- | Page
LA Series 103 Exam Questions With All CORRECT ANSWERs
Question 1: Maximum benefit refers to the
CORRECT ANSWER : upper limit of the total lifetime benefits
the insurance company will pay
Question 2: ____ is NOT an element of a valid contract
CORRECT ANSWER : Countersignature
Question 3: ______ life is designed to pay the balance of a loan
if the insured dies before repayment of the loan
CORRECT ANSWER : Credit
Question 4: A 10% excise tax is normally applied to an early
withdrawal from an IRA. According to HIPPA, this tax will not be applied if the withdrawal is used for medical expenses that exceed ___ of the individual's adjusted gross income.
CORRECT ANSWER : 7.50%
Question 5: A beneficiary change can occur:
- | Page
CORRECT ANSWER : normally at any time during the policy
term.
Question 6: A beneficiary has just received a claim payment for
a life insurance policy. Which of the following is TRUE regarding federal income tax liability.
CORRECT ANSWER : No federal income tax is owed on the
life insurance proceeds.
Question 7: A business entity wishing to act as an insurance
producer MUST
CORRECT ANSWER : obtain a producer's license.
Question 8: A business will typically use which type of life
insurance to cover their employees?
CORRECT ANSWER : Group Policy
Question 9: A cease and desist order
CORRECT ANSWER : forbids a stated practice listed in the
order.
- | Page
Question 10: A change in an insurance application requires
CORRECT ANSWER : an initial made by the applicant.
Question 11: A clause that allows an insurer the right to
terminate coverage at any anniversary date is called a(n)
CORRECT ANSWER : optional renewability clause
Question 12: A common exclusion with Vision plans is
CORRECT ANSWER : lasik surgery
Question 13: A company that is authorized by the Commissioner
to transact insurance business in Louisiana is called a(n)
CORRECT ANSWER : authorized insurer
Question 14: A dependent child may remain on a parents health
insurance beyond the age of 26 if the child
CORRECT ANSWER : has a mental or physical handicap and
remains dependent on the parent
Question 15: A disability elimination period is best described as
CORRECT ANSWER : time deductible
- | Page
Question 16: A disability income policy can prevent an insured
from earning a higher income than if he/she were working by utilizing
CORRECT ANSWER : benefit limits
Question 17: A doctor who accepts Medicare Assignment agrees
to which of the following?
CORRECT ANSWER : Doctor cannot charge more than
Medicare's scheduled coverage
Question 18: A domestic insurance company in Louisiana
MUST
CORRECT ANSWER : be organized under Louisiana insurance
laws
Question 19: A field underwriter's main task is
CORRECT ANSWER : to ensure an applicant's medical
information is accurate and complete.