Louisiana Life and Health Insurance
Exam Questions and Answers Latest
Version Already Passed
What does a reinstatement clause in a life insurance policy allow?
A. Cancel the policy
✔✔B. Reactivate a lapsed policy
C. Add a new beneficiary
D. Extend the grace period
What is the purpose of insurable interest in life insurance?
A. Increase death benefits
✔✔B. Ensure financial loss if the insured dies
C. Qualify for group coverage
D. Select a lower premium
Which health insurance policy would help replace lost income due to illness?
✔✔A. Disability income insurance
B. Long-term care insurance
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,C. Medicare supplement
D. Accidental death insurance
How is term life insurance different from whole life insurance?
✔✔A. It provides coverage for a limited period
B. It builds cash value
C. It pays dividends
D. It has level premiums for life
Which of the following is true about group life insurance?
A. Premiums are always tax-deductible
B. It builds substantial cash value
✔✔C. Coverage is typically provided without individual underwriting
D. Each employee owns their policy
When must an insurance producer in Louisiana renew their license?
A. Every 3 years
✔✔B. Every 2 years
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,C. Annually
D. Every 5 years
Which option allows a life insurance policyholder to stop paying premiums but keep some
coverage?
✔✔A. Reduced paid-up insurance
B. Dividend option
C. Waiver of premium rider
D. Extended term conversion
What type of beneficiary can be changed at any time by the policyholder?
✔✔A. Revocable
B. Irrevocable
C. Contingent
D. Final
In a health insurance policy, what does the coordination of benefits clause do?
✔✔A. Determines how multiple policies pay claims
3
, B. Increases premiums
C. Extends policy duration
D. Creates cash value
What does an incontestability clause prevent after a certain time period?
A. Premium changes
✔✔B. Denial of claims due to errors on the application
C. Rider additions
D. Death benefit reduction
Which product combines life insurance with investment choices in subaccounts?
✔✔A. Variable life
B. Term life
C. Simplified issue
D. Credit life
If a life insurance policyholder wants coverage to continue even if they stop paying, which
feature is useful?
4
Exam Questions and Answers Latest
Version Already Passed
What does a reinstatement clause in a life insurance policy allow?
A. Cancel the policy
✔✔B. Reactivate a lapsed policy
C. Add a new beneficiary
D. Extend the grace period
What is the purpose of insurable interest in life insurance?
A. Increase death benefits
✔✔B. Ensure financial loss if the insured dies
C. Qualify for group coverage
D. Select a lower premium
Which health insurance policy would help replace lost income due to illness?
✔✔A. Disability income insurance
B. Long-term care insurance
1
,C. Medicare supplement
D. Accidental death insurance
How is term life insurance different from whole life insurance?
✔✔A. It provides coverage for a limited period
B. It builds cash value
C. It pays dividends
D. It has level premiums for life
Which of the following is true about group life insurance?
A. Premiums are always tax-deductible
B. It builds substantial cash value
✔✔C. Coverage is typically provided without individual underwriting
D. Each employee owns their policy
When must an insurance producer in Louisiana renew their license?
A. Every 3 years
✔✔B. Every 2 years
2
,C. Annually
D. Every 5 years
Which option allows a life insurance policyholder to stop paying premiums but keep some
coverage?
✔✔A. Reduced paid-up insurance
B. Dividend option
C. Waiver of premium rider
D. Extended term conversion
What type of beneficiary can be changed at any time by the policyholder?
✔✔A. Revocable
B. Irrevocable
C. Contingent
D. Final
In a health insurance policy, what does the coordination of benefits clause do?
✔✔A. Determines how multiple policies pay claims
3
, B. Increases premiums
C. Extends policy duration
D. Creates cash value
What does an incontestability clause prevent after a certain time period?
A. Premium changes
✔✔B. Denial of claims due to errors on the application
C. Rider additions
D. Death benefit reduction
Which product combines life insurance with investment choices in subaccounts?
✔✔A. Variable life
B. Term life
C. Simplified issue
D. Credit life
If a life insurance policyholder wants coverage to continue even if they stop paying, which
feature is useful?
4
