Louisiana Life and Health Insurance Practice Exam Flashcards

Flashcards covering Louisiana life and health insurance laws, policy provisions, tax implications, and industry terminology based on lecture notes.

What does the term "Maximum benefits" refer to in an insurance context?

The upper limit of the total lifetime benefits the insurance company will pay.

Under HIPAA, the $10\%$ excise tax on early IRA withdrawals will not be applied if the funds are used for medical expenses that exceed what percentage of adjusted gross income?

$$7.50\%$$

What is the federal income tax liability for a beneficiary receiving life insurance policy proceeds?

No federal income tax is owed on life insurance proceeds.

What specific type of life insurance is typically used by a business to cover their employees?

Group Policy

In Louisiana, an insurance company authorized by the Commissioner to transact business is called a(n) ________.

authorized insurer

At what age can a dependent child remain on a parent's health insurance plan in Louisiana?

Beyond age $26$ if the child has a mental or physical handicap and remains dependent on the parent.

How is a disability elimination period best described?

As a time deductible.

A doctor who accepts Medicare Assignment agrees to which restriction?

The doctor cannot charge more than Medicare's scheduled coverage.

In Louisiana, a life insurance policy can be contested by the insurer only during the first how many years of the contract?

$2$ years

What is the name of a life insurance policy where premiums are paid up within a select time period?

limited payment insurance

What type of life insurance policy contains cash values that vary according to the investment performance of stocks?

Variable whole life

Which rider pays a monthly amount to a policyowner who is totally and permanently disabled as a result of an accident?

Disability Income Rider

How many days is a newborn required to be covered from the moment of birth under an accident and health plan?

$31$ days

A person who is a nonsmoker, of average weight, and in excellent health falls into which risk classification?

Preferred

What provision allows a policyowner to temporarily give up ownership rights to secure a loan?

collateral assignment

If an individual rolls over a Traditional IRA to another IRA, how many days do they have to avoid tax consequences?

$60$ days

At what age can a Roth IRA owner make tax-free withdrawals if they have owned the account for at least $5$ years?

$$59\,1/2$$

What type of license is required for a life insurance producer to sell Variable Life Insurance?

A securities license

In Louisiana, how often must an insurance producer's license be renewed?

Every $2$ years

All Louisiana licensed producers must complete how many hours of continuing education every $2$ years?

$24$ Hours

What is the maximum period that Pre-Existing conditions may be excluded from coverage in a Medicare Supplement policy?

$6$ months

What is the name of the provision that defines the primary care physician's role in authorizing treatment from a specialist?

Gatekeeper

A policyowner has a stop-loss limit of $\$5,000$, a deductible of $\$500$, and an $80/20$ coinsurance. If they incur $\$25,000$ in covered losses, how much must the insured pay?

$$\$5,000$$

How many days does an insurer have to file a notice of appointment to the commissioner?

$15$ days

What is the actuarial level of coverage provided by a Silver Plan as classified by the Affordable Care Act (ACA)?

$$70\%$$

In Louisiana, how many days is the free-look period for a life insurance policy?

$10$ days

What is the minimum number of employees a Louisiana small employer health plan must have?

$$2$$

What is the maximum number of employees a Louisiana small employer may have?

$50$ employees

In Louisiana, legal action against an insurer for failure to pay health insurance claims must be taken within how many years after proof of loss?

$1$ year

Under the common disaster provision, if the insured and the primary beneficiary die in the same accident, the insurer proceeds as if which person lived longer?

The insured

What type of annuity continues to pay a beneficiary the difference between the annuity value and payments made if the annuitant dies?

refund annuity

What describes the process where an insurer oversees a hospital stay to confirm it is following the schedule for release?

Concurrent review

Which clause protects a policyowner from a misrepresentation caused by an innocent mistake?

incontestable clause

What is the tax liability for an employer's contributions to a Health Savings Account (HSA)?

No tax payment needed

What is the term for the period in which there are no Social Security benefits for a surviving spouse?

blackout period

What is a contract of adhesion?

A contract where the terms must be accepted or rejected in full.

What kind of life insurance is designed to pay off a mortgage balance if the insured dies during the loan term?

Decreasing Term Insurance

In an insurance contract, what is the applicant's 'consideration'?

The statements made in the application and the premium.

What is the primary purpose of a viatical settlement?

reduced death benefit prepayment

What is the maximum penalty for a producer who obtains Consumer Information Reports under false pretenses under the Fair Credit Reporting Act?

$$\$5,000$$