XCEL TESTING SOLUTIONS-
LOUISIANA LIFE AND HEALTH EXAM
SIMULATOR - 200 QUESTIONS WITH
CORRECT ANSWERS
The principle of insurable interest, in regards to a life insurance contract, is
accurately described in which statement?
- An agent establishes insurable interest
- An individual does not have insurable interest on his or her own life
- Insurable interest only pertains to business arrangements
- Insurable interest can be based on the love and affection of individuals related by
blood or law - ANSWER-Insurable interest can be based on the love and affection of
individuals related by blood or law
Individuals related closely by blood or law have an insurable interest based on love
and affection.
An annuity is primarily used to provide
- Competent parties
- Offer and acceptance
- Consideration
- Legal purpose - ANSWER-Legal Purpose
Insurable interest is a component of legal purpose.
All of these are valid policy dividend options for a life insurance policyowner
EXCEPT
- cash outlay to the policyowner
- accumulate without interest
- reduction in policy premium
- buy additional insurance coverage - ANSWER-Accumulate without interest
Policyowner dividends normally accumulate WITH interest.
An annuity is primarily used to provide - ANSWER-Retirement Income
The Principal use of an annuity is to provide income for retirement.
The Louisiana Life and Health Insurance Guaranty Association was established to
protect consumers in the event of an insurers
- Insolvency
- Demutualization
- Merger with another company
- Sale of part of the company - ANSWER-Insolvency
The Louisiana Life and Health Insurance Guaranty Association was established to
protect consumers in the event of an insurer's insolvency.
In group health care, what is the purpose of the coordination of benefits provision?
- Determines where an insured goes to receive treatment
,- Determines what is paid by the primary and secondary insurers in the event of a
claim
- Ensures that a health provider receives the proper benefit amount owed
- Determines which parent's plan covers a dependent child - ANSWER-Determines
what is paid by the primary and secondary insurers in the event of a claim
The purpose of the coordination of benefits provision in group health care is to
determine what is paid by the primary and secondary insurers in case of a claim.
Which of the following are the premium payments for a Universal life policy NOT
used for?
- Death benefits
- Cash value
- Loading costs
- Separate account investments - ANSWER-Separate account investments
Premium payments for a Universal life policy are NOT used for separate account
investments.
Over the course of a year, which premium payment mode is most expensive?
-Monthly
-Quarterly
-Semi-Annually
-Annually - ANSWER-Monthly
The monthly payment mode is the most expensive over the course of a year.
A temporary producer's license is effective for
-180 days
-15 months
-1 year
-5 year - ANSWER-180 days
A temporary producer's license is effective for 180 days.
A group Disability Income plan that pays tax-free benefits to covered employees is
considered
- non-contributory
- partially contributory
- group contributory
- fully contributory - ANSWER-fully contributory
Fully contributory group plans require the employee to pay all premium cost,
therefore, any benefits received by covered employees are received tax-free.
Which of the following statements is CORRECT regarding an individual applying for
life or health insurance?
- The applicant waives all privacy rights
- The applicant's family medical history is always required
- The applicant's medical history is irrelevent
- The applicant's medical history may be analyzed and reported - ANSWER-The
applicant's medical history may be analyzed and reported
To apply for a life or health insurance policy, an applicant's medical history may be
reviewed and reported.
,For policyholders in the same risk classification, it is unlawful to
- Charge different premiums
- Set different policy effective dates
- Issue different amounts of coverage
- Establish uniform claims payment procedures - ANSWER-Charge different
premiums
It is considered unfair discrimination to charge different premiums to policyholders in
the same risk classification.
Which of the following is NOT considered advertising?
- A rating from a rating service company, such as A.M. Best
- An illustration
- A sales presentation
- Direct mailing from an agency - ANSWER-A rating from a rating service company,
such as A.M. Best
An A.M. Best company rating is not considered advertising.
After completing an application for insurance, the insurance producer collects the
premiums but deposits the check in the insurance producer's checking account.
What crime has been committed?
-Twisting
-Rebating
-Fraud
-Replacement - ANSWER-Fraud
In this situation, fraud has been committed.
Which situation would qualify an individual for receiving benefits from a qualified
long-term care policy?
- Becoming unemployed
- Becoming temporarily disabled
- Becoming injured on the job
- Becoming cognitively impaired (mentally ill) - ANSWER-Becoming cognitively
impaired (mentally ill)
A qualified long-term care policy must pay benefits when an individual is cognitively
impaired.
In health insurance, the insured must furnish written proof of loss to the insurer within
- 15 days of the occurrence of the loss
- 30 days of the occurrence of the loss
- 90 days of the occurrence of the loss - ANSWER-90 days of the occurrence of the
loss
In health insurance, the insured must furnish written proof of loss to the insurer within
90 days of the occurrence of the loss.
How long must an individual be unable to engage in any gainful activity due to
physical or mental disability in order to qualify for Social Security Total Disability?
-3 Months
-6 Months
-12 Months
-18 Months - ANSWER-12 Months
, To qualify, the disability must be expected to last, or have lasted, at least 12 months,
or it must be expected to result in death.
A producer who is licensed in Louisiana but resident in another state is called a
- nonresident producer
- foreign producer
- reciprocal producer
- limited lines producer - ANSWER-Nonresident producer
A producer licensed in Louisiana but a resident in another state is called a
nonresident producer.
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this
situation?
- Payment of claims
- Legal actions
- Unpaid premium
- Time of payment of claims - ANSWER-Unpaid premium
If there is an unpaid premium at the time a claim becomes payable, the amount of
the premium is to be deducted from the sum payable to the insured or beneficiary.
When replacing individual health insurance, a producer should compare existing
benefits with the proposed new policy to determine if:
- The insured must cancel the existing policy before applying for another
- The grace period of the existing policy will be renewed
- Commissions payable under the new policy justify replacement
- Existing benefits would be maintained under the new plan - ANSWER-Existing
benefits would be maintained under the new plan
When replacing individual health insurance, a producer should compare existing
benefits with the proposed new policy to determine if existing benefits would be
maintained under the new plan.
As of January 1, 2014, an employer with up to 25 full time equivalent (FTE's) with
average annual wages of less than $50,000 may be eligible for a tax credit of ___ of
the premiums paid by the employer.
-30%
-40%
-50%
-60% - ANSWER-50%
On or after January 1, 2014, employers with no more than 25 full time equivalent
(FTE's) with average annual wages of less than $50,000 may be eligible for a tax
credit of up to 50% of the premiums paid by the employer.
In an employer-sponsored group accident and health plan, a master contract is
issued to the
- TPA
- employees
- Administrative Services Organization
- employer - ANSWER-Employer
LOUISIANA LIFE AND HEALTH EXAM
SIMULATOR - 200 QUESTIONS WITH
CORRECT ANSWERS
The principle of insurable interest, in regards to a life insurance contract, is
accurately described in which statement?
- An agent establishes insurable interest
- An individual does not have insurable interest on his or her own life
- Insurable interest only pertains to business arrangements
- Insurable interest can be based on the love and affection of individuals related by
blood or law - ANSWER-Insurable interest can be based on the love and affection of
individuals related by blood or law
Individuals related closely by blood or law have an insurable interest based on love
and affection.
An annuity is primarily used to provide
- Competent parties
- Offer and acceptance
- Consideration
- Legal purpose - ANSWER-Legal Purpose
Insurable interest is a component of legal purpose.
All of these are valid policy dividend options for a life insurance policyowner
EXCEPT
- cash outlay to the policyowner
- accumulate without interest
- reduction in policy premium
- buy additional insurance coverage - ANSWER-Accumulate without interest
Policyowner dividends normally accumulate WITH interest.
An annuity is primarily used to provide - ANSWER-Retirement Income
The Principal use of an annuity is to provide income for retirement.
The Louisiana Life and Health Insurance Guaranty Association was established to
protect consumers in the event of an insurers
- Insolvency
- Demutualization
- Merger with another company
- Sale of part of the company - ANSWER-Insolvency
The Louisiana Life and Health Insurance Guaranty Association was established to
protect consumers in the event of an insurer's insolvency.
In group health care, what is the purpose of the coordination of benefits provision?
- Determines where an insured goes to receive treatment
,- Determines what is paid by the primary and secondary insurers in the event of a
claim
- Ensures that a health provider receives the proper benefit amount owed
- Determines which parent's plan covers a dependent child - ANSWER-Determines
what is paid by the primary and secondary insurers in the event of a claim
The purpose of the coordination of benefits provision in group health care is to
determine what is paid by the primary and secondary insurers in case of a claim.
Which of the following are the premium payments for a Universal life policy NOT
used for?
- Death benefits
- Cash value
- Loading costs
- Separate account investments - ANSWER-Separate account investments
Premium payments for a Universal life policy are NOT used for separate account
investments.
Over the course of a year, which premium payment mode is most expensive?
-Monthly
-Quarterly
-Semi-Annually
-Annually - ANSWER-Monthly
The monthly payment mode is the most expensive over the course of a year.
A temporary producer's license is effective for
-180 days
-15 months
-1 year
-5 year - ANSWER-180 days
A temporary producer's license is effective for 180 days.
A group Disability Income plan that pays tax-free benefits to covered employees is
considered
- non-contributory
- partially contributory
- group contributory
- fully contributory - ANSWER-fully contributory
Fully contributory group plans require the employee to pay all premium cost,
therefore, any benefits received by covered employees are received tax-free.
Which of the following statements is CORRECT regarding an individual applying for
life or health insurance?
- The applicant waives all privacy rights
- The applicant's family medical history is always required
- The applicant's medical history is irrelevent
- The applicant's medical history may be analyzed and reported - ANSWER-The
applicant's medical history may be analyzed and reported
To apply for a life or health insurance policy, an applicant's medical history may be
reviewed and reported.
,For policyholders in the same risk classification, it is unlawful to
- Charge different premiums
- Set different policy effective dates
- Issue different amounts of coverage
- Establish uniform claims payment procedures - ANSWER-Charge different
premiums
It is considered unfair discrimination to charge different premiums to policyholders in
the same risk classification.
Which of the following is NOT considered advertising?
- A rating from a rating service company, such as A.M. Best
- An illustration
- A sales presentation
- Direct mailing from an agency - ANSWER-A rating from a rating service company,
such as A.M. Best
An A.M. Best company rating is not considered advertising.
After completing an application for insurance, the insurance producer collects the
premiums but deposits the check in the insurance producer's checking account.
What crime has been committed?
-Twisting
-Rebating
-Fraud
-Replacement - ANSWER-Fraud
In this situation, fraud has been committed.
Which situation would qualify an individual for receiving benefits from a qualified
long-term care policy?
- Becoming unemployed
- Becoming temporarily disabled
- Becoming injured on the job
- Becoming cognitively impaired (mentally ill) - ANSWER-Becoming cognitively
impaired (mentally ill)
A qualified long-term care policy must pay benefits when an individual is cognitively
impaired.
In health insurance, the insured must furnish written proof of loss to the insurer within
- 15 days of the occurrence of the loss
- 30 days of the occurrence of the loss
- 90 days of the occurrence of the loss - ANSWER-90 days of the occurrence of the
loss
In health insurance, the insured must furnish written proof of loss to the insurer within
90 days of the occurrence of the loss.
How long must an individual be unable to engage in any gainful activity due to
physical or mental disability in order to qualify for Social Security Total Disability?
-3 Months
-6 Months
-12 Months
-18 Months - ANSWER-12 Months
, To qualify, the disability must be expected to last, or have lasted, at least 12 months,
or it must be expected to result in death.
A producer who is licensed in Louisiana but resident in another state is called a
- nonresident producer
- foreign producer
- reciprocal producer
- limited lines producer - ANSWER-Nonresident producer
A producer licensed in Louisiana but a resident in another state is called a
nonresident producer.
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this
situation?
- Payment of claims
- Legal actions
- Unpaid premium
- Time of payment of claims - ANSWER-Unpaid premium
If there is an unpaid premium at the time a claim becomes payable, the amount of
the premium is to be deducted from the sum payable to the insured or beneficiary.
When replacing individual health insurance, a producer should compare existing
benefits with the proposed new policy to determine if:
- The insured must cancel the existing policy before applying for another
- The grace period of the existing policy will be renewed
- Commissions payable under the new policy justify replacement
- Existing benefits would be maintained under the new plan - ANSWER-Existing
benefits would be maintained under the new plan
When replacing individual health insurance, a producer should compare existing
benefits with the proposed new policy to determine if existing benefits would be
maintained under the new plan.
As of January 1, 2014, an employer with up to 25 full time equivalent (FTE's) with
average annual wages of less than $50,000 may be eligible for a tax credit of ___ of
the premiums paid by the employer.
-30%
-40%
-50%
-60% - ANSWER-50%
On or after January 1, 2014, employers with no more than 25 full time equivalent
(FTE's) with average annual wages of less than $50,000 may be eligible for a tax
credit of up to 50% of the premiums paid by the employer.
In an employer-sponsored group accident and health plan, a master contract is
issued to the
- TPA
- employees
- Administrative Services Organization
- employer - ANSWER-Employer
