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California Life, Accident,and Health
Insurance Final Exam Questions with
correct answers
What |is |considered |the |most |common |type |of |specified |disease |insurance |policy? Cancer Minimum |participation |standards |exist |for |a |group |health |insurance |plans |in |order |to Prevent |Adverse |Selection How |does |underwriting |differ |between |group |life |and |individual |life |insurance? Medical |questions |must |be |answered |on |individual |life |insurance when |handling |premiums |for |an |insured |an |agent |is |acting |in |which |capacity? Fiduciary what |is |the |term |used |to |describe |the |frequency |and |severity |of |certain |illnesses |and |accidents? Morbidity Which |of |the |following |describes |the |statement |"The |more |times |an |event |is |repeated, |the |more |predictable |the |outcome |becomes"? Law |of |large |numbers In |order |to |be |considered |"currently |insured" |under |Social |Security, |an |individual |must |be |credited |with? 6 |quarters |of |coverage |during |the |last | 13 - quarter |period How |long |must |a |policy |be |in |force |before |an |insurer |is |prohibited |from |denying |claims |based |on |misstatements |made |on |the |health |policy |application?
2 |Years Which |of |the |following |does |the |California |Insurance |Code |NOT |require |an |insurance |policy |to |specify? Insurer's |financial |rating Which |of |the |following |is |NOT |required |in |the |content |of |a |policy? Probability |of |loss Which |of |the |following |pieces |of |information |is |NOT |gathered |during |the |personal |financial |planning |process? An |individual's |civic |organization |memberships Which |of |the |following |is |not |considered |to |be |an |unfair |claims |settlement |practice? Advising |a |claimant |to |hire |an |attorney When |an |applicant |applies |for |insurance, |the |process |by |which |the |insurer |determines |whether |to |issue |a |policy |is |called? Underwriting How |is |a |Medicare |claim |submitted? Expenses |are |submitted |to |Medicare |by |the |health |provider According |to |the |PPACA, |the |medical |enrollment |tier |that |has |80% |actuarial |value |is |called: Gold Employer |contributions |to |qualified |plans |are Tax-deductible |by |the |employer Employee |participation |in |a |noncontributory |group |life |plan |must |be
Mutual |Insurer Medicare |Part |B |Covers? Physician |Expenses Which |of |these |is |NOT |a |relevant |factor |in |the |health |insurance |principle |of |morbidity? Intelligence Which |of |these |factors |do |not |affect |the |rates |of |medical |insurance? Race Which |of |the |following |types |of |life |insurance |is |normally |associated |with |a |mortgage |loan? Decreasing |term which |of |the |following |is |not |included |in |comprehensive |major |medical |plans? First-Dollar |Coverage Moral |hazard |is |described |as |the Increased |chance |of |a |loss |because |of |an |insured's |dishonest |tendencies Which |principle |is |accurately |described |with |the |statement |"Insureds |are |entitled |to |recover |an |amount |NOT |greater |than |the |amount |of |their |loss"? Indemnity What |time |period |allows |an |insured's |life |insurance |policy |to |remain |in |force |even |if |the |premium |was |not |paid |on |the |due |date? Grace |Period
How |long |must |life |agents |keep |their |transaction |records? 5 |Years
1729.2 |of |the |California |insurance |code |could |subject |a |license |or |applicant |to? All |of |these Why |is |a |life |insurance |policy's |delivery |date |important? The |free-look |period |begins |on |the |policy |delivery |date The |Human |Life |Value |concept |is |based |on? Income Which |of |the |following |is |a |characteristic |of |the |disability |elimination |period? Benefits |are |not |payable In |California, |the |elderly |can |receive |information |about |health |related |issues |from? The |Health |Insurance |Counseling |and |Advocacy |Program |(HiCAP)" In |what |situation |does |a |waiver |of |premium |provision |keep |a |health |insurance |policy |in |force |without |premium |payments? When |an |insured |becomes |totally |disabled At |age |65, |which |of |the |following |is |available |at |no |cost |to |all |individuals? Medicare |Part |A which |of |these |statements |correctly |describes |risk? Pure |risk |is |the |only |insurable |risk non-deductible |contributions |are |typically |associated |with |a? Roth |IRA Which |type |of |worker |has |Social |Security |benefits |available |to |them?
Fully |insured Which |of |the |following |describes |the |number |of |deaths |in |a |year |compared |to |the |number |of |people |in |a |select |group?
How |are |acts |of |war |and |aviation |treated |under |a |group |life |insurance |policy? Policy |Exclusion A|creditor |would |be |allowed |rights |to |life |insurance |policy |proceeds |if |which |of |the |following |beneficiaries |is |chosen? The |insured's |estate. According |to |section |1729.2 |of |the |California |Insurance |Code, |which |of |these |does |NOT |qualify |as |"background |information"? Misdemeanor |charges |filed, |not |resulting |in |a |conviction The |California |Insurance |Code |allows |an |individual |how |many |days |to |cancel |a |life |policy |for |a |full-refund? Between | 10 |to | 30 |Days The |California |Insurance |Code |defines |"policy" |as |a(n)? Written |Contract According |to |the |California |code |governing |claim |settlement |practices, |which |of |the |following |is |NOT |considered |to |be |an |act |of |unfair |discrimination? Denial |of |a |claim |based |on |reckless |behavior Kimberly |is |an |employee |on |leave |under |the |Family |and |Medical |Leave |Act |(FMLA). |What |will |happen |to |her |group |health |coverage? She |continues |to |be |enrolled |during |the |leave Which |of |the |following |is |NOT |a |feature |of |equity-indexed |annuities? Offers |a |maximum |interest |rate |that |increases |annually A|terminated |employee |that |has |exercised |the |conversion |privilege |is |able |to
convert? Term |insurance |into |permanent |insurance
Which |policy |provision |protects |the |policyowner |from |unintentional |lapse |of |the |contract? Grace |period Under |the |misstatement |of |age |provision |in |a |health |insurance |policy, |what |can |a |company |do |if |it |discovers |that |an |insured |gave |a |wrong |age |at |the |time |of |application? Benefits |can |be |adjusted which |of |the |following |is |not |covered |by |the |family |and |medical |leave |act |(fmla)? Traveling |overseas |with |a |spouse An |insurer |enters |into |a |contract |with |a |third |party |to |insure |itself |against |losses |from |insurance |policies |it |issues. |What |is |this |agreement |called? Reinsurance What |does |a |Hospital |Confinement |indemnity |policy |pay |for? Pays |a |specified |daily |amount |while |the |insured |is |confined |to |a |hospital Allen |has |a |disability |income |policy |with |a |$2,500 |monthly |benefit |and |a |30-day |elimination |period. |He |is |unable |to |work | 90 |days |following |an |automobile |accident. |What |will |the |policy |pay? 90 |days |- | 30 |day |elimination |period |is | 60 |days |(2 |months). | 2 |months |X |$2,500/month |benefit |= |$5,000 |total |benefit |paid. Which |of |the |following |would |be |considered |an |activity |of |daily |living |under |a |long |term |care |policy? Bathing the |elimination |period |in |a |disability |income |policy |serves |the |same |purpose |as
a?
Equal |consideration |is |required |between |the |involved |parties Which |of |the |following |does |the |California |Department |of |Insurance |(CDI) |have |NO |jurisdiction |over? Medicare Which |provision |will |pay |a |portion |of |the |death |benefit |prior |to |the |insured's |death |due |to |a |serious |illness? Accelerated |death |benefit Under |the |California |Insurance |Code, |a |licensee's |license |number |must |be |printed |at |what |size |on |all |price |quotes, |business |cards, |and |printed |material? The |same |size |print |as |the |licensee's |phone |number, |fax |number |or |address How |are |Roth |IRA's |treated |for |tax |purposes? Non-deductible |contributions |and |tax-free |distributions An |insurance |company |entitled |to |transact |business |in |California |is |called |a(n)? Admitted |carrier Which |of |the |following |contracts |is |defined |as |"one |that |restores |an |injured |party |to |the |condition |that |was |present |before |the |loss"? Indemnity |Contract Which |word |implies |permissiveness |according |to |the |California |Insurance |Code? May Which |of |the |following |statements |do |NOT |apply |to |child |coverage |in |a |family |policy? Only |children |born |prior |to |policy's |issue |date |may |be |included
What |does |the |guaranteed |insurability |option |allow |an |insured |to |do?
Interest |Option What |is |the |proper |order |of |initial |life |insurance |premiums, |from |lowest |to |highest? Modified |premium, |ordinary |life, |single |premium Which |of |the |following |services |are |health |maintenance |organizations |(HMO's) |NOT |required |to |provide? Prescription |Drugs Life |insurance |creates |an |immediate |estate". |This |phrase |means? When |the |insured |dies, |a |death |benefit |is |paid. Which |statement |is |true |regarding |policy |dividends? A |Dividend |Option |is |selected |by |the |Insured |at |the |time |of |Policy |purchase Which |of |the |following |is |considered |to |be |a |situation |that |has |the |potential |for |loss? Loss |exposure A|person |who |asserts |a |right |of |recovery |under |an |insurance |policy |is |called? Claimant All |of |the |following |are |considered |characteristics |of |group |life |insurance |EXCEPT? Individual |policies An |annuitant |would |like |to |determine |the |current |value |of |her |annuity. |To |do |this, |she |multiplies |the |number |of |"accumulation |units" |she |owns |times |the |unit |value |of |the |"separate |account". |What |kind |of |annuity |BEST |matches |this |description? |Variable |Annuity
A|life |insurance |policy |where |the |insured |can |choose |where |the |cash |value |can |be |invested |is |called? Variable |Life In |a |Life |Insurance |Policy, |the |entire |contract |consists |of |the? Policy |and |Attached |Application When |a |mutual |insurer |becomes |a |stock |company, |the |process |is |called Demutualization In |California, |an |insurer |organized |under |the |state |laws |of |Oregon |is |called |a(n)? Foreign |Insurer All |of |the |these |are |examples |of |cost |sharing |in |a |health |insurance |policy |EXCEPT? Coordination Premiums |are |best |described |as? The |amount |an |insured |pays |per |unit |of |coverage which |of |the |following |is |not |typically |covered |under |vision |care |insurance? Eye |Surgery Which |of |the |following |terms |is |NOT |associated |with |a |Major |Medical |policy? Capitation All |of |these |statements |concerning |Medicare |are |true |EXCEPT? Long-term |care |is |covered |by |Medicare |Part |C Medicare |Part |A |covers |what |type |of |care?
