17 Free Louisiana Life & Health Practice Questions: Group Health, Seniors and Health Tax (2026)

Question 1 (Chapter 8)

Sarah has been employed by a local accounting firm for 45 days. The firm's group health policy includes a 90-day probation period for new hires. If Sarah suffers an injury today, what is the status of her coverage?

• A) She is covered because she has already started working.
• B) She is covered under a 'grace period' provision of the master contract.
• C) She is covered, but only for emergency room visits until the 90 days expire.
• D) She is not yet eligible for coverage as she has not completed the probation period.

Question 2 (Chapter 8)

An individual is enrolled in Medicare Part A and Part B. They are now seeking a plan that integrates their hospital, medical, and often prescription drug coverage into a single private insurance alternative. Which Medicare Part are they seeking?

• A) Part A
• B) Part B
• C) Part D
• D) Part C

Question 3 (Chapter 8)

A producer is explaining a Long-Term Care (LTC) policy to a client. The client is worried that inflation will make the daily benefit amount insufficient in 10 years. Which rider should the producer suggest?

• A) Cost of Living Adjustment (COLA) Rider
• B) Guaranteed Insurability Rider
• C) Waiver of Premium Rider
• D) Accidental Death Benefit Rider

Question 4 (Chapter 8)

An employee is leaving their job and is offered COBRA coverage. The employer notifies them that they have a specific window of time to elect this coverage. What is the primary characteristic of COBRA premiums?

• A) The former employee pays the full premium plus a small administrative fee.
• B) The employer must continue to pay at least 50% of the premium.
• C) The premium is subsidized by the state.
• D) The premium is free for the first 6 months.

Question 5 (Chapter 8)

An employer wants to set up a group health plan for its employees. The insurance company agrees to cover the group without requiring individual medical exams. This process is known as:

• A) Group Underwriting
• B) Individual Underwriting
• C) Adverse Selection
• D) Experience Rating

Question 6 (Chapter 8)

A business owner pays the premiums for a group medical expense plan for their employees. How are the premiums and the benefits treated for federal tax purposes?

• A) Premiums are tax-deductible for the employer; benefits are generally tax-free to the employee.
• B) Premiums are taxable to the employee; benefits are tax-free.
• C) Both premiums and benefits are taxable as ordinary income.
• D) Premiums are tax-free; benefits are taxable as capital gains.

Question 7 (Chapter 8)

A Louisiana resident qualifies for COBRA continuation coverage after losing their job at a company with 25 employees. The employer's group health plan premium is $800 per month. What is the maximum premium the former employee can be charged for COBRA coverage?

• A) $800 per month (100% of the premium).
• B) $880 per month (110% of the premium).
• C) $816 per month (102% of the premium).
• D) $400 per month (50% of the premium, with the employer subsidizing the rest).

Question 8 (Chapter 8)

A worker in Lafayette has a Health Savings Account (HSA) and a Flexible Spending Account (FSA). They decide to change employers. Which of the following statements is true regarding the portability of these accounts?

• A) Both the HSA and the FSA are fully portable to the new employer.
• B) Neither account is portable; both are forfeited upon termination.
• C) The HSA is portable and stays with the individual, while the FSA typically stays with the employer.
• D) The FSA is portable, but the HSA is 'use-it-or-lose-it'.

Question 9 (Chapter 8)

A Long-Term Care policyholder in Alexandria is hospitalized after a self-inflicted injury. When they are moved to a custodial care facility for recovery, the insurer denies the claim. Which of the following is a standard LTC exclusion that justifies this denial?

• A) Alzheimer's Disease
• B) Organic cognitive disorders
• C) Senile dementia
• D) Intentionally self-inflicted injuries

Question 10 (Chapter 8)

A retiree in Kenner wants to enroll in a plan that provides Medicare benefits through a private Managed Care Organization (HMO or PPO). This type of plan is known as:

• A) Medicare Part A
• B) Medicare Advantage
• C) Medicare Part B
• D) Medigap Plan A

Question 11 (Chapter 8)

A corporation in Covington purchases a disability income policy on its CEO to protect the company's interests. The corporation pays the premiums and is the beneficiary. How are the premiums and benefits treated for tax purposes?

• A) Premiums are deductible; benefits are taxable.
• B) Premiums are not deductible; benefits are tax-free.
• C) Both premiums and benefits are deductible.
• D) The CEO must pay taxes on the premiums paid by the company.

Question 12 (Chapter 8)

An employee in Crowley has $500 remaining in their Flexible Spending Account (FSA) at the end of the plan year. Their employer has adopted the maximum allowable carryover provision. What happens to that $500?

• A) It is paid out to the employee as a taxable bonus.
• B) It can be carried over to the next plan year.
• C) It is forfeited to the employer under the 'use-it-or-lose-it' rule.
• D) It must be transferred into an HSA.

Question 13 (Chapter 8)

An applicant in Metairie is applying for a Long-Term Care (LTC) policy. The producer explains that benefits are triggered when the insured cannot perform Activities of Daily Living (ADLs). Which of the following is typically considered a 'trigger' for LTC benefits?

• A) Inability to perform at least one ADL
• B) Cognitive impairment requiring substantial supervision
• C) Inability to drive a motor vehicle
• D) Total disability as defined by Social Security

Question 14 (Chapter 8)

A Long-Term Care policyholder in Monroe receives 'Respite Care' benefits. What is the primary purpose of this type of care?

• A) To provide 24-hour skilled nursing care in a hospital setting.
• B) To provide physical therapy to help the insured return to work.
• C) To provide temporary relief for the insured's primary unpaid caregiver.
• D) To pay for the insured's funeral and final expenses.

Question 15 (Chapter 8)

Two partners in a Gretna engineering firm enter into a Disability Buy-Sell agreement. The firm purchases disability insurance on each partner to fund the buyout. How are the premiums and benefits treated for tax purposes?

• A) Premiums are not deductible; benefits are tax-free.
• B) Premiums are deductible; benefits are taxable.
• C) Premiums are deductible; benefits are tax-free.
• D) Premiums are not deductible; benefits are taxable.

Question 16 (Chapter 8)

An insured in Opelousas requires 'Intermediate Care' under their LTC policy. How does this differ from 'Skilled Care'?

• A) Intermediate care is provided by unlicensed volunteers.
• B) Intermediate care only covers assistance with eating and dressing.
• C) Intermediate care is occasional nursing or rehabilitative care, rather than daily care.
• D) Intermediate care is only provided in the insured's home.

Question 17 (Chapter 8)

A company in Houma offers a Health Reimbursement Account (HRA) to its employees. Who is allowed to contribute money to the HRA?

• A) The employee only
• B) The employer only
• C) Both the employer and the employee
• D) The federal government via tax credits