LA SERIES 103 STUDY GUIDE 2025/2026 QUESTIONS AND
ANSWERS RATED A+
✔✔Which of the following must be given to the insurer within 20 days after occurrence
or commencement of any loss covered by the policy, or as soon thereafter as is
reasonably possible? - ✔✔Notice of claim
✔✔Which of the following is TRUE for a flexible premium annuity? - ✔✔The purchaser
has the option to vary the amount of each premium payment falling between a minimum
and maximum amount.
✔✔1. What type of insurance should a company purchase if it wants to insure the life of
its CEO? - ✔✔Key person insurance
✔✔Which is a disadvantage to a flexible premium annuity? - ✔✔The actual amount of
the annuity benefit cannot be determined in advance
✔✔During which period of a Disability Income Policy is coverage effective but during
which no benefits will be paid under the policy? - ✔✔Probationary period
✔✔Short term disability insurance generally only covers injuries due to which of the
following? - ✔✔Non-occupational injuries
✔✔How are term riders used? - ✔✔To purchase insurance on a family member of the
originally insured
✔✔Current assumption whole life policies are sensitive to which of the following? -
✔✔Interest rates
✔✔Compared to basic hospital, medical and surgical policies, which type of insurance
provides broader coverage, fewer gaps, higher individual benefits, and higher policy
maximums? - ✔✔Major medical insurance
✔✔Which of the following is TRUE regarding assignment rights for irrevocable
beneficiaries? - ✔✔They are MORE likely to receive a loan based on the expectations
of the proceeds.
✔✔Which of the following amends the Social Security Act to make Medicare secondary
to group health plans? - ✔✔TEFRA
✔✔All of the following are requirements to qualify for Social Security disability benefits
EXCEPT when - ✔✔Unable to work in occupation in which the worker was trained or
educated.
, ✔✔What is the purpose of Stranger-originated life insurance (STOLI)? - ✔✔The policy
is originated primarily or solely for the purpose of resale
✔✔In order for an insurer to increase the premium on a noncancelable policy, which of
the following MUST be true? - ✔✔The premium increase must be in the contract at the
time it is issued.
✔✔Which of the following is TRUE of a point of service plan? - ✔✔A patient's care is
coordinated by an in-network primary care physician.
✔✔If the insurer wishes to share an applicant's HIV status, the applicant must be given
full notice of all of the following EXCEPT - ✔✔The treatment procedures that are
covered by the policy.
✔✔Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - ✔✔Binding receipt
✔✔How long after being entitled to disability benefits will an individual be eligible to
receive Medicare benefits? - ✔✔2 years
✔✔What specific new procedures does the USA Patriot Act require of insurance
companies? - ✔✔Establish an anti-money laundering program
✔✔Which problem was universal life insurance designed to address? - ✔✔Low interest
rates during periods of high inflation
✔✔All of the following are characteristics of COBRA EXCEPT - ✔✔Change in medical
privacy procedures.
✔✔Which one of the following represents an advantage of obtaining a policy loan vesus
a withdrawal? - ✔✔The loan is not taxed while a withdrawal is taxed for amounts above
the contract cost basis
✔✔In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - ✔✔The individual's policy
pays first, the spouse's policy pays the remaining up to coverage amount.
✔✔Which of the following policy types is considered double indemnity? - ✔✔Accidental
death
✔✔Which of the following is defined as the dollar amount beyond which the insured no
longer participates in payment of medical expenses? - ✔✔Stop Loss Limit
ANSWERS RATED A+
✔✔Which of the following must be given to the insurer within 20 days after occurrence
or commencement of any loss covered by the policy, or as soon thereafter as is
reasonably possible? - ✔✔Notice of claim
✔✔Which of the following is TRUE for a flexible premium annuity? - ✔✔The purchaser
has the option to vary the amount of each premium payment falling between a minimum
and maximum amount.
✔✔1. What type of insurance should a company purchase if it wants to insure the life of
its CEO? - ✔✔Key person insurance
✔✔Which is a disadvantage to a flexible premium annuity? - ✔✔The actual amount of
the annuity benefit cannot be determined in advance
✔✔During which period of a Disability Income Policy is coverage effective but during
which no benefits will be paid under the policy? - ✔✔Probationary period
✔✔Short term disability insurance generally only covers injuries due to which of the
following? - ✔✔Non-occupational injuries
✔✔How are term riders used? - ✔✔To purchase insurance on a family member of the
originally insured
✔✔Current assumption whole life policies are sensitive to which of the following? -
✔✔Interest rates
✔✔Compared to basic hospital, medical and surgical policies, which type of insurance
provides broader coverage, fewer gaps, higher individual benefits, and higher policy
maximums? - ✔✔Major medical insurance
✔✔Which of the following is TRUE regarding assignment rights for irrevocable
beneficiaries? - ✔✔They are MORE likely to receive a loan based on the expectations
of the proceeds.
✔✔Which of the following amends the Social Security Act to make Medicare secondary
to group health plans? - ✔✔TEFRA
✔✔All of the following are requirements to qualify for Social Security disability benefits
EXCEPT when - ✔✔Unable to work in occupation in which the worker was trained or
educated.
, ✔✔What is the purpose of Stranger-originated life insurance (STOLI)? - ✔✔The policy
is originated primarily or solely for the purpose of resale
✔✔In order for an insurer to increase the premium on a noncancelable policy, which of
the following MUST be true? - ✔✔The premium increase must be in the contract at the
time it is issued.
✔✔Which of the following is TRUE of a point of service plan? - ✔✔A patient's care is
coordinated by an in-network primary care physician.
✔✔If the insurer wishes to share an applicant's HIV status, the applicant must be given
full notice of all of the following EXCEPT - ✔✔The treatment procedures that are
covered by the policy.
✔✔Which type of receipt makes the insurer liable for the risk from the date of
application, regardless of the applicant's insurability? - ✔✔Binding receipt
✔✔How long after being entitled to disability benefits will an individual be eligible to
receive Medicare benefits? - ✔✔2 years
✔✔What specific new procedures does the USA Patriot Act require of insurance
companies? - ✔✔Establish an anti-money laundering program
✔✔Which problem was universal life insurance designed to address? - ✔✔Low interest
rates during periods of high inflation
✔✔All of the following are characteristics of COBRA EXCEPT - ✔✔Change in medical
privacy procedures.
✔✔Which one of the following represents an advantage of obtaining a policy loan vesus
a withdrawal? - ✔✔The loan is not taxed while a withdrawal is taxed for amounts above
the contract cost basis
✔✔In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - ✔✔The individual's policy
pays first, the spouse's policy pays the remaining up to coverage amount.
✔✔Which of the following policy types is considered double indemnity? - ✔✔Accidental
death
✔✔Which of the following is defined as the dollar amount beyond which the insured no
longer participates in payment of medical expenses? - ✔✔Stop Loss Limit
