Louisiana Series 101 – Life Insurance Practice Exam

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• What hours of ethics are required within the 24 continuing education credit hours?
• Which statement regarding commissions and compensation is INCORRECT?
• What provision states that if both the insured and the primary beneficiary die in the same accident and it cannot be determined who died first, the insured will be presumed to have survived the beneficiary and proceeds will be paid to the named contingent beneficiary of the insured or to the insured's estate?
• What is an accidental death rider?
• If the Annuitant, now deceased was receiving income from a Pure Life or Straight Life annuity, how much goes into the annuitant's estate for valuation?
• Which statement best describes surrender of a life insurance policy?
• The cost of any required medical exams in the underwriting process is paid by the:
• What is the primary purpose of life insurance?
• In an insurance contract, the clause naming the insured parties and the risks covered is the insuring clause.
• Which of the following is NOT an example of a prohibited practice?
• What best describes the effect on a variable annuity when actual performance equals the assumed rate?
• When a hearing is demanded, what is the timeframe for the hearing to be held?
• What Louisiana-specific replacement rules apply?
• Which term describes the underwriting outcome when a life policy is issued as applied for with standard risk?
• If a policyowner converts a term life policy, what happens to the policy?
• Annuities are designed to provide periodic payments and can be funded by which of the following?
• Which policy type typically lacks cash value but provides temporary coverage?
• Once issued, the application becomes part of the ______.
• What distinguishes variable life insurance from other types?
• Dividends in participating policies are guaranteed?
• Common settlement options after a claim?
• The reinstatement provision specifies what an insured must do if a policy has lapsed in order to put it back in force?
• Suitability forms and disclosures in Louisiana practice serve what purpose?
• Replacement notices requirement?
• What is the primary purpose of an annuity?
• Which of the following is not a form of permanent Life insurance coverage?
• When an insurance company fails to enforce a provision in a contract and decides to pay a claim, they are giving up a legal right or advantage. This is known as which of the following?
• Which statement about privacy notices is accurate?
• Which statement best describes term life insurance?
• What is an assignment in life insurance?
• Which statement is true regarding supplemental illustrations?
• Under the Financial Privacy rule, when must insurers provide consumers with a privacy notice?
• What is an accelerated death benefit rider?
• What is the name of the provision that specifies what an insured must do to put a lapsed policy back in force?
• Under Social Security, a worker needs 10 years of work to be considered ______ insured?
• What is life income with period certain?
• What does MEC stand for in life insurance terms?
• If an insured becomes totally and permanently disabled two months before the cut-off date for the waiver of premium rider, what happens?
• How can life insurance interact with estate taxes?
• With a Life Income Payment Option, what happens at the annuitant's death?
• Which statement describes credit life insurance regarding its relation to the loan?
• If a corporation owns a annuity, what is the tax ramifications?
• Producers’ ethical duties?
• The bank may require borrowers to have a Life Insurance policy to secure a loan in the event of the borrowers death. Which provision gives the bank proportional protection but not control of the policy?
• What is the name of a single policy covering two or more lives that pays benefits upon the death of the first insured?
• A supplemental illustration's presentation requirement is that it must be...
• Which statement best describes twisting in life insurance practice?
• Which would be considered a good result from an underwriter's action when a Life Insurance policy is issued as applied for?
• If a life insurance policy's cash value equals the policy's face amount and the proceeds are paid to the policyowner, what is this called?
• In a common accident where the insured and the primary beneficiary die, the policy proceeds would be paid to which party?
• The 'Original' age of a policy refers to the policyholder's age at which point?
• Which nonforfeiture option uses the policy's cash value to convert to a term insurance with the same face amount?
• Which statement best describes a Family Rider?
• How does an outstanding policy loan affect the death benefit?
• What is reduced paid-up insurance?
• Which rider would best provide coverage for a policyowner's spouse and children under one policy at an affordable price?
• What is the common feature shared by Roth IRAs and Traditional IRAs?
• Which statement about examinations is NOT correct?
• A married couple purchases a 250,000 Joint Life policy. When the older of the two dies, what is the amount payable to the survivor?
• Among the following profiles, who would likely pay the highest premium for a disability income policy, all else being equal?
• How are life insurance proceeds taxed to beneficiaries?
• The Exclusion Ratio is used to determine the tax-free portion of which payments?
• How are employer paid premiums on a group Life Insurance plan treated for tax purposes?
• If a policy loan is outstanding at death and remains unpaid, what happens to the death benefit?
• Which statement is NOT a standard or requirement for an illustration?
• B was 42 when the Life Insurance policy was issued. 42 is referred to as the _________ age of the policy.
• A ________ plan calls for the business to purchase Life Insurance policies on each of the business owners.
• Withdrawals from a MEC are taxed in which manner?
• K owns a Variable Annuity with an assumed interest rate of 4%. If the actual performance of the separate accounts is 5%, the effect on this month's income benefit check will be_____________.
• If a Life Insurance policy does not pass the 7-pay test, it will be deemed a MEC.
• With regard to delivery receipt requirements, which of the following is TRUE?
• In Louisiana, the free-look period has a statutory minimum of 10 days.
• Endowment occurs when the policy's cash value equals the face amount and the proceeds are paid to whom?
• ERISA stands for which statute?
• What is the cash value in a permanent policy?
• Which clause is the life insurance policy's promise to pay the death benefit upon death, provided the policy remains in force?
• The cost of a Group Life insurance plan is determined by all of the following EXCEPT which is least important?
• Two months before the waiver cut-off date for the waiver of premium rider, if total disability occurs, what happens?
• If both the insured and primary beneficiary die in the same accident and the order cannot be determined, the proceeds may be paid to which option?
• Which statement best describes a Pure Life annuity?
• An initial privacy notice is NOT required to be provided to which of the following?
• Which retirement accounts allow catch-up contributions for individuals aged 50 or older?
• Which statement is FALSE regarding the Life and Health Insurance Guaranty Association?
• K owns a Variable annuity with an assumed interest rate of 4%. If actual performance of the separate accounts is 4%, the effect on this month’s income benefit check will be the
• Under privacy regulation, a customer relationship is established when:
• What constitutes an ethical breach by a producer regarding client information?
• In Louisiana life insurance practice, which regulatory forms are typically used?
• What does replacement mean in life insurance?
• Which of the following describes an absolute assignment?
• Under the extended term option, how is the death benefit provided?
• How can life insurance support estate planning?
• If it is known or should be known by the agent that an existing policy is going to be lapsed, forfeited, surrendered or terminated in favor of a new policy, the agent must submit a :
• Under underwriting, which statement about opt-out for HIV testing is true?
• All of the following are TRUE regarding Credit Life, EXCEPT:
• A Joint Life policy provides coverage on how many lives and pays on the death of which insured?
• In the policy described, who are the contingent beneficiaries?
• To sell a registered Variable contract, what licensing is required according to the material?
• Who pays the premiums during a disability under a waiver of premium rider?
• Most often, life policies pay death claims in a single lump sum. The options that allow benefits to be paid other than lump sum are called __________.
• Which occupation is typically associated with higher disability income premiums?
• _________ refers to the jurisdiction where an insurer was formed or incorporated.
• What is the general tax treatment of life insurance proceeds paid as a death benefit to beneficiaries?
• If an annuity uses units instead of dollars to determine the value of the policy, then it is a(n) _________ annuity.
• What is reinstatement in life insurance?
• Name three common riders.
• Which are the nonforfeiture options available when a policy lapses?
• Which statement describes a Decreasing Term policy in loan protection because the debt declines over time?
• An individual has a 12,000 loan from the Bank to purchase a boat, which is scheduled for repayment in monthly installments over 48 months. Which Life Insurance would be most efficient at protecting the lender should the borrower die prior to retiring the debt?
• What is the intent of the suicide clause?
• Replacement requirements apply to which party?
• Which statement about licensing for variable contracts is FALSE?
• What is an annuity?
• What is a rider?
• What is increasing term insurance?
• What is insurable interest?
• What is the only way an Annuity can pay out income tax free benefit payments?
• What factor typically reduces the cash surrender value when a policy is surrendered?
• Credit life insurance is primarily designed to do what?
• In Louisiana, which statement about assumed names is true for an insurance agent?
• In order for an insurance company to determine if it will issue a policy, What document must always be submitted for review?
• What is the purpose of nonforfeiture options?
• What is the primary purpose of the reinstatement provision?
• Under the Financial Privacy rule, how often must the privacy notice be provided after the initial disclosure?
• If a policyowner unintentionally pays premiums in excess of the MEC guidelines, the excess premium can be refunded by the insurer within how many days after the end of the contract year?
• How does term life differ from permanent life?
• Which rider would cause future premiums to be waived if the insured becomes totally disabled?
• When do individual producer licenses expire?
• The options that allow benefits to be paid other than lump sum are called what?
• What is a lump-sum settlement?
• An annuity policyowner may do all of the following, EXCEPT:
• Straight Whole Life is classified as which type of policy?
• Define the death benefit.
• Generally, which of the following annuities is not designed to guarantee the principal value of the policy in stable interest rate environments?
• In a STOLI/IOLI transaction, which action is not required of the investor?
• How many continuing education credit hours must a producer complete every renewal period?
• Which statement about group life insurance premiums paid by an employer is true?
• Which statement about death benefits tax treatment is accurate?
• What is a waiver of premium rider?
• Which statement is NOT correct regarding penalties?
• If a term policy is a level death benefit policy, what does that imply?
• If the applicant desires a savings-oriented policy with guarantees and is willing to pay premiums only until age 65, which should he purchase?
• Which statement is FALSE with respect to HIV testing?
• Which statement correctly describes twisting in life insurance practice?
• Which Nonforfeiture Option provides continuation of protection after lapse by converting cash value to term insurance with the same face amount?
• What is standard industry practice for producers to prove that they delivered the policy mailed to them by the insurer?
• Which statement is true regarding acceleration benefits?
• When must licensees provide privacy notices to individual customers?
• What are the tax implications of a Modified Endowment Contract (MEC)?
• Which policy pays premiums for a limited period and provides coverage for life?
• How does a policy loan affect cash value and death benefit?
• The Medical Information Bureau (MIB) is formed by which entities?
• Under a waiver of premium rider, after disability period ends, what must the insured do?
• What is survivorship life insurance?
• Which type of permanent life insurance integrates a cash value component with a flexible premium and death benefit that can vary based on investment performance?
• What are nonforfeiture options?
• When demanded, hearings are held within how many days after the date a hearing is demanded?
• First to die and last to die Life Insurance policies have in common all of the following, EXCEPT:
• Illustration requirements?
• When an annuitant annuitizes an annuity with a cost basis, the portion of the income benefit payment that is taxed is determined by the:
• What are tax considerations for settlement options?
• What is a level death benefit term policy?
• Which statement is TRUE regarding the duties of insurers?
• What does incontestability mean?
• What is the 'waiver of premium' called on a Universal Life Insurance policy?
• Which rating classification is typically used in the senior marketplace so that policies can be issued without a medical exam?
• What is decreasing term insurance?
• Of the following, which best describes a Straight Whole Life policy?
• Which of the following is a nonforfeiture option?
• What is the 7-pay test in life insurance?
• The ________ Clause identifies the parties to the contract and the perils it covers.
• Unfair trade practices in Louisiana life insurance?
• What is a joint life policy?
• With regard to examinations by the Commissioner, the Commissioner must:
• Under the Law of Agency, a person or entity who acts on behalf of another is called what?
• A survivorship policy is commonly used to fund estate planning by paying out on the death of which insured?
• What are the features of universal life insurance?
• Which statement regarding accelerated benefits is FALSE?
• A life insurance policy that covers multiple lives and pays on the death of the first insured is called
• The Accidental Death and Dismemberment rider provides coverage for which events?
• Which of the following is NOT a purpose of the replacement rule?
• Replacement notices are used to inform about what?
• Which policy is described as a Straight Whole Life policy?
• The field underwriter is the __________ and is not a determiner of insureability.
• Statements made by an applicant for a Health insurance policy that the applicant says are true to the best of his/her knowledge are known as:
• Which statement best describes a statement of Good Health?
• What is stated about the tax treatment when a corporation owns an annuity?
• All of the following are factors for determining annuity suitability EXCEPT which?
• What is the extended term option in life insurance?
• All of the following are characteristics of a 401K plan, EXCEPT:
• Life insurance death proceeds are generally income tax free to the beneficiary, except in which situation?
• Which of the following is NOT a purpose of the replacement rule? (repeat)
• ERISA stands for which Act?
• What is misrepresentation?
• What is a policy illustration?
• Which of the following is not an essential element of an insurable risk?
• What is cash surrender value?
• If a term policy is a level premium policy, what does that imply?
• Which premium payment mode is the most expensive premium mode overall?
• K has a $10,000 traditional Whole Life policy with an outstanding loan of $1,000 and a 5% interest charge. If the loan interest is not paid at year end, what is the result?
• What is the free-look period and its purpose?
• In a Viatical Settlement a third party purchases a policy from a terminally ill insured for approximately _______ to _______% of the policy's face amount.
• In universal life, what components exist?
• How are policy loans taxed?
• IRA's can be funded with all of the following, EXCEPT:
• Which rider pays out a capital sum if the insured loses a limb or eyesight?
• In health insurance applications, statements true to the best knowledge are called representations.
• Incontestability clause duration?
• Which statement about the Life and Health Insurance Guaranty Association is FALSE?
• What happens if a policy fails the 7-pay test?
• All of the following are TRUE regarding Life Insurance advertising, EXCEPT:
• In variable life, which factor affects changes in the policy's cash value and death benefit?
• Louisiana advertising guidelines for life insurance ads?
• Collateral assignment is used to secure a loan with the policy’s cash value.
• Which statement is true about the 7-pay test and MEC?
• Which statement is TRUE regarding accelerated benefits?
• Which Term Life insurance policy cannot be renewed?
• What is a level premium term policy?
• Which statement best reflects advertising standards for life insurance?
• For individuals with health issues, which type of plan would be considered?
• Unless an exception applies, life insurance proceeds are income taxable in which of the following circumstances?
• Which arrangement gives a lender a claim on a policy's benefits to secure repayment but does not give control of the policy to the lender?
• Non-guaranteed element in illustrations?