LA SERIES 103 FINAL PAPER 2025/2026 QUESTIONS AND
ANSWERS RATED A+
✔✔A health insurance policy that allows an insurer to change the policyowners
premiums, but NOT cancel the policy is called a(n) - ✔✔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 - ✔✔conditionally renewable
✔✔A health insurance policy will typically cover - ✔✔preventative health services
✔✔A licensed producer MUST be _____ by an insurer to be eligible for soliciting
insurance contracts - ✔✔appointed
✔✔A life insurance claim which involves a per capita distribution of policy proceeds
would be payable to the - ✔✔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 - ✔✔reinsurer
✔✔A life insurance policy normally contains a provision that restricts coverage in the
event of death under all fo the following situations EXCEPT - ✔✔fare-paying passenger
✔✔A life insurance policy sold in Louisiana can be contested by the insurer only during
the first __ years of the contract. - ✔✔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 - ✔✔Universal life
✔✔A life insurance policy that has premiums paid up within a select time period is
called - ✔✔limited payment insurance
✔✔A life insurance policy that is subject to a contract interest rate is referred to as -
✔✔universal life
✔✔A life insurance policy which contains cash values that vary according to its
investment performance of stocks is called - ✔✔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 - ✔✔joint
,✔✔A life insurance policyowner does NOT have the right to - ✔✔revoke an absolute
assignment
✔✔A life insurance policyowner 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? - ✔✔Disability Income Rider
✔✔A life insurance replacement transaction could result in a/n - ✔✔surrender charge
✔✔A life insurance rider that allows an individual to purchase insurance as they grow
older, regardless of insurability, is called a(n) - ✔✔Guaranteed insurability rider
✔✔A limited payment whole life policy provides - ✔✔lifetime protection
✔✔A long term care policy typically provides all of the following levels of care except -
✔✔acute care
✔✔A Louisiana insurance producer solicits a life insurance policy. In the even of a
controversry between the insured and the company, the producer is considered to
represent the - ✔✔company
✔✔A master contract and certificate of coverage can be found in which type of policy? -
✔✔Group
✔✔A medicare supplement basic benefit is - ✔✔the first 3 pints of blood per year
✔✔A Medicare supplement plan can be canceled by the insurer - ✔✔for nonpayment of
premiums
✔✔A medicare supplement policy can be cancelled by the insurer for - ✔✔nonpayment
✔✔A Medicare Supplement Policy is - ✔✔designed to fill in the gaps of Part A and Part
B Medicare
✔✔A Medicare Supplement Policy must NOT contain benefits which - ✔✔duplicate
Medicare benefits
✔✔A medicare Supplement policy's outline of coverage MUST include a(n) -
✔✔description of policy benefits
✔✔A newborn is required to be covered for __ days from the moment of birth. - ✔✔31
,✔✔A nonresident producer from a state outsideo f Louisiana may become licensed in
Louisiana IF a(n) - ✔✔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? - ✔✔Fee-for-service
✔✔A permanent life insurance policy where the policyowner pays premiums for a
specified number of years is called a(n) - ✔✔limited pay policy
✔✔A person covered with an individual health plan - ✔✔is issued a policy
✔✔A person who is a nonsmoker, of average weight, and in excellent health would
most likely be in which risk classification? - ✔✔Preferred
✔✔A pharmacy benefit covers prescription drugs derived from a list called a(n) -
✔✔drug formulary
✔✔A policyowner can receive a percentage payment of the death benefits prior to death
by using what kind of contract? - ✔✔Viatical settlement agreement
✔✔A policyowner is prohibited from kaing any changes to the policy without the
beneficiary's written consent under which beneficiary designation? - ✔✔Irevocable
beneficiary
✔✔A policyowner may change two policy features on what type of life insurance? -
✔✔Adjustable life
✔✔A policyowner may exercise which of these dividend options that uses the dividend
to pay all or part of the next premium due? - ✔✔reduction of premium dividend option
✔✔A policyowner suffers an injury that renders him incapable of performing one or
more important job duties. Any decreas in income resulting form this injury would make
him eligible for benefits under which provision? - ✔✔partial disability
✔✔A policyowner who anticipates death or develops a life-threatening condition may
obtain proceeds from a life insurance contract. These proceeds are known as -
✔✔accelerated benefits
✔✔A preexisting condition is a condition for which medical advice or treatment was
recocmmended by or received from a provider of health care service with __months
preceding a health policy's efffective date. - ✔✔six
, ✔✔A producer license is NOT required when - ✔✔underwriting insurance
✔✔A producer must notify the Commissioner within __ days of a felony conviction. -
✔✔30
✔✔A producer who sells most of his/her insurance policies to family members is said to
be engaging in - ✔✔controlled business
✔✔A professional liability for which producers can be sued for mistakes for putting a
policy into effect is called - ✔✔Errors and Ommissions
✔✔A proposed insured for a health insurance policy was treated for heart disease
within the past year. When applying for health insurance, the heart disease treatment -
✔✔indicates a preexisting condition
✔✔A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - ✔✔nonforfeiture
provision
✔✔A provision that allows a policyowner to temporarily give up ownership rights to
secure a loan is called a(n) - ✔✔collateral assignment
✔✔A provision that allows a policyowner to withdraw a policy's cash value interest free
is a(n) - ✔✔partial surrender
✔✔A rehabilitation benefit is intended to - ✔✔prepare the insurer to return to
employment
✔✔A renewable Term Life Insurance policy allows the policyowner the right to renew
the policy - ✔✔without producing proof of insurability
✔✔A renewable Term Life Insurance policy can be renewed - ✔✔at a predetermined
date or age regardless of the insured's health
✔✔A rider that assures premiums will be paid on a juvenile policy until the child reaches
a specific age is called a(n) - ✔✔payor rider
✔✔A rollover from a Traditional IRA to another IRA must be done within __ days to
avoid tax consequences - ✔✔60
✔✔A Roth IRA owner must be at least what age in order t omake tax-free withdrawals?
- ✔✔59 1/2 and owned account for a minimum of 5 years
ANSWERS RATED A+
✔✔A health insurance policy that allows an insurer to change the policyowners
premiums, but NOT cancel the policy is called a(n) - ✔✔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 - ✔✔conditionally renewable
✔✔A health insurance policy will typically cover - ✔✔preventative health services
✔✔A licensed producer MUST be _____ by an insurer to be eligible for soliciting
insurance contracts - ✔✔appointed
✔✔A life insurance claim which involves a per capita distribution of policy proceeds
would be payable to the - ✔✔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 - ✔✔reinsurer
✔✔A life insurance policy normally contains a provision that restricts coverage in the
event of death under all fo the following situations EXCEPT - ✔✔fare-paying passenger
✔✔A life insurance policy sold in Louisiana can be contested by the insurer only during
the first __ years of the contract. - ✔✔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 - ✔✔Universal life
✔✔A life insurance policy that has premiums paid up within a select time period is
called - ✔✔limited payment insurance
✔✔A life insurance policy that is subject to a contract interest rate is referred to as -
✔✔universal life
✔✔A life insurance policy which contains cash values that vary according to its
investment performance of stocks is called - ✔✔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 - ✔✔joint
,✔✔A life insurance policyowner does NOT have the right to - ✔✔revoke an absolute
assignment
✔✔A life insurance policyowner 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? - ✔✔Disability Income Rider
✔✔A life insurance replacement transaction could result in a/n - ✔✔surrender charge
✔✔A life insurance rider that allows an individual to purchase insurance as they grow
older, regardless of insurability, is called a(n) - ✔✔Guaranteed insurability rider
✔✔A limited payment whole life policy provides - ✔✔lifetime protection
✔✔A long term care policy typically provides all of the following levels of care except -
✔✔acute care
✔✔A Louisiana insurance producer solicits a life insurance policy. In the even of a
controversry between the insured and the company, the producer is considered to
represent the - ✔✔company
✔✔A master contract and certificate of coverage can be found in which type of policy? -
✔✔Group
✔✔A medicare supplement basic benefit is - ✔✔the first 3 pints of blood per year
✔✔A Medicare supplement plan can be canceled by the insurer - ✔✔for nonpayment of
premiums
✔✔A medicare supplement policy can be cancelled by the insurer for - ✔✔nonpayment
✔✔A Medicare Supplement Policy is - ✔✔designed to fill in the gaps of Part A and Part
B Medicare
✔✔A Medicare Supplement Policy must NOT contain benefits which - ✔✔duplicate
Medicare benefits
✔✔A medicare Supplement policy's outline of coverage MUST include a(n) -
✔✔description of policy benefits
✔✔A newborn is required to be covered for __ days from the moment of birth. - ✔✔31
,✔✔A nonresident producer from a state outsideo f Louisiana may become licensed in
Louisiana IF a(n) - ✔✔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? - ✔✔Fee-for-service
✔✔A permanent life insurance policy where the policyowner pays premiums for a
specified number of years is called a(n) - ✔✔limited pay policy
✔✔A person covered with an individual health plan - ✔✔is issued a policy
✔✔A person who is a nonsmoker, of average weight, and in excellent health would
most likely be in which risk classification? - ✔✔Preferred
✔✔A pharmacy benefit covers prescription drugs derived from a list called a(n) -
✔✔drug formulary
✔✔A policyowner can receive a percentage payment of the death benefits prior to death
by using what kind of contract? - ✔✔Viatical settlement agreement
✔✔A policyowner is prohibited from kaing any changes to the policy without the
beneficiary's written consent under which beneficiary designation? - ✔✔Irevocable
beneficiary
✔✔A policyowner may change two policy features on what type of life insurance? -
✔✔Adjustable life
✔✔A policyowner may exercise which of these dividend options that uses the dividend
to pay all or part of the next premium due? - ✔✔reduction of premium dividend option
✔✔A policyowner suffers an injury that renders him incapable of performing one or
more important job duties. Any decreas in income resulting form this injury would make
him eligible for benefits under which provision? - ✔✔partial disability
✔✔A policyowner who anticipates death or develops a life-threatening condition may
obtain proceeds from a life insurance contract. These proceeds are known as -
✔✔accelerated benefits
✔✔A preexisting condition is a condition for which medical advice or treatment was
recocmmended by or received from a provider of health care service with __months
preceding a health policy's efffective date. - ✔✔six
, ✔✔A producer license is NOT required when - ✔✔underwriting insurance
✔✔A producer must notify the Commissioner within __ days of a felony conviction. -
✔✔30
✔✔A producer who sells most of his/her insurance policies to family members is said to
be engaging in - ✔✔controlled business
✔✔A professional liability for which producers can be sued for mistakes for putting a
policy into effect is called - ✔✔Errors and Ommissions
✔✔A proposed insured for a health insurance policy was treated for heart disease
within the past year. When applying for health insurance, the heart disease treatment -
✔✔indicates a preexisting condition
✔✔A provision in a whole life policy that allows a policyowner to terminate the policy in
return for a reduced paid-up policy of the same type is called a(n) - ✔✔nonforfeiture
provision
✔✔A provision that allows a policyowner to temporarily give up ownership rights to
secure a loan is called a(n) - ✔✔collateral assignment
✔✔A provision that allows a policyowner to withdraw a policy's cash value interest free
is a(n) - ✔✔partial surrender
✔✔A rehabilitation benefit is intended to - ✔✔prepare the insurer to return to
employment
✔✔A renewable Term Life Insurance policy allows the policyowner the right to renew
the policy - ✔✔without producing proof of insurability
✔✔A renewable Term Life Insurance policy can be renewed - ✔✔at a predetermined
date or age regardless of the insured's health
✔✔A rider that assures premiums will be paid on a juvenile policy until the child reaches
a specific age is called a(n) - ✔✔payor rider
✔✔A rollover from a Traditional IRA to another IRA must be done within __ days to
avoid tax consequences - ✔✔60
✔✔A Roth IRA owner must be at least what age in order t omake tax-free withdrawals?
- ✔✔59 1/2 and owned account for a minimum of 5 years
