LOUISIANA LIFE AND HEALTH INSURANCE EXAM

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LOUISIANA LIFE AND HEALTH INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?

• Notice of Claim
• Loss Notification
• Claims Initiation
• Consideration

Answer:

• Notice of Claim

The Notice of Claim Provision spells out the insured's duty to provide the insurer with reasonable notice in the event of a loss.Question 2: When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees

• To charge a lower premium every year the policy is renewed.

B.Not to change the premium rate for any reason.

• To renew the policy indefinitely.
• To renew the policy until the insured has reached age 65.

Answer:

• To renew the policy until the insured has reached age 65.

The guaranteed renewable provision is similar to the noncancellable provision, with the exception that the insurer can increase the policy premium on the policy anniversary date. As with the noncancellable policy, coverage is generally not renewable beyond the insured's age 65.Question 3: If a business wants to buy a disability income policy on a key employee, which of the following is considered the applicant?

• The producer
• The employer
• The insurer
• The employee

Answer:

• The employer

In key person disability insurance purchased by a business, the business is the applicant and the key person is the insured. When the policy is issued, the business is the policyowner and is responsible for paying the premiums.Question 4: If an individual is covered by a policy that includes an Accidental Death & Dismemberment rider, what term describes the maximum benefits he will receive if he loses sight in both eyes as a result of a fire?

• Reciprocal amount
• Capital sum
• Percentage of full amount
• Principal sum

Answer:

• Principal sum

If the insured dies, the insurer pays the full amount, also known as the "principal sum". Principal sum will most likely be paid out if the insured loses sight in both eyes or loses two limbs. If the insured lives but loses a hand or foot or the sight in one eye, the insured will be paid a percentage of the principal sum, called the "capital sum."

Question 5: An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true?

• The claim most likely will not be paid since the official claims form was not submitted.
• The insurer will be fined for not providing the claims forms.
• The insured must submit proof of loss to the Department of Insurance.
• The insured was in compliance with the policy requirements regarding claims.

Answer:

• The insured was in compliance with the policy requirements regarding claims.

If claims forms are not furnished to the insured, the claimant is deemed to have complied with the requirements of the policy if he or she submits written proof of the occurrence, nature of the loss, and extent of loss to the insurer.Question 6: Which of the following is NOT a characteristic of a group long-term disability plan?

• The benefit can be up to 50% of one's yearly income.
• The elimination period is the same as in the short-term plan's benefit period.
• The benefit period may be to age 65.
• The benefit can be up to 66 and 2/3% of one's monthly income.

Answer:

• The benefit can be up to 50% of one's yearly income.

The maximum benefit is based upon monthly income.

Question 7: Regarding the taxation of Business Overhead policies,

• Premiums are deductible and benefits are taxed.
• Premiums are not deductible and benefits are taxed.
• Premiums are not deductible, but benefits are deductible.
• Premiums are not deductible, but expenses paid are deductible.

Answer:

• Premiums are deductible and benefits are taxed.

The premiums paid for BOE insurance are tax deductible to the business as a business expense.

However, the benefits received are taxable to the business as received.Question 8: Which of the following is NOT a metal level of coverage offered under the Patient Protection and Affordable Care Act?

• Silver
• Bronze
• Iron
• Gold

Answer:

• Iron

The metal tiers of coverage required under the PPACA include platinum, gold, silver and bronze.Question 9: All of the following are true about group disability Income insurance EXCEPT

• Benefits are usually short term.
• The waiting period starts at the onset of the injury or sickness.
• The longer the waiting period, the lower the premium.
• Coverage applies both on and off the job.

Answer:

• Coverage applies both on and off the job.

Employees who are injured on the job are covered by Workers Compensation insurance. Group Disability Income insurance is designed to cover employees only while they are off the job, so the coverage is considered to be nonoccupational in nature.Question 10: Bethany studies in England for a semester. While she is there, she is involved in a train accident that leaves her disabled. If Bethany owns a general disability policy, what will be the extent of benefits that she receives?

• Full

B. 50%

C. 25%

• None