LA LIFE INSURANCE SERIES 101 EXAMS SCRIPT UPDATED
EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔For those individuals who have health issues, Which of the following would be an
insurance plan to consider? - ✔✔Group
✔✔When must licensees provide privacy notices to individual customers? - ✔✔Annually
✔✔The investor must do all of the following in a STOLI/IOLI transaction, EXCEPT: -
✔✔Fill out the application for Life Insurance on behalf of the Insured.
✔✔Which of the following best describes a statement of Good Health? - ✔✔It verifies
that the insured has not suffered a serious illness or injury requiring surgery or
hospitalization since the application date.
✔✔Which of the following is FALSE concerning licensing for the Variable products? -
✔✔An agent must be licensed as a Life agent in order to sell a registered Variable
contract.
✔✔B was 42 when the Life Insurance policy was issued. 42 is referred to as the
_________ age of the policy. - ✔✔Original
✔✔Which of the following would be considered a good result from an underwriter's
action when an individual Life Insurance policy is issued as applied for? - ✔✔Issued
Standard
✔✔All of the following are TRUE regarding Life Insurance advertising, EXCEPT: -
✔✔An insurer may use the name of it's parent company in advertisements.
✔✔Which of the following is INCORRECT with regard to commissions and
compensation? - ✔✔An insurer may pay a commission to an unlicensed producer who
is appointed by the insurer.
✔✔If it is known or should be known by the agent that an existing policy is going to be
lapsed, forfeited, surrendered or terminated in favor of a new policy, the agent must
submit a : - ✔✔Notice of Replacement
✔✔In order for an insurance company to determine if it will issue a policy, What
document must always be submitted for review? - ✔✔The Application
✔✔Which of the following are TRUE regarding the duties of insurers? -
✔✔Replacement requirements do not apply to the existing insurer.
, ✔✔With regard to privacy regulation, a customer relationship is established when: -
✔✔A consumer becomes a licensees policyholder or agrees to pay for financial advice
about insurance.
✔✔Which of the following is most likely to pay the highest premium for a disability
income policy all other factors being equal? - ✔✔Age 40, welder, tobacco user
✔✔What is the primary purpose of an annuity? - ✔✔To protect against outliving ones
income.
✔✔All of the following are TRUE regarding Credit Life, EXCEPT: - ✔✔The amount of
coverage can exceed the debt.
✔✔Alice finds she no longer is able to pay premiums on her 50,000.00 Whole Life
Policy, but needs that amount of protection for her family. Which Nonforfeiture Option
provides this protection? - ✔✔Extended Term
✔✔K owns a Variable Annuity with an assumed interest rate of 4%. If the actual
performance of the separate accounts is 5%, the affect on this months income benefit
check will be_____________. - ✔✔Higher
✔✔The cost of any required medical exams in the underwriting process is paid by the: -
✔✔Insurer
✔✔An individual has secured a 12,000.00 loan from the Bank to purchase a boat, which
is scheduled for repayment in monthly installments over 48mos. Which Life Insurance
would be most efficient at protecting the lender should the borrower die prior to retiring
the debt? - ✔✔Decreasing Term
✔✔In a Viatical Settlement a third party purchases a policy from a terminally ill insured
for approximately _______ to _______% of the policy's face amount. - ✔✔60/80
✔✔With regard to delivery receipt requirements, which of the following is TRUE? -
✔✔Upon policy delivery, a producer must get the policyholders signed receipt
acknowledging delivery.
✔✔All of the following are correct regarding Key Employee Life Insurance, EXCEPT: -
✔✔Premiums are deducted from the employees salary.
✔✔Which of the following personal uses of Life Insurance is specifically designed to
provide benefits to the policyowner while the insured is still alive? - ✔✔Cash
Accumlation
EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔For those individuals who have health issues, Which of the following would be an
insurance plan to consider? - ✔✔Group
✔✔When must licensees provide privacy notices to individual customers? - ✔✔Annually
✔✔The investor must do all of the following in a STOLI/IOLI transaction, EXCEPT: -
✔✔Fill out the application for Life Insurance on behalf of the Insured.
✔✔Which of the following best describes a statement of Good Health? - ✔✔It verifies
that the insured has not suffered a serious illness or injury requiring surgery or
hospitalization since the application date.
✔✔Which of the following is FALSE concerning licensing for the Variable products? -
✔✔An agent must be licensed as a Life agent in order to sell a registered Variable
contract.
✔✔B was 42 when the Life Insurance policy was issued. 42 is referred to as the
_________ age of the policy. - ✔✔Original
✔✔Which of the following would be considered a good result from an underwriter's
action when an individual Life Insurance policy is issued as applied for? - ✔✔Issued
Standard
✔✔All of the following are TRUE regarding Life Insurance advertising, EXCEPT: -
✔✔An insurer may use the name of it's parent company in advertisements.
✔✔Which of the following is INCORRECT with regard to commissions and
compensation? - ✔✔An insurer may pay a commission to an unlicensed producer who
is appointed by the insurer.
✔✔If it is known or should be known by the agent that an existing policy is going to be
lapsed, forfeited, surrendered or terminated in favor of a new policy, the agent must
submit a : - ✔✔Notice of Replacement
✔✔In order for an insurance company to determine if it will issue a policy, What
document must always be submitted for review? - ✔✔The Application
✔✔Which of the following are TRUE regarding the duties of insurers? -
✔✔Replacement requirements do not apply to the existing insurer.
, ✔✔With regard to privacy regulation, a customer relationship is established when: -
✔✔A consumer becomes a licensees policyholder or agrees to pay for financial advice
about insurance.
✔✔Which of the following is most likely to pay the highest premium for a disability
income policy all other factors being equal? - ✔✔Age 40, welder, tobacco user
✔✔What is the primary purpose of an annuity? - ✔✔To protect against outliving ones
income.
✔✔All of the following are TRUE regarding Credit Life, EXCEPT: - ✔✔The amount of
coverage can exceed the debt.
✔✔Alice finds she no longer is able to pay premiums on her 50,000.00 Whole Life
Policy, but needs that amount of protection for her family. Which Nonforfeiture Option
provides this protection? - ✔✔Extended Term
✔✔K owns a Variable Annuity with an assumed interest rate of 4%. If the actual
performance of the separate accounts is 5%, the affect on this months income benefit
check will be_____________. - ✔✔Higher
✔✔The cost of any required medical exams in the underwriting process is paid by the: -
✔✔Insurer
✔✔An individual has secured a 12,000.00 loan from the Bank to purchase a boat, which
is scheduled for repayment in monthly installments over 48mos. Which Life Insurance
would be most efficient at protecting the lender should the borrower die prior to retiring
the debt? - ✔✔Decreasing Term
✔✔In a Viatical Settlement a third party purchases a policy from a terminally ill insured
for approximately _______ to _______% of the policy's face amount. - ✔✔60/80
✔✔With regard to delivery receipt requirements, which of the following is TRUE? -
✔✔Upon policy delivery, a producer must get the policyholders signed receipt
acknowledging delivery.
✔✔All of the following are correct regarding Key Employee Life Insurance, EXCEPT: -
✔✔Premiums are deducted from the employees salary.
✔✔Which of the following personal uses of Life Insurance is specifically designed to
provide benefits to the policyowner while the insured is still alive? - ✔✔Cash
Accumlation
