LA LIFE INSURANCE SERIES 101 STUDY GUIDE
2026 EXAM QUESTIONS AND CORRECT
ANSWERS GRADED A+
◍ Which of the following best describes the concept that the insured
pays a small amount of premium for a large amount of risk on part of the
insurance company
A) Adhesion
B) Subrogation
C) Warranty
D) Aleatory . Answer: Aleatory
◍ Representations are written or oral statements made by the applicant
that are
A)Guaranteed to be true
B) Found to be false after further investigation
C) Immaterial to the actual acceptability of the insurance contract
D) Considered true to the best of the applicant's knowledge . Answer:
Considered to be true to the best of the applicant's knowledge
◍ Which of the following reports will provide the underwriter with the
information about an insurance applicant's credit?
, A) Agent's report
B) Any federal report
C) Consumer report
D) Inspection report . Answer: Consumer report
◍ When an insured makes truthful statements on the application and
pays the required premium, it is known as which of the following
A) Consideration
B) Legal Purpose
C) Contract of adhesion
D) Acceptance . Answer: Consideration
◍ Another name for a substandard risk classification is
A) Elevated
B) Rated
C) Controlled
D) Declined . Answer: Rated
◍ Why should the producer personally deliver the policy when the
premium has already been paid?
A) To ensure the producer gets paid commission
B) To find out how the family has been doing since the initial
presentation
2026 EXAM QUESTIONS AND CORRECT
ANSWERS GRADED A+
◍ Which of the following best describes the concept that the insured
pays a small amount of premium for a large amount of risk on part of the
insurance company
A) Adhesion
B) Subrogation
C) Warranty
D) Aleatory . Answer: Aleatory
◍ Representations are written or oral statements made by the applicant
that are
A)Guaranteed to be true
B) Found to be false after further investigation
C) Immaterial to the actual acceptability of the insurance contract
D) Considered true to the best of the applicant's knowledge . Answer:
Considered to be true to the best of the applicant's knowledge
◍ Which of the following reports will provide the underwriter with the
information about an insurance applicant's credit?
, A) Agent's report
B) Any federal report
C) Consumer report
D) Inspection report . Answer: Consumer report
◍ When an insured makes truthful statements on the application and
pays the required premium, it is known as which of the following
A) Consideration
B) Legal Purpose
C) Contract of adhesion
D) Acceptance . Answer: Consideration
◍ Another name for a substandard risk classification is
A) Elevated
B) Rated
C) Controlled
D) Declined . Answer: Rated
◍ Why should the producer personally deliver the policy when the
premium has already been paid?
A) To ensure the producer gets paid commission
B) To find out how the family has been doing since the initial
presentation
