LOUISIANA LIFE, HEALTH & ACCIDENT INSURANCE
SERIES 103 PRACTICE EXAM
Under which situation must insurable interest exist between the applicant and insured at
the time of application? - Answer -When a third-party applicant names themselves
beneficiary.
Which of the following is true about a decreasing term life policy? - Answer -The face
amount reaches zero at policy expiration.
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - Answer -The underwriting process begins
For an individual long-term care policy there is an annual dollar limit for tax deductions
that is based on which of the following? - Answer -Age
All of the following are TRUE regarding incomplete applications EXCEPT - Answer -
The incomplete application can be accepted with the missing information added later.
Which of the following is exempted from the incontestability provision in insurance
policies? - Answer -Fraudulent misstatements
All of the following statements define preexisting conditions EXCEPT - Answer -Any
chronic health condition that presents symptoms and which was unknown at the time of
application.
All of the following are characteristics of variable whole life EXCEPT - Answer -There is
no guaranteed minimum death benefit.
Why is the accidental death benefit referred to as double indemnity? - Answer -It
provides twice the face value in the policy for death due to accident
What is a MIB report? - Answer -Medical information on an applicant for assessing life
or health insurance risk
In noncontributory plans, which percentage of eligible members must participate? -
Answer -100%
When should a buy-sell agreement include a provision for the buy-out of an owner's
business interest in the event of a disability? - Answer -When there is a buy-sell
agreement funded with life insurance to buyout the interest of a deceased owner or
partner.
, Why is relying solely on employer group life insurance generally considered inadequate
for most individual's needs? - Answer -It is financially insufficient to cover end of life
expenses.
Managed care plans increase efficiency by all of the following means EXCEPT -
Answer -Transferring the management of costs to the insureds.
Which of the following is covered by a dread disease policy? - Answer -Illnesses that
do not occur frequently but incur significant costs when they do occur
In a home healthcare benefit, all of the following are eligible expenses EXCEPT -
Answer -Blood transfusions
When does insurable interest come into play in a life insurance policy? - Answer -When
the applicant for the policy is not the insured
Which of the following must be given to the insurer within 20 days after occurrence or
commencement of any loss covered by the policy, or as soon thereafter as is
reasonably possible? - Answer -Notice of claim
Which of the following is TRUE for a flexible premium annuity? - Answer -The
purchaser has the option to vary the amount of each premium payment falling between
a minimum and maximum amount.
1. What type of insurance should a company purchase if it wants to insure the life of its
CEO? - Answer -Key person insurance
At which point are contractual death benefit settlement options determined and by
whom? - Answer -At the time the policy is purchased by the owner of the policy
All of the following are tax qualified retirement plans EXCEPT - Answer -Section 529
plan
In which of the following does a covered employee agree to a reduction in
compensation so the amount can be used to cover medical expenses? - Answer -
Flexible Spending Account (FSA)
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT - Answer -Medical underwriting exam.
Which policy provision permits the policyowner to take a specified number of days to
examine the contract, and allows for cancellation and a full refund if the policyowner
rejects the terms or costs? - Answer -Free look
All of the following are required signatures on a life insurance application EXCEPT -
Answer -The minor in a juvenile policy.
SERIES 103 PRACTICE EXAM
Under which situation must insurable interest exist between the applicant and insured at
the time of application? - Answer -When a third-party applicant names themselves
beneficiary.
Which of the following is true about a decreasing term life policy? - Answer -The face
amount reaches zero at policy expiration.
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - Answer -The underwriting process begins
For an individual long-term care policy there is an annual dollar limit for tax deductions
that is based on which of the following? - Answer -Age
All of the following are TRUE regarding incomplete applications EXCEPT - Answer -
The incomplete application can be accepted with the missing information added later.
Which of the following is exempted from the incontestability provision in insurance
policies? - Answer -Fraudulent misstatements
All of the following statements define preexisting conditions EXCEPT - Answer -Any
chronic health condition that presents symptoms and which was unknown at the time of
application.
All of the following are characteristics of variable whole life EXCEPT - Answer -There is
no guaranteed minimum death benefit.
Why is the accidental death benefit referred to as double indemnity? - Answer -It
provides twice the face value in the policy for death due to accident
What is a MIB report? - Answer -Medical information on an applicant for assessing life
or health insurance risk
In noncontributory plans, which percentage of eligible members must participate? -
Answer -100%
When should a buy-sell agreement include a provision for the buy-out of an owner's
business interest in the event of a disability? - Answer -When there is a buy-sell
agreement funded with life insurance to buyout the interest of a deceased owner or
partner.
, Why is relying solely on employer group life insurance generally considered inadequate
for most individual's needs? - Answer -It is financially insufficient to cover end of life
expenses.
Managed care plans increase efficiency by all of the following means EXCEPT -
Answer -Transferring the management of costs to the insureds.
Which of the following is covered by a dread disease policy? - Answer -Illnesses that
do not occur frequently but incur significant costs when they do occur
In a home healthcare benefit, all of the following are eligible expenses EXCEPT -
Answer -Blood transfusions
When does insurable interest come into play in a life insurance policy? - Answer -When
the applicant for the policy is not the insured
Which of the following must be given to the insurer within 20 days after occurrence or
commencement of any loss covered by the policy, or as soon thereafter as is
reasonably possible? - Answer -Notice of claim
Which of the following is TRUE for a flexible premium annuity? - Answer -The
purchaser has the option to vary the amount of each premium payment falling between
a minimum and maximum amount.
1. What type of insurance should a company purchase if it wants to insure the life of its
CEO? - Answer -Key person insurance
At which point are contractual death benefit settlement options determined and by
whom? - Answer -At the time the policy is purchased by the owner of the policy
All of the following are tax qualified retirement plans EXCEPT - Answer -Section 529
plan
In which of the following does a covered employee agree to a reduction in
compensation so the amount can be used to cover medical expenses? - Answer -
Flexible Spending Account (FSA)
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT - Answer -Medical underwriting exam.
Which policy provision permits the policyowner to take a specified number of days to
examine the contract, and allows for cancellation and a full refund if the policyowner
rejects the terms or costs? - Answer -Free look
All of the following are required signatures on a life insurance application EXCEPT -
Answer -The minor in a juvenile policy.
