Louisiana Life Insurance Series 101
Study Guide 1-25 Questions and
Answers Latest Version Rated A+
What is the main reason people purchase life insurance?
✔✔A. To provide financial support for beneficiaries after death
B. To increase their credit score
C. To avoid paying income tax
D. To get free medical benefits
Which type of insurance builds cash value and lasts a lifetime?
✔✔A. Whole life
B. Term life
C. Credit life
D. Short-term health
When must an insurable interest exist for a life insurance policy to be valid?
✔✔A. At the time of policy application
B. When the premium is due
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,C. At the time of the insured’s death
D. After the contestability period ends
A person who applies for insurance and may also be the insured is known as the:
✔✔A. Applicant
B. Agent
C. Beneficiary
D. Underwriter
What is a primary benefit of whole life insurance over term life insurance?
A. Cheaper premiums
✔✔B. Guaranteed cash value accumulation
C. More flexible underwriting
D. No medical exam required
Which party determines the insurability of a proposed insured?
A. The applicant
B. The beneficiary
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, ✔✔C. The underwriter
D. The producer
In Louisiana, what happens if a policyholder lies on an application and dies within the
contestability period?
✔✔A. The insurer may deny the claim
B. The insurer must pay full benefits
C. The beneficiary can sue for double benefits
D. The agent is held liable
What is the purpose of a policy’s face amount?
✔✔A. It is the death benefit amount payable
B. It shows how much interest the policy earns
C. It is the total amount of premiums paid
D. It determines underwriting class
Which of the following life insurance options allows the policyholder to invest in sub-accounts?
✔✔A. Variable life
3
Study Guide 1-25 Questions and
Answers Latest Version Rated A+
What is the main reason people purchase life insurance?
✔✔A. To provide financial support for beneficiaries after death
B. To increase their credit score
C. To avoid paying income tax
D. To get free medical benefits
Which type of insurance builds cash value and lasts a lifetime?
✔✔A. Whole life
B. Term life
C. Credit life
D. Short-term health
When must an insurable interest exist for a life insurance policy to be valid?
✔✔A. At the time of policy application
B. When the premium is due
1
,C. At the time of the insured’s death
D. After the contestability period ends
A person who applies for insurance and may also be the insured is known as the:
✔✔A. Applicant
B. Agent
C. Beneficiary
D. Underwriter
What is a primary benefit of whole life insurance over term life insurance?
A. Cheaper premiums
✔✔B. Guaranteed cash value accumulation
C. More flexible underwriting
D. No medical exam required
Which party determines the insurability of a proposed insured?
A. The applicant
B. The beneficiary
2
, ✔✔C. The underwriter
D. The producer
In Louisiana, what happens if a policyholder lies on an application and dies within the
contestability period?
✔✔A. The insurer may deny the claim
B. The insurer must pay full benefits
C. The beneficiary can sue for double benefits
D. The agent is held liable
What is the purpose of a policy’s face amount?
✔✔A. It is the death benefit amount payable
B. It shows how much interest the policy earns
C. It is the total amount of premiums paid
D. It determines underwriting class
Which of the following life insurance options allows the policyholder to invest in sub-accounts?
✔✔A. Variable life
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