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CA INSURANCE EXAM LIFE, ACCIDENT SICKNESS OR HEALTH TEST
EXAM|| ACCURATE AND FREQUENTLY TESTED QUESTIONS AND
100% CORRECT ANSWERS WITH RATIONALES|| LATEST AND
COMPLETE UPDATE WITH EXPERT VERIFIED SOLUTIONS
What would someone purchase for skilled nursing care? - ANSWER: Medicare and
medicare supplements, but it is limited
Does medicaid pay for nursing home care? - ANSWER: Yes, but it provides coverage only
for those who qualify with low income and low assests
What does an annuity protect the annuitant against? - ANSWER: Living longer than
expected
What are annuity contracts designed to do? - ANSWER: Liquidate an estate and to protect
a person against outliving his or her money
Which of the following is NOT normally an excluded cause of disability in an individual
disability income policy? - ANSWER: Complications from a pregnancy
What are exclusions for cause of disability in an individual disability income policy? -
ANSWER: Injury resulting from illegal activity, suicide, and war
Under the ACA, would pregnancy be considered a pre-existing condition? - ANSWER:
Never
Who is the annuity owner? - ANSWER: The person who purchases the annuity
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When a whole life policy is surrendered for its nonforfeiture value, what is the automatic
option? - ANSWER: Extended term
A medicare supplement policy must have a free look period of at least - ANSWER: 30
days (SUPPLEMENT KEY WORD)
In some cases, in order for an insurer to legally disclose privileged information to
appropriate sources, the insured must sign an auth form. What is the max amt of time
that can legally pass between the completion of the form and the disclosure of the info?
- ANSWER: 1 year (They have one year of consent basically)
All of the following are features of a health insurance plan purchased on the health
insurance marketplace EXCEPT - ANSWER: Dollar limits on essential benefits (YOU
CAN'T PUT A LIMIT ON ESSENTIALS)
Features of a health insurance plan from marketplace: - ANSWER: 1. Coverage for pre-
existing conditions
2. Guaranteed renewability
3. Coverage for emergency services
The McCarran-Ferguson Act - ANSWER: Gave the States the right to regulate the majority
of the Insurance Industry at the State level
According to the insurance code, which of the following terms is mandatory? - ANSWER:
Shall
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According to Proposition 103, the commissioner of insurance became an elected official.
The commissioner may serve: - ANSWER: Two consecutive terms (8 Years)
Any person capable of making a contract of insurance subject to the insurance code is: -
ANSWER: An Insurer
Which of the following best describes a broker? - ANSWER: A person who is NOT
appointed by any insurer, but may receive compensation for the policies he/she
places through the insurer and may charge the client a fee
What describes an exclusive agent? - ANSWER: An agent who transacts for one insurer or
a group of related insurers
An insurance agent with a LIFE license can transact:
A. Auto Insurance
B. Life Insurance
C. Homeowners Insurance
D. All the Above - ANSWER: D. All the Above
(only those with a P&C license can be called "an insurance agent" this is a trick
question... this is a person who already has their p&c license AND their life license.
Which of these best describes an "agent"? - ANSWER: one who is appointed by any
number of insurers, receives commissions from them and transacts on their behalf
Which of the following best describes an express authority? - ANSWER:
Authority of an agent that is specifically granted by the insurer
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Implied Authority is: - ANSWER: Authority given to an agent other than in the agent's
contract
Stock Insurance Company - ANSWER: An insurance company with a stated amount of
capital stock owned by stockholders who compose the company and direct it by
means of officers and directors
Which of the following best describes a mutual insurance company? - ANSWER: A
corporation owned by individuals who contribute capital through the purchase of
policies
Which of the following is true regarding taxation of accelerated benefits paid under a
life insurance policy? - ANSWER: They are received tax free (if for someone terminally
ill)
What are the continuing education req for agents who market LTC policies? - ANSWER: 8
hours of LTC specific education included in the regular CE requirements
A specified disease policy would cover which of the following? - ANSWER:
Cancer (specified in contract such as cancer or heart disease)
Do medicare and medicap policies provide covers for long term custodial or nursing
home care? - ANSWER: No. Medicare will cover nursing home care if it is part of the
treatment for a covered injury or illness.
What does the application of contract of adhesion mean? - ANSWER: Since the insured
does not participate in preparing the contract, any ambiguities would be resolved in
favor of the insured
CA INSURANCE EXAM LIFE, ACCIDENT SICKNESS OR HEALTH TEST
EXAM|| ACCURATE AND FREQUENTLY TESTED QUESTIONS AND
100% CORRECT ANSWERS WITH RATIONALES|| LATEST AND
COMPLETE UPDATE WITH EXPERT VERIFIED SOLUTIONS
What would someone purchase for skilled nursing care? - ANSWER: Medicare and
medicare supplements, but it is limited
Does medicaid pay for nursing home care? - ANSWER: Yes, but it provides coverage only
for those who qualify with low income and low assests
What does an annuity protect the annuitant against? - ANSWER: Living longer than
expected
What are annuity contracts designed to do? - ANSWER: Liquidate an estate and to protect
a person against outliving his or her money
Which of the following is NOT normally an excluded cause of disability in an individual
disability income policy? - ANSWER: Complications from a pregnancy
What are exclusions for cause of disability in an individual disability income policy? -
ANSWER: Injury resulting from illegal activity, suicide, and war
Under the ACA, would pregnancy be considered a pre-existing condition? - ANSWER:
Never
Who is the annuity owner? - ANSWER: The person who purchases the annuity
,2|Page
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic
option? - ANSWER: Extended term
A medicare supplement policy must have a free look period of at least - ANSWER: 30
days (SUPPLEMENT KEY WORD)
In some cases, in order for an insurer to legally disclose privileged information to
appropriate sources, the insured must sign an auth form. What is the max amt of time
that can legally pass between the completion of the form and the disclosure of the info?
- ANSWER: 1 year (They have one year of consent basically)
All of the following are features of a health insurance plan purchased on the health
insurance marketplace EXCEPT - ANSWER: Dollar limits on essential benefits (YOU
CAN'T PUT A LIMIT ON ESSENTIALS)
Features of a health insurance plan from marketplace: - ANSWER: 1. Coverage for pre-
existing conditions
2. Guaranteed renewability
3. Coverage for emergency services
The McCarran-Ferguson Act - ANSWER: Gave the States the right to regulate the majority
of the Insurance Industry at the State level
According to the insurance code, which of the following terms is mandatory? - ANSWER:
Shall
,3|Page
According to Proposition 103, the commissioner of insurance became an elected official.
The commissioner may serve: - ANSWER: Two consecutive terms (8 Years)
Any person capable of making a contract of insurance subject to the insurance code is: -
ANSWER: An Insurer
Which of the following best describes a broker? - ANSWER: A person who is NOT
appointed by any insurer, but may receive compensation for the policies he/she
places through the insurer and may charge the client a fee
What describes an exclusive agent? - ANSWER: An agent who transacts for one insurer or
a group of related insurers
An insurance agent with a LIFE license can transact:
A. Auto Insurance
B. Life Insurance
C. Homeowners Insurance
D. All the Above - ANSWER: D. All the Above
(only those with a P&C license can be called "an insurance agent" this is a trick
question... this is a person who already has their p&c license AND their life license.
Which of these best describes an "agent"? - ANSWER: one who is appointed by any
number of insurers, receives commissions from them and transacts on their behalf
Which of the following best describes an express authority? - ANSWER:
Authority of an agent that is specifically granted by the insurer
, 4|Page
Implied Authority is: - ANSWER: Authority given to an agent other than in the agent's
contract
Stock Insurance Company - ANSWER: An insurance company with a stated amount of
capital stock owned by stockholders who compose the company and direct it by
means of officers and directors
Which of the following best describes a mutual insurance company? - ANSWER: A
corporation owned by individuals who contribute capital through the purchase of
policies
Which of the following is true regarding taxation of accelerated benefits paid under a
life insurance policy? - ANSWER: They are received tax free (if for someone terminally
ill)
What are the continuing education req for agents who market LTC policies? - ANSWER: 8
hours of LTC specific education included in the regular CE requirements
A specified disease policy would cover which of the following? - ANSWER:
Cancer (specified in contract such as cancer or heart disease)
Do medicare and medicap policies provide covers for long term custodial or nursing
home care? - ANSWER: No. Medicare will cover nursing home care if it is part of the
treatment for a covered injury or illness.
What does the application of contract of adhesion mean? - ANSWER: Since the insured
does not participate in preparing the contract, any ambiguities would be resolved in
favor of the insured
