Louisiana Life and Health Final Exam
Questions and Answers
1. When are group disability benefits considered to be tax-free to the
insured?-
: When the recipient pays the premiums
2. An insurable interest in each other's lives may exist in absence of
an economic interest when the individuals are: Marriage partners
3. What is the elimination period of an individual disability policy?:
Time period a disabled person must wait before benefits are paid
4. What happens to interest earned if the annuitant dies before the
payout start date?: It is taxable
5. In which of the following situations would the insurer be liable for a
loss?: The insured suttered an injury as an innocent bystander during a bank robbery
6. In what form do disability income policies typically pay benefits?:
Periodic income
7. Which of the following is typically NOT eligible for coverage in a
,group health policy?: Temporary employee
8. Which of the following would be considered a possible applicant
and contract policyholder for group health benefits?: Employer
9. A Medicare Supplement Policy is: designed to fill in the gaps of Part A and Part B
Medicare
10. Under a Modified Endowment Contract, what are the
likely tax conse- quences?: Pre-death distributions will become taxable
11. In a Long-Term Care policy, activities of daily living (ADL's)
can be each of the following EXCEPT: Talking
12. Which of the following is an annuity that is linked to a market-
related index?-
: Equity-indexed annuity
13. An insurer operating in the U.S. but headquartered outside the
U.S. is: an alien insurer
14. Group dental plans will frequently place a limit on annual
benefits in order to minimize: adverse selection
, 15. All of the following are considered to be fraud EXCEPT: collecting a
charge for insurance that is less than the charge applicable to that insurance
16. A producer's license in Louisiana must be renewed every: Two
years
17. An insured has a health plan that pays established amounts
in accordance with a list of injuries, surgical procedures, or other
losses. This list is called
a: benefit schedule
18. Under the Consolidated Omnibus Budget Reconciliation Act
(COBRA), a ter- minated employee's benefits must: be the same and the
premium cannot exceed 102%
19. If a producer has been engaged in an administrative action
by any govern- mental agency, within how many days following the
final deposition must the producer report the action to the
Commissioner?: 30
20. Ownership of a life insurance policy may be temporarily
transferred with a(n): collateral assignment
21. Under a Traditional IRA, interest earned is taxed: upon distribution
22. When a Medicare Supplement insurance policy is being
Questions and Answers
1. When are group disability benefits considered to be tax-free to the
insured?-
: When the recipient pays the premiums
2. An insurable interest in each other's lives may exist in absence of
an economic interest when the individuals are: Marriage partners
3. What is the elimination period of an individual disability policy?:
Time period a disabled person must wait before benefits are paid
4. What happens to interest earned if the annuitant dies before the
payout start date?: It is taxable
5. In which of the following situations would the insurer be liable for a
loss?: The insured suttered an injury as an innocent bystander during a bank robbery
6. In what form do disability income policies typically pay benefits?:
Periodic income
7. Which of the following is typically NOT eligible for coverage in a
,group health policy?: Temporary employee
8. Which of the following would be considered a possible applicant
and contract policyholder for group health benefits?: Employer
9. A Medicare Supplement Policy is: designed to fill in the gaps of Part A and Part B
Medicare
10. Under a Modified Endowment Contract, what are the
likely tax conse- quences?: Pre-death distributions will become taxable
11. In a Long-Term Care policy, activities of daily living (ADL's)
can be each of the following EXCEPT: Talking
12. Which of the following is an annuity that is linked to a market-
related index?-
: Equity-indexed annuity
13. An insurer operating in the U.S. but headquartered outside the
U.S. is: an alien insurer
14. Group dental plans will frequently place a limit on annual
benefits in order to minimize: adverse selection
, 15. All of the following are considered to be fraud EXCEPT: collecting a
charge for insurance that is less than the charge applicable to that insurance
16. A producer's license in Louisiana must be renewed every: Two
years
17. An insured has a health plan that pays established amounts
in accordance with a list of injuries, surgical procedures, or other
losses. This list is called
a: benefit schedule
18. Under the Consolidated Omnibus Budget Reconciliation Act
(COBRA), a ter- minated employee's benefits must: be the same and the
premium cannot exceed 102%
19. If a producer has been engaged in an administrative action
by any govern- mental agency, within how many days following the
final deposition must the producer report the action to the
Commissioner?: 30
20. Ownership of a life insurance policy may be temporarily
transferred with a(n): collateral assignment
21. Under a Traditional IRA, interest earned is taxed: upon distribution
22. When a Medicare Supplement insurance policy is being
