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Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
Latest Updated Exam Study Guide 2025/
CONTRACTS - Aleatory Contract - ansA contract in which the performance of either party's obligation depends on an uncertain event INSURANCE - Benchmark Rate(s) - ansThe rate set annually by the Commissioner of Insurance by line, relative to which the flexibility bands and statutory rate limitations apply. INSURANCE - Churning - ansCan occur when an agent persuades a consumer to borrow against an existing life insurance policy to pay the premium on a new one. INSURANCE - Dividend - ansThe amount of money an insurance company may decide to distribute to policyholders. INSURANCE - Insurable Interest - ansA financial interest in the property insured, prerequisite to a valid contract of insurance. In life insurance, a person's or party's interest, financial or emotional, in the continuing life of the insured. INSURANCE - Misrepresentation (Material) - ansA significant misstatement in an application form. If a company had access to the correct information at the time of application, the company might not have agreed to accept the application. INSURANCE - Rated Policy - ansA policy issued at a higher premium to cover a person classified as a greater-than-average risk, usually due to impaired health or a dangerous occupation. INSURANCE - Redlining - ansRefusal by an insurance company to underwrite or to continue to underwrite questionable risks in a given geographical area. INSURANCE - Surplus Lines - ansInsurance coverage not available from an admitted company in the regular market; thus a surplus lines broker/agent representing an applicant seeks coverage in the surplus lines market from a nonadmitted insurer according to the insurance regulations of a particular state. INSURANCE - Underwriting - ansAn insurance company issues a policy when it believes you have a certain level of "risk" or chance of a claim. Underwriting is the process the company uses to decide whether to accept or reject an application. Companies do not make their underwriting guidelines public because they are considered to be trade secrets. INSURANCE - Unearned Premium - ansThe insured's remaining premium equity in his policy; that part of the policy premium that has not been "used up." INSURANCE - Annuity - anscontract sold by insurance companies that pays a monthly (or quarterly, semiannual, or annual) income benefit for the life of a person (annuitant), for the lives of two or more persons, or for a specified period of time. INSURANCE - Binder - anstemporary insurance contract providing coverage until a permanent policy is issued. INSURANCE - Reinsurance - ansform of insurance that insurance companies buy for their own protection, "a sharing of insurance." An insurer (the reinsured) reduces its possible maximum loss on either an individual risk or a large number of risks by giving (ceding) a portion of liability to another insurance company (reinsurer). PROPERTY - Real Property - ansimmovable property PROPERTY - Personal Property - ansmovable property, exluded from sale PROPERTY RIGHTS - Appurtenances - ansrights, privileges, improvements that will pass to the new owner upon conveyance of the land
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
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PROPERTY - Improvements - ansimmovable object that has been attached to the land and increases the value, such as fences and driveways PROPERTY RIGHTS (Surface) - Riparian - anshaving to do with water PROPERTY RIGHTS (Surface) - Riparian (navigable waters) - ansidentified waterway on a federal survey map, owned by the state, can be sold or leased, leased term is 15 years PROPERTY RIGHTS (Surface) - Riparian (non-navigable) - answater way that is not recorded; can be owned by the homeowner PROPERTY RIGHTS (Surface) - Accretion - ansgaining of additional land through the gradual deposit of solid material PROPERTY RIGHTS (Surface) - Accession - answhenever additional land is acquired through natural causes or by joining or union with other property PROPERTY RIGHTS (Surface) - Avulsion - ansland is taken away due to natural causes, usually more sudden than accretion SALE - Bill of Sale - anssale of personal property is noted with this document PROPERTY RIGHTS (Surface) - Emblement Rights - anstenant may take the harvest of an annual crop even if the harvest occurred after the tenancy had ended PROPERTY - Trade Fixtures - ansarticles attached by the tenant to the building for use in conducting a trade or business; considered personal property OWNERSAHIP - Allodial System - ansproperty ownership recognized in the US; land is held free and clear of any rent or service owed to the government OWNERSHIP - Eminent Domain - ansright of the government to take privately owned land for public purpose, but must compensate OWNERSHIP - Eminent Domain (condemnation) - ansprocess by which the government can take land by eminent domain OWNERSHIP LIMITATIONS - Deed Restrictions - ansprivate limitation on the use of the land that restrict or specify; example cutting down trees or building a fence OWNERSHIP LIMITATIONS - Easements - anslegal right that one has to use the lands of another for a special and necessary purpose OWNERSHIP LIMITATION - Leases - ansowner gives a tenant right to use the property and the owner gives up his right of possession in the process PROPERTY RIGHTS - Freehold Estates - ansestates that last for an indefinite period of time, at least as long as a lifetime PROPERTY RIGHTS - Fee Simple - ansestate in land that lasts forever; highest degree of ownership recognized by law PROPERTY RIGHTS - Life Estate - ansestate in land that lasts a lifetime PROPERTY RIGHTS - Reversion - anspossession of a property will revert to the grantor upon the death of a life tenant PROPERTY RIGHTS - Remainderman - ansthe one in whom an estate vests after termination of a prior estate PROPERTY RIGHTS - Tenancy for Years - anslease for a definite period of time, even though it does not have to be a year; do not need to give advance notice PROPERTY RIGHTS - Periodic Tenancy - anslease for an indefinite period of time, but you need to give advance notice
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
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PROPERTY RIGHTS - Joint Tenancy - ansan interest in land held by two or more persons with survivorship rights, meaning does not pass to the heirs but passes to the other owner; must be formed with a clear statement of intent 4 unitis needed for joint tenancy: time, title, interest, and possession PROPERTY RIGHTS - Tenancy by Entirety - anstwo persons int he ownership that must be husband and wife; however if they get divorced then they would be tenants in common OWNERSHIP - General Partnership - anspartners have a right to participate in the management of the partnership, but have unlimited liability, meaning can go after personal belongings OWNERSHIP - Limited Partnership - anspartnership with partners only liable to the extent of their investment OWNERSHIP - Corporation (Double Taxation) - ansdisadvantage to corporation; corporation must file a tax return as well as the stockholders PROPERTY TYPE - Condominiums - ansownership of individual units in a multi unit structure; owner receives a unit deed PROPERTY TYPE - Condominiums (Horizontal Property Act of 1963 & Condominium Act of 1969) - anstwo acts that regulate condominium ownership PROPERTY TYPE - Cooperative Apartments - ansform of ownership in which a corporation is established to hold title to property and to lease the property to shareholders in the corporation
- proprietary lease = lease signed by cooperative apartment persons OWNERSHIP - Warranty Deed (full covenant and warranty deed) - ansprovides a grantee with the most complete set of assurances of title possible from a grantor OWNERSHIP - Covenant of Seisin - ansgrantor states that he holds ownership of the property being conveyed and has the right to sell it OWNERSHIP - Covenant Against Encumbrances - ansguarantee that there are no encumbrances except those that are specifically mentioned (such as tax liens, deed restrictions, etc) OWNERSHIP - Covenant of Quiet Enjoyment - anspromise by the grantor that the grantee can use and enjoy the property without interference of possession because the title conveyed is good and superior to that of any third person OWNERSHIP - Covenant of Further Assurance - ansgrantor promises to perform any reasonable acts necessary to make the title good; example if the legal description is flawed in the original deed, then the grantor needs to take the steps to fix it OWNERSHIP - Covenant of Warranty Forever - ansgrantor promises to pay for the defense of the grantee's title if it is challenged by a third party; under this covenant, the grantor is liable to the grantee for the value of the property if the grantee is evicted by a third party who had superior title OWNERSHIP - Bargain and Sale Deed with Covenants Against Grantor's Acts (also called a Special Warranty Deed) - ansdeed which supports a conveyance of property, but does not carry with it all of the warranties found in a warranty deed; states that the owner did not impair his or her ownership except as stated in the deed
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
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OWNERSHIP - Quitclaim Deed - ansprovides the least protection of all deeds; grantor transfers to grantee the grantor's rights; frequently used to cure a technical defect in the chain of title OWNERSHIP - Administrator's Deed - ansdeed used by a court-authorized administrator to convey title to property of a person who dies intestate OWNERSHIP - Deed of Trust - ansdeed used to convey legal title from a grantor to a third party trustee as security for a debt owed by the trustor (borrower) to the beneficiary (lender) OWNERSHIP - Executor's Deed - ansdeed is used to convey title to real estate owned by a decedent who dies testate OWNERSHIP - Gift Deed - ansdeed here the consideration is love and affection and is considered valid OWNERSHIP - Guardian's Deed - ansdeed used by a guardian with permission of the court to transfer title to property owned by a minor or an insane person OWNERSHIP - Sheriff's Deed - ansdeed given by a sheriff to the highest bidder at a public sale conducted upon foreclosure of a mortgage, unpaid taxes, or a judgement PROPERTY RIGHTS - Habendum Clause - ansrestates the grantor's intention to convey the quantity of the estate (such as fee simple or a life estate) PROPERTY RIGHTS - Reservation - ansnew right in property that has been conveyed PROPERTY RIGHTS - Construction Lien - ansif a construction company is unpaid, then they can do this; a lien may be filed up to 90 days after the last day of work or the supplying of materials or equipment
- writ of execution = authorizes a court officer to seize the property and to sell as much of it as necessary to satisfy the judgment PROPERTY RIGHTS - Judgement Lien - anscan last for up to 20 years or until the debtor has made payment
- writ of attachment = taking realty by judicial order and placing it within the custody of the court PROPERTY RIGHTS - Federal Tax Lien - anslien that can last for 10 years PROPERTY RIGHTS - Lis Pendens - ansa public notice filed against specific lands to show that legal action is pending that may affect title to the land; 5 years statue of limitations PROPERTY RIGHTS - Encumbrance - ansclaim against clear title to a property, or a limitation on the use of a property; liens fall into this category, also an easement PROPERTY RIGHTS - Easement - ansright one has in the land of another; giving the holder the right to do certain things on the owner's land PROPERTY RIGHTS - Easement Appurtenant - ansright acquired by the owner of one parcel of land to use an adjacent parcel of land for a special purpose; must be two tracts of land owned by different parties PROPERTY RIGHTS - Servient Estate - anstract which is burdened by the easement PROPERTY RIGHTS - Dominant Estate - ansland receiving the benefit of the easment PROPERTY RIGHTS - Easement in Gross - ansdoesn't benefit a particular parcel of land; examples are utility easements PROPERTY RIGHTS - Creation of Easements - anseasements are created by a) grant or reservation b)implication (including necessity) c)prescription
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
Latest Updated Exam Study Guide 2025/
CONTRACTS - Aleatory Contract - ansan insurance contract is aleatory because there is an element of chance; fire insurance contracts, accident insurance contracts, etc. CONTRACTS - Adhesion Contract - anscontract whose terms have been drafted by only one of the parties; will favor the party who didn't actually write the contract in court CONTRACTS - Estoppel - ansa doctrine of law that stops one from later denying facts that that person once acknowledged were true and other accepted in good faith INSURANCE - Actual Authority - ansauthority that a principal intentionally gives the agent; can be expressed or implied INSURANCE - Apparent Authority - ansauthority exercised by an agent that the insurance company fails to protest; based on the doctrine of estoppel INSURANCE - Fiduciary Duties of Agents - ansloyalty; obedience; disclosure of material facts; accounting of all monies; skill and care INSURANCE - Expressed Authority - anskind of authority the insurer intentionally gives to an agent in the agency; implied authority flows from expressed authority INSURANCE - Risk Elimination - anstitle insurance works to eliminate risks in title transfers by requiring a thorough search of title TITLE - Abstract of Title - ansa condensed history of all grants affecting the property including all deeds, mortgages, wills, and judicial proceedings together with all other recorded liens and encumbrances affecting title since it was first owned; goes back 60 years TITLE - Run Down or Continuation Search - ansthis is the gap between the time of the initial search and the date of the closing, so a new search is made TITLE - Title Commitment - ansthis is not the actual policy but a guarantee that the policy will be issued if conditions specified in the commitment are met TITLE - Section A of Title Commitment - anscontains the information for the title policy; including date, owner, amount, etc. TITLE - Section B of the Title Commitment - anscontains the requirements that must be met before the policy can be issued and any exception to title TITLE - American Land Title Association (ALTA) - ansa national association of more than 2,000 land title companies established to encourage uniformity and quality in title insurance policies TITLE - Four Provisions in the Owner's Policy - ans1) title is vested in the insured
- property is free of encumbrances except for those mention in section b
- property has access to public road
- title is marketable TITLE - Simultaneous Issue - ansissuing a title policy to the lender and the owner at the same time TITLE - Title Insurance Rates - ansincludes searching, examination, underwriting premium, agent's commission, and determining insurability INSURANCE - Claims for Losses - ansinsured must give written notice to the company within 10 days and notice of a loss must be furnished to the company within 90 days; payment should be within 30 days; have 5 years to take legal action
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
Latest Updated Exam Study Guide 2025/
INSURANCE - Variable Rate Endorsement - ansendorsement insures against loss arising from the invalidity of a lien of the insured mortgage resulting from modification of the insured mortgage; mortgage rates change TITLE - Comprehensive Endorsement - ansendorsement insures that the property does not violate any deed restrictions that may be placed on the property and that there are no encroachments of buildings onto easements or adjoining properties FEDERAL ACT - Notice of Settlement Act - ansact that provides for the filing of a notice to protect a purchaser of real estate from an intervening adverse interest claim or lien arising after the closing of title and before the recording of the deed; says we are going to close, and it protects the purchaser INSURANCE - Who must be licensed? - anssalespersons, examiners, title officers, title counsel, managerial staff, settlement clerks TITLE - Marketable Title - anstitle that is reasonably free from risk, "acceptable", "transferable" TITLE - Insurable Title - anstitle that can be insured by a title insurance company CONTRACTS - Novation - anssubstitutes a new obligation for an old one; someone takes over a mortgage or tenant takes over a lease PROPERTY TYPES - Planned Unit Development (P.U.D.) - ansfee simple; community style living; informal term that is the ownership of a group of house that share facilities of some kind and is controlled by an association PROPERTY RIGHTS - Servitude - ansa right or interest in a piece of real estate that serves or benefits another unrelated property TITLE - Title Documents - ans1) commitments (no money exchanged)
- policies (contract)
- endorsements (modifications) TITLE - Evidence of Title Policy - ansthe amount of time that a title company needs to keep evidence of title on a policy (15 years) TITLE - Trust Accounts - ansholds real estate monies; must be released within 5 days INSURANCE - Controlled Business - anscontrolled business = doing business primarily with family, over 50% or more is done with family in 1 calendar year TITLE - Sections of HUD - ans100s: Gross Amount Due from Borrower (Buyer charges) 200s: Amount Paid by or in Behalf of Borrower (Buyer credits) 300 s: Cash at Settlement from/to Borrower 400s: Gross Amount Due to Seller (Seller credits) 500s: Reductions In Amount Due to seller (Seller charges) 600s: Cash at Settlement to/from Seller PROPERTY DESCRIPTION - Areas - ans1. Sections (biggest) (6 square miles)
- Townships (36 sections) (640 acres)
- Ranges (smallest) PROPERTY DESCRIPTION - Section Quarters - ansSection = 640 acres Each Quarter 160 acres PROPERTY DESCRIPTION - English Units - ansFoot = 1 foot
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
Latest Updated Exam Study Guide 2025/
INSURANCE - Temporary Producer's License - anseffective for up to 180 days or adequate time as the Commissioner deems necessary
- if in place of deceased/disabled producer, then an heir, executor, administrator, employee, member of biz entity or court-appointed representative
- if in place of a producer entering active service, then a designated licensed producer INSURANCE - Appointment of Producer - ansonly required when an agent of an insurer / commissions only due once appointment recorded
- Notice of Appointment must be filed within 15 days of contract
- Commissioner has at least 30 days to approve or 15 days to deny Notice
- RENEWAL of Appointment must be done by March 1 of every year ($20/appointment) INSURANCE - Unfair Settlement Practices - ansonly when a clear practice of bad acts by the company and not just an isolated act of an employee INSURANCE - Controlled Business - ansControlled Insurance Business is strictly prohibited
- occurs when producer is in insurance business for a limited purpose to sell to themselves, family, or employer
- discovered upon audit and more than 25% of total commissions were controlled INSURANCE - Unfair Trade Practices - ans1. misrepresentation
- false advertising
- twisting (producer influences a consumer to replace policy and not a better deal)
- churning (misrepresentation to replace a competitor's policy with intent to earn a larger first year commission regardless of the consumer's benefit)
- defamation - statement to injure a person or insurer's financial status
- boycott/coercion/intimidation
- false financial statements
- unfair discrimination
- rebates (incentives for buying or selling policy) INSURANCE - Risk - ansUncertainty or chance of a loss occurring INSURANCE - Risk (Pure Risk) - ansinsurable; there is no opportunity for financial gain and only a loss is suffered but the insurer can create a policy for protection INSURANCE - Risk (Speculative Risk) - ansnon-insurable; there is the possibility for financial gain and therefore insurer's do not want to bet the odds on each policy they sell INSURANCE - Risk (Exposure) - ansmeasurement of risks present or units used to assess risks such as age, sex, chronic medical conditions, occupation, etc.
- HOMOGENOUS exposure = large number of units have the similar risks INSURANCE - Risk (Hazards) - anssituations effecting the odds of a loss occurring
- Physical Hazard = physical condition or hazard (ex: HPB, blindness, smoker)
- Moral Hazard = dishonest acts of fraud (ex: lying on application; murder conviction)
- Morale Hazard = reckless and irresponsible (ex: DWI) INSURANCE - Risk (Peril) - anscauses of loss or the actual event that are covered by policy INSURANCE - Risk (Loss) - ansdecline in value of a person or thing after a peril occurs INSURANCE - Risk Managment - ans1. avoidance
- retention (ex: deductible)
- sharing (ex: a homogenous group)
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
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- reduction (cannot be avoided; thus, annual physical check ups)
- transfer INSURANCE - Risk (Elements of Insurable Risks) - ans1. unexpected
- measurable
- large homogenous group
- not completely disastrous (thus harder to predict)
- not mandatory (should have option to deny coverage)
- predictable frequencies INSURANCE - Risk - Adverse Selection - anspoorer risks that are more prone to losses than normal risks; ways of avoiding adverse selection
- restriction of coverage (ex: exclusion)
- higher rates
- declination/refusal INSURANCE - Marketing Systems (Independent/American Agency) - ansproducer is:
- non-exclusive
- independent contractor
- owns their renewal book of business
- places clients where they see fit INSURANCE - Marketing Systems (Exclusive Agency/Captive Agents) - ansproducer is:
- exclusive seller of one company
- can override commissions from other agents
- independent contractor
- does NOT own their renewal book of business INSURANCE - Marketing Systems (General Agency) - ansinsurer allows business owner (Managing General Agent):
- represent products to a certain region in an exclusive contract
- appoint subagents and override commissions from them
- receive support compensation from insurer (for expenses and advertisement) INSURANCE - Marketing Systems (Managerial Branch) - ansbranch managers are salaried employees of insurer but may have independent contractors sell policies Gross Living Area - ansTotal area under one roof; When Land is expropriated by the state, the landowner may expect compensation as: - ansJust compensations as well as other expenses such as moving Buying subject to a mortgage - ansKeeps the seller personally liable for the loan, although it remains with the property after the sale A contract to sell real property that required the purchase price to be paid in installments and title is to be delivered to the buyer only after a stipulated sum has been paid or the term is met
- ansBond for Deed If a property is sold by the lessor during the term of the lease, the deposit should be turned over to the - ansPurchaser, a tenant is can not sue the purchaser for the deposit if they go bankrupt Death of a usufructuary, or if the object of the usufruct is destroyed, will have what effect on a usufruct - ansit will terminate
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
Latest Updated Exam Study Guide 2025/
The act of Redhibition is not available if - ansThe defects were declared to the buyer before or at the time of the sale If the defects were apparent or could have been discovered by reasonable inspection The buyer knew of the defects An offer that specifies no time for acceptance or if the offeror has not manifested an intent to give the offeree a delay, the offer may - ansBe revoked before it is accepted The donation of property while living is called - ansDonation Inter Vivos A lawsuit base don lesion beyond moiety must be filed within - ansone year When one party is obligated for the benefit of the other, but receives no return advantage this is called a - ansGratuitous contract The violent Crime Control and Law Enforcement Act requires who to get permission from the Commissioner before they can get an insurance license - ansConvicted felons Fraudulent insurance acts include - ansDiverting money from an insurer Giving false information to the Commissioner Knowingly selling policies for a bankrupt insurance company The Fair Credit Reporting Act established procedures to protect - ansConsumers 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 up to - ans days According to Louisiana law, an insurance producer shall not pay, directly or indirectly, any commission, service fee, brokerage, or other valuable consideration to any person or entity for selling, soliciting, or negotiating insurance in this state unless such person or entity holds a - ansvalid license as required by law Misrepresenting an insurance policy as being shares of stock is a violation of an insurance law known as - ans The renewal fee for a Louisiana producer license is - ans$ The requirements to get a resident Louisiana insurance producer's license include - ans years of age Pass the state exam Live or work in Louisiana The Insurance Department reviews the files of insurance companies at least every how many years - ans5 years Sam's appointment to sell insurance for XYZ insurance Company has been terminated by the company after the company found evidence Sam committed Fraud. XYZ has how many days to notify the Insurance Department of the termination - ans15 days An insurance company formed outside of the United States is called an - ansAlien Elements of a contract - ansLegal importance consideration competent parties What is the legal term for the process used to prevent someone from taking back a right that they have previously waived - ansEstoppel What is not a characteristic of an insurable risk - ansAdverse Selection A legal contract that exchanges unequal values between parties is
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
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(the obligation depends on an uncertain event) - ansAleatory contract A dishonest act or fraud would be considered a - ansMoral hazard Giving up a right or privilege is called - answaiver The client hands an initial premium check to the producer and expects the producer to forward the money to the insurer for processing. Even though his contract did not state that he must pay for the postage to forward the money to the insurer, his actions are representing what type of authority - ansImplied 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 person will receive the same standard contract as anyone else insured by the Rocket Insurance Corporation. (take it or leave it/no negotiations) This type of contract is referred to as a - ansContract of Adhesion A farm lease that has expired is presumed to have been continued for another year if the tenant holds over without opposition for how long - ansOne month Subdivision regulations (private deed restrictions) may be modified by those affected within what time period - ansAfter 10 years if both (A) owners representing 2/3 of the land and (B) 2/3 of the owners of the land agree When each party obtains an advantage in exchange for his obligation this is called an - ansOnerous Contract An undivided interest in real property is best defined in Louisiana Civil Law as - ansThe property is owned by more than one person who share the same thing A servitude requiring a property owner to maintain and not prevent the natural flow of water across his property is an example of - ansa natural predial servitude A right granted to a seller for the unpaid sales price is called the - ansVendor's privilege Consent of both parties to form a contract is established through - ansoffer and acceptance A buyer who has put up $10,000 earnest money on a sales contract for a $200,000 property decides to default. The seller may keep the $10,000 as: - ansLiquidated damages After how many days notice after a buyer's default in payments may a Bond for Deed be cancelled? - ans45 Days Has more than one meaning and is usually written in favor of the entity creating the contract - ansAmbiguity To put back where it was before (to make whole again) - ansIndemity Barbara lives in Mississippi, but works in an insurance office that is located in Louisiana and sell Life and Health Insurance. At a minimum she needs - ansa Louisiana resident life, Health , and Accident producer's license Which of the following is a reason for suspension or revocation of a producer's license by the Commissioner - ansFailing to pay child support The federal law says that the federal government can only regulate insurance companies to the extent they are not regulated by state law is - ansMcCarran-Ferguson Act A producer's license for property and casualty requires how many hours of CE every renewal period - ans24 hours The most common method to manage risk is to - ansBuy insurance what does not prevent an insurer from adverse selection - ansunderwriting every risk
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
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Implication An illegal extension of a building or some other improvement beyond the land of one owner and onto the land of an adjacent owner is called an - ansEncroachement Has indeterminable length, such as those existing for a lifetime or forever - ansa freehold estate The highest and best type of interest in real estate recognized by law is - ansFee Simple Absolute Fee Simple Def - ansOwnership that can be extinguished, annulled, or revoked on the occurrence or non-occurrence of a designated event Held by two or more individuals - ansCo-Ownership In most states, what is considered when ownership is held entirely by one person or corporation is known as ownership: - ansin Severalty The four basic concepts to distinguish a tenancy in common from other types of co- ownership are: - ansindividual interest the right of conveyance the right of inheritance the right of partition An association of two or more persons to carry on a business as co-owners and share in the profit and losses of that business - ansPartnership A more limited interest in property than a freehold estate is called a - ansleasehold estate A lease for a definite period of time, and terminate automatically without notice from either party is called an - ansestate for years A Common Interest Property that allows for a proprietary lease through ownership of Stock shares in a corporation is called a - ansCooperative A buyer took deliver of the deed to his new house but forgot to record the deed. Under these circumstances the buyer's: - ansinterest is not fully protected against third party An abstract of title does not provide evidence of title unless it is accompanied by - ansa legal opinion of title The most common deed used in a real estate because it is the deed that gives the purchaser the greatest protection is the: - ansGeneral Warranty Deed For a deed to be valid it must contain these requirments - ansThe granting clause Delivery and acceptance Signature of the grantor An involuntary alienation of property is - ansEminent Domain The means by which the parties to a contract carry out the terms of their agreement with a third party is known as - ansthe escrow process The buyer and seller appoint an independent third party to handle the transaction known as an
- ansescrow officer Under the TILA-RESPA rule (TRID) regarding financed transactions, a Closing Disclosure should be provided to the consumer how many business days prior to the cosummation - ans days Specialty areas in real estate include - ansREO (Real Estate Owned) Foreclosures
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
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Short-sales any claim and/or encumbrance that may impair the title to a property (title defect) is known as a - ansCloud on title In regards to the closing of a real estate transaction, the escrow agent would likely reference this transactional document for instructions in the terms of the settlement charges - ansthe purchase agreement This is the main principal difference between Tenancies in Common and Joint Tenancies - ansright of survivorship Best describes the methods of creating a fixture - ansagreement of the parties, intention of the party doing the attachment, method of attachment, and intention of the new owner What is considered the bundle of legal rights included with real property ownership - ansright of exclusion right of transfer right of prossession In a short sale, what party to the transaction must agree to accept a loss in some form in order to accommodate the sale - ansthe lender Best describes the concept of Gross Living Area (GLA) - ansfully finished space consistent in like and quality under the same rood and suitable for year-round use Ownership among three parties is held as Tenancy in Common, and their specific share of ownership has not been stated, what is the most likely outcome - ansthe parties will have equal undivided shares In order to qualify for the homeowner capital gains tax exclusion what circumstance must be met - ansthe seller must have lived in the home for two of the previous five years what environmental forces would most closely represent a natural force which in turn produces the exact opposite effect of erosion over time - ansAccretion If the seller of a home paid the property taxes on a property in advance for the year, and the closing takes place on October 1, what would be entered on the settlement document - anscredit to the seller, debit to the buyer A producer's license for a property and casualty requires how many hours of CE every renewal period - ans24 hours What does not prevent an insurer from adverse selection - ansUnderwriting every risk A legal contract that exchanges unequal values between the parties is termed a - ansAleatory contract When a risk is underwritten by an insurer which cedes all or nearly all of the risk to another insurer, the relationship is called - ansfronting What is an advantage to mediated settlements - ansthey do not appear as public court records How long has managed care been around - anssince the 1930's but only took off in the last 10 years The false billings by medical providers for immunizations that were not given is called - ansimmunization fruad The definition of property in Louisiana - anspersonal things and corporeal things Things without a body are said to be - ansincorporeal
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
Latest Updated Exam Study Guide 2025/
A system of principles and rules governing the ownership and management of the property of married persons or between themselves and toward third parties is known as - ansMatrimonial Regime What is true about community property - ansThings acquired during the marriage through effort, skill or industry or either spouse is community What terminates the community - ansA legal contract of terminate a divorce death of either spouse What is true about a partnership - ansA properly created partnership is a legal person separate and distinct from its partners What is true about general partnerships - ansall partners are personally liable for partnership debts all partners are general partners The partnership must be in writing What is true about limited partnerships - ansLimited partnership is known as Partnership in Comendam What is true about corporations - ansmay own or dispose of property Condominiums in Louisiana are governed by the - ansLouisiana Condominium Act A donation made as a gift, without conditions or requirements that the Donee do anything to receive the gift is known as - ansGratuitous The donation of property because of death is called - ansDonation Mortis Causa The forced portion of an estate in Louisiana is called - ansLegitime The right of the government to take private property for public use is called - ansEminent Domain In Eminent Domain the government is required to - anspay the value of the property taken and other costs such as relocation When you have title but actually use is with someone else this is known as - ansConstructive Possession The law of possession says that if you possess immovables in bad faith for more than 30 years then - ansyou can acquire the rights of ownership What is a charachteristic of a contract - anscan be an oral contract can be in writing can be an implied contract When one party is obligated for the benefit of the other, but receive no advantage in return is a - ansGratuitous Contract The extinguishment of an existing obligation by the substitution of a new one is known as - ansNovation The extinguishment of an existing obligation by the obligor and the obligee becoming the same person is known as - ansConfusion A termination date on a purchase offer in Louisiana makes the contract - ansIrrevoable An offer with a termination date for the offer but also a clause that states the offer may be withdrawn before acceptance is Louisiana is said to be - ansRevocable
Comprehensive study guide covering key topics for the
Louisiana Insurance License Exam, including insurance
regulations, policy types, underwriting, and state-specific
requirements.
Latest Updated Exam Study Guide 2025/
Mary and John Smith make a written offer to purchase real estate and state in the offer that the offer is open until midnight tonight, what is true about this offer in Louisiana - ansThe offer may not be withdrawn prior to midnight The Louisiana term similar to consideration is - ansCause A contract with no deposit of money is known as a - ansSpecific Performance Contract In a specific performance contract a buyer puts up a $5000 deposit. The buyer defaults and the sellers prove the default cost them $10,000 and win an actual damage suit in court. In this case how much must the buyer pay the sellers - ans$10, A right granted to a seller for the unpaid sales price is known as the - ansVendor's Privilege What always takes precedence over an already recorded mortgage - ansliens for property taxes In Louisiana the word Privilege is similar to the word - ansLien Under Louisiana's system, who has title to the property during the loan when there is a mortgage - ansthe borrower A mortgage stipulated by law is called a - ansTacit Mortgage Foreclosure by Ordinary Process is also known as - ansForeclosure with appraisement When a mortgagor waives benefit of appraisement, notice and delays, and agrees to executory process this is known as - ansConfession of judgement These are not considered interest under Louisiana Law - ansPrepayment charges A mil for tax purposes is equal to - ans. The assessed value percentage for a commercial property is - ans10% land and 15% building What is true about tax sales - ansPenalty and interest are charged on delinquent taxes What is true about leases in Louisiana - ansOral leases are valid regardless of term A lease for rent without a definite termination date is said to be - ansMonth to month A farmer that stays on a farm for one month without opposition after expiration is allowed to remain on the farm for another - ansyear By Louisiana Law, in both farm and non-farm leases how many days notice to vacate must be given by the landlord to the tenant in the absence of a default - ans10 days Under Louisiana Law, a lessor must give a lessee how many days notice before eviction for nonpayment of rent - ans5 days Under Louisiana Law concerning leases: if a tenant vacates the property prior to the expiration of the lease agreement - ansA landlord may keep a security deposit automatically Not insurable (financial gain) - ansSpeculative risks No financial gain - ansPure Risk Retaining risk involves bearing the loss yourself - ansRetention Refusing to coverage because the risk is too great - ansDelination Not included in Gross Living Area - ansGarage and detached buildings Example of a voluntary lien - ansmortgage Example of an involuntary lien - ansIRS lien Statutory lien - anscreated by a statue (IRS lien) created without any action by the owner Equitable lien - ansresult of common law. example: outstanding charge account Vendor's lien - ansa vendor has on a purchaser for the unpaid price of land
