200 Practice exam questions

200 PCIP Practice exam questions The California life and health insurance guarantee association covers all of these types of policies, EXCEPT Ans- Self-funded plans All of these are common exclusions to a life insurance policy EXCEPT Ans- accidental death An individual can enroll in a part C Medicare advantage plan at what time? Ans- When becoming eligible for Medicare Which of the following is an NOT protected under the California life and health guarantee association? Ans- Insurers The authority granted to a licensed producer is provided via the Ans- Law of Agency A common exclusion or limitation on dental policy is Ans- Endodontics Key person insurance is intended to Ans- cover business losses due to the death of a key employee A terminated employee that has exercised the conversion privileges able to convert Ans- Term insurance into permanent insurance The role of the federal government was expanded when Medicaid was established by allowing the state to Ans- receive matching funds to expand public assistance programs _________ is NOT An element of a valid contract. Ans- countersignature Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insurance other health insurance? Ans- Hospital indemnity How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security total disability? Ans- 12 months Life insurance surplus must be distributed to policy owners at what frequency? Ans- Annually What is involved when a life insurance policy has been backdated? Ans- Making the policy effective on an earlier date than the present What prevents a life insurance policy from being rescinded by the insurer after being in force for two years? Ans- Incontestability clause When intentional concealment is involved, what course of action is the injured party entitled to? AnsRescission of the contract Medicare part D has an initial enrollment period. How many months after an individual's 65th birthday month does this enrollment period end? Ans- 3 months Who acts as the gate keeper in a health maintenance organization (HMO)? Ans- Primary care physician What is required after a life agent sells an insurance policy to an applicant without being appointed by the insurer? Ans- Notice of appointment must be submitted to the Commissioner Free look provision gives the policy owner Ans- the right to return the policy for a full refund within a specified number of days Written notice for a health claim must be given to the insurer ______ days after the occurrence of the loss. Ans- 20 days A person who asserts a right of recovery under an insurance policy is called Ans- claimant Which of the following is NOT a primary objective of insurance regulation? Ans- Interpret policy provisions Failure to report background changes within 30 days as required under section 1729.2 of the California insurance code could subject a license or applicant to Ans- All of these: denial, suspension, & Fine A representation may be altered or withdrawn Ans- only before the insurance is in effect Which of the following describes a contributory group insurance plan? Ans- Part of the premium is paid by the employee A health insurance policy will typically cover Ans- preventative health services Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of? Anstheft Which of the following is Medicare part B also known as? Ans- medical insurance Which of the following would qualify a companies retirement plan from receiving favorable tax treatment? Ans- It is temporary Under a nonqualified annuity, interest is taxed after the Ans- Exclusion ratio has been calculated The California insurance code defines "policy" as a(n) Ans- Written contract If a material warranty violation on the part of the insured is found, what recourse does an insurer have? Ans- Rescind the policy An individual that has 40 quarters of coverage, for Social Security purposes, is considered to be Ans- fully insured What type of license is required for an individual who charges a fee to review an insured's existing life policy? Ans- Life and disability analyst A creditor would be allowed rights to life insurance policy proceeds if which of the following beneficiaries is chosen? Ans- The insured's estate A life insurance policy where the insured can choose where the cash value can be investe