LA SERIES 103 EXAM SCRIPT 2025/2026 QUESTIONS AND
ANSWERS RATED A+
✔✔A payment system for health care in which the provider is paid for each service
given is called - ✔✔Fee-for-service
✔✔A permanent life insurance policy where the policy owner pays premiums for a
specified number of years is called a(n) - ✔✔limited pay policy
✔✔A person covered with an individual health plan - ✔✔is issued a policy
✔✔A person who is a nonsmoker, of average weight, and in excellent health would
most likely be in which risk category - ✔✔Prefereed
✔✔A pharmacy benefit covers presctiption drugs derived from a list called a(n) -
✔✔drug formulary
✔✔A policy owner can receive a percetage payment of the death benefits prior to death
by using what kind of contract? - ✔✔Viatical Settlement Agreement
✔✔A policy owner is prohibited from taking any changes to the policy without the
beneficiary's written consent - ✔✔Irrevocable beneficiary
✔✔A policy owner may change two policy features on what type of life insurance. -
✔✔Adjustable life
✔✔A policy owner may exercise which of these dividend options that uses the dividend
to pay all of part of the next premium due? - ✔✔reduction of premium dividend option
✔✔A policy owner suffers an injury that renders him incapable of performing one or
more important job duties. Any decrease in income resulting from this injury would make
him eligible for benefits under which provision - ✔✔partial disability
✔✔A policy owner who anticipates death or develops a life-threatening condition may
obtain proceeds from a life insurance contract. These proceeds are known as -
✔✔accelerated benefits
✔✔A preexisting condition is a condition for which medical advice or treatment was
recommended by or received from a provider of health care services with ___ months
preceding a health policy's effective date - ✔✔six
✔✔A producer license is NOT required when - ✔✔Underwriting insurance
,✔✔A producer must notify the Commissioner within ___ days of a felony conviction -
✔✔30
✔✔A producer who sells most of his/her insurance policies to family members is said to
be engaging in - ✔✔controlled business
✔✔A professional liability for which producers can be sued for mistakes for putting a
policy into effect is called - ✔✔Errors and Omissions
✔✔A proposed insured for health insurance policy was treated for heart disease within
the past year. When applying for health insurance, the heart disease treatment -
✔✔indicates a preexisting condiction
✔✔A provision in a whole life policy that allows a policy owner to terminate the policy in
return for a reduced paid-up policy is called a(n) - ✔✔nonforfeiture provision
✔✔A provision that allows a policy owner to withdraw a policy's cash value interest free
is called a(n) - ✔✔collateral assignment
✔✔A provision that allows a policy owner to withdraw a policy's cash value interest free
is a(n) - ✔✔partial surrender
✔✔A renewable Term Life Insurance policy allows the policy owner the right to renew
the policy - ✔✔without producing proof of insurability
✔✔A rehabilitation benefit is intended to - ✔✔prepare the insurer to return to emplyment
✔✔A renewable Term Life Insurance policy can be renewed - ✔✔at a predetermined
date or age regardless of the insured's health
✔✔A rider that assures premiums will be paid on a juvenile policy until the child reaches
a specific age is called - ✔✔payor rider
✔✔A rollover from a Traditional IRA to another IRA must be done within ___ days to
avoid tax consequences - ✔✔60
✔✔A Roth IRA owner must be at least what age in order to make tax-free withdrawals -
✔✔59 1/2 and owned account for minimum of 5 years
✔✔A securities license is required for a life insurance agent producer to sell -
✔✔Variable Life Insurance
,✔✔A type of group that has a constitution and bylaws and has been organized for
purposes other than obtaining insurance is called a - ✔✔association or labor group
✔✔A viatical settlement broker may NOT - ✔✔make any transactions before being
approved for a license.
✔✔A waiver of premium rider allows an insured to waive premium payments if the
insured is - ✔✔completely and permanently disabled
✔✔A Whole life Insurance policy accumulates cash value that becomes - ✔✔The policy
loan value which the insured may borrow against against
✔✔A whole life policy option where extended term insurance is selected is called a(n) -
✔✔nonforfeiture option
✔✔A(n) _______ sells, solicits, or negotiates insurance on behalf of insurance
companies for compensation - ✔✔producer
✔✔According to HIPPA, when an insured individual leaves an employer and
immediately begins working for a new company that offers group health insurance, the
individual - ✔✔is eligible for coverage upon hire
✔✔According to life insurance contract law, insurable interest exists - ✔✔at the time of
application
✔✔According to Louisiana law, group life insurance conversion privileges must NOT -
✔✔require evidence of insurability
✔✔According to the Health Insurance Portability and Accountability Act (HIPPA), when
can a group health policy renewal be denied? - ✔✔Participation or contribution rules
have been violated
✔✔Advertising regulations exist in order to - ✔✔demonstrate full and truthful disclosure
to the public
✔✔After ____ years from date of issue, a policy can no longer be cancelled by the
insurer for misstatements (except for fraud) - ✔✔3
✔✔After a disability policy has been in force for ____ year(s), it is considered
incontestable - ✔✔3
✔✔After an annuity has been in force for ____ year(s), it is considered incontestable -
✔✔2 years
, ✔✔After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - ✔✔File written proof of loss
✔✔After the first payment is made, the grace period for an accident and health policy is
- ✔✔30 days
✔✔All _____ policies must be guaranteed renewable - ✔✔long term care
✔✔All health Benefit Plans issued after January 1, 2014 must provide - ✔✔preventative
health services
✔✔All Louisiana licesed producers must complete which of the following continuing
education requirements - ✔✔24 hours every 2 years
✔✔All MedicareSupplement policies MUST contain which provisions? - ✔✔Pre-Existing
conditions may be excluded from coverage for a maximum of 6 months.
✔✔All of the following actions are considered rebating except - ✔✔Sharing
commissions with other producers
✔✔All of the following are characteristics of a Group Life Insurance Plan EXCEPT -
✔✔individual underwriting
✔✔All of the following are considered to be fraud EXCEPT - ✔✔collecting an insurance
charge that is less than what is required
✔✔All of the following are considered to be nonforfeiture options available to a
policyowner EXCEPT - ✔✔Reduction of Premium
✔✔All of the following are core benefits of Medicare Supplement Plan A EXCEPT -
✔✔Deductible payments for the first 60 days of hospitalization under Medicare
hospitalization insurance
✔✔All of the following are examples of a Business Continuation Plan EXCEPT -
✔✔Deferred Compensation
✔✔All of the following are exempt from the 10% tax penalty for early qualified plan
withdrawals EXCEPT - ✔✔stock purchase
✔✔All of the following are functions of an insuring clause EXCEPT - ✔✔primarily
describes the free-look period
ANSWERS RATED A+
✔✔A payment system for health care in which the provider is paid for each service
given is called - ✔✔Fee-for-service
✔✔A permanent life insurance policy where the policy owner pays premiums for a
specified number of years is called a(n) - ✔✔limited pay policy
✔✔A person covered with an individual health plan - ✔✔is issued a policy
✔✔A person who is a nonsmoker, of average weight, and in excellent health would
most likely be in which risk category - ✔✔Prefereed
✔✔A pharmacy benefit covers presctiption drugs derived from a list called a(n) -
✔✔drug formulary
✔✔A policy owner can receive a percetage payment of the death benefits prior to death
by using what kind of contract? - ✔✔Viatical Settlement Agreement
✔✔A policy owner is prohibited from taking any changes to the policy without the
beneficiary's written consent - ✔✔Irrevocable beneficiary
✔✔A policy owner may change two policy features on what type of life insurance. -
✔✔Adjustable life
✔✔A policy owner may exercise which of these dividend options that uses the dividend
to pay all of part of the next premium due? - ✔✔reduction of premium dividend option
✔✔A policy owner suffers an injury that renders him incapable of performing one or
more important job duties. Any decrease in income resulting from this injury would make
him eligible for benefits under which provision - ✔✔partial disability
✔✔A policy owner who anticipates death or develops a life-threatening condition may
obtain proceeds from a life insurance contract. These proceeds are known as -
✔✔accelerated benefits
✔✔A preexisting condition is a condition for which medical advice or treatment was
recommended by or received from a provider of health care services with ___ months
preceding a health policy's effective date - ✔✔six
✔✔A producer license is NOT required when - ✔✔Underwriting insurance
,✔✔A producer must notify the Commissioner within ___ days of a felony conviction -
✔✔30
✔✔A producer who sells most of his/her insurance policies to family members is said to
be engaging in - ✔✔controlled business
✔✔A professional liability for which producers can be sued for mistakes for putting a
policy into effect is called - ✔✔Errors and Omissions
✔✔A proposed insured for health insurance policy was treated for heart disease within
the past year. When applying for health insurance, the heart disease treatment -
✔✔indicates a preexisting condiction
✔✔A provision in a whole life policy that allows a policy owner to terminate the policy in
return for a reduced paid-up policy is called a(n) - ✔✔nonforfeiture provision
✔✔A provision that allows a policy owner to withdraw a policy's cash value interest free
is called a(n) - ✔✔collateral assignment
✔✔A provision that allows a policy owner to withdraw a policy's cash value interest free
is a(n) - ✔✔partial surrender
✔✔A renewable Term Life Insurance policy allows the policy owner the right to renew
the policy - ✔✔without producing proof of insurability
✔✔A rehabilitation benefit is intended to - ✔✔prepare the insurer to return to emplyment
✔✔A renewable Term Life Insurance policy can be renewed - ✔✔at a predetermined
date or age regardless of the insured's health
✔✔A rider that assures premiums will be paid on a juvenile policy until the child reaches
a specific age is called - ✔✔payor rider
✔✔A rollover from a Traditional IRA to another IRA must be done within ___ days to
avoid tax consequences - ✔✔60
✔✔A Roth IRA owner must be at least what age in order to make tax-free withdrawals -
✔✔59 1/2 and owned account for minimum of 5 years
✔✔A securities license is required for a life insurance agent producer to sell -
✔✔Variable Life Insurance
,✔✔A type of group that has a constitution and bylaws and has been organized for
purposes other than obtaining insurance is called a - ✔✔association or labor group
✔✔A viatical settlement broker may NOT - ✔✔make any transactions before being
approved for a license.
✔✔A waiver of premium rider allows an insured to waive premium payments if the
insured is - ✔✔completely and permanently disabled
✔✔A Whole life Insurance policy accumulates cash value that becomes - ✔✔The policy
loan value which the insured may borrow against against
✔✔A whole life policy option where extended term insurance is selected is called a(n) -
✔✔nonforfeiture option
✔✔A(n) _______ sells, solicits, or negotiates insurance on behalf of insurance
companies for compensation - ✔✔producer
✔✔According to HIPPA, when an insured individual leaves an employer and
immediately begins working for a new company that offers group health insurance, the
individual - ✔✔is eligible for coverage upon hire
✔✔According to life insurance contract law, insurable interest exists - ✔✔at the time of
application
✔✔According to Louisiana law, group life insurance conversion privileges must NOT -
✔✔require evidence of insurability
✔✔According to the Health Insurance Portability and Accountability Act (HIPPA), when
can a group health policy renewal be denied? - ✔✔Participation or contribution rules
have been violated
✔✔Advertising regulations exist in order to - ✔✔demonstrate full and truthful disclosure
to the public
✔✔After ____ years from date of issue, a policy can no longer be cancelled by the
insurer for misstatements (except for fraud) - ✔✔3
✔✔After a disability policy has been in force for ____ year(s), it is considered
incontestable - ✔✔3
✔✔After an annuity has been in force for ____ year(s), it is considered incontestable -
✔✔2 years
, ✔✔After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - ✔✔File written proof of loss
✔✔After the first payment is made, the grace period for an accident and health policy is
- ✔✔30 days
✔✔All _____ policies must be guaranteed renewable - ✔✔long term care
✔✔All health Benefit Plans issued after January 1, 2014 must provide - ✔✔preventative
health services
✔✔All Louisiana licesed producers must complete which of the following continuing
education requirements - ✔✔24 hours every 2 years
✔✔All MedicareSupplement policies MUST contain which provisions? - ✔✔Pre-Existing
conditions may be excluded from coverage for a maximum of 6 months.
✔✔All of the following actions are considered rebating except - ✔✔Sharing
commissions with other producers
✔✔All of the following are characteristics of a Group Life Insurance Plan EXCEPT -
✔✔individual underwriting
✔✔All of the following are considered to be fraud EXCEPT - ✔✔collecting an insurance
charge that is less than what is required
✔✔All of the following are considered to be nonforfeiture options available to a
policyowner EXCEPT - ✔✔Reduction of Premium
✔✔All of the following are core benefits of Medicare Supplement Plan A EXCEPT -
✔✔Deductible payments for the first 60 days of hospitalization under Medicare
hospitalization insurance
✔✔All of the following are examples of a Business Continuation Plan EXCEPT -
✔✔Deferred Compensation
✔✔All of the following are exempt from the 10% tax penalty for early qualified plan
withdrawals EXCEPT - ✔✔stock purchase
✔✔All of the following are functions of an insuring clause EXCEPT - ✔✔primarily
describes the free-look period
