Louisiana Life and Health Insurance Exam Study
Guide – Comprehensive Practice Questions with
Answers and Explanations
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT -
✔✔insurance sales calls
Charities, political organizations, and surveys are all offered exemptions from The Do Not Call
Registry
The type of policy where the insurer can send a notice to the insured that the policy has been
cancelled in the middle of the term is called - ✔✔cancelable
The renewability provision in a cancelable policy allows the insurer to cancel or terminate the
policy at any time, simply by providing written notification to the insured and refunding any
advance premium that has been paid.
Barbara's policy includes a rider which allows her to purchase additional insurance at specific
dates or events without evidence of insurability. This rider is called a(n) - ✔✔Guaranteed
insurability rider
A guaranteed insurability rider allows for the insured to purchase additional insurance at
specific dates or events without evidence of insurability.
,Disability Income plans which require that the insurer can NEVER change or alter premium rates
are usually considered - ✔✔Noncancellable
A noncancellable policy cannot be cancelled nor can its premium rates be increased under any
circumstances.
In what part of an insurance policy are policy benefits found? - ✔✔Declarations
Essentially, the insurance declaration page is like a quick guide to the insurance policy,
providing all of the basic information the policyholder needs to know.
What happens if the insurer discovers that the insured's age was accidentally misstated on an
application for an individual life insurance policy? - ✔✔Benefits will be calculated according to
how much coverage the premium paid would have purchased for the correct age
Benefits will be calculated according to how much coverage the premium paid would have
purchased for the correct age.
Health insurance will typically cover which of the following perils? - ✔✔Injury due to accident
Accidental injury is typically a covered peril in health insurance.
,A viatical settlement contract is an agreement between - ✔✔A life insurance policyowner and a
viatical settlement provider
A viatical settlement contract is an agreement between a life insurance policyowner and a
viatical settlement provider.
Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered
status? - ✔✔The insurer significantly raises co-insurance charges, deductibles, or co-payment
charges
According to the Affordable Care Act, grandfathered health plans may lose their grandfathered
status if the insurer significantly raises co-insurance charges, deductibles, or co-payment
charges
Which of these techniques will remove the risk of losing money in the stock market by never
purchasing stocks? - ✔✔Risk avoidance
Risk avoidance could eliminate the risk of losing money in the stock market by never investing
in stocks.
, Which of the following nursing home options would BEST suit an individual who needs some
nursing care and supervision but NOT full-time care? - ✔✔Assisted living facilities
An assisted living facility would best suit an individual who needs some nursing care and
supervision but not full-time care.
Under Louisiana law, the agreement between an insurance producer and insurer under which
the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the
insurer is defined as - ✔✔an appointment
The agreement between an insurance producer and insurer under which the insurance
producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is called
an appointment.
Which of these would NOT be considered a presumptive disability? - ✔✔Loss of a leg or arm
The loss of ONE arm or a leg is NOT considered a presumptive disability.
A producer's license in Louisiana must be renewed every - ✔✔Two years
Producer licenses are issued for periods of 2 years.
Guide – Comprehensive Practice Questions with
Answers and Explanations
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT -
✔✔insurance sales calls
Charities, political organizations, and surveys are all offered exemptions from The Do Not Call
Registry
The type of policy where the insurer can send a notice to the insured that the policy has been
cancelled in the middle of the term is called - ✔✔cancelable
The renewability provision in a cancelable policy allows the insurer to cancel or terminate the
policy at any time, simply by providing written notification to the insured and refunding any
advance premium that has been paid.
Barbara's policy includes a rider which allows her to purchase additional insurance at specific
dates or events without evidence of insurability. This rider is called a(n) - ✔✔Guaranteed
insurability rider
A guaranteed insurability rider allows for the insured to purchase additional insurance at
specific dates or events without evidence of insurability.
,Disability Income plans which require that the insurer can NEVER change or alter premium rates
are usually considered - ✔✔Noncancellable
A noncancellable policy cannot be cancelled nor can its premium rates be increased under any
circumstances.
In what part of an insurance policy are policy benefits found? - ✔✔Declarations
Essentially, the insurance declaration page is like a quick guide to the insurance policy,
providing all of the basic information the policyholder needs to know.
What happens if the insurer discovers that the insured's age was accidentally misstated on an
application for an individual life insurance policy? - ✔✔Benefits will be calculated according to
how much coverage the premium paid would have purchased for the correct age
Benefits will be calculated according to how much coverage the premium paid would have
purchased for the correct age.
Health insurance will typically cover which of the following perils? - ✔✔Injury due to accident
Accidental injury is typically a covered peril in health insurance.
,A viatical settlement contract is an agreement between - ✔✔A life insurance policyowner and a
viatical settlement provider
A viatical settlement contract is an agreement between a life insurance policyowner and a
viatical settlement provider.
Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered
status? - ✔✔The insurer significantly raises co-insurance charges, deductibles, or co-payment
charges
According to the Affordable Care Act, grandfathered health plans may lose their grandfathered
status if the insurer significantly raises co-insurance charges, deductibles, or co-payment
charges
Which of these techniques will remove the risk of losing money in the stock market by never
purchasing stocks? - ✔✔Risk avoidance
Risk avoidance could eliminate the risk of losing money in the stock market by never investing
in stocks.
, Which of the following nursing home options would BEST suit an individual who needs some
nursing care and supervision but NOT full-time care? - ✔✔Assisted living facilities
An assisted living facility would best suit an individual who needs some nursing care and
supervision but not full-time care.
Under Louisiana law, the agreement between an insurance producer and insurer under which
the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the
insurer is defined as - ✔✔an appointment
The agreement between an insurance producer and insurer under which the insurance
producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is called
an appointment.
Which of these would NOT be considered a presumptive disability? - ✔✔Loss of a leg or arm
The loss of ONE arm or a leg is NOT considered a presumptive disability.
A producer's license in Louisiana must be renewed every - ✔✔Two years
Producer licenses are issued for periods of 2 years.
