LA Series 103 Exam Questions and
Answers Latest Version Already Passed
What does insurable interest mean in life insurance?
✔✔The policyowner must benefit from the continued life of the insured.
When must insurable interest exist for a life insurance policy to be valid?
✔✔At the time of application.
What is the purpose of a beneficiary in a life insurance policy?
✔✔To receive the policy’s death benefit.
What happens if no beneficiary is named on a life insurance policy?
✔✔The death benefit goes to the insured’s estate.
What is the primary purpose of a life insurance policy?
✔✔To provide a death benefit to the beneficiary.
1
,What is a grace period in a life insurance policy?
✔✔The time allowed to pay a late premium before the policy lapses.
What is the typical grace period for a life insurance policy in Louisiana?
✔✔30 days.
What happens if the insured dies during the grace period without paying the premium?
✔✔The death benefit is paid, minus the owed premium.
What is the cash value in a whole life insurance policy?
✔✔The savings portion that grows over time.
What is the primary feature of term life insurance?
✔✔Coverage lasts for a specific period and builds no cash value.
What type of policy allows the policyowner to change the death benefit and premium amount?
✔✔Universal life insurance.
2
,What is the incontestability clause in a life insurance policy?
✔✔It prevents the insurer from denying a claim after the policy has been in force for two years.
What is the free-look period in Louisiana for new life insurance policies?
✔✔10 days.
What happens if a policy is canceled during the free-look period?
✔✔The policyowner receives a full refund of premiums paid.
Who regulates insurance companies and producers in Louisiana?
✔✔The Louisiana Department of Insurance.
Who is responsible for ensuring insurance laws are followed in Louisiana?
✔✔The Insurance Commissioner.
What is the continuing education requirement for life insurance producers in Louisiana?
✔✔24 hours every two years.
3
, What is a policy loan in a whole life insurance policy?
✔✔A loan taken against the policy’s cash value.
What happens if a policy loan is not repaid before the insured dies?
✔✔The loan amount is deducted from the death benefit.
What is a reinstatement provision?
✔✔It allows a lapsed policy to be restored if certain conditions are met.
What is the difference between a revocable and irrevocable beneficiary?
✔✔A revocable beneficiary can be changed without consent; an irrevocable one cannot.
What is the purpose of a waiver of premium rider?
✔✔To waive premium payments if the insured becomes disabled.
What is the purpose of an accelerated death benefit?
✔✔To allow access to part of the death benefit before death in case of terminal illness.
4
Answers Latest Version Already Passed
What does insurable interest mean in life insurance?
✔✔The policyowner must benefit from the continued life of the insured.
When must insurable interest exist for a life insurance policy to be valid?
✔✔At the time of application.
What is the purpose of a beneficiary in a life insurance policy?
✔✔To receive the policy’s death benefit.
What happens if no beneficiary is named on a life insurance policy?
✔✔The death benefit goes to the insured’s estate.
What is the primary purpose of a life insurance policy?
✔✔To provide a death benefit to the beneficiary.
1
,What is a grace period in a life insurance policy?
✔✔The time allowed to pay a late premium before the policy lapses.
What is the typical grace period for a life insurance policy in Louisiana?
✔✔30 days.
What happens if the insured dies during the grace period without paying the premium?
✔✔The death benefit is paid, minus the owed premium.
What is the cash value in a whole life insurance policy?
✔✔The savings portion that grows over time.
What is the primary feature of term life insurance?
✔✔Coverage lasts for a specific period and builds no cash value.
What type of policy allows the policyowner to change the death benefit and premium amount?
✔✔Universal life insurance.
2
,What is the incontestability clause in a life insurance policy?
✔✔It prevents the insurer from denying a claim after the policy has been in force for two years.
What is the free-look period in Louisiana for new life insurance policies?
✔✔10 days.
What happens if a policy is canceled during the free-look period?
✔✔The policyowner receives a full refund of premiums paid.
Who regulates insurance companies and producers in Louisiana?
✔✔The Louisiana Department of Insurance.
Who is responsible for ensuring insurance laws are followed in Louisiana?
✔✔The Insurance Commissioner.
What is the continuing education requirement for life insurance producers in Louisiana?
✔✔24 hours every two years.
3
, What is a policy loan in a whole life insurance policy?
✔✔A loan taken against the policy’s cash value.
What happens if a policy loan is not repaid before the insured dies?
✔✔The loan amount is deducted from the death benefit.
What is a reinstatement provision?
✔✔It allows a lapsed policy to be restored if certain conditions are met.
What is the difference between a revocable and irrevocable beneficiary?
✔✔A revocable beneficiary can be changed without consent; an irrevocable one cannot.
What is the purpose of a waiver of premium rider?
✔✔To waive premium payments if the insured becomes disabled.
What is the purpose of an accelerated death benefit?
✔✔To allow access to part of the death benefit before death in case of terminal illness.
4
