Louisiana Life, Accident & Health — Practice
Exam Questions
Get Licensed Study Guides
108 practice questions covering general Life & Health concepts and Louisiana-specific rules for the state
licensing exam. Answer key and explanations follow the question set.
For agent use in exam preparation. State rules and dollar thresholds can change — always confirm current requirements with
TDI or LDI before relying on this guide for compliance purposes.
,Practice Questions
1. Insurable interest for a life insurance policy must exist:
A. At the time of the insured's death only
B. At the time the application is made
C. Only for policies over a certain face amount
D. It is never required for life insurance
2. A common example of insurable interest without any blood relationship is:
A. A total stranger on a person chosen at random
B. A business partner insuring another partner's life to protect the business
C. A neighbor insuring another neighbor for no stated reason
D. Insurable interest never exists outside of family relationships
3. The core principle of indemnity is applied more loosely in life insurance because:
A. Life insurance never pays a benefit
B. Human life has no fixed 'value,' so the face amount is agreed upon in advance rather than measured
after a loss
C. Life insurance always pays exactly the premiums paid in
D. Indemnity doesn't apply to any insurance type
4. Which best describes the difference between term life and whole life insurance?
A. Term is permanent with cash value; whole life is temporary with no cash value
B. Term provides temporary coverage with no cash value; whole life is permanent with cash value
C. Both build cash value, but term is more expensive
D. There is no meaningful difference between the two
5. Level term insurance is characterized by:
A. A death benefit that decreases each year
B. A death benefit and premium that both stay level throughout the term
C. No death benefit at all
D. Automatically converting to whole life at the end of the term with no election needed
6. Decreasing term insurance is commonly used to:
A. Increase coverage as a family grows
B. Cover an obligation that declines over time, such as a mortgage balance
C. Build significant cash value
D. Replace whole life insurance entirely
7. A term policy's "convertible" feature allows the policyholder to:
A. Convert to permanent coverage without new evidence of insurability, usually within a specified
period
B. Cancel the policy for a full refund at any time
C. Convert the policy into a health insurance plan
D. Skip premiums for one year
, 8. A term policy's "renewable" feature allows the policyholder to:
A. Renew coverage for another term without new proof of insurability, generally at a higher premium
reflecting increased age
B. Automatically receive free coverage for life
C. Avoid ever needing to convert to permanent insurance
D. Reduce the premium each renewal
9. Whole life insurance premiums are typically structured to:
A. Increase every year as the insured ages
B. Remain level for the insured's lifetime
C. Be paid only in the first year
D. Vary randomly based on market performance
10. Universal life insurance is generally distinguished from traditional whole life by offering:
A. No cash value component
B. Flexible premiums and an adjustable death benefit
C. Coverage available only through age 65
D. Group-only availability
11. Variable life insurance differs from traditional whole life primarily in that variable life:
A. Guarantees a fixed minimum death benefit that can never increase
B. Allows the cash value (and sometimes the death benefit) to fluctuate based on the performance of
separate account investments chosen by the policyowner
C. Has no cash value at all
D. Cannot be sold by insurance-licensed producers
12. Nonforfeiture options on a whole life policy — such as cash surrender, reduced paid-up
insurance, or extended term insurance — exist to:
A. Increase the death benefit automatically each year
B. Give the policyowner options for the policy's built-up value if premiums stop being paid
C. Waive all future premiums after year 10 automatically
D. Convert the policy to a term policy automatically without choice
13. A policy loan against a whole life policy's cash value:
A. Must be repaid within 30 days or the policy is void
B. Reduces the death benefit by the outstanding loan balance (plus interest) if not repaid
C. Is always tax-free and never affects the death benefit
D. Is only available on term policies
14. A life insurance policy's grace period allows the policyholder to:
A. Cancel the policy for a full refund at any time
B. Pay an overdue premium within a set window after the due date without the policy lapsing
C. Change beneficiaries without written notice
D. Convert term coverage to whole life at no cost
15. The "free look" period gives a new policyholder the right to:
Exam Questions
Get Licensed Study Guides
108 practice questions covering general Life & Health concepts and Louisiana-specific rules for the state
licensing exam. Answer key and explanations follow the question set.
For agent use in exam preparation. State rules and dollar thresholds can change — always confirm current requirements with
TDI or LDI before relying on this guide for compliance purposes.
,Practice Questions
1. Insurable interest for a life insurance policy must exist:
A. At the time of the insured's death only
B. At the time the application is made
C. Only for policies over a certain face amount
D. It is never required for life insurance
2. A common example of insurable interest without any blood relationship is:
A. A total stranger on a person chosen at random
B. A business partner insuring another partner's life to protect the business
C. A neighbor insuring another neighbor for no stated reason
D. Insurable interest never exists outside of family relationships
3. The core principle of indemnity is applied more loosely in life insurance because:
A. Life insurance never pays a benefit
B. Human life has no fixed 'value,' so the face amount is agreed upon in advance rather than measured
after a loss
C. Life insurance always pays exactly the premiums paid in
D. Indemnity doesn't apply to any insurance type
4. Which best describes the difference between term life and whole life insurance?
A. Term is permanent with cash value; whole life is temporary with no cash value
B. Term provides temporary coverage with no cash value; whole life is permanent with cash value
C. Both build cash value, but term is more expensive
D. There is no meaningful difference between the two
5. Level term insurance is characterized by:
A. A death benefit that decreases each year
B. A death benefit and premium that both stay level throughout the term
C. No death benefit at all
D. Automatically converting to whole life at the end of the term with no election needed
6. Decreasing term insurance is commonly used to:
A. Increase coverage as a family grows
B. Cover an obligation that declines over time, such as a mortgage balance
C. Build significant cash value
D. Replace whole life insurance entirely
7. A term policy's "convertible" feature allows the policyholder to:
A. Convert to permanent coverage without new evidence of insurability, usually within a specified
period
B. Cancel the policy for a full refund at any time
C. Convert the policy into a health insurance plan
D. Skip premiums for one year
, 8. A term policy's "renewable" feature allows the policyholder to:
A. Renew coverage for another term without new proof of insurability, generally at a higher premium
reflecting increased age
B. Automatically receive free coverage for life
C. Avoid ever needing to convert to permanent insurance
D. Reduce the premium each renewal
9. Whole life insurance premiums are typically structured to:
A. Increase every year as the insured ages
B. Remain level for the insured's lifetime
C. Be paid only in the first year
D. Vary randomly based on market performance
10. Universal life insurance is generally distinguished from traditional whole life by offering:
A. No cash value component
B. Flexible premiums and an adjustable death benefit
C. Coverage available only through age 65
D. Group-only availability
11. Variable life insurance differs from traditional whole life primarily in that variable life:
A. Guarantees a fixed minimum death benefit that can never increase
B. Allows the cash value (and sometimes the death benefit) to fluctuate based on the performance of
separate account investments chosen by the policyowner
C. Has no cash value at all
D. Cannot be sold by insurance-licensed producers
12. Nonforfeiture options on a whole life policy — such as cash surrender, reduced paid-up
insurance, or extended term insurance — exist to:
A. Increase the death benefit automatically each year
B. Give the policyowner options for the policy's built-up value if premiums stop being paid
C. Waive all future premiums after year 10 automatically
D. Convert the policy to a term policy automatically without choice
13. A policy loan against a whole life policy's cash value:
A. Must be repaid within 30 days or the policy is void
B. Reduces the death benefit by the outstanding loan balance (plus interest) if not repaid
C. Is always tax-free and never affects the death benefit
D. Is only available on term policies
14. A life insurance policy's grace period allows the policyholder to:
A. Cancel the policy for a full refund at any time
B. Pay an overdue premium within a set window after the due date without the policy lapsing
C. Change beneficiaries without written notice
D. Convert term coverage to whole life at no cost
15. The "free look" period gives a new policyholder the right to:
