LA Series 103
LA Series 103 Exam Questions and
Answers Graded A+ 2025
Maximum benefit refers to the -Correct Answer ✔upper limit of the total lifetime
benefits the insurance company will pay
____ is NOT an element of a valid contract -Correct Answer ✔Countersignature
______ life is designed to pay the balance of a loan if the insured dies before
repayment of the loan -Correct Answer ✔Credit
A 10% excise tax is normally applied to an early withdrawal from an IRA.
According to HIPPA, this tax will not be applied if the withdrawal is used for
medical expenses that exceed ___ of the individual's adjusted gross income. -
Correct Answer ✔7.50%
A beneficiary change can occur: -Correct Answer ✔normally at any time during
the policy term.
A beneficiary has just received a claim payment for a life insurance policy. Which
of the following is TRUE regarding federal income tax liability. -Correct Answer
✔No federal income tax is owed on the life insurance proceeds.
A business entity wishing to act as an insurance producer MUST -Correct Answer
✔obtain a producer's license.
A business will will typically use which type of life insurance to cover their
employees? -Correct Answer ✔Group Policy
A cease and decist order -Correct Answer ✔forbids a stated practice listed in the
order.
LA Series 103
,LA Series 103
A change in an insurance application requires -Correct Answer ✔an initial made
by the applicant.
A clause that allows an insurer the right to terminate coverage at any anniversary
date is called a(n) -Correct Answer ✔optional renewability clause
A comman exclusion with Vision plans is -Correct Answer ✔lasik surgery
A company that is authorized by the Commissioner to transact insurance business
in Louisiana is called a(n) -Correct Answer ✔authorized insurer
A dependent child may remain on a parents health insurance beyond the age of 26
if the child -Correct Answer ✔has a mental or physical handicap and remains
dependent on the parent
A disability elimination period is best described as -Correct Answer ✔time
deductible
A disability income policy can prevent an insured from earning a higher income
than if he/she were working by utilizing -Correct Answer ✔benefit limits
A doctor who accepts Medicare Assignment agrees to which of the following? -
Correct Answer ✔Doctor cannot charge more than Medicare's scheduled coverage
A domestic insurance company in Louisiana MUST -Correct Answer ✔be
organized under Louisiana insurance laws
A field underwriter's main task is -Correct Answer ✔to ensure an applicant's
medical information is accurate and complete.
A foreign insurance company doing business in Louisiana -Correct Answer ✔is a
company that was formed under the laws of another state.
LA Series 103
,LA Series 103
A form of medical health insurance covering the treatment and care of gum -
Correct Answer ✔Dental expense insurance
A group Disability Income plan that pays tax-free benefits to covered employees is
considered -Correct Answer ✔fully contributory
A guaranteed issued insurance policy has no -Correct Answer ✔medical
underwriting
A health care provider claim may be settled using which of the following payment
methods? -Correct Answer ✔Fee-for service
A health insurance policy where the insurer has the right to terminate the policy
owner's premiums, but NOT cancel the policy is called a(n) -Correct Answer
✔guaranteed renewable policy
A health insurance policy where the insurer has the right to terminate the policy for
reasons other than the insured's health is called -Correct Answer ✔conditionally
renewable
A health insurance policy will typically cover -Correct Answer ✔preventative
health services
A licensed producer MUST be _____ by an insurer to be eligible for soliciting
insurance contracts -Correct Answer ✔appointed
A life insurance claim which involves a per capita distribution of policy proceeds
would be payable to the -Correct Answer ✔named living primary beneficiaries
A life insurance company has transferred some of its risk to another insurer. The
insurer assuming the risk is called the -Correct Answer ✔reinsurer
LA Series 103
, LA Series 103
A life insurance policy normally contains a provision that restricts coverage in the
event of death under all of the following situations EXCEPT -Correct Answer
✔fare-paying passenger
A life insurance policy sold in Louisiana can be contested by the insurer only
during the first ___ years of the contract -Correct Answer ✔two
A life insurance policy that contains a guaranteed interest rate with the chance to
earn a rate that is higher than the guaranteed rate is called -Correct Answer
✔Universal life
A life insurance policy that has the premiums paid up within a select time period is
called -Correct Answer ✔limited payment insurance
A life insurance policy that is subject to a contract interest rate is referred to as -
Correct Answer ✔universal life
A life insurance policy which contains cash values that vary according to its
investment performance of stocks is called -Correct Answer ✔Variable whole life
A life insurance policy written on one contract for two people in which it is
payable upon the first death is called -Correct Answer ✔joint
A life insurance policy owner does not have the right to -Correct Answer ✔revoke
an absolute assignment
A life insurance policy owner was injured in an automobile accident which results
in a total and permanent disability. Which rider would pay a monthly amount
because of this disability? -Correct Answer ✔Disability Income Rider
A life insurance replacement transaction could result in a/n -Correct Answer
✔surrender charge
LA Series 103
LA Series 103 Exam Questions and
Answers Graded A+ 2025
Maximum benefit refers to the -Correct Answer ✔upper limit of the total lifetime
benefits the insurance company will pay
____ is NOT an element of a valid contract -Correct Answer ✔Countersignature
______ life is designed to pay the balance of a loan if the insured dies before
repayment of the loan -Correct Answer ✔Credit
A 10% excise tax is normally applied to an early withdrawal from an IRA.
According to HIPPA, this tax will not be applied if the withdrawal is used for
medical expenses that exceed ___ of the individual's adjusted gross income. -
Correct Answer ✔7.50%
A beneficiary change can occur: -Correct Answer ✔normally at any time during
the policy term.
A beneficiary has just received a claim payment for a life insurance policy. Which
of the following is TRUE regarding federal income tax liability. -Correct Answer
✔No federal income tax is owed on the life insurance proceeds.
A business entity wishing to act as an insurance producer MUST -Correct Answer
✔obtain a producer's license.
A business will will typically use which type of life insurance to cover their
employees? -Correct Answer ✔Group Policy
A cease and decist order -Correct Answer ✔forbids a stated practice listed in the
order.
LA Series 103
,LA Series 103
A change in an insurance application requires -Correct Answer ✔an initial made
by the applicant.
A clause that allows an insurer the right to terminate coverage at any anniversary
date is called a(n) -Correct Answer ✔optional renewability clause
A comman exclusion with Vision plans is -Correct Answer ✔lasik surgery
A company that is authorized by the Commissioner to transact insurance business
in Louisiana is called a(n) -Correct Answer ✔authorized insurer
A dependent child may remain on a parents health insurance beyond the age of 26
if the child -Correct Answer ✔has a mental or physical handicap and remains
dependent on the parent
A disability elimination period is best described as -Correct Answer ✔time
deductible
A disability income policy can prevent an insured from earning a higher income
than if he/she were working by utilizing -Correct Answer ✔benefit limits
A doctor who accepts Medicare Assignment agrees to which of the following? -
Correct Answer ✔Doctor cannot charge more than Medicare's scheduled coverage
A domestic insurance company in Louisiana MUST -Correct Answer ✔be
organized under Louisiana insurance laws
A field underwriter's main task is -Correct Answer ✔to ensure an applicant's
medical information is accurate and complete.
A foreign insurance company doing business in Louisiana -Correct Answer ✔is a
company that was formed under the laws of another state.
LA Series 103
,LA Series 103
A form of medical health insurance covering the treatment and care of gum -
Correct Answer ✔Dental expense insurance
A group Disability Income plan that pays tax-free benefits to covered employees is
considered -Correct Answer ✔fully contributory
A guaranteed issued insurance policy has no -Correct Answer ✔medical
underwriting
A health care provider claim may be settled using which of the following payment
methods? -Correct Answer ✔Fee-for service
A health insurance policy where the insurer has the right to terminate the policy
owner's premiums, but NOT cancel the policy is called a(n) -Correct Answer
✔guaranteed renewable policy
A health insurance policy where the insurer has the right to terminate the policy for
reasons other than the insured's health is called -Correct Answer ✔conditionally
renewable
A health insurance policy will typically cover -Correct Answer ✔preventative
health services
A licensed producer MUST be _____ by an insurer to be eligible for soliciting
insurance contracts -Correct Answer ✔appointed
A life insurance claim which involves a per capita distribution of policy proceeds
would be payable to the -Correct Answer ✔named living primary beneficiaries
A life insurance company has transferred some of its risk to another insurer. The
insurer assuming the risk is called the -Correct Answer ✔reinsurer
LA Series 103
, LA Series 103
A life insurance policy normally contains a provision that restricts coverage in the
event of death under all of the following situations EXCEPT -Correct Answer
✔fare-paying passenger
A life insurance policy sold in Louisiana can be contested by the insurer only
during the first ___ years of the contract -Correct Answer ✔two
A life insurance policy that contains a guaranteed interest rate with the chance to
earn a rate that is higher than the guaranteed rate is called -Correct Answer
✔Universal life
A life insurance policy that has the premiums paid up within a select time period is
called -Correct Answer ✔limited payment insurance
A life insurance policy that is subject to a contract interest rate is referred to as -
Correct Answer ✔universal life
A life insurance policy which contains cash values that vary according to its
investment performance of stocks is called -Correct Answer ✔Variable whole life
A life insurance policy written on one contract for two people in which it is
payable upon the first death is called -Correct Answer ✔joint
A life insurance policy owner does not have the right to -Correct Answer ✔revoke
an absolute assignment
A life insurance policy owner was injured in an automobile accident which results
in a total and permanent disability. Which rider would pay a monthly amount
because of this disability? -Correct Answer ✔Disability Income Rider
A life insurance replacement transaction could result in a/n -Correct Answer
✔surrender charge
LA Series 103
