California life, accident, and health

insurance Final Exam Latest 2024

What are members of the medical information bureau required to

report? - Correct Answer - Medical ailments discovered during
the underwriting process

Major medical expenses plan typically use a cost containment

measures for emergency hospital care. This is referred to as a(n)
- Correct Answer - Deductible

What is considered to be the definition of disability, according to

Social Security? - Correct Answer - Unable to engage in any
substantial gainful activity

An agent has advertised that insure to which the agent is

appointed with a member of insurance guarantee association.
This agent has committed a - Correct Answer - Unfair method of
competition

What is the purpose of the pre-existing condition insurance plan -

Correct Answer - PCIP was created by the PPACA the people
rejected by private health insurance due to pre-existing conditions

Which of the following is not protected under the California life

and health guarantee association?
- Correct Answer - Insurers

The California insurance code allows an individual how many

days to cancel life policy for full refund?
- Correct Answer - Between 10 and 30 days

Which of the following is not typically covered under vision care

insurance?
- Correct Answer - Eye Surgery

How long is a person expected to be disabled in order to receive

Social Security disability benefits?
- Correct Answer - 12 months

According to PPACA, what is a health benefits exchange?

- Correct Answer - An entity to which individuals and small
businesses can have access to affordable health coverage

What prevents a life insurance policy from being rescinded

pressure after being forced for two years?
- Correct Answer - Incontestability clause

Which of the following is not an element of insurable risk?

- Correct Answer - Loss must be catastrophic
The California life and health insurance guaranty association
covers all these types of policies, except?
- Correct Answer - Self-funded plans

Why is a life insurance policy delivery date important? - Correct

Answer - The free-look period begins on the policy delivery date

At age 65, which of the following is available at no cost to all

individuals? - Correct Answer - Medicare Part A

Which of the following is not an important reason for a life

insurance application? - Correct Answer - The beneficiary must
sign the application before the insurer will issue the policy

A spendthrift clause in a life insurance policy - Correct Answer -

restricts the ability of the beneficiary to assign benefits

When intentional concealment is involved, what course of action

is the injured party entitled to? - Correct Answer - Rescission of
the contract

An individual who transact life, disability, or life and accident and

health insurance on behalf of fisher is called? - Correct Answer -
Life agent
In a modified endowment contract, the penalty tax imposed on
premature withdrawals is? - Correct Answer - 10%

The cost of service charge by health insurance counseling

advocacy program (HiCap) is? - Correct Answer - No cost

Life insurance surplus must be distributed to policy owners at

what frequency - Correct Answer - Annually

How is a life insurance policy dividend legally defined - Correct

Answer - A return of excess premium and not taxable

Which of the following is a type of insurance for the insured

transfer loss exposures from policies written for its insured -
Correct Answer - Reinsurance

Which of the following is not a true description of nonmedical life

insurance? - Correct Answer - Applicants are not required to
answer medical questions on the application

Which of the following is not considered to be an insurer

expenses? - Correct Answer - Policy premium

Which of the following to specify disease insurance not cover -

Correct Answer - Cost covered by medical expense insurance
Which statement regarding Medicare is true? - Correct Answer -
Benefits for diagnostic tests and X-rays performed on an
outpatient basis are provided by Part B

What distinguishes a deferred annuity from immediate annuity? -

Correct Answer - The time at which benefit payments start

At what point does a self insured group qualify for stop loss
coverage? - Correct Answer - When claims exceed a specified
limit in a set period of time

Both the federal and state government jointly finance which health
insurance entitlement program - Correct Answer - Medi-Cal

Ineligible individual who would like to obtain a group health

insurance, without providing evidence of insurability must -
Correct Answer - Enroll with the specified eligibility period

A beneficiary receives only the death benefit earning in which

settlement option - Correct Answer - Interest option

Expressed power given to an agent in an agency agreement is -

Correct Answer - The authority to represent the insurer

Unilateral contract is one in which - Correct Answer - only one

party (the insurer) makes any kind of legally enforceable promise
What does the term illustration mean when used in the phrase life
insurance policy illustration, according to the California insurance
code - Correct Answer - Presentation of policy features that
includes non-guaranteed elements

According to the PPACA, and a dog can be covered by parents,

healthcare plan, until what age - Correct Answer - Age 26

In Angleton would like to determine the current value of her

annuity. To do this, she multiplies the number of accumulation
unit she owns times the unit value of the separate account. What
kind of annuity best matches h this description? - Correct
Answer - Variable annuity

Oh, these are reasons the commissioner may disapprove a

license request to use a fictitious name except - Correct Answer
- The name is the licensee's actual name

What effect did the pregnancy discrimination act have on health

industry - Correct Answer - Pregnancy must be treated as any
other medical condition

Which of the following is not an element of insurable risk? -

Correct Answer - Loss must be catastrophic
What are residual disability income insurance payments based
on? - Correct Answer - The amount of the insured's income is
reduced by the disability

Medicare part B covers - Correct Answer - Physician expenses

The systematic liquidation of sum of money is provided by a -

Correct Answer - annuity

At what age is a surviving spouse without dependents, eligible for

Social Security survivor benefits. - Correct Answer - 60

When selling a long-term care insurance, right at an applicant, a

life agent must take into consideration all these factors, except -
Correct Answer - Attending physicians statement

Who is the shooter certificate of insurance with a group insurance

policy? - Correct Answer - Participant

An agent a text to stop the replacement of an existing life

insurance policy is known as - Correct Answer - Conservation

What is the purpose of the pre-existing condition insurance plan?

- Correct Answer - PCIP was created by the PPACA for people
rejected by private insurers due to pre-existing conditions
In what situation does a waiver of premium provision, keep the
health insurance policy in force without premium payments -
Correct Answer - When an insured becomes totally disabled

What area of group health insurance is regulated under the

employee retirement security act of 1974(ERISA) - Correct
Answer - Disclosure and reporting

Which of the following is not protected under the California life

and health guarantee association - Correct Answer - Insurers

A life insurance policy that pays the face amount is in shirts of ice
to a specified period of time is called - Correct Answer -
Endowment insurance

Which of the following is a life insurance policy that does not

require a physical exam? - Correct Answer - Non-medical

Which of the following is not included in a comprehensive major

medical plans? - Correct Answer - First-dollar coverage

Which of the following service our health maintenance

organization not required to provide - Correct Answer -
Prescription drugs

According to the California insurance code, how is the word "may"

interpreted - Correct Answer - Permissive
What is the price of insurance for each exposure unit - Correct
Answer - rate

Under a health insurance policy provision that tasted kind of

benefits provided in the circumstances under which they will be
paid is called the - Correct Answer - Insuring clause

The conditions times, and circumstances under which of the shirt

is not covered by health policy are called - Correct Answer -
Exclusions

Which of the following is not considered to be insured expenses -

Correct Answer - Policy premiums

Who are the parties to the master contract in a group life

insurance policy? - Correct Answer - Insurer and employer

Which of the following is not a risk clarification that underwriter

would use - Correct Answer - Dividend risk

Which course of action is insurance how to win a bird consumers

committed by the insured - Correct Answer - Rescinding the
contract
Anyone employed in California to assess insurance agent is
transacting insurance, card and insurance - Correct Answer -
Solicitor

All of these are examples of cost sharing in a health insurance

policy EXCEPT - Correct Answer - coordination

Any changes in the background information that occurs after

producer application has been submitted, or license has been
issued, must be reported to the insurance commissioner within -
Correct Answer - 30 days

A unilateral contract is one in which - Correct Answer - only one

party (the insurer) makes any kind of legally enforceable promise

At age 65, which of the following is available at no cost to all

individuals? - Correct Answer - Medicare Part A

Which of the following would be considered an activity of daily

living under a long-term care policy? - Correct Answer - bathing

How does underwriting difference between group life and

individual life insurance? - Correct Answer - Medical question
must be answered on individual life insurance
Which of the following is not a valid reason to replace an existing
long-term care policy - Correct Answer - New policy has higher
premium with fewer benefits

Which of these is an automatic mode of settlement for life

insurance policy proceeds - Correct Answer - Lump-sum

Which of the following is not a benefit of insurance? - Correct

Answer - Losses due to fraud are eliminated

An agent as advertised insured to watch, the agent is appointed

with is a member of insurance guaranty association. This agent
has committed a - Correct Answer - Unfair method of
competition

Learn on the life policy that guarantees the right to renew the
policy each year regardless of the health but an increase
premium. What kind of policy is this? - Correct Answer -
Renewable term

Coverage for a carrier receipt from a network provider pays more

than care receive from a non-network provider and what type of
health plan - Correct Answer - Preferred provider organization
(PPO)
Tell me shopping for a policy that covers two people and will pay
the face amount only when the first person dies the type of life
policy is looking for is called a - Correct Answer - Joint life policy

The California insurance code has authorized standard for names

use my life insurance agent, which of the following, if any are
automatically acceptable for Lance Mahon, a holder of the CLU
designation? - Correct Answer - Lance Manyon insurance
services

Which of the following is not considered to be definition of the

term "loss"? - Correct Answer - Probability that an event will
occur

Which of the following is not required uniform provision in an

individual health policies? - Correct Answer - Change of
occupation