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Download LA Series 103 Exam | Updated Questions With All Verified Answers 2025-2026 and more Exams Insurance law in PDF only on Docsity!
Maximum benefit refers to the - Correct Answer upper limit of the total lifetime benefits the insurance company will pay is NOT an element of a valid contract - Correct Answer Countersignature life is designed to pay the balance of a loan if the insured dies before repayment of the loan - Correct Answer Credit A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPPA, this tax will not be applied if the withdrawal is used for medical expenses that exceed ___ of the individual's adjusted gross income. - Correct Answer 7.50% A beneficiary change can occur: - Correct Answer normally at any time during the policy term. A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding federal income tax liability. - Correct Answer No federal income tax is owed on the life insurance proceeds. A business entity wishing to act as an insurance producer MUST - Correct Answer obtain a producer's license. A business will will typically use which type of life insurance to cover their employees? - Correct Answer Group Policy A cease and decist order - Correct Answer forbids a stated practice listed in the order. A change in an insurance application requires - Correct Answer an initial made by the applicant. A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) - Correct Answer optional renewability clause A comman exclusion with Vision plans is - Correct Answer lasik surgery A company that is authorized by the Commissioner to transact insurance business in Louisiana is called a(n) - Correct Answer authorized insurer A form of medical health insurance covering the treatment and care of gum - Correct Answer Dental expense insurance A group Disability Income plan that pays tax-free benefits to covered employees is considered - Correct Answer fully contributory A guaranteed issued insurance policy has no - Correct Answer medical underwriting A health care provider claim may be settled using which of the following payment methods? - Correct Answer Fee-for service A health insurance policy where the insurer has the right to terminate the policy owner's premiums, but NOT cancel the policy is called a(n) - Correct Answer guaranteed renewable policy A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called - Correct Answer conditionally renewable A health insurance policy will typically cover - Correct Answer preventative health services A licensed producer MUST be by an insurer to be eligible for soliciting insurance contracts - Correct Answer appointed A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the - Correct Answer named living primary beneficiaries A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the - Correct Answer reinsurer A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT - Correct Answer fare-paying passenger A life insurance policy sold in Louisiana can be contested by the insurer only during the first___ years of the contract - Correct Answer two A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called - Correct Answer Universal life A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability is called a(n) - Correct Answer Guaranteed Insurability Rider A limited payment whole life policy provides - Correct Answer lifetime protection A long term care policy typically provides all of the following levels of care except - Correct Answer acute care A Louisiana insurance producer solicits a life insurance policy. In the event of a controversy between the insured and the company, the producer is considered to represent the - Correct Answer company A master contract and certificate of coverage can be found in which type of policy - Correct Answer Group A medicare supplement basic benefit is - Correct Answer the first 3 pints of blood a year A Medicare supplement plan can be cancelled by the insurer for - Correct Answer nonpayment of premiums A medicare supplement policy can be cancelled by the insurer for - Correct Answer nonpayment A Medicare Supplement Policy is - Correct Answer designed to fill in the gaps of Part A and Part B Medicare A Medicare Supplement policy's outline of coverage MUST include a(n) - Correct Answer description of policy benefits A Medicare Supplement Policy must NOT contain benefits which - Correct Answer duplicate Medicare benefits A newborn is required to be covered for___ days from the moment of birth - Correct Answer 31 A nonresident producer from a state outside of Louisiana may become licensed in Louisiana IF a(n) - Correct Answer reciprocal arrangement exists with the state of domicile A payment system for health care in which the provider is paid for each service given is called - Correct Answer Fee-for-service A policy owner may exercise which of these dividend options that uses the dividend to pay all of part of the next premium due? - Correct Answer reduction of premium dividend option A policy owner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision - Correct Answer partial disability A policy owner who anticipates death or develops a life-threatening condition may obtain proceeds from a life insurance contract. These proceeds are known as - Correct Answer accelerated benefits A preexisting condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care services with months preceding a health policy's effective date - Correct Answer six A producer license is NOT required when - Correct Answer Underwriting insurance A producer must notify the Commissioner within __ days of a felony conviction - Correct Answer 30 A producer who sells most of his/her insurance policies to family members is said to be engaging in - Correct Answer controlled business A professional liability for which producers can be sued for mistakes for putting a policy into effect is called - Correct Answer Errors and Omissions A proposed insured for health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment - Correct Answer indicates a preexisting condiction A provision in a whole life policy that allows a policy owner to terminate the policy in return for a reduced paid-up policy is called a(n) - Correct Answer nonforfeiture provision A provision that allows a policy owner to withdraw a policy's cash value interest free is called a(n) - Correct Answer collateral assignment A provision that allows a policy owner to withdraw a policy's cash value interest free is a(n) - Correct Answer partial surrender A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a - Correct Answer association or labor group A viatical settlement broker may NOT - Correct Answer make any transactions before being approved for a license. A waiver of premium rider allows an insured to waive premium payments if the insured is - Correct Answer completely and permanently disabled A Whole life Insurance policy accumulates cash value that becomes - Correct Answer The policy loan value which the insured may borrow against against A whole life policy option where extended term insurance is selected is called a(n) - Correct Answer nonforfeiture option A(n) sells, solicits, or negotiates insurance on behalf of insurance companies for compensation - Correct Answer producer According to HIPPA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual - Correct Answer is eligible for coverage upon hire According to life insurance contract law, insurable interest exists - Correct Answer at the time of application According to Louisiana law, group life insurance conversion privileges must NOT - Correct Answer require evidence of insurability According to the Health Insurance Portability and Accountability Act (HIPPA), when can a group health policy renewal be denied? - Correct Answer Participation or contribution rules have been violated Advertising regulations exist in order to - Correct Answer demonstrate full and truthful disclosure to the public After years from date of issue, a policy can no longer be cancelled by the insurer for misstatements (except for fraud) - Correct Answer 3 After a disability policy has been in force for year(s), it is considered incontestable - Correct Answer 3 After an annuity has been in force for year(s), it is considered incontestable - Correct Answer 2 years All of the following are characteristics of a Group Life Insurance Plan EXCEPT - Correct Answer individual underwriting All of the following are considered to be fraud EXCEPT - Correct Answer collecting an insurance charge that is less than what is required All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT - Correct Answer Reduction of Premium All of the following are core benefits of Medicare Supplement Plan A EXCEPT - Correct Answer Deductible payments for the first 60 days of hospitalization under Medicare hospitalization insurance All of the following are examples of a Business Continuation Plan EXCEPT - Correct Answer Deferred Compensation All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT - Correct Answer stock purchase All of the following are functions of an insuring clause EXCEPT - Correct Answer primarily describes the free-look period All of the following are included as part of a contract in the entire contract provision except the - Correct Answer changes made by the producer All of the following are qualifications for establishing a health savings account (HAS) Except - Correct Answer Enrolled in a health plan with a prescription of drug benefits All of the following plans allow for employee contributions to be taken on a pre- tax basis except - Correct Answer Health Reimbursement Arrangement Plan All of these are characteristics of a major medical expense policy EXCEPT - Correct Answer elimination periods All of these are characteristics of a universal life insurance policy EXCEPT - Correct Answer Fixed Surrender Value All of these are common exclusions to a Ifie insurance policy EXCEPT - Correct Answer accidental death All of these are considered key factors in underwriting life insurance EXCEPT - Correct Answer Marital status All of these are characteristics of a major medical expense policy except - Correct Answer elimination periods All these are valid policy dividend options for a life insurance policy owner except - Correct Answer accumulate without interest Ambiguities in an insurance policy are always resolved in favor of the - Correct Answer insured An accident and health policy that provides reimbursement benefits makes them payable to the - Correct Answer insured An alien insurer - Correct Answer is an insurer operating in the U.S. but headquartered outside the U.S. An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made? - Correct Answer refund annuity An annuitant is guaranteed to NOT outlive their benefits with a(n) - Correct Answer Guarenteed Lifetime Withdrawal Benefit An annuity is primarily used to provide - Correct Answer retirement income An applicant's character and personal habits can be obtained for underwriting purposes from which source? - Correct Answer Investigative consumer report An Arkansas resident producer who would like to solicit insurance in Louisiana MUST obtain a nonresident license in Louisiana. Which of these is NOT a requirement for obtaining a nonresident license? - Correct Answer Pass Louisiana's state licensing exam An attending physician's statement would be appropriate for which life insurance purpose? - Correct Answer At the request of the insurer to assist in the underwriting decision An eligible employee can be excluded from group health coverage for up to___ months if he/she is considered a "late enrollee" - Correct Answer 18 An employer is issued a group medical insurance policy. This single contract is known as a(n) - Correct Answer master contract An employer may qualify for health care tax credits through SHOP marketplace if that employer has fewer than how many employees? - Correct Answer 25 
