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Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
Select from the choices below the best description of a speculative risk? - ansInvolving the possibility of a gain in addition to the uncertainty of loss If there is a material change in an MEC contract, what is the first thing needing to be done? - ansAnother 7 pay test Which of the following is not taxable? - ansFixed amount installments A premature distribution from a Roth IRA made before the age 59.5 is subject to a 10% penalty tax unless: - ansIt was used as a down payment on first home Carlos cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. This non taxable transaction is called? - ans1035 Exchange Which of the following is a disadvantage to setup and participate in a qualified retirement plan? - ansImmediate liquidity All of these types of distributions that are exceptions to the 10% penalty rule except: - ansNew car purchase Which of the following does not describe a 401(K) characteristics - ansCurrently $49, maximum contribution The following are examples of Qualified Retirement Plans except: - ans501c(3) Which of the following is not correct regarding Long Term Care - ansIt provides different benefits for different levels of care Medicare Select is a type of? - ansMedicare Supplement plan offered by an HMO Which of the following statements is correct regarding Medicare Advantage - ansIt can offer benefits that ate not covered by regular Medicare Which of the following is correct with regards to the hospital insurance Part A plan of Medicare - ansInsured must satisfy a deductible Which of the following statements is correct about Part B of Medicare - ansAn annual deductible is required All of the following examples of groups that purchase group health insurance except: - ansMEWA The following are example of limited health plans except: - ansHMO Ally wants a rider that will pay disability that social security will pay for one year, assuming that social security should begin then. What type of rider should she consider? - ansAdditional monthly benefit (AMB) How many QCs are necessary to be fully funded? - ans If Bill has a type of disability plan that has benefits set at a percentage of income, what type is it? - ansEmployer Group Ally wants to make sure that her benefits for her disability policy keep up with the rate of inflation, what type of rider should she consider - ansCOLA
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
How many QCs are necessary to be deemed partially insured - ans6 in the last 13 If Jill has a type of disability plan that has benefits set at a flat amount per month, what type is it? - ansIndividual The period before benefits begin is termed as all of the following except: - ansPre-benefit period Which of the following does Coinsurance describe? - ansa percentage the insured will pay after the deductible If a health insurer does not pay a claim more than how many days after required a 1% per month penalty will begin? - ans25 days How many days after receiving notice of a claim does an insurer have to furnish proof of loss forms? - ans If Martha wants to pay her daughter's college tuition, which of the following can be used as an education annuity? - ansAnnuity Certain The best description of a hazard is? - ansCondition that may increase the chance that a loss may occur Choose from the following selections the best description of a premium? - ansThe amount an insured pays for each unit of coverage. $7 for every $1,000 of coverage is an example. Which of the following is correct about a Third-Party Administrator? - ansIt is an independent company that provides administrative services for company's self-funded plans A non-resident producer that is moving from one state to another state must submit? - ansa state-to-state transfer form within 30 days If a producer changes their mailing, work, or home address, the Department must be notified ____________of the change on an official "Change of Address" form available on the LA Department of Insurance website, or face a fine. - answithin 10 days Assuming CE requirements have been met, how is the life agent's license renewed? - ansPay the renewal billing notice the Dept sends out 90 days before the renewal date To renew a resident individual producer's license, you must complete _______ hours of continuing education each renewal period. - ans24 hours The CE requirement does not apply to specialty or limited licenses, such as, industrial fire, credit life, credit health, credit property, or accidental death and dismemberment. - ansFalse John became disabled and cannot conduct his insurance business. His legally appointed representative may get a temporary license to handle the business for him for a period up to ____________________. - ans180 days If a producer's license is revoked, it is not possible to reapply. - ansFalse A District Court Judge found James, a producer, guilty of a misdemeanor petty theft. James must - ansReport the ruling to the Commissioner within 30 days.
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
A qualified person may hold both a Life & Disability and a Property & Casualty license. This is called a ___________________ license. - ansConcurrent license An annuity which may be used to help fund retirement in a few years maintains a "separate account." The owner purchases "accumulation units." This is called a _______ Annuity. - ansVariable Variable life insurance policies and variable annuities are primarily governed by which agency? - ansSEC Louisiana will grant a producer a Variable products license to those that have a - ansSelect one: a. valid Life insurance license b. an active securities license with (FINRA) Financial Industry Regulatory Authority c. an appointment with a respective insurance company and SEC (Securities and Exchange Commission) registered broker-dealer d. all of the above Industrial life insurance contains a limit disallowing any one person from having more than a stated amount of insurance. What is the limit? - ans$10, The federal law that removed the barriers between commercial banking, investment banking, and insurance was the - ansGramm-Leach-Bliley Act The law that says the federal government has the right to regulate insurance only to the extent it is not regulated by state law is _________. - ansthe McCarran-Ferguson Act ___________________________ 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. - ansThe Violent Crime Control and Law Enforcement Act of 1994 Barbara lives in Mississippi, but will work in an insurance office that is located in Louisiana and sell Life and Health insurance. At a minimum, Barbara needs ______________________. - ansA Louisiana resident Life, Health, and Accident producer's license. Paying and accepting a commission when you have no insurance license is - ansIllegal The Commissioner can examine anyone in the business of insurance in the state at any time. - ansTrue Identify the statement that is true about contributory group life insurance? - ansThe employee will contribute to the premium payments Employees that have group life or health policies covering them are required to be issued a - ansCertificate of insurance
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
Employers that have group life or health policies for their employees are required to be issued a - ansMaster policy There are four basic classes of life insurance. All of the selections listed below are regarded as ordinary insurance, except? - ansA group life insurance policy How many continuing education hours are you allowed to rollover from the current year to the following year's renewal period? - ansUp to 10 hours of excess LHA topics Renewal of company appointments is due on or before ___________ of every year. - ansMarch 1 You must renew your Life, Health, and Accident license in odd numbered years (2013, 2015) by the last day of your birth month. - ansFalse The most common method to manage risk is to ______________. - ansBuy insurance Putting someone back to where they were before a loss, or claims payment for the restoration of client is called ______________. - ansIndemnity Recklessness and irresponsibility, or blatant lack of concern for handling risks in a prudent manner, such as driving and texting, or without a seat belt is a: - ansMorale hazard A dishonest act or fraud would be considered a(n)____________. - ansMoral hazard Frank sells different policy products for several different insurance companies.That marketing system in called the - ansAmerican Agency system Ben is a life agent who would like to do business with the Rock Solid Insurance Company but he doesn't have an appointment to sell their policies. Assuming RSIC does not require exclusive representation, can Ben submit an application to them from a prospect? - ansYes, and if the insurer approves the application they must appoint Ben within 14 days This marketing system allows a producer to be non-exclusive, meaning open to sell different policy products for several different insurers all at once. This producer owns his renewal book of business and places clients where he sees fit. - ansIndependent Agency/American Agency A producer or insurer can lead the consumer to believe that certain coverages are in existence during the sales process. This is called _________. - ansReasonable expectations A unilateral contract is a legal term denoting that both parties of a contract have made a legally enforceable promise and is bound by law to act. - ansFalse Take it or leave it contracts; no negotiations on terms, it is written by one party and the other party only gets to say that they agree and enter into it or that they disagree and have decided not to enter into it is called a(n) __________________. - ansContract of Adhesion The Rocket Insurance Corporation offers insurance policies on standard pre-printed forms. They do not negotiate the wording on the contract. If someone's application is approved, that
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
An insurer that is incorporated in a state (or U.S. territories) other than Louisiana is categorized as a foreign insurer. - ansTrue ________ is the legal process used to stop someone from trying to get a right or privilege back that they have already waived. - ansEstoppel Annual physicals and specific medical exams are examples of ______________ health risks.
- ansReducing Mortality includes the probability of death due to______________. - ansAge All of the following are true about the Statement of Good Health, except - ansA premium must be collected after the policy is issued. The premium payment mode that would result in the highest annual premium would be________________. - ansMonthly Information sources for individual underwriting of life insurance does not include: - ansthe Insurance Information Office The most common use of life insurance in a business is: - ansfunding a buy-sell agreement Survivorship life or second-to-die policies: - ansa. Are effectively used to cover the cost of the estate taxes b. Are issued in excess of $1M in most cases c. Reflect substantially lower premiums when compared to buying two separate policies d. All of the above The personal uses of Life Insurance may include - ansSurvivor protection, estate creation, and cash accumulation The main classifications of risks for applicants do not include: - ansSmoker Group life policies have all of the following features, except - ansIndividual members of the group can leave the group and convert their certificate into individual coverage, at their own expense, but would have to prove insurability. The characteristics of group insurance do not include: - ansIndividual members may leave the group, but maintain the group insurance. John bought a Life insurance policy with a face amount of $50000. that remains in effect until age 100 with medical underwriting required. This would be an example of a(n) ___________ life insurance policy. - ansPermanent Generally, permanent life insurance remains in effect for a lifetime, with no age restriction, as long as the policyowner pays his premium. - ansFalse John bought a Life insurance policy with a face amount of $50,000 with medical underwriting required. This would be an example of a(n) ___________ life policy. - ansOrdinary
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
The cost to cover the policy's share of probable claims due to life expectancy minus the share of interest earned from the investments of the life insurance company is referred to as the________________________ - ansNet single premium Adverse Selection is accepting risks that carry a lower than average propensity towards a loss. - ansFalse The characteristics of a key employee life insurance policy do not include: - ansThe key employee is the beneficiary All of the following are factors in determining the premium amount to charge for a Life insurance policy except - ansIncome The ______________ is used by the agent to disclose any observations of the applicant made by the agent that would be pertinent for the company underwriter to assess the applicant more completely. - ansProducer's Report Bill and Sam are business partners that have entered into an agreement to sell their interest to the surviving partner without having to pay a death benefit to the heirs of the deceased partner. This agreement is called a ____________. - ansCross purchase plan Insurers are allowed to advertise their policies are guaranteed by the existence of the Louisiana Insurance Guaranty Association. - ansFalse The purpose of The Louisiana Insurance Guaranty Association is to - ansprotect consumers from bankrupt insurers, within limits The Louisiana Insurance Guaranty Association has a board of directors that only pay how much per person? - ans$500, Both the producer and the applicant are always required to sign the ______________. - ansApplication The human life value approach calculates the immediate needs of the survivors after the death of the insured, such as funeral and final medical expenses. - ansFalse If no other selection is made, which of the following settlement options become the default or automatic mode of settlement for the death benefit of a life insurance policy? - ansLump sum in cash The needs approach determines a recommended death benefit by estimating - ansthe amount needed for the survivors to reach their goals The accepted methods in determining the amount of personal life insurance include - ansthe needs approach and the human life value approach All of the following are reasons for an individual to purchase life insurance, except: - ansTo cover a buy/sell agreement When is insurable interest required to exist with a life insurance policy? - ansAt the time the policy is written but not at the time of death
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
Daniel has a juvenile life policy on his son Frank. When Frank reaches 18 years old, Daniel gives the policy to Frank. Which of the following is not true? - ansThe premium increases five times at age 18 Frequently, juvenile life policies contain a payor rider. This rider states that in the event the payer of premiums is disabled or dies, and the juvenile has yet to reach a specific age: - ansThe premiums will be paid by the insurer until the child reaches the age of 21 or 25 The characteristics of Group plans include all of the following except: - ansThe members receive individual policy copies One pitfall to being a part of a group plan is the inability to convert a certificate of insurance to an actual individual policy without proving insurability. - ansFalse Credit life insurance that pays off the balance of a loan if the insured dies, is a type of life insurance called: - ansDecreasing Term These policies are usually purchased to cover the life of the insured to protect the interest of the bank or financier - ansDecreasing Term John and Jane Werner are married. When John dies Jane gets the death benefit. The policy they have is a: - ansJoint Life Policy George has a life insurance policy that keeps the same premium throughout the term of the policy. It does not have a cash value, only protection against premature death.What type of policy does George have? - ansLevel Premium Term The beneficiary of a credit life policy is: - ansCreditors One main benefit of membership in Group plans is: - ansthe ability to convert to an individual policy without proving insurability The flexible premium policy with a level death benefit that the insured can apply the premium to the cost of insurance and the cash value as he sees fit is: - ansUniversal Life Option A From the description below, identify which one is a term policy? - ansEach year the premium increases as the insured grows older. After several years the coverage and premiums end simultaneously. Case value is not created. The Family Medical Leave Act (FMLA) provides for what minimum amount of unpaid leave? - ans12 weeks A family life insurance policy that provides coverage for Children may be converted to permanent insurance for the children, but evidence of insurability is required? - ansFalse Beth wants to purchase more life insurance through her current policy. She calls you and ask your opinion. You know Beth has a guaranteed insurability rider on the policy. She can buy more insurance: - ansWithout the need to prove insurability on her life at specific ages
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
The rider that adds term insurance for a spouse and children to a permanent policy is called ______________. - ansa Family term rider The rider that adds term insurance for a spouse to a permanent policy is called ______________. - ansa Spouse/other-insured term rider The rider designed to protect the purchasing power of the death benefit is called ______________. - ansCost of Living rider The rider that allows the policyowner to increase the face amount of a life insurance policy at certain ages is called ______________. - ansGuaranteed insurability rider The rider that covers the monthly premium payment on a Juvenile Policy if the payor becomes disabled is called the ____________________ rider. - ansPayor benefit life/disability rider Accelerated benefits usually offer 50% - 100% of the __________ if the insured becomes terminally ill and meets the requirements of the Accelerated Benefits Provision or rider. - ansDeath benefit When an insured becomes totally and permanently disabled, her condition triggers a provision that keeps the policy in force even though the insured stops making premium payments. This is a: - ansWaiver of premium The rider that would take care of the monthly premium payment on a Universal Life Policy if the insured became disabled is called the ____________________ rider. - ansWaiver of cost of insurance rider The dividend option in life insurance policies that uses the dividend to purchase a small single premium whole life policy would be the ____________________. - ansPaid-up additions The dividend option in life insurance policies that uses the dividend to reduce the next premium bill would be the ____________________. - ansReduction of premium payments All of the following are true regarding a policy owner that ceases making premium payments on a 10-pay life policy and selects the extended term insurance option, except: - ansThe extended term policy will reflect the same cash value as the original policy Which of the following is the nonforfeiture option automatically chosen by the insurer if the policy is surrendered and the policyowner has not chosen an option. - ansExtended term An optional provision in life insurance policies to help prevent unintentional lapse would be the ____________________. - ansAutomatic premium loan Accelerated benefits are also called ____________________ benefits. - ansLiving An irrevocable beneficiary cannot be changed without written consent of the ___________. - ansBeneficiary
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
The annuity contracts that allow the annuitant and the insurer to share in the interest rate risks, but have a guarantee for a certain period are called _______________. - ansModified Guaranteed Annuities Fixed annuities have all of the following characteristics except: - ansFixed annuities grow according to the results of a separate Stock Market Account A policy owner makes the last premium payment on his $250,000 non-par whole life policy today. The owner is 70 years of age. When will the cash value reach $250,000? - ansWhen he reaches the age of 100 A(n) _______________ if listed on the contract, is the person who receives any remaining amounts that the insurer contractually owes the annuitant if the annuitant dies during the course of the contract or the person who receives the cash value if the annuitant dies during the accumulation period. - ansBeneficiary In an Equity Indexed Annuity, the _______________ comes from a stock market indicator, such as the S&P 500. - ansCurrent rate Immediate Annuities annuitize after one period of accumulation, while Deferred Annuities annuitize after more than one year of accumulation for a contractual amount of time. - ansTrue The time between the payment of the lump sum premium and when the annuity payments begin in an immediate annuity is _________________________________. - ansOne period Joint Life Annuities and Joint Life and Survivor Annuities are based on the averaged mortality of two or more lives. In a Joint Life, when one annuitant dies, surviving annuitants receive an adjusted payment, usually 1/2 to 2/3 of the original annuity payment. - ansFalse Individual Retirement Accounts (IRAs) are an example of a qualified retirement vehicle that, if any funds are withdrawn before age 65, is subject to income taxation for the Individual for the year of distribution, and an extra 10% penalty, unless it was made for an allowable reason. - ansFalse (59 1/2) Life insurance pays a beneficiary when the insured dies; annuities pay annuitants money with interest while alive, and payments stop upon the annuitant's death. - ansTrue If Bob's earned income only adds up to $5,000, the maximum contribution for the year, and he contributes to his IRA, it is NOT tax deductible. - ansFalse There is a 60-day time limit to put money from one qualified plan into another qualified plan, without the risk of a 20% withholding tax to be assessed by the IRS. This is called a - ansRollover The exclusion ratio is_________________________. - ansThe percentage of the money in the cash value that represents the amount paid in
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
When someone purchases annuities, they are attempting to address the risk of: - ansOutliving the money they have saved for retirement Traditional IRAs have the tax-free advantages with regard to growth and distributions once the account has been opened and active for 5 years. - ansFalse Roth IRA's have the tax-free advantages with regards to growth and distribution once _____________________. - ans5 Years Jennifer has reached a time in her life where she wished to begin receiving payment from her tax-deferred annuity. Her agent has suggested she take the money by means of "life income with 10 years certain" option. When she does, the insurer will make payments: - ansFor at least 120 months or the remainder of her life Patrick has been diligent in investing money for his retirement. He has managed to to put $100,000 of after-tax money into a tax-deferred annuity. Now he is ready to take it out, and the insurance company that issued the annuity says his guaranteed payment is $8,000 a year for the remainder of his life. This means he can expect a total amount of $200,000 back over his lifetime. How much of each year's annuity payment is taxable? - ans$4, Tax laws have established the Modified Endowment Contract or "MECs." Select the correct response: - ansTaxing their living benefit is not like a non-MEC An overfunded life insurance policy is referred to as a ___________________________. - ansModified Endowment Contract (MEC) Distributions on a Modified Endowment Contract (MEC) are taxed on LIFO basis (last in first out), meaning the IRS considers any MEC withdrawal a withdrawal of interest first. - ansTrue In a Modified Endowment Contract, which of the following is generally not considered a taxable event? - ansPolicy Dividends Earned income is defined by the IRS as salary, wages, commission, and investment gains. - ansFalse If an annuity contract owner dies before the annuity or liquidation period starts, the interest will be taxed, even though the beneficiary may receive the cost basis into the annuity tax-free
- ansTrue Under the Section 1035 Exchange of the IRS code, which of the following statements is true of products where cash values may be exchanged without taxable consequences? - ansCash values in a MEC can be exchanged for a MEC or annuity With a Roth IRA, a person may keep contributing to it even after 70½, contrasting with the Traditional IRA where contributions must cease upon the beginning of the required annuity period starting at age 70½. - ansTrue The maximum contribution limit for a Roth IRA is - ans$5,
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
Bonus and thrift plans are plans that may not require employee contributions and just the employer contributes for each employee. - ansTrue For a retirement plan to be a qualified plan and the contributions be tax deductible to the employer while being non-taxable to the employee, all of the following are requirements EXCEPT: - ansContributions must be the same for all employees and immediately vested Profit Sharing is another plan for small businesses with less than 100 employees with annual incomes of $5,000.00 or more. The growth is tax deferred and contributions are tax deductible and maximum contributions are currently $11,500 with $2,500 extra 'catch up' allowances for those age 50 or above. - ansFalse Contributions that are 'vested' in a plan are eligible for employees to receive, or rollover, if they should leave the company. - ansTrue Tax advantages for employers and employees of a Qualified plan include all EXCEPT: - ansThe company must have 100% of its employees participate in the plan to receive tax benefits ____________ is a common exclusion from coverage that is listed on a health insurance policy. - ansWar or act of war All individuals are guaranteed access to health coverage through the state plan, Louisiana Health Insurance Association, if they had at least 18 months of prior coverage under a group and have exhausted their COBRA or Louisiana continuation rights. - ansTrue Which of the following statements is not true? - ansSelect one: a. The effective date of coverage is usually the same as the application date b. The effective date of coverage is always determined by the premium receipt used. c. The effective date of coverage is the date on the conditional receipt when the premium is collected at application, as long as the application is approved. All of the above statements are true Which is NOT a limited policy in health insurance? - ansElective cosmetic surgery The principal types of losses and benefits found in health insurance policies include all except
- ansWorkers' compensation What covered peril(s) are included in a health policy? Select one: - ansa. sickness b. accidental injury c. Both a and b The Louisiana Insurance Guaranty Association will pay the amount covered under the insured's policy, or its statutory maximum of ______________ per accident or occurrence, whichever is less, for claims other than workers' compensation and unearned premiums. - ans$500, Medicare cares for the elderly. Medicaid aids the poor. - ansTrue
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
In the life insurance planning process, the "blackout period" is considered: - ansThe period of time when a surviving spouse does not receive any Social Security benefits Producers can protect themselves with a professional liability policy, ___________________, to provide for losses and remedy for those clients injured by their mistakes. - ansErrors and Omissions Insurance Insurers cannot disclose information obtained on an individual: - ansIt is not in reference to a claim This provision, along with the extension of time limits provision, allows insurance companies to sell the same standardized policies in every state. - ansConformity with state statutes What section of the policy contains the insurer's promise to pay? - ansConsideration clause Disease and sickness are covered only if they begin 10 days after the reinstatement of a policy. - ansTrue During the 'incontestability period', a health insurer has 3 years to locate any misrepresentations in the application. After this time, the insurer cannot void the policy for misstatements and must honor the policy. This does not apply to - ansSelect one: a. age b. change of occupation c. other insurance d. all of the above David has been named as an irrevocable beneficiary in a life insurance policy. David, therefore: - ansHas vested rights to the policy proceeds that, unless he gives consent, cannot be effected by the policy owner nor any creditors If a beneficiary is labeled irrevocable, their permission is required before any changes can be made to the beneficiary list. - ansTrue John did not pay his insurance premium during his policy's grace period. How long must he wait, after reinstatement, to have coverage again if he sustains an injury? - ansImmediately Which of the following provisions is the same as the 'incontestability period' stated on life insurance policies? - ansTime limit on certain defenses Bob would like to take legal action against an insurer in Louisiana. What are the timeframe restrictions for suing an insurer? - ansSelect one: a. Bob has to wait at least 60 days before suing the insurer b. Bob must file a lawsuit within one year after the insurer has received proof of loss c. Bob must follow both A and B All health policies in Louisiana must give a grace period of _________ days and notify the insured when the premium is not received _______ days prior to the end of the grace period
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
Under Social Security disability, the waiting period is 5 months with benefits starting in the 6 month and NOT retroactive to the start of the disability. - ansTrue A disability policy is issued and premiums are paid on an annual basis on the 1st of January. At the first anniversary, the insured decides they do not want to renew the policy and they do not pay the premium. On the 8th day after the premium due date, the insured submits a claim for medical expenses. How will the company respond to the claim? - ansIt will be paid because the loss occurred with the grace period Every disability policy has the requirement of proving one cannot work as part of its definition before benefits will start. Which type of disability will cost more due to the liability involved for the insurer and will require more underwriting? - ansOwn occupation Short-term benefits include all of the following features except - ansRehabilitation benefits A measure for rating an individual's need for long term care benefits is called? - ansActivities of daily living (ADLs) The Primary Care Physician (PCP) must approve a patient's request to see a specialty physician. - ansTrue Congress passed and President Barack Obama signed into law the Patient Protection and Affordable Care Act (PPACA) on - ansMarch 23, 2010 ________________________ - 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. - ansMSA's Which of the following is not a feature of a major medical insurance policy? - ansCapitation (whenever you see Capitation - think HMO/PPO) Major medical plans have all of the following characteristics except - anshigher out of pocket expenses for the insured Preferred Provider Organizations (PPOs) were an offshoot of the HMO system. Which of the following statements is false about PPOs? - ansa. A PPO will pay no benefit unless a member chooses a PPO-approved doctor b. If a member sees a doctor that is not PPO-approved there is no reduction in the payment of services c. PPOs compensate doctors through a system called capitation, not fee-for-service d. All the above are false When the Point of Service (POS) plan is being used like a PPO, no referral is needed to see specialists, but when it is being used like a HMO, PCP referrals are required. - ansTrue Extended Coverage for Young Adults, effective for health plan years beginning on or after September 23, 2010, allows unmarried dependents to stay on a parent's plan until - ansThey turn 26 years old
Insurance Practice Exam with Answers
Comprehensive practice exam for the
Louisiana Life, Accident, and Health
Insurance licensing test, featuring
multiple-choice questions and detailed
answers aligned with state-specific
regulations and industry standards.
Latest Updated Exam Study Guide
Retention features affect the premium cost of medical policies. Which statement is not a true provision affecting cost to the insured? - ansSelect one: a. Deductibles represent the risk retained by the insured and can reduce or raise the premium b. Coinsurance allows the insurer to retain the bigger share of medical costs c. The Stop-Loss feature represents a sublimit the insured would know is the maximum out of pocket expense which helps the insured arrange for themselves an affordable premium. d. All of the above are true Which of the following participants not are eligible to set up Medical Savings Account (MSAs) for their employees? - ansCorporations with 100 employees or more From the items below, choose the characteristics not found in the HMO's "gatekeeper" system. - ansThere is no provision whatsoever for services to be covered without the OK of the gatekeeper All of the following benefits are true about Health Maintenance Organizations (HMOs) except - ansallow members to choose where to seek treatment The intent of the HIPAA (Health Insurance Portability and Accountability Act) July 1997, was to provide portability for people who were leaving group plans and had regulations relating to group and individual plans, and had protections built in for small employers, pregnant women, the self-employed and the mentally ill. - ansTrue Which of the following criteria applies to the Louisiana Continuation Rules for surviving spouses of deceased employees? - ansSelect one: a. Spouse must be 50 years or older b. Coverage must be offered mirroring coverage in prior plan c. Spouse has 90 days to exercise option with no probationary period d. Cannot be terminated unless spouse fails to make payments or becomes eligible for Medicare e. All of the above A hospital confinement or indemnity insurance policy pays, which is part of a cafeteria plan:
- ansa daily dollar benefit for each day the insured is confined to a hospital Blanket Group Health Insurance - covers members while they are a member, and expects turnover in the group on a regular basis. All of the following are examples of blank groups except: - ansRetail department store chains Terminated employees may convert from group to individual without proof of insurability within 45 days of termination of employment - ansFalse Barbara's job would be outsourced soon; therefore, she inquired about her eligibility under COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985). Which is a true statement about COBRA? - ansSelect one:
