Certification Exam: Louisiana Life and Health Pre-licensing

Which type of business insurance is meant to cover the cost of continuing to do business while the owner is disabled?

Business overhead expense policy

Which of the following decisions would be a Health Savings Account (HSA) owner not be able to make?

The amount contributed by the employer

Which of the following is NOT information found a life insurance buyers guide?

How to take legal action against an insurance company

How often must the Commissioner examine each domestic insurance company?

every 5 years

In order for a business entity to be licensed as a producer,

a licensed producer must be designated as responsible for compliance with state insurance laws

The _______ of coverage describes policy features, benefits, exclusions, and riders in a long-term care policy.

Outline

Karen, the producer pays for her clients initial premium payment as an incentive for purchase. This act is considered a:

Rebate

The Louisiana Life and Health Insurance Guaranty Association

protects insureds from insurance company insolvency

The renewability provision for an individual long-term care insurance policy must be located on the policy form's

first page

What is the purpose of the Louisiana Life and Health Insurance Guaranty Association?

Ensures that claims filed against insolvent insurance companies will be paid

Which entity regulates claim settlement practices?

State insurance departments

What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?

12 months

What kind of insurance provides coverage for one or more necessary or appropriate diagnostic, preventative, therapeutic, real rehabilitative, maintenance, or personal care services in a setting other than an acute care unit of a hospital?

Long-Term Care

Which of the following actions by producer would NOT result in a licensed suspension or revocation?

Sharing commissions with other licensed producers

When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement?

The producer and the applicant

Which of the following is NOT a requirement to obtain a Louisiana insurance producer license?

Must be age 21

Which of the following unfair trade practices involves a producer who makes malicious public statements regarding an insurer's financial condition?

Defamation

Which of these is NOT an Unfair Claims Settlement Practice?

Settling a claim by arbitration

______ life is designed to pay the balance of a loan if the insured dies before repayment of the loan.

Credit

Within how many days must a licensee submit a change in address?

30 days

A life insurance applicant in Louisiana may backdate the application for up to _____ month(s).

6 months

Within how many days must the producer submit a change in address?

30 days

A life insurance policy sold in Louisiana can be contested by the insurer only during the first_____-years of the contract.

Two

A business entity wishing to act as an insurance producer MUST:

Obtain a producer's license

A cease and desist order:

Forbid I stated practice listed in the order.

A company that is authorized by the Commissioner to transact insurance business in Louisiana is called a:

Authorized insurer

A foreign insurance company doing business in Louisiana:

is a company that was formed under the laws of another state

A licensed producer MUST be __________ by an insurer to be eligible for soliciting insurance contracts.

Appointed

After a disability policy has been in force for ___ year(s), it is considered incontestable.

3 years

After the first payment is made, the grace period for an accident and health policy is:

30 days

A non-resident producer from a state outside of Louisiana may become in Louisiana IF a:

Reciprocal arrangement exist with the state of domicile.

After an annuity has been in force for _____ year(s), it becomes incontestable.

2 years

A producer license is NOT required when:

Underwriting insurance

A producer must notify the Commissioner within _____ days of a felony conviction.

30

Producer who sells most of his/her insurance policies to family members it said to be engaging in:

Controlled business

A ______ sells, solicits, or negotiate insurance on behalf of insurance companies for compensation.

Producer

An existing life insurance policy is being replaced a new one. A notice of replacement must be provided by the ______ to be signed by the applicant.

Producer

An alien insurer:

is an insurer operating in the U.S. but headquartered outside the U.S.

Medicare Part B covers:

Physician expenses

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?

Pass Louisiana's state licensing exam

in Louisiana, legal action can be taken for up to ___ year(s) against an insurer for failure to pay health insurance claims after proof of loss was submitted.

1 year

In Louisiana, small employer health plans require a MINIMUM of ___ employee(s).

One

Jim recently sold his life insurance policy under a viatical settlement contract. The proceeds of this contract could be subject to the claims of:

Creditors

Tarrah filled out a life insurance policy application and was given a policy illustration that showed future premiums being paid out of non-guaranteed values. This illustration MUST disclose that:

She may need to resume premium payments, depending on actual results.

The individual who has a contract with an insurance company to represent it is called:

Producer

On occasion, insurable interest may exist in the absence of economic interest. Which of the following examples does this pertain to?

A husband and wife

An insurance producer decides to conduct business under an assumed name. The Commissioner MUST be notified of this change:

Prior to using the assumed name

Louisiana residents who are uninsurable may obtain health coverage through the:

Louisiana Health Insurance Association

Replacement can be defined as:

A transaction in which a new life insurance policy is purchased and an existing life policy is surrendered

An insurer has _____ days to file a notice of appointment to the Commissioner.

15

Charles is a producer who is licensed in Louisiana, but resides in Mississippi. Charles is considered to be a:

Nonresident producer

The role of the federal government was expanded when Medicaid was established by allowing the state to:

Receive matching funds to expand public assistance programs

What type of injury would NOT be covered under an health insurance policy?

Work related

Which of the following is NOT taken into consideration when determining eligibility for Medicare benefits?

Income

A medical provider that accepts Medicare Assignment must:

accept payment based upon a defined Medicare schedule as payment in full

How much does Medicare Part B pay for physician fees?

80%

Medicaid is intended for:

Poverty stricken people

Which of these is NOT considered to be a purpose of an annuity?

Annuities are intended to create an estate

Which type of annuity stops all payments upon the death of the annuitant?

Life annuity

A disability elimination period is best described as a:

Time deductible

Jonas has disability insurance through his employer. The employer pay 75% of the premium, and Jonas pays the other 25%. What is Jonas's tax liability for any benefit paid from the disability plan?

Taxes must be paid on 75% of the benefits received

A annuitant is guaranteed to NOT outlive their benefits with a:

Guaranteed lifetime withdrawal benefit

The waiting period for a disability insurance policy:

excludes payments for a short-term illness or injury

A type of insurer that is owned by its policyowner is called:

Mutual

The waiver of premium does NOT include which provision?

All future premiums are waived if the insured recovers from the disability

A clause that allows an insurer the right terminate coverage that any anniversary date is called:

Optional renewability clause

According to the affordable care act, what metal tier is required to have an actuarial value of 70% with covered individuals pay paying 30% through deductibles, co-pays, and other cost sharing features?

Silver plan

What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do?

In the event of employment termination, group health insurance can be kept if the employee pays the premiums

When are group disability benefits considered to be tax-free to the insured?

When the recipient pays the premiums

This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes:

the entire insurance contract between the parties

Which of the following would evidence ownership and a participating health insurance contract?

Policy ownership

An employer is issued a group medical insurance policy. The single contract is known as a:

Master policy

A common exclusion with Vision plans is

Lasik surgery

Which market index is normally associated with an indexed annuity's rate of return?

S&P 500

In most dental plans, a deductible typically is NOT applied to:

preventative and diagnostic services

Susan is insured through her Group Health Insurance plan and changed her coverage to an individual plan with the same insurer after her employment was terminated. This change is called a(n)

Conversion

Continued coverage under COBRA would be provided to all of the following EXCEPT:

a covered employee is terminated for gross misconduct

An immediate annuity has been purchased with a single premium. When does the annuitant typically begin receiving benefit payments?

1 month

Under group health insurance, a certificate of coverage is issued to the:

Employee

Coming from an insurance point of view, which of the following is the main risk associated with disability?

Loss of income

Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement?

Premiums paid plus interest earned is returned to the beneficiary

A Modified Endowment Contract (MEC) is best described as:

A life insurance contract which accumulates cash values higher than the IRS will allow

A Renewable Term Life insurance policy can be renewed:

at a predetermined date or age, regardless of the insured's health

In an employer- sponsored group accident and health plan, a master contract is issued to the:

Employer

During the accumulation period, who can surrender an annuity?

Policyowner

A single premium cash value policy can be described as:

a policy that is paid up after only one payment

Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation?

Unpaid premium

What will the beneficiary receive if an annuitant dies during the accumulation period?

The greater of the accumulated cash value or the total premium paid

Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective date being May 30. On which date would Sonya have coverage?

May 30

What amount will be paid under a policy where the insured misstated his/her age?

An amount the premium would have purchased at the correct age

A spouse and child can be added to the primary insured's coverage as what kind of rider?

Family term

Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?

Child term rider

Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?

Period certain

Proceeds from a life insurance policy are protected from the beneficiary's creditors by which clause?

Spendthrift trust clause

Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?

Accidental bodily injury provision

Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called:

Annuity certain

Which of the following is NOT a required provision in an accident and health insurance policy?

Change of occupation

Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life insurance policy is this?

Universal Life

In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at:

60% of the benefit

Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His insurance agent told him the policy would be paid up if he reached age 100. The present cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would be:

$500,000