the following
EXCEPT: - Answer -Currently maintain a license as a Property and Casualty producer.
A qualified person may hold both a Life & Disability and a Property & Casualty license.
This is called a ___________________ license. - Answer -Concurrent license
An annuity which may be used to help fund retirement in a few years maintains a
"separate account." The owner purchases "accumulation units." This is called a
_______
Annuity. - Answer -Variable
Variable life insurance policies and variable annuities are primarily governed by which
agency? - Answer -SEC
Louisiana will grant a producer a Variable products license to those that have a -
Answer -Select one:
