Louisiana Life, Accident and Health Practice Exam
Questions With Complete Solutions
________ is the legal process used to stop someone from trying
to get a right or privilege back that they have already waived.
Correct Answers Estoppel
___________ are quite popular and allow employees to decrease
their taxable wages by moving income to the plan before it is
taxed as income, and in some cases, the money may be matched
on some level by the employer on a regular, systematic basis.
Correct Answers 401(k)'s
____________ is a common exclusion from coverage that is
listed on a health insurance policy. Correct Answers War or act
of war
_____________ - when a producer influences a consumer to
replace a present policy with a different one. This is only
acceptable if the producer gave the consumer better coverage or
a better deal. Correct Answers Twisting
_____________ benefit - this replaces income in direct
proportion to the income loss due to the total disability the
person experienced. Correct Answers Residual disability
_______________ - groups of employers that join together to
share the risk of self-insurance. Correct Answers Multiple-
Employer Welfare Arrangements (MEWAs)
,________________ - allows for terminated employees and/or
their families to keep their coverage after qualifying events:
resignation, downsizing, or layoff (if fired for misconduct, a
person is ineligible), status change from full to part time.
Correct Answers COBRA
________________ - to protect the insurer from adverse
selection, they may decline certain risks, rate some persons
higher than others due to risks, or exclude certain coverages.
Correct Answers Policy issuance alternatives
________________ policies cover disabilities resulting from
events off the job only, and expect the disabilities that occur on
the job to be covered by available Workers Compensation.
Correct Answers Non-occupational
____________________ - preventative services would be on a
usual, customary pay basis and other services would be a paid
fee-for-service. Correct Answers Combination Plans
____________________ - tax-sheltered annuities (TSAs) - also
called tax-deferred annuities (TDAs), are specifically structured
for non-profit organizations and schools under the rules set forth
by the IRS code section 501(c)(3) with the same contribution
maximum and 'catch up' allowances as 401(k)'s. Correct
Answers 403(b)
________________________ - are attached to a high deductible
health plan that employers contribute to for their employees so
that they may use the funds for IRS approved medical expenses.
Correct Answers MSA's
,___________________________ states that anyone working in
insurance that affects interstate commerce must receive written
authority to work in insurance from a regulatory -
Commissioner, Deputy Commissioner, etc. Correct Answers
The Violent Crime Control and Law Enforcement Act of 1994
__________________, IRA's for smaller operations with a
limited amount of employees, according to the current year rules
from the IRS. The employee opens an account and the employer
contributes up to 25% of their income or $49,000.00 for the
year, whichever is less. Correct Answers Simplified employee
pension (SEPs)
________________, a self-employed person or a partner with
10% or more interest in the business can contribute to this type
of plan up to all of their earned income or $49,000, whichever is
less, and the contribution is tax deductible. Correct Answers
HR/10 or Keogh plan
"The inability to perform the duties of any occupation for which
one is suited by reason of education, training, experience, or
prior economic status." This is definition of total disability in a
disability income policy is considered: Correct Answers 1. An
"any occupation" definition / more restrictive
may not pay benefits (less expensive)
3 channels of insurance business Correct Answers federal
regulation
state regulation
self-regulation
, 3 types of insurers Correct Answers private commercial
private noncommercial
US government
A 35 year old insureds five year level term policy will probably
renew to a Correct Answers 5 Year level term with age 40
Limit
A basic vision care package includes all of the following except
safety glasses Correct Answers Safety glasses
A basic vision care package includes all of the following
EXCEPT? Correct Answers Safety glasses
A beneficiary has just received a claim payment for a life
insurance policy. Which of the following is TRUE regarding the
federal income tax liability owed? Correct Answers No federal
income tax is owed on life insurance proceeds
A cease and desist order issued against a producer Correct
Answers Prohibits a specific practice listed in the order
A consumer report used to determine eligibility for insurance
may include all of the following except? Correct Answers
Medical underwriting exam
A consumer report used to determine eligibility for insurance
may include all of the following EXCEPT? Correct Answers
Medical Underwriting exam
Questions With Complete Solutions
________ is the legal process used to stop someone from trying
to get a right or privilege back that they have already waived.
Correct Answers Estoppel
___________ are quite popular and allow employees to decrease
their taxable wages by moving income to the plan before it is
taxed as income, and in some cases, the money may be matched
on some level by the employer on a regular, systematic basis.
Correct Answers 401(k)'s
____________ is a common exclusion from coverage that is
listed on a health insurance policy. Correct Answers War or act
of war
_____________ - when a producer influences a consumer to
replace a present policy with a different one. This is only
acceptable if the producer gave the consumer better coverage or
a better deal. Correct Answers Twisting
_____________ benefit - this replaces income in direct
proportion to the income loss due to the total disability the
person experienced. Correct Answers Residual disability
_______________ - groups of employers that join together to
share the risk of self-insurance. Correct Answers Multiple-
Employer Welfare Arrangements (MEWAs)
,________________ - allows for terminated employees and/or
their families to keep their coverage after qualifying events:
resignation, downsizing, or layoff (if fired for misconduct, a
person is ineligible), status change from full to part time.
Correct Answers COBRA
________________ - to protect the insurer from adverse
selection, they may decline certain risks, rate some persons
higher than others due to risks, or exclude certain coverages.
Correct Answers Policy issuance alternatives
________________ policies cover disabilities resulting from
events off the job only, and expect the disabilities that occur on
the job to be covered by available Workers Compensation.
Correct Answers Non-occupational
____________________ - preventative services would be on a
usual, customary pay basis and other services would be a paid
fee-for-service. Correct Answers Combination Plans
____________________ - tax-sheltered annuities (TSAs) - also
called tax-deferred annuities (TDAs), are specifically structured
for non-profit organizations and schools under the rules set forth
by the IRS code section 501(c)(3) with the same contribution
maximum and 'catch up' allowances as 401(k)'s. Correct
Answers 403(b)
________________________ - are attached to a high deductible
health plan that employers contribute to for their employees so
that they may use the funds for IRS approved medical expenses.
Correct Answers MSA's
,___________________________ states that anyone working in
insurance that affects interstate commerce must receive written
authority to work in insurance from a regulatory -
Commissioner, Deputy Commissioner, etc. Correct Answers
The Violent Crime Control and Law Enforcement Act of 1994
__________________, IRA's for smaller operations with a
limited amount of employees, according to the current year rules
from the IRS. The employee opens an account and the employer
contributes up to 25% of their income or $49,000.00 for the
year, whichever is less. Correct Answers Simplified employee
pension (SEPs)
________________, a self-employed person or a partner with
10% or more interest in the business can contribute to this type
of plan up to all of their earned income or $49,000, whichever is
less, and the contribution is tax deductible. Correct Answers
HR/10 or Keogh plan
"The inability to perform the duties of any occupation for which
one is suited by reason of education, training, experience, or
prior economic status." This is definition of total disability in a
disability income policy is considered: Correct Answers 1. An
"any occupation" definition / more restrictive
may not pay benefits (less expensive)
3 channels of insurance business Correct Answers federal
regulation
state regulation
self-regulation
, 3 types of insurers Correct Answers private commercial
private noncommercial
US government
A 35 year old insureds five year level term policy will probably
renew to a Correct Answers 5 Year level term with age 40
Limit
A basic vision care package includes all of the following except
safety glasses Correct Answers Safety glasses
A basic vision care package includes all of the following
EXCEPT? Correct Answers Safety glasses
A beneficiary has just received a claim payment for a life
insurance policy. Which of the following is TRUE regarding the
federal income tax liability owed? Correct Answers No federal
income tax is owed on life insurance proceeds
A cease and desist order issued against a producer Correct
Answers Prohibits a specific practice listed in the order
A consumer report used to determine eligibility for insurance
may include all of the following except? Correct Answers
Medical underwriting exam
A consumer report used to determine eligibility for insurance
may include all of the following EXCEPT? Correct Answers
Medical Underwriting exam
