Louisiana Life, Health, and Accident Insurance Exam (With
Rationales)
!@#$%%%%%
An agent is completing an application for a long-term care policy. The agent is required to do all
of the following EXCEPT %%%%%%
(Choose from the following options)
1. Warn the applicant about the 10-day free-look period.
2. Make sure the policy is appropriate for the applicant's needs.
3. Provide the applicant with the Outline of Coverage.
4. Ask where the applicant has another LTC policy in force. - (ANSWERS)Warn the applicant
about the 10-day free-look period.
An insured has an Accidental Death & Dismemberment policy with a principal value of $50,000.
He loses sight in both eyes in a hunting accident. How much will he receive?
(Choose from the following options)
1. $25,000
2. $0
3. $50,000
4. $100,000 - (ANSWERS)$50,000
The policy will usually pay the principal amount for the loss of both eyes, or two or more limbs.
At what age may an individual make withdrawals from an HSA for nonhealth purposes without
being penalized?
(Choose from the following options)
1. 55
2. 59 1/2
3. 62
4. 65 - (ANSWERS)65
After age 65, a withdrawal from an HSA used for a nonhealth purposes will be without a penalty,
although taxed.
Which of the following is NOT true regarding uniform mandatory provisions concerning claims?
(Choose from the following options)
1. If the insured is 2 years late in filing a proof of loss, the claim can be denied.
2. An insured must notify the insurer of a claim on forms prescribed by the insurer.
,Louisiana Life, Health, and Accident Insurance Exam (With
Rationales)
3. If the insured is several days late in filing proof of loss form, the claim cannot!@#$%%%%%
be denied if the
insured can show good cause. %%%%%%
4. The insured is customarily required to give notice of claim within 20 days. - (ANSWERS)An
insured must notify the insurer of a claim on forms prescribed by the insurer.
If forms are not furnished, written proof of the occurrence, nature of the loss, and extent of loss
must be submitted to the insurer.
The provision in a health insurance policy that ensures that the insurer cannot refer to any
document that is not contained in the contract is the
(Choose from the following options)
1. Time limit on certain defenses clause.
2. Incontestability clause.
3. Legal action against us clause.
4. Entire contract clause. - (ANSWERS)Entire contract clause.
Entire contract is a mandatory provision that is required by law.
The amount of disability benefits that an insured receives often depends upon the insured's
(Choose from the following options)
1. Income at the time of the application.
2. Marital status at the time of the application.
3. Number of children at the time of the application.
4. Medical history at the time of the application. - (ANSWERS)Income at the time of the
application.
A producer has been notified by the Commissioner to stop using an unapproved trade name.
How many days does the producer have to change the trade name before facing a fine?
(Choose from the following options)
1. 30 days
2. The name must be changed immediately.
3. 5 business days
4. 10 days - (ANSWERS)10 days
A producer who continues to use a unapproved trade name for 10 or more days after being
notified will face a fine of up to $5,000.
,Louisiana Life, Health, and Accident Insurance Exam (With
Rationales)
!@#$%%%%%
%%%%%%
What was created to keep telemarketers from calling consumers who do not wish contacted?
(Choose from the following options)
1. Call Control Registry
2. National Do Not Call Registry
3. Confidential No Call Act
4. Freedom of Information Act - (ANSWERS)National Do Not Call Registry
The National Do Not Call Registry was created to allow consumers the choice to not be
contacted by telemarketers
Regarding long-term care policies, which of the following would NOT be included in activities of
daily living?
(Choose from the following options)
1. Eating
2. Sleeping
3. Bathing
4. Dressing - (ANSWERS)Sleeping
Normally to be eligible for benefits from a long-term care policy, the insured must be unable to
perform some of their activities of daily living (adls). Adls include bathing, dressing, toileting,
transferring (or mobility), continence, and eating.
Which of the following is true regarding a single life settlement option?
(Choose from the following options)
1. Payments continue until the entire principal is exhausted.
2. Proceeds are paid out in a lump sum.
3. It provides income for a specified period of time.
4. It provides income the beneficiary cannot outlive. - (ANSWERS)It provides income the
beneficiary cannot outlive.
The Single Life Option can provide a single beneficiary income for the rest of his/her life. Upon
the death of the beneficiary, the payments stop.
Which of the following reports will provide the underwriter with the information about an
insurance applicant's credit?
, Louisiana Life, Health, and Accident Insurance Exam (With
Rationales)
!@#$%%%%%
%%%%%%
(Choose from the following options)
1. Inspection report
2. Agent's report
3. Any federal report
4. Consumer report - (ANSWERS)Consumer report
Consumer reports include written and/or oral information regarding a consumer's credit,
character, reputation, or habits collected by a reporting agency from employment records,
credit reports, and other public sources
An insurance company forwards fixed annuity premiums to their general account, where the
money is invested. The guaranteed minimum interest is set at 3%. During an economic
downswing, the investments only drew 2.5%. What interest rate will the insurer pay to its
policyholders?
(Choose from the following options)
1. 3% this payment. The overpayment this time will be subtracted from the next time the rate
exceeds 3%.
2. 3% regardless of what the investment draws since that's the guaranteed rate
3. 2.5%
4. 3% - (ANSWERS)3%
Insurance companies promise guaranteed minimums on the fixed annuities (3% in this
scenario). This means that if the investments draw less than 3%, the company will have to pay
3% anyway. If the investments earn over 3%, the company will pay that excess.
In long-term care (LTC) policies, as the benefit period lengthens, the premium
(Choose from the following options)
1. LTC premiums are not based on benefit periods.
2. Decreases.
3. Increases.
4. Remains unchanged. - (ANSWERS)Increases.
LTC policies define the benefit period for how long coverage applies, after the elimination
period. The longer the benefit period, the higher the premium will be.
Rationales)
!@#$%%%%%
An agent is completing an application for a long-term care policy. The agent is required to do all
of the following EXCEPT %%%%%%
(Choose from the following options)
1. Warn the applicant about the 10-day free-look period.
2. Make sure the policy is appropriate for the applicant's needs.
3. Provide the applicant with the Outline of Coverage.
4. Ask where the applicant has another LTC policy in force. - (ANSWERS)Warn the applicant
about the 10-day free-look period.
An insured has an Accidental Death & Dismemberment policy with a principal value of $50,000.
He loses sight in both eyes in a hunting accident. How much will he receive?
(Choose from the following options)
1. $25,000
2. $0
3. $50,000
4. $100,000 - (ANSWERS)$50,000
The policy will usually pay the principal amount for the loss of both eyes, or two or more limbs.
At what age may an individual make withdrawals from an HSA for nonhealth purposes without
being penalized?
(Choose from the following options)
1. 55
2. 59 1/2
3. 62
4. 65 - (ANSWERS)65
After age 65, a withdrawal from an HSA used for a nonhealth purposes will be without a penalty,
although taxed.
Which of the following is NOT true regarding uniform mandatory provisions concerning claims?
(Choose from the following options)
1. If the insured is 2 years late in filing a proof of loss, the claim can be denied.
2. An insured must notify the insurer of a claim on forms prescribed by the insurer.
,Louisiana Life, Health, and Accident Insurance Exam (With
Rationales)
3. If the insured is several days late in filing proof of loss form, the claim cannot!@#$%%%%%
be denied if the
insured can show good cause. %%%%%%
4. The insured is customarily required to give notice of claim within 20 days. - (ANSWERS)An
insured must notify the insurer of a claim on forms prescribed by the insurer.
If forms are not furnished, written proof of the occurrence, nature of the loss, and extent of loss
must be submitted to the insurer.
The provision in a health insurance policy that ensures that the insurer cannot refer to any
document that is not contained in the contract is the
(Choose from the following options)
1. Time limit on certain defenses clause.
2. Incontestability clause.
3. Legal action against us clause.
4. Entire contract clause. - (ANSWERS)Entire contract clause.
Entire contract is a mandatory provision that is required by law.
The amount of disability benefits that an insured receives often depends upon the insured's
(Choose from the following options)
1. Income at the time of the application.
2. Marital status at the time of the application.
3. Number of children at the time of the application.
4. Medical history at the time of the application. - (ANSWERS)Income at the time of the
application.
A producer has been notified by the Commissioner to stop using an unapproved trade name.
How many days does the producer have to change the trade name before facing a fine?
(Choose from the following options)
1. 30 days
2. The name must be changed immediately.
3. 5 business days
4. 10 days - (ANSWERS)10 days
A producer who continues to use a unapproved trade name for 10 or more days after being
notified will face a fine of up to $5,000.
,Louisiana Life, Health, and Accident Insurance Exam (With
Rationales)
!@#$%%%%%
%%%%%%
What was created to keep telemarketers from calling consumers who do not wish contacted?
(Choose from the following options)
1. Call Control Registry
2. National Do Not Call Registry
3. Confidential No Call Act
4. Freedom of Information Act - (ANSWERS)National Do Not Call Registry
The National Do Not Call Registry was created to allow consumers the choice to not be
contacted by telemarketers
Regarding long-term care policies, which of the following would NOT be included in activities of
daily living?
(Choose from the following options)
1. Eating
2. Sleeping
3. Bathing
4. Dressing - (ANSWERS)Sleeping
Normally to be eligible for benefits from a long-term care policy, the insured must be unable to
perform some of their activities of daily living (adls). Adls include bathing, dressing, toileting,
transferring (or mobility), continence, and eating.
Which of the following is true regarding a single life settlement option?
(Choose from the following options)
1. Payments continue until the entire principal is exhausted.
2. Proceeds are paid out in a lump sum.
3. It provides income for a specified period of time.
4. It provides income the beneficiary cannot outlive. - (ANSWERS)It provides income the
beneficiary cannot outlive.
The Single Life Option can provide a single beneficiary income for the rest of his/her life. Upon
the death of the beneficiary, the payments stop.
Which of the following reports will provide the underwriter with the information about an
insurance applicant's credit?
, Louisiana Life, Health, and Accident Insurance Exam (With
Rationales)
!@#$%%%%%
%%%%%%
(Choose from the following options)
1. Inspection report
2. Agent's report
3. Any federal report
4. Consumer report - (ANSWERS)Consumer report
Consumer reports include written and/or oral information regarding a consumer's credit,
character, reputation, or habits collected by a reporting agency from employment records,
credit reports, and other public sources
An insurance company forwards fixed annuity premiums to their general account, where the
money is invested. The guaranteed minimum interest is set at 3%. During an economic
downswing, the investments only drew 2.5%. What interest rate will the insurer pay to its
policyholders?
(Choose from the following options)
1. 3% this payment. The overpayment this time will be subtracted from the next time the rate
exceeds 3%.
2. 3% regardless of what the investment draws since that's the guaranteed rate
3. 2.5%
4. 3% - (ANSWERS)3%
Insurance companies promise guaranteed minimums on the fixed annuities (3% in this
scenario). This means that if the investments draw less than 3%, the company will have to pay
3% anyway. If the investments earn over 3%, the company will pay that excess.
In long-term care (LTC) policies, as the benefit period lengthens, the premium
(Choose from the following options)
1. LTC premiums are not based on benefit periods.
2. Decreases.
3. Increases.
4. Remains unchanged. - (ANSWERS)Increases.
LTC policies define the benefit period for how long coverage applies, after the elimination
period. The longer the benefit period, the higher the premium will be.
