Life&Health INS. Exam
The Commissioner of Insurance may refuse to issue, renew or reinstate or may suspend or revoke an insurance producer license or may levy a fine of up to _______ for each violation occurring in Louisiana, up to _________ aggregate per calendar year.
$500; $10,000
Failure to file a change of address within _______ days of change to the Commissioner will result in a _______ penalty per violation.
. 10; $50
Applicants for licensure must be:
. 18
A license will be considered used for writing controlled business if the total commissions earned from the controlled business exceed _____ of the commissions earned on all business written by the licensee during any 12-month period.
. 25%
Concerning Unfair Trade Practices, tying is best described as which of the following?
. A condition to the sale of a policy that such insured also purchased another type of policy.
Lloyd's Associations is an example of:
. An insurance exchange where syndicates of individuals join together to insure large unusual risks.
When certain future acts MUST occur before a contract is legally enforceable or before claims can be paid best describes a/an ____________ contract.
. Conditional
A person aggrieved by any order of the commissioner on a hearing may appeal and demand a court review. He appeals to the
. District Court for East Baton Rouge Parish
Every insurer doing business in Louisiana MUST be examined at least once every:
. Five Years
Insurers incorporated in another state and selling coverage in Louisiana are known as:
. Foreign Correct
All of the following best describes Permanent Insurance (Whole Life)
. It remains in effect to age 100 so long as premium is paid. b. It combines death protection with cash value. d. The premiums remain level
All of the following are true of the Independent Agency System EXCEPT:{
. Required to represent a single insurer
Concerning Classification of Risks, individuals bearing the same health, habits and occupational characteristics fitting the insurer's guidelines without special restrictions or additional ratings, are classified as:
. Standard
Of the following, which is included in a Policy Summary?
.a. Full disclosure of all pertinent information. b. Effective policy loan intreest rate. c. Net payment cost.
The Commissioner MAY issue a temporary insurance producer license without requiring an examination for up to
180 days
For a producer who is licensed to write life insurance, the continuing education requirement is
24 hrs. of credit during each renewal period. Correct
For a controlled business to exist, a producer must not earn more than ________ of the aggregate commissions from any single account during a 12 month period.
25%
The average amount of life insurance per family has grown at what rate since 1940?
30%
The two year renewal fee for a Life & Health license is:
50
Concerning Group Standard Provisions, death benefit proceeds are paid to:
A designated beneficiary.
The total transfer of all rights and ownership of a policy to another person or entity best describes _____________ Assignments.
Absolute
The type of flexible premium policy that can be changed from a term coverage to a permanent coverage without exchanging or lapsing the existing policy is:
Adjustable Life
The premium paid is less in relation to the benefits received by insured depending on future events. (an unequal value between parties to the contract) this best describes:
Aleatory Contract
A temporary insurance license may be issued to all of the following EXCEPT:
An appointee while the licensed producer is out of the country on vacation. Correct!
Transfer of rights in a policy to another party through writing filed with the insurer is known as:
Assignment
The person(s) named to have received benefits from an insurance policy upon death of insured is known as the
Beneficiary
State Law as well as the NAIC Model Life Insurance Solicitation Regulations, requires producer to provide all prospective buyers a _____________ before accepting a premium or deposit.
Both Policy Summary and Buyer's Guide Correct
The full amount of current accumulated cash value is due to the policy owner upon surrender of the policy best describes:
Cash Surrender Value
War, nuclear plant explosion and terrorism are all considered:
Catastrophic perils.
Coverage effective date application is approved to the insurer, using the application date or the approval date as inception date of the policy
Conditonal Approval
Concerning a legal contract; The first premium is paid by the insured and the insurer promises to indemnify the insured in the event of loss. This exchange of value best describes:
Consideration
A level premium and face value until age 100 or death of insured best describes:
Continuous Life
All of the following are TRUE about group life insurance policies EXCEPT:
Cost of plan determined by individuals age.
Of the following, which applies to a Joint Life policy:
Death benefit of policy is paid on the first person's death.
A home mortgage cancellation term policy is an example of a/an:
Decreasing Term Correct
Publishing false or maliciously critical material which is derogatory to the financial condition of an insurer is an illegal practice known as:
Defamation
In Louisiana, the Insurance Commissioner is:
Elected for a term of four years. Correct
A legal process used to prevent someone from enforcing a legal right or privilege after it has been waived best describes:
Estoppel
Life insurance and Annuities that offer a definite benefit or set rate of return stated in the contract best describes:
Fixed Products
Principal and interest distributed to beneficiary over a set amount of time, best describes the ____________ settlement option.
Fixed-Period Installments
Concerning Substandard Risks, Adding a fixed additional charge best describes:
Flat Extra Premiums
Morale, moral, physical, legal and legislative are types of:
Hazards
All of the following best describes Term Life Insurance EXCEPT:
Higher premium
A group policy provision that prevents an insurer form denying a claim due to statements in an application after the policy has been in force for two years, EXCEPT for non-payment of premiums, best describes:
Incontestability
___________ Rating Service, rates insurers by financial soundness and stability.
Independent
Which of the following is NOT a characteristic of Group Plans:
Individual underwriting.
A child covered in this specialized policy may take over this policy at the predetermined age and pay premiums at original rate best describes:
Jumping Juvenile
A business is the policy owner and the beneficiary would best describe what type of insurance policy?
Key Person
A mathematical principal which makes it possible to predict mortality rates in any given class of insured is called:
Law of Large Numbers
Risk reduction is:
Lessening the severity of the risk.
A term policy that provides a level premium and a level death benefit during the entire term of the policy best describes:
Level Premium Term
A resident producer:
MUST reside or maintain a principal place of business in Louisiana. Correct
Which of the following would best describe a producer that is a branch manager and is a salaried employee of insurer?
Managerial System
Question text All the following features best describe Industrial Home Service Life Insurance
Medical exam is usually not required. b. Premiums are payable on a weekly or monthly basis. Generally not a face value of $10,000 or less
This standard provision states the precise conditions required before the policyowner changes coverages and what changes may be made.
Modifications
A Spendthrift Clause Rider is a preventive measure prohibiting a beneficiary and/or creditor from doing all of the following EXCEPT:
Not paying the premium
The insurance code requires companies to protect the rights of the consumer in regard to a certain amount of sharing of personal information through the use of:
Opt Out Notices
Policyholders receives a dividend which is legally defined as a refund of overcharge on premiums. This would describe which of the following?
Participating policy.
If a parent/policyowner of a minor dies or becomes disabled, the minor policy will be in force until the insured reaches specified age best describes ____________ rider.
Payor Benefit Life/Disability
To designate several primary beneficiaries so that each one will receive an equal share of the proceeds would be described as:
Per Capita
All of the following are TRUE concerning individual life insurance policies EXCEPT:
Policies are generally lower than group policies
The frequency in which the policyowner pays the premium refers to:
Premium Payment Mode
The insurer, in a contractual agreement represented by a producer within the authority of the contract when dealing with third parties, is known as the ___________ .
Principal
To restore the insured to the same condition as before the loss is the definition of:
Principal of indemnity Correct
All of the following are beneficiary designated options as to those receiving benefits from an insurance policy upon death of insured EXCEPT:
Producer
With an Exclusive or Captive Agency System:
Producer represents only one insurer. Correct
The Law of Large Numbers allows insurance agencies to do all of the following EXCEPT:
Properly calculate coinsurance
Risk where only the possibility of loss or no loss occurs:
Pure
Buying an auto policy for liability is an example of:
Pure risk
Promising to return a portion of a premium to a prospective insurance buyer is an illegal practice known as
Rebating
When a policy's cash value is used by the insurer as a single premium to purchase a completely paid-up permanent policy of a reduced face amount best describes:
Reduced Paid-Up Insurance
The policyowner may change a ____________ designation at any time, without the consent or knowledge of the beneficiary.
Revocable
The policy provision that allows policyowners 10 days from receipt to examine policy and still return it for a full premium refund if dissatisfied.
Right to Examine
Avoidance, reduction, transfer, retention, and sharing are all examples of:
Risk management methods
Betting on a horse race is an example of
Speculative risk Correct
The ____________ clause excludes all cases of death while the insured is on active duty in the military.
Status
A Non-participating policy pays dividends to:
Stockholders
Which of the following is NOT TRUE concerning Whole Life Insurance?
Temporary protection Correct
Of the following, which is included in the Insurance Application?
The Producer's Report
A licensed producer MUST file an application for renewal of the license every
Two years
Immediate coverage for a specified time period until insurer formally rejects the application best describes a ________________ Receipt.
Unconditional Binding
Identifying the applicants the company wishes to insure is called:
Underwriting
When soliciting prospective buyers of insurance, agents are governed by rules and regulations referred to as:
Unfair Trade Practices
Market sensitive Life Insurance and Annuities where there is potential for either gain or loss without guarantee of performance best describes:
Variable Products
A person with a life-threatening illness sells their life policy for less than face value to obtain funds best describes:
Viatical Settlement
Of the following, which applies to a Juvenile Life policy?
Written on minors. Correct
If the Commissioner denies an application for a producer's license, the applicant MAY make written demand for a hearing within:
a. 30 days after receiving notification of denial.
An insurance company that has met all approval qualifications received a Certificate of Authority from the Department of Insurance to transact insurance in that state is known as ___________ or ___________ .
a. Authorized or Admitted
The Interest Adjusted Net Cost (IANC) is a:
a. Cost comparison method comparing similar permanent life insurance policies.
To protect the consumer in regard to their credit history best describes:
a. Fair Credit Reporting Act Correct
All of the following best describes Renewal Term
a. It contains an option to renew the policy on the renewal date. b. Death benefit remains level. c. Premium increases.
Regarding an insurance contract between Producer and Insurer which of the following are TRUE?
a. Knowledge of producer is considered knowledge of insurer. b. Payments to producer are payments to the insurer.
Of the following which best describes Term Insurance?
a. Temporary life insurance for a specific period of time. Correct
An applicant for a resident insurance producer license in Louisiana MUST be at least:
b. 18 years old
Insurers selling coverage in Louisiana that are incorporated in Lousiana are known as:
b. Domestic Correct
Premiums paid for a specified number of years or to age set in policy best describes what type of whole life policy?
b. Limited Payment
The selling of a life insurance policy for less than face value allowing insured with a life-threating illness to obtain funds before death occurs best describes:
b. Viatical settlement
Producers renewing a Life & Health license need ____ hours of continuing education.
c. 24
The Louisiana Insurance Commissioner is
c. Elected
With an Exclusive or Captive Agency System:
c. Producer represents only one insurer.