Louisiana Life, Accident and Health Practice
Exam Test Questions & Answers
Select from the choices below the best description of a speculative risk? - correct answer
Involving the possibility of a gain in addition to the uncertainty of loss
If there is a material change in an MEC contract, what is the first thing needing to be done? -
correct answer Another 7 pay test
Which of the following is not taxable? - correct answer Fixed amount installments
A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty
tax unless: - correct answer It was used as a down payment on first home
Carlos cancels his life policy but instructs the insurance company to transfer the cash value of
his policy to an annuity. This non taxable transaction is called? - correct answer 1035 Exchange
Which of the following is a disadvantage to setup and participate in a qualified retirement plan?
- correct answer Immediate liquidity
All of these types of distributions that are exceptions to the 10% penalty rule except: - correct
answer New car purchase
Which of the following does not describe a 401(K) characteristics - correct answer Currently
$49,000 maximum contribution
The following are examples of Qualified Retirement Plans except: - correct answer 501c(3)
Which of the following is not correct regarding Long Term Care - correct answer It provides
different benefits for different levels of care
Medicare Select is a type of? - correct answer Medicare Supplement plan offered by an HMO
Which of the following statements is correct regarding Medicare Advantage - correct answer It
can offer benefits that ate not covered by regular Medicare
Which of the following is correct with regards to the hospital insurance Part A plan of Medicare
- correct answer Insured must satisfy a deductible
Which of the following statements is correct about Part B of Medicare - correct answer An
annual deductible is required
All of the following examples of groups that purchase group health insurance except: - correct
answer MEWA
The following are example of limited health plans except: - correct answer HMO
,Ally wants a rider that will pay disability that social security will pay for one year, assuming that
social security should begin then. What type of rider should she consider? - correct answer
Additional monthly benefit (AMB)
How many QCs are necessary to be fully funded? - correct answer 40
If Bill has a type of disability plan that has benefits set at a percentage of income, what type is
it? - correct answer Employer Group
Ally wants to make sure that her benefits for her disability policy keep up with the rate of
inflation, what type of rider should she consider - correct answer COLA
How many QCs are necessary to be deemed partially insured - correct answer 6 in the last 13
If Jill has a type of disability plan that has benefits set at a flat amount per month, what type is
it? - correct answer Individual
The period before benefits begin is termed as all of the following except: - correct answer Pre-
benefit period
Which of the following does Coinsurance describe? - correct answer a percentage the insured
will pay after the deductible
If a health insurer does not pay a claim more than how many days after required a 1% per
month penalty will begin? - correct answer 25 days
How many days after receiving notice of a claim does an insurer have to furnish proof of loss
forms? - correct answer 15
If Martha wants to pay her daughter's college tuition, which of the following can be used as an
education annuity? - correct answer Annuity Certain
The best description of a hazard is? - correct answer Condition that may increase the chance
that a loss may occur
Choose from the following selections the best description of a premium? - correct answer The
amount an insured pays for each unit of coverage. $7 for every $1,000 of coverage is an
example.
Which of the following is correct about a Third-Party Administrator? - correct answer It is an
independent company that provides administrative services for company's self-funded plans
A non-resident producer that is moving from one state to another state must submit? - correct
answer a state-to-state transfer form within 30 days
If a producer changes their mailing, work, or home address, the Department must be notified
____________of the change on an official "Change of Address" form available on the LA
Department of Insurance website, or face a fine. - correct answer within 10 days
,Assuming CE requirements have been met, how is the life agent's license renewed? - correct
answer Pay the renewal billing notice the Dept sends out 90 days before the renewal date
To renew a resident individual producer's license, you must complete _______ hours of
continuing education each renewal period. - correct answer 24 hours
The CE requirement does not apply to specialty or limited licenses, such as, industrial fire, credit
life, credit health, credit property, or accidental death and dismemberment. - correct answer
False
John became disabled and cannot conduct his insurance business. His legally appointed
representative may get a temporary license to handle the business for him for a period up to
____________________. - correct answer 180 days
If a producer's license is revoked, it is not possible to reapply. - correct answer False
A District Court Judge found James, a producer, guilty of a misdemeanor petty theft. James
must - correct answer Report the ruling to the Commissioner within 30 days.
To maintain your license, every licensee must: - correct answer Select one:
a. complete a certain number of hours in continuing education.
b. maintain satisfactory conduct.
c. send in the renewal application and pay renewal fees.
d. All of the above
Of the items listed below, which are requirements for a life & disability insurance analyst
license? - correct answer a. The applicant must have a good general reputation
b. The applicant must be at least 18 years of age
c. The applicant must have a thorough knowledge of life & disability insurance
d. These are all required
Sam's appointment to sell insurance for XYZ Insurance Company has been terminated by the
company after the company found evidence Sam committed fraud. XYZ has _________ to
notify the Insurance Department of the termination. - correct answer 10 Days
Unless the Commissioner decides to revoke, non-renew or suspend your license, it will expire
_____________. - correct answer Every two years
When someone accuses a producer of violating the Insurance Code and demands a hearing,
that hearing must be held within ______ days of the demand. - correct answer 30 days
, _____________ - when a producer influences a consumer to replace a present policy with a
different one. This is only acceptable if the producer gave the consumer better coverage or a
better deal. - correct answer Twisting
This federal law was enacted in 1971 and administered by the Federal Trade Commission. It
makes clear that consumers have the right to know what information is being circulated about
them and that the information is accurate and relevant for purposes that it is being accessed? -
correct answer Fair Credit Reporting Act (FCRA)
The federal act that mandates that a credit reporting company responds to a consumer
complaint when the company's credit report inaccurately reflects information about the
consumer is known as: - correct answer Fair Credit Reporting Act (FCRA)
An applicant for the Individual Producer license must complete pre-licensing education
required to prepare for the state required exam. - correct answer True
A legal business entity, such as a corporation, partnership, limited liability company, may also
be a producer and conduct insurance business in this state. - correct answer True
An applicant for a Louisiana Insurance Producer's License must do all of the following EXCEPT: -
correct answer Successfully pass their required exam with 80% or higher.
An applicant for a Louisiana Insurance Producer's License must do all of the following EXCEPT: -
correct answer Currently maintain a license as a Property and Casualty producer.
A qualified person may hold both a Life & Disability and a Property & Casualty license. This is
called a ___________________ license. - correct answer Concurrent license
An annuity which may be used to help fund retirement in a few years maintains a "separate
account." The owner purchases "accumulation units." This is called a _______
Annuity. - correct answer Variable
Variable life insurance policies and variable annuities are primarily governed by which agency? -
correct answer SEC
Louisiana will grant a producer a Variable products license to those that have a - correct answer
Select one:
a. valid Life insurance license
b. an active securities license with (FINRA) Financial Industry Regulatory Authority
c. an appointment with a respective insurance company and SEC (Securities and Exchange
Commission) registered broker-dealer
d. all of the above
Exam Test Questions & Answers
Select from the choices below the best description of a speculative risk? - correct answer
Involving the possibility of a gain in addition to the uncertainty of loss
If there is a material change in an MEC contract, what is the first thing needing to be done? -
correct answer Another 7 pay test
Which of the following is not taxable? - correct answer Fixed amount installments
A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty
tax unless: - correct answer It was used as a down payment on first home
Carlos cancels his life policy but instructs the insurance company to transfer the cash value of
his policy to an annuity. This non taxable transaction is called? - correct answer 1035 Exchange
Which of the following is a disadvantage to setup and participate in a qualified retirement plan?
- correct answer Immediate liquidity
All of these types of distributions that are exceptions to the 10% penalty rule except: - correct
answer New car purchase
Which of the following does not describe a 401(K) characteristics - correct answer Currently
$49,000 maximum contribution
The following are examples of Qualified Retirement Plans except: - correct answer 501c(3)
Which of the following is not correct regarding Long Term Care - correct answer It provides
different benefits for different levels of care
Medicare Select is a type of? - correct answer Medicare Supplement plan offered by an HMO
Which of the following statements is correct regarding Medicare Advantage - correct answer It
can offer benefits that ate not covered by regular Medicare
Which of the following is correct with regards to the hospital insurance Part A plan of Medicare
- correct answer Insured must satisfy a deductible
Which of the following statements is correct about Part B of Medicare - correct answer An
annual deductible is required
All of the following examples of groups that purchase group health insurance except: - correct
answer MEWA
The following are example of limited health plans except: - correct answer HMO
,Ally wants a rider that will pay disability that social security will pay for one year, assuming that
social security should begin then. What type of rider should she consider? - correct answer
Additional monthly benefit (AMB)
How many QCs are necessary to be fully funded? - correct answer 40
If Bill has a type of disability plan that has benefits set at a percentage of income, what type is
it? - correct answer Employer Group
Ally wants to make sure that her benefits for her disability policy keep up with the rate of
inflation, what type of rider should she consider - correct answer COLA
How many QCs are necessary to be deemed partially insured - correct answer 6 in the last 13
If Jill has a type of disability plan that has benefits set at a flat amount per month, what type is
it? - correct answer Individual
The period before benefits begin is termed as all of the following except: - correct answer Pre-
benefit period
Which of the following does Coinsurance describe? - correct answer a percentage the insured
will pay after the deductible
If a health insurer does not pay a claim more than how many days after required a 1% per
month penalty will begin? - correct answer 25 days
How many days after receiving notice of a claim does an insurer have to furnish proof of loss
forms? - correct answer 15
If Martha wants to pay her daughter's college tuition, which of the following can be used as an
education annuity? - correct answer Annuity Certain
The best description of a hazard is? - correct answer Condition that may increase the chance
that a loss may occur
Choose from the following selections the best description of a premium? - correct answer The
amount an insured pays for each unit of coverage. $7 for every $1,000 of coverage is an
example.
Which of the following is correct about a Third-Party Administrator? - correct answer It is an
independent company that provides administrative services for company's self-funded plans
A non-resident producer that is moving from one state to another state must submit? - correct
answer a state-to-state transfer form within 30 days
If a producer changes their mailing, work, or home address, the Department must be notified
____________of the change on an official "Change of Address" form available on the LA
Department of Insurance website, or face a fine. - correct answer within 10 days
,Assuming CE requirements have been met, how is the life agent's license renewed? - correct
answer Pay the renewal billing notice the Dept sends out 90 days before the renewal date
To renew a resident individual producer's license, you must complete _______ hours of
continuing education each renewal period. - correct answer 24 hours
The CE requirement does not apply to specialty or limited licenses, such as, industrial fire, credit
life, credit health, credit property, or accidental death and dismemberment. - correct answer
False
John became disabled and cannot conduct his insurance business. His legally appointed
representative may get a temporary license to handle the business for him for a period up to
____________________. - correct answer 180 days
If a producer's license is revoked, it is not possible to reapply. - correct answer False
A District Court Judge found James, a producer, guilty of a misdemeanor petty theft. James
must - correct answer Report the ruling to the Commissioner within 30 days.
To maintain your license, every licensee must: - correct answer Select one:
a. complete a certain number of hours in continuing education.
b. maintain satisfactory conduct.
c. send in the renewal application and pay renewal fees.
d. All of the above
Of the items listed below, which are requirements for a life & disability insurance analyst
license? - correct answer a. The applicant must have a good general reputation
b. The applicant must be at least 18 years of age
c. The applicant must have a thorough knowledge of life & disability insurance
d. These are all required
Sam's appointment to sell insurance for XYZ Insurance Company has been terminated by the
company after the company found evidence Sam committed fraud. XYZ has _________ to
notify the Insurance Department of the termination. - correct answer 10 Days
Unless the Commissioner decides to revoke, non-renew or suspend your license, it will expire
_____________. - correct answer Every two years
When someone accuses a producer of violating the Insurance Code and demands a hearing,
that hearing must be held within ______ days of the demand. - correct answer 30 days
, _____________ - when a producer influences a consumer to replace a present policy with a
different one. This is only acceptable if the producer gave the consumer better coverage or a
better deal. - correct answer Twisting
This federal law was enacted in 1971 and administered by the Federal Trade Commission. It
makes clear that consumers have the right to know what information is being circulated about
them and that the information is accurate and relevant for purposes that it is being accessed? -
correct answer Fair Credit Reporting Act (FCRA)
The federal act that mandates that a credit reporting company responds to a consumer
complaint when the company's credit report inaccurately reflects information about the
consumer is known as: - correct answer Fair Credit Reporting Act (FCRA)
An applicant for the Individual Producer license must complete pre-licensing education
required to prepare for the state required exam. - correct answer True
A legal business entity, such as a corporation, partnership, limited liability company, may also
be a producer and conduct insurance business in this state. - correct answer True
An applicant for a Louisiana Insurance Producer's License must do all of the following EXCEPT: -
correct answer Successfully pass their required exam with 80% or higher.
An applicant for a Louisiana Insurance Producer's License must do all of the following EXCEPT: -
correct answer Currently maintain a license as a Property and Casualty producer.
A qualified person may hold both a Life & Disability and a Property & Casualty license. This is
called a ___________________ license. - correct answer Concurrent license
An annuity which may be used to help fund retirement in a few years maintains a "separate
account." The owner purchases "accumulation units." This is called a _______
Annuity. - correct answer Variable
Variable life insurance policies and variable annuities are primarily governed by which agency? -
correct answer SEC
Louisiana will grant a producer a Variable products license to those that have a - correct answer
Select one:
a. valid Life insurance license
b. an active securities license with (FINRA) Financial Industry Regulatory Authority
c. an appointment with a respective insurance company and SEC (Securities and Exchange
Commission) registered broker-dealer
d. all of the above
