SERIES 103: LOUISIANA LIFE, HEALTH, AND
ACCIDENT INSURANCE EXAM
A life insurance company has transferred some of its wrist to another insurer. The
insurer, assuming the wrist is called the: - Answer -Reinsurer
A type of insurer that is owned by its policy owners is called: - Answer -Mutual
An insurer ability to make unpredictable payouts to policy owners is called: - Answer -
Liquidity
A ________ company is owned by its shareholders. - Answer -Stock
The do not call, registry offers, exemptions, for calls placed from all of the following
except: - Answer -insurance sales calls
The fair credit and reporting acts main purpose is to: - Answer -Protect consumers with
guidelines regarding credit reporting and distribution.
Which of the following is considered to be an event or condition that increases the
probability of an insured loss? - Answer -hazard
An example of risk sharing would be: - Answer -Doctors pulling their money to cover
malpractice exposures.
An individual who removes the risk of losing money in the stock market by never
purchasing stocks, is said to be engaging in: - Answer -Risk avoidance
Insurance companies determine risk exposure by which of the following? - Answer -
Law of large numbers and risk pooling
Insurance represents the process of risk: - Answer -transference
The Cause of a loss is referred to as a: - Answer -Peril
People with higher loss exposure have the tendency to purchase insurance more often
than those at average risk this is called: - Answer -Adverse Selection
The authority granted to a licensed producer is provided via the: - Answer -Law of
agency
Who is responsible for assembling the policy forms for insured? - Answer -Insurance
carriers
, Bob and Tom start a business. Since each partner contributes an important element to
the success of the business, they decide to take out life insurance policies on each
other, and name each other as benefactors. Eventually, they retire and dissolve the
business. Bob dies 12 months later.the policies continue and force with no change. Both
parties are still married at the time of Bob's death. In the situation, who will receive
Bob's policy proceeds? - Answer -Tom
In order for a contract to be valid, it must: - Answer -contain an offer and acceptance
Insurable interest does not occur in which of the following relationships? - Answer -
Business owner and business client
Which contract element is insurable interest a component of? - Answer -legal purpose
A professional liability for which producers can be sued for mistakes of putting a policy
into effect is called: - Answer -errors and omissions
Intentional withholding of material facts that would affect an insurance policies validity is
called a: - Answer -concealment
What is the primary purpose of a reading service company such as A.M. best? -
Answer -Determine financial strength of an insurance company.
A non-participating company is sometimes called a: - Answer -stock insurer
An insurers claim settlement practices are regulated by the - Answer -State insurance
departments
Why are dividends from a mutual insurer, not subject to taxation? - Answer -Because
dividends are considered to be a return of premium.
All of the following are examples of pure risk except: - Answer -Losing money at a
casino
How do insurers predict the increase of individual risk? - Answer -law of large numbers
What is known as the immediate specific event, causing loss and giving rise to risk? -
Answer -peril
What is implied authority defined as? - Answer -Authority that is not specifically given to
an agent in the agency contract, but that an agent can reasonably assume to carry out
his/her duties.
Which of the following is an example of the insured consideration? - Answer -A paid
premium
ACCIDENT INSURANCE EXAM
A life insurance company has transferred some of its wrist to another insurer. The
insurer, assuming the wrist is called the: - Answer -Reinsurer
A type of insurer that is owned by its policy owners is called: - Answer -Mutual
An insurer ability to make unpredictable payouts to policy owners is called: - Answer -
Liquidity
A ________ company is owned by its shareholders. - Answer -Stock
The do not call, registry offers, exemptions, for calls placed from all of the following
except: - Answer -insurance sales calls
The fair credit and reporting acts main purpose is to: - Answer -Protect consumers with
guidelines regarding credit reporting and distribution.
Which of the following is considered to be an event or condition that increases the
probability of an insured loss? - Answer -hazard
An example of risk sharing would be: - Answer -Doctors pulling their money to cover
malpractice exposures.
An individual who removes the risk of losing money in the stock market by never
purchasing stocks, is said to be engaging in: - Answer -Risk avoidance
Insurance companies determine risk exposure by which of the following? - Answer -
Law of large numbers and risk pooling
Insurance represents the process of risk: - Answer -transference
The Cause of a loss is referred to as a: - Answer -Peril
People with higher loss exposure have the tendency to purchase insurance more often
than those at average risk this is called: - Answer -Adverse Selection
The authority granted to a licensed producer is provided via the: - Answer -Law of
agency
Who is responsible for assembling the policy forms for insured? - Answer -Insurance
carriers
, Bob and Tom start a business. Since each partner contributes an important element to
the success of the business, they decide to take out life insurance policies on each
other, and name each other as benefactors. Eventually, they retire and dissolve the
business. Bob dies 12 months later.the policies continue and force with no change. Both
parties are still married at the time of Bob's death. In the situation, who will receive
Bob's policy proceeds? - Answer -Tom
In order for a contract to be valid, it must: - Answer -contain an offer and acceptance
Insurable interest does not occur in which of the following relationships? - Answer -
Business owner and business client
Which contract element is insurable interest a component of? - Answer -legal purpose
A professional liability for which producers can be sued for mistakes of putting a policy
into effect is called: - Answer -errors and omissions
Intentional withholding of material facts that would affect an insurance policies validity is
called a: - Answer -concealment
What is the primary purpose of a reading service company such as A.M. best? -
Answer -Determine financial strength of an insurance company.
A non-participating company is sometimes called a: - Answer -stock insurer
An insurers claim settlement practices are regulated by the - Answer -State insurance
departments
Why are dividends from a mutual insurer, not subject to taxation? - Answer -Because
dividends are considered to be a return of premium.
All of the following are examples of pure risk except: - Answer -Losing money at a
casino
How do insurers predict the increase of individual risk? - Answer -law of large numbers
What is known as the immediate specific event, causing loss and giving rise to risk? -
Answer -peril
What is implied authority defined as? - Answer -Authority that is not specifically given to
an agent in the agency contract, but that an agent can reasonably assume to carry out
his/her duties.
Which of the following is an example of the insured consideration? - Answer -A paid
premium
