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The LALHA exam has 150 questions and runs 2 hours 40 minutes.
These 10 free LALHA questions are organized by exam domain, so you can see how each part of the Louisiana Life, Health & Accident Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
A Louisiana producer business entity's only designated responsible licensed producer resigns. The Department sends written notice that no responsible producer is on file. The entity is otherwise compliant. What regulatory consequence follows if the entity does not correct the deficiency?
Correct answer: B - A 30-day cure period, then nondisciplinary inactivation if uncured
During one 12-month period, a Louisiana producer earns $12,600 in commissions from controlled business and $48,000 in aggregate commissions from all business written. How is the producer's activity classified under the controlled-business test?
Correct answer: D - 26.25%; the controlled-business test is met
Without making a false comparison, a producer recommends replacing an existing whole life policy with a new policy from the same insurer. A large withdrawal from the old policy will fund the new premium, the transaction restarts surrender charges and contestability, and no consumer benefit is documented. Which unfair practice is most directly illustrated?
Correct answer: A - Churning through existing policy values
A Louisiana insurer terminates an appointed producer for a ground listed in R.S. 22:1554. Which sequence correctly states the reporting and response deadlines?
Correct answer: C - Report within 15 days; send the producer a copy within 15 days; allow 30 days after receipt for comments
An insurer charges an applicant a higher premium after relying in part on a consumer report. The consumer reporting agency supplied information but did not choose the rate. Which adverse-action notice is compliant with the Fair Credit Reporting Act?
Correct answer: C - Identify the reporting agency, state that it did not make the decision, and explain the 60-day free-report and dispute rights
A policyowner stops paying premiums after the grace period. The insurer may allow the life policy to lapse, but it cannot sue to compel future premium payments. Which contract characteristic explains this result?
Correct answer: A - Unilateral
A producer is using the needs approach to determine additional life insurance. The family would need $25,000 for final expenses, $175,000 to retire the mortgage, $100,000 for education, and a $360,000 income fund. Available resources are $80,000 in liquid assets, $200,000 of existing life insurance, and a reliable $25,000 survivor benefit. Ignoring taxes and time value, how much additional coverage is indicated?
Correct answer: D - $355,000, the remaining shortfall
A closely held corporation wants cash to offset lost revenue, recruit a replacement, and reassure lenders if its chief sales officer dies. The corporation will own the policy, pay the premiums, and receive the death benefit. Which arrangement best fits this objective?
Correct answer: B - Key-person life insurance
A 42-year-old owns a convertible 20-year term policy and develops a serious illness during policy year 8. The contractual conversion period remains open. Which change can the policyowner make without proving current insurability?
Correct answer: A - Convert to permanent coverage permitted by the policy
An indexed life policy uses an 80% participation rate, a 6% cap, and a 0% floor. The referenced index rises 10% during the crediting period. Before policy charges are deducted, what index credit applies?
Correct answer: C - 6%
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