LOUISIANA SERIES 103 EXAM QUESTIONS AND
ANSWERS
Maximum benefit refers to the - Answer -upper limit of the total lifetime benefits the
insurance company will pay
____ is NOT an element of a valid contract - Answer -Countersignature
______ life is designed to pay the balance of a loan if the insured dies before
repayment of the loan - 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. - Answer -7.50%
A beneficiary change can occur: - 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. - Answer -No federal income
tax is owed on the life insurance proceeds.
A business entity wishing to act as an insurance producer MUST - Answer -obtain a
producer's license.
A business will will typically use which type of life insurance to cover their employees? -
Answer -Group Policy
A cease and decist order - Answer -forbids a stated practice listed in the order.
A change in an insurance application requires - 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) - Answer -optional renewability clause
A comman exclusion with Vision plans is - Answer -lasik surgery
A company that is authorized by the Commissioner to transact insurance business in
Louisiana is called a(n) - Answer -authorized insurer
A dependent child may remain on a parents health insurance beyond the age of 26 if
the child - Answer -has a mental or physical handicap and remains dependent on the
parent
,A disability elimination period is best described as - Answer -time deductible
A disability income policy can prevent an insured from earning a higher income than if
he/she were working by utilizing - Answer -benefit limits
A doctor who accepts Medicare Assignment agrees to which of the following? - Answer
-Doctor cannot charge more than Medicare's scheduled coverage
A domestic insurance company in Louisiana MUST - Answer -be organized under
Louisiana insurance laws
A field underwriter's main task is - Answer -to ensure an applicant's medical information
is accurate and complete.
A foreign insurance company doing business in Louisiana - Answer -is a company that
was formed under the laws of another state.
A form of medical health insurance covering the treatment and care of gum - Answer -
Dental expense insurance
A group Disability Income plan that pays tax-free benefits to covered employees is
considered - Answer -fully contributory
A guaranteed issued insurance policy has no - Answer -medical underwriting
A health care provider claim may be settled using which of the following payment
methods? - 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) - 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 - Answer -conditionally renewable
A health insurance policy will typically cover - Answer -preventative health services
A licensed producer MUST be _____ by an insurer to be eligible for soliciting insurance
contracts - Answer -appointed
A life insurance claim which involves a per capita distribution of policy proceeds would
be payable to the - 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 - Answer -reinsurer
,A life insurance policy normally contains a provision that restricts coverage in the event
of death under all of the following situations EXCEPT - 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 - 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 - Answer -Universal life
A life insurance policy that has the premiums paid up within a select time period is
called - Answer -limited payment insurance
A life insurance policy that is subject to a contract interest rate is referred to as -
Answer -universal life
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called - 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 - Answer -joint
A life insurance policy owner does not have the right to - 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? - Answer -Disability Income Rider
A life insurance replacement transaction could result in a/n - Answer -surrender charge
A life insurance rider that allows an individual to purchase insurance as they grow older,
regardless of insurability is called a(n) - Answer -Guaranteed Insurability Rider
A limited payment whole life policy provides - Answer -lifetime protection
A long term care policy typically provides all of the following levels of care except -
Answer -acute care
A Louisiana insurance producer solicits a life insurance policy. In the event of a
controversy between the insured and the company, the producer is considered to
represent the - Answer -company
A master contract and certificate of coverage can be found in which type of policy -
Answer -Group
A medicare supplement basic benefit is - Answer -the first 3 pints of blood a year
, A Medicare supplement plan can be cancelled by the insurer for - Answer -nonpayment
of premiums
A medicare supplement policy can be cancelled by the insurer for - Answer -
nonpayment
A Medicare Supplement Policy is - Answer -designed to fill in the gaps of Part A and
Part B Medicare
A Medicare Supplement policy's outline of coverage MUST include a(n) - Answer -
description of policy benefits
A Medicare Supplement Policy must NOT contain benefits which - Answer -duplicate
Medicare benefits
A newborn is required to be covered for ___ days from the moment of birth - Answer -
31
A nonresident producer from a state outside of Louisiana may become licensed in
Louisiana IF a(n) - Answer -reciprocal arrangement exists with the state of domicile
A payment system for health care in which the provider is paid for each service given is
called - Answer -Fee-for-service
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called a(n) - Answer -limited pay policy
A person covered with an individual health plan - Answer -is issued a policy
A person who is a nonsmoker, of average weight, and in excellent health would most
likely be in which risk category - Answer -Prefereed
A pharmacy benefit covers presctiption drugs derived from a list called a(n) - Answer -
drug formulary
A policy owner can receive a percetage payment of the death benefits prior to death by
using what kind of contract? - Answer -Viatical Settlement Agreement
A policy owner is prohibited from taking any changes to the policy without the
beneficiary's written consent - Answer -Irrevocable beneficiary
A policy owner may change two policy features on what type of life insurance. - Answer
-Adjustable life
ANSWERS
Maximum benefit refers to the - Answer -upper limit of the total lifetime benefits the
insurance company will pay
____ is NOT an element of a valid contract - Answer -Countersignature
______ life is designed to pay the balance of a loan if the insured dies before
repayment of the loan - 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. - Answer -7.50%
A beneficiary change can occur: - 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. - Answer -No federal income
tax is owed on the life insurance proceeds.
A business entity wishing to act as an insurance producer MUST - Answer -obtain a
producer's license.
A business will will typically use which type of life insurance to cover their employees? -
Answer -Group Policy
A cease and decist order - Answer -forbids a stated practice listed in the order.
A change in an insurance application requires - 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) - Answer -optional renewability clause
A comman exclusion with Vision plans is - Answer -lasik surgery
A company that is authorized by the Commissioner to transact insurance business in
Louisiana is called a(n) - Answer -authorized insurer
A dependent child may remain on a parents health insurance beyond the age of 26 if
the child - Answer -has a mental or physical handicap and remains dependent on the
parent
,A disability elimination period is best described as - Answer -time deductible
A disability income policy can prevent an insured from earning a higher income than if
he/she were working by utilizing - Answer -benefit limits
A doctor who accepts Medicare Assignment agrees to which of the following? - Answer
-Doctor cannot charge more than Medicare's scheduled coverage
A domestic insurance company in Louisiana MUST - Answer -be organized under
Louisiana insurance laws
A field underwriter's main task is - Answer -to ensure an applicant's medical information
is accurate and complete.
A foreign insurance company doing business in Louisiana - Answer -is a company that
was formed under the laws of another state.
A form of medical health insurance covering the treatment and care of gum - Answer -
Dental expense insurance
A group Disability Income plan that pays tax-free benefits to covered employees is
considered - Answer -fully contributory
A guaranteed issued insurance policy has no - Answer -medical underwriting
A health care provider claim may be settled using which of the following payment
methods? - 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) - 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 - Answer -conditionally renewable
A health insurance policy will typically cover - Answer -preventative health services
A licensed producer MUST be _____ by an insurer to be eligible for soliciting insurance
contracts - Answer -appointed
A life insurance claim which involves a per capita distribution of policy proceeds would
be payable to the - 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 - Answer -reinsurer
,A life insurance policy normally contains a provision that restricts coverage in the event
of death under all of the following situations EXCEPT - 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 - 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 - Answer -Universal life
A life insurance policy that has the premiums paid up within a select time period is
called - Answer -limited payment insurance
A life insurance policy that is subject to a contract interest rate is referred to as -
Answer -universal life
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called - 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 - Answer -joint
A life insurance policy owner does not have the right to - 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? - Answer -Disability Income Rider
A life insurance replacement transaction could result in a/n - Answer -surrender charge
A life insurance rider that allows an individual to purchase insurance as they grow older,
regardless of insurability is called a(n) - Answer -Guaranteed Insurability Rider
A limited payment whole life policy provides - Answer -lifetime protection
A long term care policy typically provides all of the following levels of care except -
Answer -acute care
A Louisiana insurance producer solicits a life insurance policy. In the event of a
controversy between the insured and the company, the producer is considered to
represent the - Answer -company
A master contract and certificate of coverage can be found in which type of policy -
Answer -Group
A medicare supplement basic benefit is - Answer -the first 3 pints of blood a year
, A Medicare supplement plan can be cancelled by the insurer for - Answer -nonpayment
of premiums
A medicare supplement policy can be cancelled by the insurer for - Answer -
nonpayment
A Medicare Supplement Policy is - Answer -designed to fill in the gaps of Part A and
Part B Medicare
A Medicare Supplement policy's outline of coverage MUST include a(n) - Answer -
description of policy benefits
A Medicare Supplement Policy must NOT contain benefits which - Answer -duplicate
Medicare benefits
A newborn is required to be covered for ___ days from the moment of birth - Answer -
31
A nonresident producer from a state outside of Louisiana may become licensed in
Louisiana IF a(n) - Answer -reciprocal arrangement exists with the state of domicile
A payment system for health care in which the provider is paid for each service given is
called - Answer -Fee-for-service
A permanent life insurance policy where the policy owner pays premiums for a specified
number of years is called a(n) - Answer -limited pay policy
A person covered with an individual health plan - Answer -is issued a policy
A person who is a nonsmoker, of average weight, and in excellent health would most
likely be in which risk category - Answer -Prefereed
A pharmacy benefit covers presctiption drugs derived from a list called a(n) - Answer -
drug formulary
A policy owner can receive a percetage payment of the death benefits prior to death by
using what kind of contract? - Answer -Viatical Settlement Agreement
A policy owner is prohibited from taking any changes to the policy without the
beneficiary's written consent - Answer -Irrevocable beneficiary
A policy owner may change two policy features on what type of life insurance. - Answer
-Adjustable life
