Louisiana Series 101 – Life Insurance Practice Exam

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