Final Exam - Louisiana Life and Health Complete Answers

Final Exam - Louisiana Life and Health Complete Answers 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? ️No federal income tax is owed on life insurance proceeds A cease and desist order issued against a producer ️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 ️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) ️guaranteed renewable policy A health insurance policy will typically cover ️preventative health services A life insurance policy becomes incontestable after it has been in force for ️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 ️universal life A life insurance policy written on one contract for two people in which it is payable upon the first death is called ️Joint A long-term care policy typically provides all of the following levels of care EXCEPT ️acute care A Medicare Supplement Policy is ️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? ️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: ️Take the appropriate Louisiana licensing examination A producer who is licensed in Louisiana but resident in another state is called a ️nonresident producer A producer's license in Louisiana must be renewed every ️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) ️nonforfeiture provision A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n) ️partial surrender A renewable Term Life insurance policy allows the policyowner the right to renew the policy ️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) ️payor rider A single premium cash value policy can be described as ️a policy that is paid up after only one payment A temporary producer's license is effective for ️180 days A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called ️Replacement According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied? ️Participation or contribution rules have been violated All of the following are considered to be fraud EXCEPT ️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 ️Primarily describes the free-look period All of the following are included as part of a contract in the entire contract provision EXCEPT the ️changes made by the producer All of the following are unfair claims settlement practices EXCEPT ️An attempt to settle a claim by arbitration All of the following riders can increase the death benefit amount EXCEPT ️Waiver of Premium All of these are valid options for an Adjustable Life Policy EXCEPT ️A nonforfeiture option c