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LOUISIANA LIFE AND HEALTH
INSURANCE EXAM/ 187
QUESTIONS WITH CERTI FIED
ANSWERS/
Question 1: When are group disability benefits considered
to be tax-free to the insured?
CORRECT ANSWER: When the recipient pays the
premiums
Question 2: An insurable interest in each other's lives may
exist in absence of an economic interest when the individuals are
CORRECT ANSWER: Marriage partners
Question 3: What is the elimination period of an
individual disability policy?
CORRECT ANSWER: Time period a disabled person
must wait before benefits are paid
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Question 4: What happens to interest earned if the
annuitant dies before the payout start date?
CORRECT ANSWER: It is taxable
Question 5: In which of the following situations would
the insurer be liable for a loss?
CORRECT ANSWER: The insured suffered an injury
as an innocent bystander during a bank robbery
Question 6: In what form do disability income policies
typically pay benefits?
CORRECT ANSWER: Periodic income
Question 7: Which of the following is typically NOT
eligible for coverage in a group health policy?
CORRECT ANSWER: Temporary employee
Question 8: Which of the following would be considered
a possible applicant and contract policyholder for group health benefits?
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CORRECT ANSWER: Employer
Question 9: A Medicare Supplement Policy is
CORRECT ANSWER: designed to fill in the gaps of
Part A and Part B Medicare
Question 10: Under a Modified Endowment Contract,
what are the likely tax consequences?
CORRECT ANSWER: Pre-death distributions will
become taxable
Question 11: In a Long-Term Care policy, activities of
daily living (ADL's) can be each of the following
EXCEPT
CORRECT ANSWER: Talking
Question 12: Which of the following is an annuity that is
linked to a market-related index?
CORRECT ANSWER: Equity-indexed annuity
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Question 13: An insurer operating in the U.S. but
headquartered outside the U.S. is
CORRECT ANSWER: an alien insurer
Question 14: Group dental plans will frequently place a
limit on annual benefits in order to minimize
CORRECT ANSWER: adverse selection
Question 15: 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
Question 16: A producer's license in Louisiana must be
renewed every
CORRECT ANSWER: Two years
Question 17: An insured has a health plan that pays
established amounts in accordance with a list of injuries, surgical procedures, or other losses. This list is called a
