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Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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 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
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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. To maintain your license, every licensee must: - ansSelect one: a. complete a certain number of hours in continuing education. b. maintain satisfactory conduct. c. send in the renewal application and pay renewal fees. d. All of the above
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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 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
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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 person will receive the same standard contract as anyone else insured by The Rocket Insurance Corporation. This type of contract is referred to as a(n) - ansContract of Adhesion ATOZ INSURANCE COMPANY sold Jeff a policy of insurance. The company did not allow Jeff to negotiate the wording of the policy, they required him to accept the standard form they used. This is because an insurance policy is a type of contract called a(n) _____________________. - ansContract of Adhesion SAFE MONEY INSURANCE COMPANY sent John the commission schedule that showed the commissions he would make if he sold one of their new lines of insurance. It was policies not mentioned in his contract. They also sent John the marketing materials and application forms. John's right to sell the new policies was created by _____________________. - ansApparent authority Jeff, a producer, is given authority to do certain things on behalf of his insurance company. When those functions are given orally or written in a contract between Jeff and the insurer, in clearly definitive terms, this authority is called? - ansExpressed authority Mary was given a rate book and access to software to quote new policies that were not mentioned in her contact. The authority that was conferred onto her is called: - ansApparent Authority
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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 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
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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 An insurable interest in Life Insurance may include - ansself, family, or business Personal uses of Life Insurance include all of the following EXCEPT: - ansIlliquidity Insurers must notify all producers at least ____________ to get approval to use advertisement not created by the insurer. - ansAnnually If a producer would like to use an advertisement not created by the insurer, the producer must: - ansget prior approval of the insurance company An investor, also known as a Viatical provider, may purchase an active life insurance policy, for a percentage of its face value, on an insured that is terminally ill and medically expects to die soon. - ansTrue Viatical/Life settlements are accomplished through the use of? - ansAbsolute assignment Oscar owns a whole life policy that has been paying into for many years. He would like to continue having life insurance, and can afford to make premium payments, but needs about 30% of the cash value for a couple of years. What would be the best course of action for Oscar to take? - ansContinue making the premium payments to keep the contract in force and borrow from cash value Jerry has a life insurance policy that covers him for his whole life, or to age 100 and develops a cash value. It has a flexible premium that allows Jerry to decide among options on how much to spend for insurance and how much goes into the cash value. The type of policy Jerry has is called: - ansUniversal Life When premiums are paid into a universal life insurance policy, insurers must make certain adjustments to the cash value. The company will add the current premium paid, and: - ansDeduct for expenses and mortality costs, then add current interest Jerry has a life insurance policy that covers him for his whole life, or to age 100 and develops a cash value. It allows Jerry to adjust the premium, face amount or pay off period. Increasing the face amount may require proving insurability. Of course, changing the premium will
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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 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
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
Accelerated benefits are also called ____________________ benefits. - ansLiving An irrevocable beneficiary cannot be changed without written consent of the ___________. - ansBeneficiary The incontestability clause prevents an insurance company from denying a claim because of misrepresentations in the application after the policy is in force ___________. - ans2 years A policy may be backdated to the client's last birthday if it lowers the premium rating of the client and his birthday was within the last ___________. - ans6 months The Period Certain settlement option indicates a ___________. - ansFixed number of years of payments If Grandpa Jones had two sons. One son, Jeff, died prior to him and he wanted Jeff's children to receive Jeff's share of his estate. The class designation he would choose for his beneficiary designation would be ___________. - ansPer Stirpes When the policy owner and the insured are different people, this is best described as: - ansThird Party Ownership The settlement option that pays two beneficiaries for the rest of their lives is called ___________. - ansJoint and Survivor Which of the following is not correct? An unpaid loan amount and accrued interest ____________________. - ansWill keep the beneficiary from receiving the death benefit until the loan is repaid The primary purpose of an annuity is for _________________________________. - ansthe annuitant to receive payments The one feature common in both the life insurance policy and an annuity contract is that the cash value grows and tax deferred. - ansTrue The interest from an annuity for education funds would be taxed _________. - ansLIFO The guaranteed amount in an annuity contract that the owner can receive if the contract is cancelled before it begins making payments to the annuitant is the _______________. - ansSelect one: a. Nonforfeiture Value. b. Cash Value. c. Guaranteed Surrender Value. d. All of the above. The annuity contract that pays the annuitant for life or a minimum of what was paid in, and if the annuitant dies before the minimum is reached it pays the remaining minimum balance to a beneficiary is called _______________. - ansRefund life The annuity contract that pays the annuitant for life or a minimum number of months or years, and if the annuitant dies before the minimum is reached it pays the remaining minimum number of payments paid to a beneficiary is called _______________. - ansLife with guaranteed minimum
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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, Which of the following is generally not received completely tax free? - ansCash value increases To avoid an IRS withholding tax assessment for moving qualified plan monies from one plan to another, Brenda would need to open a new account and request a _______________ directly from the old custodian to the new plan custodian or institution. - ansTransfer of funds Joyce is a schoolteacher. Her employer's retirement plan would likely be a - ans403(b)
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
Withdrawals from a qualified plan prior to age 59 1/2 are assessed a 10% tax penalty above the ordinary income taxes unless the withdrawal was for a qualified exception. All of the following are qualified exceptions EXCEPT: - ansUnforseen debt A Qualified plan must meet certain requirements as determined by the IRS and is approved by the IRS. All of the following requirements comply EXCEPT - ansThe plan must be flexible in place relative to the existence of employees in the company and there may be a vesting requirement so the plan stays true to its intent. ________________, a self-employed person or a partner with 10% or more interest in the business can contribute to this type of plan up to all of their earned income or $49,000, whichever is less, and the contribution is tax deductible. - ansHR/10 or Keogh plan Paul has worked at the company for 2 years full-time (over 1100 hours per year) and is 20 years old.His income is $90,000. How much can Paul contribute to a Keough plan this year? - ansNone ___________ are quite popular and allow employees to decrease their taxable wages by moving income to the plan before it is taxed as income, and in some cases, the money may be matched on some level by the employer on a regular, systematic basis. - ans401(k)'s ____________________ - tax-sheltered annuities (TSAs) - also called tax-deferred annuities (TDAs), are specifically structured for non-profit organizations and schools under the rules set forth by the IRS code section 501(c)(3) with the same contribution maximum and 'catch up' allowances as 401(k)'s. - ans403(b) John is 51 years old. The maximum amount of 'catch-up' contribution John can make into his 401(k) this year is, $5,500. - ansTrue The self-employed or employees of a company may participate in a HR10/Keogh as long as they meet all of the IRS rules. The IRS rules do NOT apply to individuals: - ansunder the age of 21 __________________, IRA's for smaller operations with a limited amount of employees, according to the current year rules from the IRS. The employee opens an account and the employer contributes up to 25% of their income or $49,000.00 for the year, whichever is less.
- ansSimplified employee pension (SEPs) 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
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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 to inform the person the policy will lapse if the premium is not paid before the end of the grace period. - ans30, 15 The insurance company does have the right to request an autopsy on an insured without the family's consent and without a court order. - ansFalse Accidental death and dismemberment - AD&D riders have principal payouts available in double or triple indemnity and require the death to be within 60-90 days of the defined accident. - ansTrue Ellen has been working and putting money into the Social Security system via payroll taxes for many years. Forty quarters of coverage are required to be fully insured and be eligible to apply for all benefits available in the system. If four credits are earned per one year of work, how many years will Ellen have to work and contribute into the system to become fully insured? - ans _____________ benefit - this replaces income in direct proportion to the income loss due to the total disability the person experienced. - ansResidual disability "The inability to perform the duties of any occupation for which one is suited by reason of education, training, experience, or prior economic status." This is definition of total disability
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
in a disability income policy is considered: - ans1. An "any occupation" definition / more restrictive may not pay benefits (less expensive) No policy sold in Louisiana can have a more strict definition than the state's definition of total disability; total disability means that a person is unable to perform any occupation at all or is unable to train to re-enter the job market due to their condition. - ansTrue Why would a business use a key person life insurance policy? - ansTo protect the company from the financial consequences of the death of a vice president Which of the following statements is not true about Key Person Disability Insurance? - ansThe business can deduct the premium ________________ policies cover disabilities resulting from events off the job only, and expect the disabilities that occur on the job to be covered by available Workers Compensation. - ansNon-occupational ________________ - to protect the insurer from adverse selection, they may decline certain risks, rate some persons higher than others due to risks, or exclude certain coverages. - ansPolicy issuance alternatives Jamie, an office manager, fell off a horse while visiting her mother on vacation. The rendered her completely paralyzed. Now after a year the doctors feel she will not recover from her injuries. Choose from the selections below the program from which Jamie will be able to collect disability income benefits? - ansSocial Security 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
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
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: a. Must have a group of 20 or more employees b. The employee must exercise this right within 60 days of the end of their employment and be eligible for continuation in the employer's group medical insurance plan for up to 18 months c. The employer must collect the premium from the employee to be exactly 102% of the actual premium cost for the ex employee's coverage plus 2% to the employer for the bookkeeping and administration of collecting payments d. All of the above must apply ________________ - allows for terminated employees and/or their families to keep their coverage after qualifying events: resignation, downsizing, or layoff (if fired for misconduct, a person is ineligible), status change from full to part time. - ansCOBRA The insurer can change the premium assuming it is changed for all insureds in a class. However, the company cannot refuse to renew the policy, or cancel it. This is a ____________ policy. - ansGuaranteed renewable Renewability of coverage (guarantee issue) - Carrier shall issue plan chosen by employer to employees that elect to be covered, at the option of the small employer, except for: - ansPayment of premium Every small employer group carrier must offer a minimum of two plans: a Basic Care Plan and a Standard Benefit Plan. Which statement is not true for the small employers' group plans? - ansBoth plans must have a provision for military personnel to increase their coverage in the event of deployment _______________ - groups of employers that join together to share the risk of self-insurance.
- ansMultiple-Employer Welfare Arrangements (MEWAs)
Practice Exam Questions
Comprehensive practice exam covering key topics in
Louisiana life, accident, and health insurance.
Includes multiple-choice questions designed to help
reinforce essential concepts and state-specific
regulations
Latest Updated Exam Study Guide 2025/
Which of the following supports the Medical Information Bureau? - ansInsurance companies Can not be declined by MIB Which of the following is true about a service provider as it relates to health insurance? - ansPayments are made directly to the provider Which of the following is true in regards to health insurance issued on a group basis? - ansAll eligible members must be covered under a "non-contributory" group health plan If a policy contains benefits for community-based services or home care, they must cover: - ansHospice care, home health care services, respite care In an employer group health insurance plan, in groups of 50 or more, medical information cannot be required for underwriting, but smaller groups may require medical underwriting. - ansTrue Select the statement that best describes a Multiple Employer Trust: - ansA group of small businesses that band together in order to quality for group insurance benefits Advertising must be scrupulous, not misleading or deceiving. - ansTrue PCIP - ansPre Existing Condition Insurance Program MLR - ansMedical Loss Ratio says for every dollar they take in, they give back to consumer PPACA - ansPatient Protection & Affordable Care Act - children can stay on parents plans until 26 / Gold Plan - 80% ADA - ansAmericans Disability Act ADL - ansActivity Daily Living - triggers long term care needs SHIP - ansState Health Insurance Assistance Program Toll free, free service for seniors if they have any questions a/b coverage ERISA - ansEmployee retirement income security act
- its a federal law to protect the interests of the participants and beneficiaries regarding their pension, group insurance and welfare benefit plan
- There's an appointed fiduciary that manages benefit plans, must communicate benefit offerings, govern the plan per ERISA guidelines
- reports are available to dept of labor and irs and must file annually Keogh Plans (HR-10) - ans- Allows unincorporated business owners to participate in the retirement plan - as an employee
- Can be either defined contribution or defined benefit plans FCRA - ansFair Credit Reporting Act of 1970 regulates the collection and use of consumer credit information FMLA - ansThe Family and Medical Leave Act of 1933 to allow employees to take time off from work for family or medical reasons. The FMLA requires employers that have 50 or more employees to provide employees with up to 12 weeks of unpaid family or medical leave during any 12 month period. MECs - ansModified Endowment Contract TSAs - ansTax-sheltered annuities
