Louisiana Life and Health Final Exam Latest Update 2025-2026 150 Questions and 100% Verified Correct Answers Guaranteed A+
A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? - CORRECT
ANSWER: No federal income tax is owed on life insurance proceeds
A cease and desist order issued against a producer - CORRECT ANSWER: Prohibits a specific practice listed in the order
A health insurance policy covers the insured, the insured's spouse, and their child. If additional children are born to the family, the health insurance policy must cover the
children - CORRECT ANSWER: From the date of birth
A health insurance policy that allows an insurer to change the policyowner's premiums,
but NOT cancel the policy is called a(n) - CORRECT ANSWER: guaranteed renewable
policy
A health insurance policy will typically cover - CORRECT ANSWER: preventative health services
A life insurance policy becomes incontestable after it has been in force for - CORRECT
ANSWER: 2 years
A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called - CORRECT ANSWER: universal life
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A life insurance policy written on one contract for two people in which it is payable upon
the first death is called - CORRECT ANSWER: Joint
A long-term care policy typically provides all of the following levels of care EXCEPT -
CORRECT ANSWER: acute care
A Medicare Supplement Policy is - CORRECT ANSWER: designed to fill in the gaps of Part A and Part B Medicare
A nonprofit health service plan may NOT issue a contract that covers which of the
following types of benefits? - CORRECT ANSWER: Disability income benefits
A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and who wishes to sell that line of insurance in Louisiana, must meet all of the following requirements EXCEPT: - CORRECT ANSWER: Take the appropriate Louisiana licensing examination
A producer who is licensed in Louisiana but resident in another state is called a -
CORRECT ANSWER: nonresident producer
A producer's license in Louisiana must be renewed every - CORRECT ANSWER: Two
years
A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a(n) - CORRECT
ANSWER: nonforfeiture provision
A provision that allows a policyowner to withdraw a policy's cash value interest free is
a(n) - CORRECT ANSWER: partial surrender
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A renewable Term Life insurance policy allows the policyowner the right to renew the
policy - CORRECT ANSWER: without producing proof of insurability
A rider that assures premiums will be paid on a juvenile policy until the child reaches a
specific age is called a(n) - CORRECT ANSWER: payor rider
A single premium cash value policy can be described as - CORRECT ANSWER: a
policy that is paid up after only one payment
A temporary producer's license is effective for - CORRECT ANSWER: 180 days
A transaction in which a new life insurance policy is purchased and an existing life
insurance policy is surrendered is called - CORRECT ANSWER: Replacement
According to the Health Insurance Portability and Accountability Act (HIPAA), when can
a group health policy renewal be denied? - CORRECT ANSWER: Participation or
contribution rules have been violated
All of the following are considered to be fraud EXCEPT - CORRECT ANSWER:
collecting a charge for insurance that is less than the charge applicable to that insurance
All of the following are functions of an insuring clause EXCEPT - CORRECT ANSWER: Primarily describes the free-look period
All of the following are included as part of a contract in the entire contract provision
EXCEPT the - CORRECT ANSWER: changes made by the producer
All of the following are unfair claims settlement practices EXCEPT - CORRECT
ANSWER: An attempt to settle a claim by arbitration
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