LA SERIES 103 EXAM ACTUAL 2025/2026 QUESTIONS
AND 100% CORRECT ANSWER>.>S
QUESTION PRACTICE EXAM — LIFE, ACCIDENT &
HEALTH (LOUISIANA)
PART 1 — INSURANCE PRINCIPLES, CONTRACTS & LEGAL CONCEPTS
An insurance contract in which only one party makes a legally enforceable promise is called:
A. Bilateral — Incorrect: both parties exchange enforceable promises.
B. Unilateral — Correct: only the insurer's promise is legally enforceable.
C. Aleatory — Incorrect: describes unequal exchange of values.
D. Adhesion — Incorrect: describes who drafts the contract.
ANSWER>.>: B
A contract in which the values exchanged may be unequal is:
A. Adhesion — Incorrect: relates to one-party drafting.
B. Conditional — Incorrect: performance depends on events.
C. Aleatory — Correct: payout depends on chance events.
D. Executory — Incorrect: means not yet fully performed.
ANSWER>.>: C
A contract drafted by one party and offered on a take-it-or-leave-it basis is a contract of:
A. Adhesion — Correct: the insured accepts it as written.
B. Bilateral — Incorrect: both parties promise.
C. Aleatory — Incorrect: unequal values.
D. Commutative — Incorrect: equal exchange of values.
ANSWER>.>: A
Any ambiguity in an insurance policy is construed in favor of the:
A. Insurer — Incorrect: the insurer drafted the language.
,B. Insured/beneficiary — Correct: rule of adhesion contracts.
C. Producer — Incorrect: not a party to the contract.
D. Federal court — Incorrect: not a rule of construction.
ANSWER>.>: B
Which is NOT an element of a valid contract?
A. Offer and acceptance — Incorrect: required element.
B. Consideration — Incorrect: required element.
C. Countersignature — Correct: an administrative act, not a contract element.
D. Legal purpose — Incorrect: required element.
ANSWER>.>: C
The applicant's consideration in an insurance contract consists of:
A. The insurer's promise to pay — Incorrect: that is the insurer's consideration.
B. The premium and statements in the application — Correct.
C. Policy delivery — Incorrect: not consideration.
D. The producer's commission — Incorrect: internal compensation.
ANSWER>.>: B
A statement on the application believed true to the best of the applicant's knowledge is a:
A. Warranty — Incorrect: guaranteed true.
B. Representation — Correct.
C. Concealment — Incorrect: withholding facts.
D. Estoppel — Incorrect: a legal bar, not a statement.
ANSWER>.>: B
A statement guaranteed to be literally true in an application is a:
A. Representation — Incorrect: only believed true.
B. Warranty — Correct.
C. Misrepresentation — Incorrect: a false statement.
D. Waiver — Incorrect: surrender of a right.
ANSWER>.>: B
The intentional withholding of a material fact is:
,A. Concealment — Correct.
B. Misrepresentation — Incorrect: an affirmative false statement.
C. Waiver — Incorrect.
D. Adhesion — Incorrect.
ANSWER>.>: A
A false statement of material fact made intentionally to induce the other party is:
A. Fraud — Correct.
B. Representation — Incorrect: innocent statements are not fraud.
C. Warranty — Incorrect.
D. Aleatory — Incorrect.
ANSWER>.>: A
An insurer relinquishing a known right is called:
A. Estoppel — Incorrect.
B. Waiver — Correct.
C. Coercion — Incorrect.
D. Rebating — Incorrect.
ANSWER>.>: B
A bar against asserting a right after leading another to rely on that conduct is:
A. Waiver — Incorrect.
B. Estoppel — Correct.
C. Parol evidence — Incorrect.
D. Subrogation — Incorrect.
ANSWER>.>: B
A producer (agent) primarily represents the:
A. Insured — Incorrect: that is a broker.
B. Insurer — Correct.
C. State — Incorrect.
D. Beneficiary — Incorrect.
ANSWER>.>: B
, A broker in insurance represents the:
A. Insurer — Incorrect.
B. Insured/buyer — Correct.
C. Commissioner — Incorrect.
D. Reinsurer — Incorrect.
ANSWER>.>: B
Authority expressly granted in the written agency contract is:
A. Implied — Incorrect.
B. Apparent — Incorrect.
C. Express — Correct.
D. Waived — Incorrect.
ANSWER>.>: C
Authority a third party reasonably believes the agent possesses is:
A. Express — Incorrect.
B. Apparent — Correct.
C. Implied — Incorrect: incidental to express authority.
D. Absolute — Incorrect.
ANSWER>.>: B
Insurable interest in life insurance must exist:
A. At the time of loss — Incorrect: that is property insurance.
B. At policy inception — Correct.
C. At all times — Incorrect.
D. Only at maturity — Incorrect.
ANSWER>.>: B
Which relationship does NOT automatically create an insurable interest?
A. Spouses — Incorrect: interest exists.
B. Creditor–debtor — Incorrect: interest to extent of debt.
C. Siblings with no financial dependency — Correct: no automatic interest.
D. Business partners — Incorrect: financial interest exists.
AND 100% CORRECT ANSWER>.>S
QUESTION PRACTICE EXAM — LIFE, ACCIDENT &
HEALTH (LOUISIANA)
PART 1 — INSURANCE PRINCIPLES, CONTRACTS & LEGAL CONCEPTS
An insurance contract in which only one party makes a legally enforceable promise is called:
A. Bilateral — Incorrect: both parties exchange enforceable promises.
B. Unilateral — Correct: only the insurer's promise is legally enforceable.
C. Aleatory — Incorrect: describes unequal exchange of values.
D. Adhesion — Incorrect: describes who drafts the contract.
ANSWER>.>: B
A contract in which the values exchanged may be unequal is:
A. Adhesion — Incorrect: relates to one-party drafting.
B. Conditional — Incorrect: performance depends on events.
C. Aleatory — Correct: payout depends on chance events.
D. Executory — Incorrect: means not yet fully performed.
ANSWER>.>: C
A contract drafted by one party and offered on a take-it-or-leave-it basis is a contract of:
A. Adhesion — Correct: the insured accepts it as written.
B. Bilateral — Incorrect: both parties promise.
C. Aleatory — Incorrect: unequal values.
D. Commutative — Incorrect: equal exchange of values.
ANSWER>.>: A
Any ambiguity in an insurance policy is construed in favor of the:
A. Insurer — Incorrect: the insurer drafted the language.
,B. Insured/beneficiary — Correct: rule of adhesion contracts.
C. Producer — Incorrect: not a party to the contract.
D. Federal court — Incorrect: not a rule of construction.
ANSWER>.>: B
Which is NOT an element of a valid contract?
A. Offer and acceptance — Incorrect: required element.
B. Consideration — Incorrect: required element.
C. Countersignature — Correct: an administrative act, not a contract element.
D. Legal purpose — Incorrect: required element.
ANSWER>.>: C
The applicant's consideration in an insurance contract consists of:
A. The insurer's promise to pay — Incorrect: that is the insurer's consideration.
B. The premium and statements in the application — Correct.
C. Policy delivery — Incorrect: not consideration.
D. The producer's commission — Incorrect: internal compensation.
ANSWER>.>: B
A statement on the application believed true to the best of the applicant's knowledge is a:
A. Warranty — Incorrect: guaranteed true.
B. Representation — Correct.
C. Concealment — Incorrect: withholding facts.
D. Estoppel — Incorrect: a legal bar, not a statement.
ANSWER>.>: B
A statement guaranteed to be literally true in an application is a:
A. Representation — Incorrect: only believed true.
B. Warranty — Correct.
C. Misrepresentation — Incorrect: a false statement.
D. Waiver — Incorrect: surrender of a right.
ANSWER>.>: B
The intentional withholding of a material fact is:
,A. Concealment — Correct.
B. Misrepresentation — Incorrect: an affirmative false statement.
C. Waiver — Incorrect.
D. Adhesion — Incorrect.
ANSWER>.>: A
A false statement of material fact made intentionally to induce the other party is:
A. Fraud — Correct.
B. Representation — Incorrect: innocent statements are not fraud.
C. Warranty — Incorrect.
D. Aleatory — Incorrect.
ANSWER>.>: A
An insurer relinquishing a known right is called:
A. Estoppel — Incorrect.
B. Waiver — Correct.
C. Coercion — Incorrect.
D. Rebating — Incorrect.
ANSWER>.>: B
A bar against asserting a right after leading another to rely on that conduct is:
A. Waiver — Incorrect.
B. Estoppel — Correct.
C. Parol evidence — Incorrect.
D. Subrogation — Incorrect.
ANSWER>.>: B
A producer (agent) primarily represents the:
A. Insured — Incorrect: that is a broker.
B. Insurer — Correct.
C. State — Incorrect.
D. Beneficiary — Incorrect.
ANSWER>.>: B
, A broker in insurance represents the:
A. Insurer — Incorrect.
B. Insured/buyer — Correct.
C. Commissioner — Incorrect.
D. Reinsurer — Incorrect.
ANSWER>.>: B
Authority expressly granted in the written agency contract is:
A. Implied — Incorrect.
B. Apparent — Incorrect.
C. Express — Correct.
D. Waived — Incorrect.
ANSWER>.>: C
Authority a third party reasonably believes the agent possesses is:
A. Express — Incorrect.
B. Apparent — Correct.
C. Implied — Incorrect: incidental to express authority.
D. Absolute — Incorrect.
ANSWER>.>: B
Insurable interest in life insurance must exist:
A. At the time of loss — Incorrect: that is property insurance.
B. At policy inception — Correct.
C. At all times — Incorrect.
D. Only at maturity — Incorrect.
ANSWER>.>: B
Which relationship does NOT automatically create an insurable interest?
A. Spouses — Incorrect: interest exists.
B. Creditor–debtor — Incorrect: interest to extent of debt.
C. Siblings with no financial dependency — Correct: no automatic interest.
D. Business partners — Incorrect: financial interest exists.
