LA Life and Health Insurance Exam Questions and Complete Solutions
"Maximum benefits" 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 HIPAA, 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
A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? - Answer: No federal income tax is owed on life insurance proceeds
A business entity wishing to act as an insurance producer MUST - Answer: obtain a producer's license
A business will typically use which type of life insurance to cover their employees? - Answer: Group
A cease and desist 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 common 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 plan beyond age 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 a - 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 disease is called - 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 care provider claim may be settled using which of the following payment methods? - Answer: Fee-for-service
A health insurance policy that allows an insurer to change the policy owners 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 fo 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 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 policyowner does NOT have the right to - Answer: revoke an absolute assignment
A life insurance policyowner 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 even of a controversry 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
"Maximum benefits" 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 HIPAA, 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
A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? - Answer: No federal income tax is owed on life insurance proceeds
A business entity wishing to act as an insurance producer MUST - Answer: obtain a producer's license
A business will typically use which type of life insurance to cover their employees? - Answer: Group
A cease and desist 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 common 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 plan beyond age 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 a - 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 disease is called - 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 care provider claim may be settled using which of the following payment methods? - Answer: Fee-for-service
A health insurance policy that allows an insurer to change the policy owners 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 fo 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 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 policyowner does NOT have the right to - Answer: revoke an absolute assignment
A life insurance policyowner 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 even of a controversry 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
