25 Free Louisiana Life & Health Exam Practice Questions (2026)
How to Use This Louisiana Life & Health Question Set
Louisiana tests Life and Accident and Health or Sickness together as a combined exam of 150 scored questions in 160 minutes for $58, delivered by PSI Services LLC for the Louisiana Department of Insurance (LDI). Passing takes a raw score of 70 percent, a figure written into R.S. 22:1545(A) itself, not a scaled score. The exam is given at PSI test centers only; remote testing ended on July 8, 2024. And there is no pre-licensing course to complete first: Act 273 of 2022 repealed that requirement effective June 3, 2022.
Louisiana's content outline for the combined exam has 13 sections rather than a handful of large parts, and the heaviest by far is Louisiana Insurance Regulation at 23 percent. Behind it come life, health and accident basics at 14 percent, life policy provisions, options and riders at 13 percent, and types of life policies at 8 percent, then general insurance concepts, annuities, individual health policy provisions and health insurance for senior citizens and special needs individuals at 7 percent each. Disability income and medical plans are 4 percent each, group health is 3 percent, federal tax is 2 percent and federal licensing regulation is 1 percent.
These 25 questions come from LanePrep's Louisiana Life & Health quiz bank and sample across Chapters 1-8: 3 from Chapter 1, 3 from Chapter 2, 3 from Chapter 3, 2 from Chapter 4, 4 from Chapter 5, 4 from Chapter 6, 4 from Chapter 7, and 2 from Chapter 8. Chapters 1 and 2 are the two Louisiana regulation chapters, worth 18 of the 150 exam questions each. Each question shows its chapter, so a miss tells you exactly which chapter to go back to.
A few exam-day facts shape how you should practice. The exam may include 5 to 10 unscored experimental questions that look like any other but still count against your time, so don't spend three minutes on a question you can't crack. If you fail, there is no limit on retakes within the one-year window, though you can't retest on the same day. For perspective, the NAIC reports first-time pass rates on the combined exam of 50.7 percent in 2024 and 49.5 percent in 2025. The 2024 figure includes candidates who tested remotely before July 2024 and the 2025 figure is in-person only, so treat the two as a snapshot rather than a trend.
Work them before you read the answer. Every question has the explanation folded underneath it. Guessing first and reading second teaches more than reading first and agreeing.
Practice Questions 1-5: The Commissioner, Nonresident CE, Discipline and Unfair Trade Practices
Chapter 1 opens with the Louisiana Commissioner of Insurance and what the office does with a consumer complaint, then asks how a nonresident producer satisfies Louisiana continuing education and which disciplinary step fits a producer whose record-keeping is sloppy but not fraudulent. Chapter 2 moves into unfair trade practices, where a false statement about another insurer's finances has a name, and into the Louisiana Life and Health Insurance Guaranty Association and what it covers on an annuity.
Question 1 (Chapter 1)
A consumer files a complaint with the Louisiana Department of Insurance alleging that an insurer is engaging in unfair trade practices. What is the primary role of the Louisiana Commissioner of Insurance in addressing such a complaint?
- A) To immediately fine the insurer and issue a public statement condemning their actions.
- B) To mediate a settlement between the consumer and the insurer without formal investigation.
- C) To advise the consumer to pursue a civil lawsuit against the insurer.
- D) To investigate the complaint, hold hearings if necessary, and enforce compliance with Louisiana insurance laws.
Show answer & explanation
Answer: D
The Commissioner's general duties and powers, as outlined in R.S. 22:2 and R.S. 22:1967, include investigating complaints, holding hearings (R.S. 22:1968, 2191, etc.), and enforcing compliance with the state's insurance laws. Options A, B, and C describe actions that are either premature, outside the primary role, or not the initial and primary responsibility of the Commissioner.
Question 2 (Chapter 1)
A nonresident Life and Health insurance producer, licensed in Florida, maintains her license in good standing and completes all required continuing education in Florida. She also holds a nonresident license in Louisiana. Assuming Florida extends reciprocal CE credit to Louisiana residents, what is her CE obligation for her Louisiana nonresident license?
- A) She is deemed CE-compliant in Louisiana if she satisfies her home state's (Florida's) CE requirement, as per R.S. 22:1573(N).
- B) She must complete the full 24 hours of Louisiana-specific CE, including 3 hours of ethics, in addition to her Florida CE.
- C) She is exempt from all CE requirements in Louisiana because she is a nonresident.
- D) She must complete 12 hours of Louisiana CE and 12 hours of Florida CE.
Show answer & explanation
Answer: A
According to R.S. 22:1573(N), nonresident producers are deemed CE-compliant in Louisiana if they satisfy their home state's own CE requirement and that state extends reciprocal CE credit to Louisiana residents. This avoids the burden of completing CE in multiple states. Options B, C, and D are incorrect as they do not reflect the reciprocity rule for nonresident CE.
Question 3 (Chapter 1)
An investigation by the Louisiana Department of Insurance reveals that a licensed Life and Accident and Health or Sickness producer has consistently failed to maintain proper client records and has been slow in remitting premiums to insurers. While not engaging in outright fraud, these actions violate regulatory standards. The Commissioner determines that a less severe action than immediate suspension or revocation is appropriate, allowing the producer to continue operating under specific oversight. Which disciplinary action is the Commissioner most likely to impose on this producer?
- A) Immediate revocation of the producer's license.
- B) Imposition of a cease and desist order, preventing all future business operations.
- C) Placing the producer's license on probation, with specified conditions for continued operation.
- D) Issuing a monetary fine without any impact on the producer's license status.
Show answer & explanation
Answer: C
According to R.S. 22:1554, the Commissioner has the authority to place a producer's license on probation. This disciplinary action allows the producer to continue operating, but under specific conditions and heightened scrutiny, which is a less severe measure than suspension or revocation. A cease and desist order (Option B) is typically used to halt specific illegal activities, not as a general license status, and a fine alone (Option D) may not address the need for oversight. Revocation (Option A) is a more severe penalty.
Question 4 (Chapter 2)
A Louisiana producer, attempting to sell a new life insurance policy, tells a client that their existing policy from another insurer is financially unstable and will likely default on claims, even though the producer has no verifiable information to support this claim. The client, swayed by this statement, decides to lapse their current policy and purchase the new one. Which unfair trade practice has the producer most likely committed?
- A) Rebating
- B) Unfair discrimination
- C) False advertising
- D) Defamation
Show answer & explanation
Answer: D
The producer's act of making false, maliciously critical, or derogatory statements about another insurer's financial condition or a person engaged in the insurance business is defined as defamation under R.S. 22:1964(3). Rebating involves offering inducements not specified in the policy. Unfair discrimination involves making distinctions between individuals of the same class and hazard. False advertising relates to untrue, deceptive, or misleading advertisements, typically published or disseminated more broadly than a direct statement to a client.
Question 5 (Chapter 2)
A Louisiana resident owns an annuity contract with an insurer that becomes insolvent. The present value of the annuity is $280,000. What is the maximum amount the Louisiana Life and Health Insurance Guaranty Association will cover for the annuity present value for this individual?
- A) $100,000
- B) $300,000
- C) $500,000
- D) $250,000
Show answer & explanation
Answer: D
According to R.S. 22:2083(B), the Louisiana Life and Health Insurance Guaranty Association provides coverage for annuity present value up to a maximum of $250,000 per individual. Even though the present value is $280,000, the coverage is capped at $250,000. $100,000 (A) is the cash value sublimit for life insurance, $300,000 (B) is the life insurance death benefit limit, and $500,000 (C) is the health insurance benefit limit and overall aggregate cap.
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Practice Questions 6-10: Replacement Notices, Hazard and Peril, Concealment and Human Life Value
Chapter 2 closes with the replacement rules of Regulation 70 and who gets a copy of the signed notice. Chapter 3 then sorts the vocabulary every insurance exam leans on: a hazard against a peril, and concealment against misrepresentation. Chapter 4 opens with the approach a producer uses when the answer is built from an earner's future income.
Question 6 (Chapter 2)
When a life insurance policy or annuity is being replaced in Louisiana, the producer must present and read a 'notice regarding replacement' to the applicant. Who must receive a copy of this signed notice?
- A) Only the applicant, for their records.
- B) The applicant, the replacing insurer, and the existing insurer.
- C) The applicant and the replacing insurer.
- D) Only the Commissioner of Insurance.
Show answer & explanation
Answer: C
Under LAC 37:XIII §§8901–.8925 (Regulation 70), the applicant must receive a copy of the signed notice, and the producer must submit a copy to the replacing insurer. The replacing insurer then has the duty to notify the existing insurer. Therefore, the notice itself is directly provided to the applicant and the replacing insurer. The existing insurer is notified by the replacing insurer, not necessarily by receiving the signed notice directly from the producer.
Question 7 (Chapter 3)
A homeowner in Metairie leaves a space heater running next to a pile of dry newspapers. In insurance terms, the pile of newspapers represents which of the following?
- A) A peril
- B) A risk
- C) A loss
- D) A hazard
Show answer & explanation
Answer: D
A hazard is a condition or situation that increases the probability of a loss occurring or the severity of a loss. The dry newspapers near the heater increase the chance of fire. Fire itself would be the peril (the cause of loss).
Question 8 (Chapter 3)
A policyholder in Baton Rouge has a chronic respiratory condition. This condition increases their susceptibility to pneumonia. In insurance terms, if the policyholder contracts pneumonia, the pneumonia itself is considered which of the following?
- A) A hazard
- B) A loss
- C) A risk
- D) A peril
Show answer & explanation
Answer: D
A peril is the immediate cause of a loss. Pneumonia is the direct cause of the illness and potential financial consequences. The chronic respiratory condition is a hazard because it increases the chance of contracting pneumonia. A loss is the unintentional decrease in value due to the peril, and risk is the uncertainty of a potential financial loss.
Question 9 (Chapter 3)
An applicant for a life insurance policy in Louisiana intentionally fails to disclose a significant pre-existing medical condition on the application, knowing that this information would likely lead to a denial of coverage. This act is known as:
- A) Misrepresentation
- B) Warranty
- C) Concealment
- D) Estoppel
Show answer & explanation
Answer: C
Concealment is the intentional withholding of material information that the insurer needs to make an informed underwriting decision. The applicant's deliberate failure to disclose a significant pre-existing medical condition, knowing its impact on coverage, is a clear example of concealment. Misrepresentation is an untrue statement, while concealment is the omission of a statement. A warranty is a guaranteed statement, and estoppel is a legal doctrine preventing a party from asserting a fact inconsistent with a previous position.
Question 10 (Chapter 4)
An insurance producer is meeting with a 35-year-old architect who earns $120,000 annually. To determine the appropriate amount of life insurance, the producer calculates the present value of the architect's future earnings until retirement at age 65, factoring in inflation and taxes. Which approach is the producer using?
- A) The Needs Approach
- B) The Human Life Value Approach
- C) The Capital Liquidation Approach
- D) The Estate Conservation Approach
Show answer & explanation
Answer: B
The Human Life Value Approach calculates the economic value of an individual based on their future earning potential. The Needs Approach, by contrast, focuses on specific financial obligations like mortgages, final expenses, and education funds.
Practice Questions 11-15: The Replacement Free Look, Term Types, Single Premium and Annuity Timing
Chapter 4 closes with the right-to-return period that applies when a policy replaces another one in Louisiana. Chapter 5 covers types of life insurance and annuities: the term policy that fits a shrinking mortgage, what a single premium whole life policy does to cash value on day one, what separates an immediate annuity from a deferred one, and the term design that grows with a business owner's needs.
Question 11 (Chapter 4)
A producer is delivering a life insurance policy that is replacing an existing policy. Under Louisiana Administrative Code (LAC) 37:XIII.8911 (Regulation 70), what is the minimum 'right to return' (free look) period that must be provided for this replacement transaction?
- A) 10 days
- B) 20 days
- C) 30 days
- D) 45 days
Show answer & explanation
Answer: C
While the standard free-look period in Louisiana (R.S. 22:931) is 10 days, Regulation 70 requires a 30-day unconditional refund period (free look) for policies involved in a replacement transaction.
Question 12 (Chapter 5)
A homeowner in Baton Rouge purchases a 30-year mortgage and wants a life insurance policy that will pay off the remaining balance if they die. Which policy type is most appropriate for this specific need?
- A) Increasing Term Life
- B) Level Term Life
- C) Whole Life
- D) Decreasing Term Life
Show answer & explanation
Answer: D
Decreasing term insurance is designed for obligations that reduce over time, such as mortgages. The death benefit decreases as the loan balance decreases, while the premium typically remains level. Increasing term is used for inflation protection; Level term stays the same; Whole life is permanent and more expensive than the consumer needs for a temporary debt.
Question 13 (Chapter 5)
Which of the following is TRUE regarding a Single Premium Whole Life policy?
- A) It creates an immediate cash value
- B) It has no cash value for the first 10 years
- C) It is a form of term insurance
- D) The face amount increases every year
Show answer & explanation
Answer: A
Because a large lump sum is paid upfront in a Single Premium Whole Life policy, it generates immediate cash value, unlike continuous premium policies which may take a few years to build significant cash.
Question 14 (Chapter 5)
What is the primary difference between an 'Immediate Annuity' and a 'Deferred Annuity'?
- A) The way the interest is taxed.
- B) The number of beneficiaries allowed.
- C) When the income payments begin.
- D) Whether the principal is guaranteed.
Show answer & explanation
Answer: C
The distinction is purely timing. An immediate annuity begins payments within one year of purchase (usually within 30 days). A deferred annuity delays payments until a later date, allowing for an accumulation phase.
Question 15 (Chapter 5)
A business owner in New Orleans wants a life insurance policy that will keep pace with the rising cost of equipment for their shop over the next 15 years. They anticipate needing more coverage each year. Which type of term policy should the producer recommend?
- A) Increasing Term
- B) Level Term
- C) Decreasing Term
- D) Renewable Term
Show answer & explanation
Answer: A
Increasing Term insurance features a death benefit that grows over the policy's term, making it ideal for meeting increasing financial obligations or keeping pace with inflation. Level term stays the same, and decreasing term is used for declining debts like mortgages.
Practice Questions 16-20: The Ordinary Free Look, IRAs and SEPs, Accelerated Benefits and Contestability
Chapter 6 starts with the ordinary 10-day free look under R.S. 22:931, the counterpart to the replacement period you just met, then turns to federal tax: an early Traditional IRA withdrawal, the retirement plan that suits a ten-employee business, and the income tax treatment of an accelerated benefit paid to a terminally ill insured. Chapter 7 opens health with the time limit on certain defenses, the health-policy cousin of the incontestability clause.
Question 16 (Chapter 6)
A policyowner in Baton Rouge receives a new life insurance policy on June 1st. After reviewing the terms, they decide on June 8th that the policy does not meet their needs. According to R.S. 22:931, what is the policyowner's right in this situation?
- A) They may return the policy for a full refund of all premiums paid because they are within the 10-day free look period.
- B) They must keep the policy as the 7-day cooling-off period has expired.
- C) They may return the policy but the insurer is entitled to keep the first month's premium as an administrative fee.
- D) They have 30 days to return the policy regardless of whether it is a replacement or a new purchase.
Show answer & explanation
Answer: A
Under R.S. 22:931(A)(10)(a), Louisiana law mandates a 10-day 'right to examine' (free look) period starting from the date of policy receipt. During this window, the owner can return the policy for an unconditional full refund. Distractor D is incorrect because the 30-day period applies specifically to replacement transactions under Regulation 70, not standard new issues.
Question 17 (Chapter 6)
A 40-year-old worker in Alexandria contributes to a Traditional IRA. They withdraw $5,000 to pay for a vacation. What is the tax consequence?
- A) The withdrawal is taxed as ordinary income plus a 10% penalty.
- B) The withdrawal is tax-free because it is their own money.
- C) The withdrawal is taxed as a capital gain.
- D) The withdrawal is only taxed if their income exceeds $100,000.
Show answer & explanation
Answer: A
Distributions from a Traditional IRA are taxed as ordinary income. If the distribution occurs before age 59 1/2 and does not meet a specific exception (like first-time home purchase or qualified education), a 10% federal premature distribution penalty applies.
Question 18 (Chapter 6)
An employer in Alexandria wants to set up a retirement plan for their 10 employees that is easy to administer and allows for employer contributions. Which plan is most suitable?
- A) 403(b)
- B) Roth IRA
- C) SEP IRA
- D) Traditional IRA
Show answer & explanation
Answer: C
A Simplified Employee Pension (SEP) IRA is designed for small businesses and self-employed individuals. It is easy to set up and allows the employer to contribute directly to the employees' IRAs.
Question 19 (Chapter 6)
An insured in Natchitoches is diagnosed with a terminal illness and is expected to die within 6 months. They have a $500,000 policy with an Accelerated Benefits rider and choose to receive $100,000 now. How will this $100,000 be treated for federal income tax purposes?
- A) It is fully taxable as ordinary income.
- B) It is taxable as a capital gain.
- C) It is generally received tax-free.
- D) It is tax-deferred until the insured actually dies.
Show answer & explanation
Answer: C
Under federal tax law, accelerated death benefits paid to a terminally ill insured (expected to die within 24 months) are generally received tax-free.
Question 20 (Chapter 7)
A policyholder with a monthly premium payment mode forgets to pay their health insurance premium due on October 1st. On October 8th, they are hospitalized due to an accident. Which of the following is true regarding the coverage?
- A) The policy is lapsed, and the claim will be denied.
- B) The policyholder has a 31-day grace period regardless of the payment mode.
- C) The claim will be denied because the grace period for monthly premiums is only 7 days.
- D) The claim will be paid, but the insurer will deduct the overdue premium from the benefit.
Show answer & explanation
Answer: D
For individual health policies, the grace period for a monthly premium mode is 10 days. Since the accident occurred on the 7th day after the due date, the policy is still in force. The insurer will pay the claim but subtract the unpaid premium.
Practice Questions 21-25: Disability Definitions, Managed Care, Probationary Periods, Group Rules and BOE Taxes
Chapter 7 closes with the length a disability must last to qualify for Social Security benefits, what a Point of Service plan lets a member do, and how a probationary period decides a pneumonia claim. Chapter 8 ends the set with group health and federal tax: the participation requirement when an employer pays the whole premium, and how Business Overhead Expense premiums and benefits are taxed.
Question 21 (Chapter 7)
To qualify for Social Security Disability benefits, an individual's disability must be expected to last at least:
- A) 12 months
- B) 3 months
- C) 5 months
- D) 24 months
Show answer & explanation
Answer: A
Social Security defines disability as the inability to engage in any substantial gainful activity due to a physical or mental impairment that is expected to result in death or has lasted (or is expected to last) for a continuous period of at least 12 months.
Question 22 (Chapter 7)
A Louisiana resident is enrolled in a Point of Service (POS) plan. They need to see a specialist. Which of the following best describes their options?
- A) They can see an out-of-network provider but will pay higher out-of-pocket costs.
- B) They must see an in-network provider or there is no coverage.
- C) They do not need a primary care physician (PCP) for any referrals.
- D) The plan only covers emergency services.
Show answer & explanation
Answer: A
A POS plan is a hybrid of an HMO and a PPO. Members can stay in-network (HMO style) and use a gatekeeper for lower costs, or they can 'point' to an out-of-network provider (PPO style) at the time of service, though they will face higher deductibles and coinsurance.
Question 23 (Chapter 7)
An insured has a health policy with a 30-day probationary period for sickness. They are hospitalized for pneumonia on day 15 of the policy. How will the insurer handle the claim?
- A) The claim will be paid because pneumonia is an emergency.
- B) The claim will be paid, but the insured must pay a higher deductible.
- C) The claim will be denied because the loss occurred during the probationary period.
- D) The claim will be paid because the probationary period only applies to accidents.
Show answer & explanation
Answer: C
A probationary period is a window at the start of a policy during which sickness coverage is not provided to prevent adverse selection. Since the illness occurred on day 15 (within the 30-day window), the claim is denied.
Question 24 (Chapter 8)
A mid-sized manufacturing company in Baton Rouge provides a health plan where the employer pays 100% of the premiums for all eligible employees. Which of the following is a requirement for this specific type of group plan to prevent adverse selection?
- A) 100% of eligible employees must be enrolled in the plan.
- B) At least 75% of eligible employees must elect to participate.
- C) Employees must undergo a medical examination before enrollment.
- D) The group must be formed specifically for the purpose of obtaining insurance.
Show answer & explanation
Answer: A
In a non-contributory plan (where the employer pays 100% of the premium), 100% participation is typically required to avoid adverse selection. Option B applies to contributory plans. Option C is incorrect because group underwriting is done at the group level, not the individual level. Option D is incorrect because eligible groups must be formed for a purpose other than obtaining insurance.
Question 25 (Chapter 8)
A small business owner in Houma purchases a Business Overhead Expense (BOE) policy. How are the premiums and benefits of this policy treated for federal tax purposes?
- A) Premiums are not deductible; benefits are tax-free.
- B) Premiums are deductible; benefits are tax-free.
- C) Premiums are deductible as a business expense; benefits are taxable.
- D) Both premiums and benefits are tax-exempt.
Show answer & explanation
Answer: C
For Business Overhead Expense (BOE) insurance, the premiums paid by the business are deductible as a legitimate business expense. However, any benefits received are considered taxable income to the business.
The Mistakes That Cost Marks
Applying the wrong refund period. Louisiana has two. An ordinary new policy carries a 10-day free look from receipt under R.S. 22:931; a replacement transaction carries a separate 30-day unconditional refund right under Regulation 70. This set asks about each, and the wrong-period distractor is always the other one.
Guessing the guaranty association's limits. The Louisiana Life and Health Insurance Guaranty Association covers $300,000 in life insurance death benefits (with no more than $100,000 of that in net cash surrender value), $500,000 in health insurance benefits and $250,000 in annuity present value, with a $500,000 overall cap per individual. The annuity question offers the other limits as distractors.
Confusing hazard, peril and loss. A hazard is a condition that raises the chance or size of a loss, like dry newspapers next to a heater or a chronic respiratory condition. A peril is the immediate cause, like the fire or the pneumonia. Concealment is intentional withholding of a material fact, which is a different thing from an innocent misstatement.
Treating nonresident continuing education as a full Louisiana requirement. A resident Life and Accident and Health or Sickness producer completes 24 hours per two-year renewal, at least 3 of them in ethics. A nonresident is deemed compliant by satisfying the home state requirement, provided that state gives Louisiana residents reciprocal credit.
Mixing up the probationary period and other waiting periods. A probationary period sits at the start of a policy and blocks sickness claims, which is why a pneumonia admission on day 15 of a 30-day period is denied. It is not the same thing as an elimination period, which works like a time deductible after a disability begins.
Getting the tax treatment backwards. A Traditional IRA withdrawal is ordinary income, plus a penalty before age 59 1/2 unless an exception applies. Accelerated benefits for a terminally ill insured are generally received tax-free. Business Overhead Expense premiums are deductible, and the benefits are taxable.
Your Next Step
How did you score?
20 or more correct: You're clearing most of the outline across all eight chapters. Work the two deeper sets next: the Life insurance exam set and the Health insurance exam set, then read how to pass the Louisiana Life & Health exam on the first try for the full study plan.
12-19 correct: You're getting a good share of it, but these 25 questions stand in for a combined exam of 150 scored questions. Note the chapter of every question you missed and replay that chapter's audio lesson before moving to the deeper sets above.
Under 12 correct: You need the material, not more questions yet. Start with the free preview at /la/l-and-h/preview and work through the audio chapters in order before testing yourself again.
For the full cost picture beyond the exam fee, including the $75 license application and the $60.75 fingerprint fee, see how much a Louisiana Life & Health license costs. The LanePrep Louisiana Life & Health course preview is a click away whenever you're ready to go deeper.
Exam structure, fees and content outline weights from PSI Services LLC's Louisiana Department of Insurance Candidate Information Bulletin (updated 1/1/2025) and the Series 103 content outline (effective 2/10/2016); passing score from R.S. 22:1545(A); pass rates from the NAIC compiled pass-rate workbooks for 2024 and 2025. Read October 2026.
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