LA SERIES 103 NEW EXAM QUESTIONS AND CORREСТ
ANSWERS FOR TOP PERFORMANCE
Maximum benefit refers to the - ANSWER upper limit of the total lifetime benefits the
insurance company will pay
_is NOT an element of a valid contract - ANSWER Countersignature
life is designed to pay the balance of a loan if the insured dies before repayment of
the loan - ANSWER Credit
A 10% excise tax is normally applied to an early withdrawal from an IRA. According to
HIPPA, this tax will not be applied if the withdrawal is used for medical expenses that exceed
_of the individual's adjusted gross income. ANSWER 7.50% -
A beneficiary change can occur: - ANSWER normally at any time during the policy term.
just received a claim payment for a life insurance policy. Which of the
A beneficiary has
following is TRUE regarding federal income tax liability. ANSWER No federal income
-
tax is owed on the life insurance proceeds.
A business entity wishing to act as an insurance producer MUST - ANSWER obtain a
producer's license.
A business will will typically use which type of life insurance to cover their employees? -
ANSWER Group Policy
A cease and decist order - ANSWER forbids a stated practice listed in the order.
A change in an insurance application requires - ANSWER an initial made by the applicant.
A clause that allows an insurer the right to terminate coverage at any anniversary date is
called a(n) - ANSWER optional renewability clause
A comman exclusion with Vision plans is - ANSWER lasik surgery
A company that is authorized by the Commissioner to transact insurance business in
Louisiana is called a(n) ANSWER authorized insurer
-
,A dependent child may remain on a parents health insurance beyond the age of 26 if the child
- ANSWER has a mental or physical handicap and remains dependent on the parent
A disability elimination period is best described as - ANSWER time deductible
A disability income policy can prevent an insured from earning a higher income than if
he/she were working by utilizing ANSWER benefit limits
-
A doctor who accepts Medicare Assignment agrees to which of the following? - ANSWER
Doctor cannot charge more than Medicare's scheduled coverage
A domestic insurance company in Louisiana MUST - ANSWER be organized under
Louisiana insurance laws
A field underwriter's main task is - ANSWER to ensure an applicant's medical information
is accurate and complete.
A foreign insurance company doing business in Louisiana - ANSWER is a company that
was formed under the laws of another state.
A form of medical health insurance covering the treatment and care of gum - ANSWER
Dental expense insurance
A group Disability Income plan that pays tax-free benefits to covered employees is
considered -ANSWER fully contributory
A guaranteed issued insurance policy has no - ANSWER medical underwriting
A health car
care provider claim may be settled using which of the following payment methods?
ANSWER Fee-for service
A health insurance policy where the insurer has the right to terminate the policy owner's
premiums, but NOT cancel the policy is called a(n) - ANSWER guaranteed renewable
policy
A health insurance policy where the insurer has the right to terminate the policy for reasons
other than the insured's health is called - ANSWER conditionally renewable
A health insurance policy will typically cover - ANSWER preventative health services
A licensed producer MUST be by an insurer to be eligible for soliciting insurance
contracts - ANSWER appointed
A life insurance claim which involves a per capita distribution of policy proceeds would be
payable to the - ANSWER named living primary beneficiaries
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the ANSWER reinsurer
-
,A life insurance policy normally contains a provision that restricts coverage in the event of
death under all of the following situations EXCEPT - ANSWER fare-paying passenger
A life insurance policy sold in Louisiana can be contested by the insurer only during the first
_ years of the contract - ANSWER two
A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate
that is higher than the guaranteed rate is called - ANSWER Universal life
A life insurance policy that has the premiums paid up within a select time period is called -
ANSWER limited payment insurance
A life insurance policy that is subject to a contract interest rate is referred to as - ANSWER
universal life
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called ANSWER Variable whole life
-
A life insurance policy written on one contract for two people in which it is payable upon the
first death is called -ANSWER joint
A life insurance policy owner does not have the right to - ANSWER revoke an absolute
assignment
A life insurance policy owner was injured in an automobile accident which results in a total
and permanent disability. Which rider would pay a monthly amount because of this
disability? - ANSWER Disability Income Rider
A life insurance replacement transaction could result in a/n - ANSWER surrender charge
A life insurance rider that allows an individual to purchase insurance as they grow older,
regardless of insurability is called a(n) - ANSWER Guaranteed Insurability Rider
A limited payment whole life policy provides - ANSWER lifetime protection
A long term care policy typically provides all of the following levels of care except -
ANSWER acute care
A Louisiana insurance producer solicits a life insurance policy. In the event of a controversy
between the insured and the company, the producer is considered to represent the
ANSWER company
A master contract and certificate of coverage can be found in which type of policy -
ANSWER Group
A medicare supplement basic benefit is - ANSWER the first 3 pints of blood a year
A Medicare supplement plan can be cancelled by the insurer for - ANSWER nonpayment of
premiums
, A medicare supplement policy can be cancelled by the insurer for - ANS WER nonpayment
A Medicare Supplement Policy is - ANSWER designed to fill in the gaps of Part A and Part
B Medicare
A Medicare Supplement policy's outline of coverage MUST include a(n) - ANSWER
description of policy benefits
A Medicare Supplement Policy must NOT contain benefits which - ANSWER duplicate
Medicare benefits
A newborn is required to be covered for_ days from the moment of birth - ANSWER 31
A nonresident producer from a state outside of Louisiana may become licensed in Louisiana
IF a(n) - ANSWER reciprocal arrangement exists with the state of domicile
A payment system for health care in which the provider is paid for each service given is
called ANSWER Fee-for-service
-
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called a(n) - ANSWER limited pay policy
A person covered with an individual health plan - ANSWER 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 -ANSWER Prefereed
A pharmacy benefit covers presctiption drugs derived from a list called a(n) - ANSWER
drug formulary
A policy owner can receive percetage payment of the death benefits prior
a to death by using
what kind of contract? - ANSWER Viatical Settlement Agreement
A policy owner is prohibited from taking any changes to the policy without the beneficiary's
written consent - ANSWER Irrevocable beneficiary
A policy owner may change two policy features on what type of life insurance. - ANSWER
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? - ANSWER reduction of premium dividend option
A policy owner suffers an injury that renders himincapable 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 ANSWER 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 - ANSWER
accelerated benefits
ANSWERS FOR TOP PERFORMANCE
Maximum benefit refers to the - ANSWER upper limit of the total lifetime benefits the
insurance company will pay
_is NOT an element of a valid contract - ANSWER Countersignature
life is designed to pay the balance of a loan if the insured dies before repayment of
the loan - ANSWER Credit
A 10% excise tax is normally applied to an early withdrawal from an IRA. According to
HIPPA, this tax will not be applied if the withdrawal is used for medical expenses that exceed
_of the individual's adjusted gross income. ANSWER 7.50% -
A beneficiary change can occur: - ANSWER normally at any time during the policy term.
just received a claim payment for a life insurance policy. Which of the
A beneficiary has
following is TRUE regarding federal income tax liability. ANSWER No federal income
-
tax is owed on the life insurance proceeds.
A business entity wishing to act as an insurance producer MUST - ANSWER obtain a
producer's license.
A business will will typically use which type of life insurance to cover their employees? -
ANSWER Group Policy
A cease and decist order - ANSWER forbids a stated practice listed in the order.
A change in an insurance application requires - ANSWER an initial made by the applicant.
A clause that allows an insurer the right to terminate coverage at any anniversary date is
called a(n) - ANSWER optional renewability clause
A comman exclusion with Vision plans is - ANSWER lasik surgery
A company that is authorized by the Commissioner to transact insurance business in
Louisiana is called a(n) ANSWER authorized insurer
-
,A dependent child may remain on a parents health insurance beyond the age of 26 if the child
- ANSWER has a mental or physical handicap and remains dependent on the parent
A disability elimination period is best described as - ANSWER time deductible
A disability income policy can prevent an insured from earning a higher income than if
he/she were working by utilizing ANSWER benefit limits
-
A doctor who accepts Medicare Assignment agrees to which of the following? - ANSWER
Doctor cannot charge more than Medicare's scheduled coverage
A domestic insurance company in Louisiana MUST - ANSWER be organized under
Louisiana insurance laws
A field underwriter's main task is - ANSWER to ensure an applicant's medical information
is accurate and complete.
A foreign insurance company doing business in Louisiana - ANSWER is a company that
was formed under the laws of another state.
A form of medical health insurance covering the treatment and care of gum - ANSWER
Dental expense insurance
A group Disability Income plan that pays tax-free benefits to covered employees is
considered -ANSWER fully contributory
A guaranteed issued insurance policy has no - ANSWER medical underwriting
A health car
care provider claim may be settled using which of the following payment methods?
ANSWER Fee-for service
A health insurance policy where the insurer has the right to terminate the policy owner's
premiums, but NOT cancel the policy is called a(n) - ANSWER guaranteed renewable
policy
A health insurance policy where the insurer has the right to terminate the policy for reasons
other than the insured's health is called - ANSWER conditionally renewable
A health insurance policy will typically cover - ANSWER preventative health services
A licensed producer MUST be by an insurer to be eligible for soliciting insurance
contracts - ANSWER appointed
A life insurance claim which involves a per capita distribution of policy proceeds would be
payable to the - ANSWER named living primary beneficiaries
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the ANSWER reinsurer
-
,A life insurance policy normally contains a provision that restricts coverage in the event of
death under all of the following situations EXCEPT - ANSWER fare-paying passenger
A life insurance policy sold in Louisiana can be contested by the insurer only during the first
_ years of the contract - ANSWER two
A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate
that is higher than the guaranteed rate is called - ANSWER Universal life
A life insurance policy that has the premiums paid up within a select time period is called -
ANSWER limited payment insurance
A life insurance policy that is subject to a contract interest rate is referred to as - ANSWER
universal life
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called ANSWER Variable whole life
-
A life insurance policy written on one contract for two people in which it is payable upon the
first death is called -ANSWER joint
A life insurance policy owner does not have the right to - ANSWER revoke an absolute
assignment
A life insurance policy owner was injured in an automobile accident which results in a total
and permanent disability. Which rider would pay a monthly amount because of this
disability? - ANSWER Disability Income Rider
A life insurance replacement transaction could result in a/n - ANSWER surrender charge
A life insurance rider that allows an individual to purchase insurance as they grow older,
regardless of insurability is called a(n) - ANSWER Guaranteed Insurability Rider
A limited payment whole life policy provides - ANSWER lifetime protection
A long term care policy typically provides all of the following levels of care except -
ANSWER acute care
A Louisiana insurance producer solicits a life insurance policy. In the event of a controversy
between the insured and the company, the producer is considered to represent the
ANSWER company
A master contract and certificate of coverage can be found in which type of policy -
ANSWER Group
A medicare supplement basic benefit is - ANSWER the first 3 pints of blood a year
A Medicare supplement plan can be cancelled by the insurer for - ANSWER nonpayment of
premiums
, A medicare supplement policy can be cancelled by the insurer for - ANS WER nonpayment
A Medicare Supplement Policy is - ANSWER designed to fill in the gaps of Part A and Part
B Medicare
A Medicare Supplement policy's outline of coverage MUST include a(n) - ANSWER
description of policy benefits
A Medicare Supplement Policy must NOT contain benefits which - ANSWER duplicate
Medicare benefits
A newborn is required to be covered for_ days from the moment of birth - ANSWER 31
A nonresident producer from a state outside of Louisiana may become licensed in Louisiana
IF a(n) - ANSWER reciprocal arrangement exists with the state of domicile
A payment system for health care in which the provider is paid for each service given is
called ANSWER Fee-for-service
-
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called a(n) - ANSWER limited pay policy
A person covered with an individual health plan - ANSWER 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 -ANSWER Prefereed
A pharmacy benefit covers presctiption drugs derived from a list called a(n) - ANSWER
drug formulary
A policy owner can receive percetage payment of the death benefits prior
a to death by using
what kind of contract? - ANSWER Viatical Settlement Agreement
A policy owner is prohibited from taking any changes to the policy without the beneficiary's
written consent - ANSWER Irrevocable beneficiary
A policy owner may change two policy features on what type of life insurance. - ANSWER
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? - ANSWER reduction of premium dividend option
A policy owner suffers an injury that renders himincapable 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 ANSWER 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 - ANSWER
accelerated benefits
