Louisiana Life & Health Insurance Licensing Prep
2025 – Full Question Bank with Detailed
Explanations
S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance
company did not respond to the claim. S can take legal action against the insurer beginning: -
✔✔November 1
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take
the required minimum distributions from their qualified retirement plan? - ✔✔50%
The provision in a Group Health policy that allows the insurer to postpone coverage for a
covered illness 30 days after the policy's effective date is referred to as the: - ✔✔Waiting
Period
Which of the following is considered to be the period when the accumulated value in an
annuity is payed out? - ✔✔Annuitization Phase
When a premium payment for a life-insurance policy is missed, what provision will dictate the
actions taken by the insurer? - ✔✔Grace Period Provision
,Which of the following statements does NOT accurately Describe the tax treatment of
premiums and benefits of individual Accident and Health Insurance? - ✔✔Disability income
policy premiums are tax-deductible
Which life insurance settlement option pays a stated monthly amount until the proceeds are
gone? - ✔✔Fixed Amount Option
Sexual Orientation, religious preference, and geographical location are not allowed to be used
in the underwriting process. Why is this so? - ✔✔Considered unfair discrimination
The maximum period which a group health plan may exclude benefits for pre-existing
conditions for a participant who is not a late enrollee is: - ✔✔12 months
What term is used when agents share the proceeds from the sale of policies? - ✔✔Commission
Splitting
Medicare Part A and Part B do NOT pay for: - ✔✔Dental Work
,Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees? - ✔✔Portion of the premiums
paid for by the employer may be a tax deduction
Replacement notices are required for all of the following, EXCEPT? - ✔✔Group Conversion
What is the underlying concept regarding level premiums? - ✔✔The early years are charged
more than what is needed
Making any statement, or distributing literature, which is false, or maliciously critical of, or
derogatory to the financial condition of an insurer, and which is intended to injure any person
engaged: - ✔✔Defamation
Misrepresenting an insurance policy, or making incomplete comparisons of policies, for the
purpose of inducing someone to change or replace an existing policy is an illegal practice known
as: - ✔✔Twisting
, The insurance company that shares profits or losses with its investors is called a: - ✔✔Stock
Company
If a health insurer fails to issue a premiums rate quote to an individual within 30 days after
receiving a properly completed application requesting a quote, which of the following
statements is true? - ✔✔The insurer must issue coverage to the individual and may not impose
any pre-existing conditions exclusions
The health insurance premiums paid for by each partner in a partnership is considered to be: -
✔✔100% tax deductible
Mike applied for life insurance and was issued a conditional receipt. He is later found to be
insurable and is issued a policy. When does his coverage become effective? - ✔✔Date the
conditional receipt was issued
How do benefit payments fluctuate over time in a variable life annuity? - ✔✔Depends on the
market value changes in the separate investment account
An insurable risk requires: - ✔✔That the chance of loss be calculable
2025 – Full Question Bank with Detailed
Explanations
S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance
company did not respond to the claim. S can take legal action against the insurer beginning: -
✔✔November 1
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take
the required minimum distributions from their qualified retirement plan? - ✔✔50%
The provision in a Group Health policy that allows the insurer to postpone coverage for a
covered illness 30 days after the policy's effective date is referred to as the: - ✔✔Waiting
Period
Which of the following is considered to be the period when the accumulated value in an
annuity is payed out? - ✔✔Annuitization Phase
When a premium payment for a life-insurance policy is missed, what provision will dictate the
actions taken by the insurer? - ✔✔Grace Period Provision
,Which of the following statements does NOT accurately Describe the tax treatment of
premiums and benefits of individual Accident and Health Insurance? - ✔✔Disability income
policy premiums are tax-deductible
Which life insurance settlement option pays a stated monthly amount until the proceeds are
gone? - ✔✔Fixed Amount Option
Sexual Orientation, religious preference, and geographical location are not allowed to be used
in the underwriting process. Why is this so? - ✔✔Considered unfair discrimination
The maximum period which a group health plan may exclude benefits for pre-existing
conditions for a participant who is not a late enrollee is: - ✔✔12 months
What term is used when agents share the proceeds from the sale of policies? - ✔✔Commission
Splitting
Medicare Part A and Part B do NOT pay for: - ✔✔Dental Work
,Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees? - ✔✔Portion of the premiums
paid for by the employer may be a tax deduction
Replacement notices are required for all of the following, EXCEPT? - ✔✔Group Conversion
What is the underlying concept regarding level premiums? - ✔✔The early years are charged
more than what is needed
Making any statement, or distributing literature, which is false, or maliciously critical of, or
derogatory to the financial condition of an insurer, and which is intended to injure any person
engaged: - ✔✔Defamation
Misrepresenting an insurance policy, or making incomplete comparisons of policies, for the
purpose of inducing someone to change or replace an existing policy is an illegal practice known
as: - ✔✔Twisting
, The insurance company that shares profits or losses with its investors is called a: - ✔✔Stock
Company
If a health insurer fails to issue a premiums rate quote to an individual within 30 days after
receiving a properly completed application requesting a quote, which of the following
statements is true? - ✔✔The insurer must issue coverage to the individual and may not impose
any pre-existing conditions exclusions
The health insurance premiums paid for by each partner in a partnership is considered to be: -
✔✔100% tax deductible
Mike applied for life insurance and was issued a conditional receipt. He is later found to be
insurable and is issued a policy. When does his coverage become effective? - ✔✔Date the
conditional receipt was issued
How do benefit payments fluctuate over time in a variable life annuity? - ✔✔Depends on the
market value changes in the separate investment account
An insurable risk requires: - ✔✔That the chance of loss be calculable
