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Louisiana Life and Health exam study well answered to pass
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Louisiana Life and Health exam study well answered to pass
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Louisiana Life and Health exam studyWhich of the following is NOT part of an insurance contract?
•Policy
•Application
•Riders
•Certificate of authority - correct answer ✔✔Certificate of authority
The taxable portion of each annuity payment is calculated using which method?
•Exclusion ratio
•Taxable ratio
•Cost basis
•Tax basis - correct answer ✔✔Exclusion ratio
Which of the following enables a life policy to be replaced with another life policy and results in the
postponement of the tax consequence?
•Section 1040 exchange
•Section 1035 exchange
•Nonforfeiture option
•Spendthrift option - correct answer ✔✔•Section 1035 exchange
Which situation accurately describes a reduced paid-up nonforfeiture option?
•Policy has a decreased face amount
•Face amount of the new policy equals that of the original policy
,•Cash value is surrendered to policy owner
•Premiums must continue to be paid - correct answer ✔✔Policy has a decreased face amount
A common exclusion with a vision plan is what?
•eyeglass frames
•the examination
•contact lenses
•lasik surgery - correct answer ✔✔LASIK surgery
A health insurance policy that allows an insurer to change the policy owners premiums, but NOT cancel
the policy is called a(n)
•guaranteed renewable policy
•conditionally renewable policy
•optionally renewable policy
•non-cancelable policy - correct answer ✔✔Guaranteed renewable policy
Proof of loss on a health insurance claim must be submitted to an insurer ___ days after the insured's
date of loss - correct answer ✔✔90
And insured need not pay interest on death benefit if the proceeds on the life policy are paid within
•20 days after the date of the death of the insured
• 30 days after the date of the death of the insured
•40 days after the date of the death of the insured
•50 days after the date of the death of the insured - correct answer ✔✔20 days after the date of the
death of the insured
,When a producer is replacing an ordinary life insurance policy, the producer must take all of the
following actions EXCEPT
•Provide the applicant with a copy of the sales proposal
•Submit the producers insurance company a copy of the signed Notice Regarding Replacement
• Obtain the beneficiary's signature
• provide the applicant with a Notice Regarding Replacment - correct answer ✔✔Obtain the
beneficiary's signature
When a preferred provider organization (PPO) insured goes out of network, which of the following
actions occur?
• The insured will pay a reduced amount
• The benefits are taxable
• The insured has lower out of pocket expenses
• The insurer will pay a reduced amount - correct answer ✔✔The insurer will pay a reduced amount
As classified by the affordable care act (ACA), A silver plan offers
• 60% of actuarial level provided
• 70% of actuarial level provided
• 80% of actual level provided
• 90% of actuarial level provided - correct answer ✔✔70% of actuarial level provided
Which of these is considered a major tax advantage of life insurance
• tax credits are available for life insurance premiums paid
• annual earnings are tax free
• premiums are tax-deductible by employees pay by employer employer
, • income tax is typically not owed on proceeds paid directly to a beneficiary - correct answer ✔✔Income
tax is typically not owed on proceeds paid directly to a beneficiary
And insurer has ____ days to file a notice of appointment to the commissioner
•10
•15
•20
•25 - correct answer ✔✔15
How are annuities given favorable tax treatment?
•Gains are tax deductible
•Gains are tax exempt at distribution
•Gains are taxed at distribution
•Gains are converted to tax credits - correct answer ✔✔Gains are taxed at distribution
All of the following are examples of a
business continuation plan EXCEPT
• Key person insurance
• cross-purchase agreement
• stock redemption plan
• deferred compensation - correct answer ✔✔Deferred compensation
If the beneficiary dies from the same accident as the insured individual - correct answer ✔✔
Ken is a producer who has obtained consumer information reports under false pretenses. Under the fair
credit reporting act, what is the maximum penalty that may be imposed on Ken?
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