California Life, Accident, & Health
Insurance Questions and answers |
Updated 2024/25
Premiums are Best described as - the amount an insured pays per unit of coverage
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Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly
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payments for 5 years, Cindy dies. How many remaining payments will the insurer make to
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her beneficiary? - 60 payments
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Who does a life settlement broker represent? - Individual wanting to sell their life policy to
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a third party
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How is the cost of employer-provided group life insurance with coverage amounts above
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$50,000 treated for tax purposes? - Taxable income to the employee
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II Which of the following is NOT considered to be insurer expenses? - Policy premiums
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Which of the following healthcare providers provides both the healthcare services and
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healthcare coverage? - Health Maintenance Organization (HMO)
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Which of the following describes a contributory group insurance plan? - Part of the
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premium is paid by the employee. A contributory group insurance plan is one which
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employees share the cost of the premiums with the employer.
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Which of the following is NOT a valid reason to replace an existing long-term care policy?
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- New policy has higher premium with fewer benefits
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An insured is protected from the expense of a catastrophic illness by which of the
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following health insurance provisions? - Stop-loss The Stop-loss provision states that
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after the insured has paid a specific amount toward a covered expense, the insurer will
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pay 100% of the remaining expenses.
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Which of the following does Medicare Part A NOT provide coverage for? - Doctor's
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services. Doctor's services are covered in Medicare Part B.
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If a material warranty violation on the part of the insured is found, what recourse does an
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insurer have? - Rescind the policy
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An annuitant would like to determine the amount of an annuity distribution that is exempt
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from taxation. What is used to calculate this? - Exclusion ratio. Annuity benefit payments
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are a combination of principle and interest. A formula called the exclusion ratio is used to
II II II II II II II II II II II II II II II II
determine the amount of annual annuity income that is exempt from federal income taxes.
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, People with low income can be provided with medical assistance through which
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program? - Medi-Cal
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A spendthrift clause in a life insurance policy - Restricts the ability of the beneficiary to
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assign benefits.
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A spendthrift clause prevent a beneficiary from recklessly spending benefits.
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A life insurance policy can be surrendered for its cash value under which policy provision?
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- Nonforfeiture options
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II ESOPs (employee stock ownership plan) are typically invested in - employer stock
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Victoria owns a life annuity and elects to receive annuity payments monthly for the
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remainder of her life with "ten years certain". Her annuity will make payments - for a
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minimum of 120 months and a maximum of the remainder of her life. If the annuitant dies,
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the designated beneficiary would receive any monthly payments for the remainder of the
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certain period-in this case 10 years.
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Kim is insured under a disability income insurance policy with an "own-occupation"
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clause. She was recently injured in an automobile accident and can no longer perform the
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tasks of her job. Kim is now considered to be - Totally disabled
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The own occupation definition of total disability requires that the insured be unable to
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perform the insured's current occupation as a result of an accident or sickness.
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What portion does an insured pay for covered expenses under Medicare Part B after the
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deductible? - 20% After the deductible, a patient pays 20% of covered expenses under
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Medicare Part B
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The misstatement of age provision in a health policy states that is an insured gives the
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wrong age at the time of application, what action can the insurance company take? -
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Benefits can be adjusted
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Who would be most likely to submit a Medicare Part A claim? - Hospital A health care
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provider would be responsible for filing the claim
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Which of the following is NOT a characteristic of reinsurance? - Increases the unearned
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premium reserve
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Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete
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guilty of? - Theft
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Under a noncancellable health insurance policy, an insurer can - cancel the policy for
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nonpayment of premium
II II II
Insurance Questions and answers |
Updated 2024/25
Premiums are Best described as - the amount an insured pays per unit of coverage
II II II II II II II II II II II II II II II II
Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly
II II II II II II II II II II II II II
payments for 5 years, Cindy dies. How many remaining payments will the insurer make to
II II II II II II II II II II II II II II II
her beneficiary? - 60 payments
II II II II II II II
Who does a life settlement broker represent? - Individual wanting to sell their life policy to
II II II II II II II II II II II II II II II II II II
a third party
II II II
How is the cost of employer-provided group life insurance with coverage amounts above
II II II II II II II II II II II II II
$50,000 treated for tax purposes? - Taxable income to the employee
II II II II II II II II II II II II II
II Which of the following is NOT considered to be insurer expenses? - Policy premiums
II II II II II II II II II II II II II II II
Which of the following healthcare providers provides both the healthcare services and
II II II II II II II II II II II II
healthcare coverage? - Health Maintenance Organization (HMO)
II II II II II II II II II
Which of the following describes a contributory group insurance plan? - Part of the
II II II II II II II II II II II II II II II II
premium is paid by the employee. A contributory group insurance plan is one which
II II II II II II II II II II II II II II
employees share the cost of the premiums with the employer.
II II II II II II II II II II
Which of the following is NOT a valid reason to replace an existing long-term care policy?
II II II II II II II II II II II II II II II II
- New policy has higher premium with fewer benefits
II II II II II II II II II II II
An insured is protected from the expense of a catastrophic illness by which of the
II II II II II II II II II II II II II II II
following health insurance provisions? - Stop-loss The Stop-loss provision states that
II II II II II II II II II II II II II
after the insured has paid a specific amount toward a covered expense, the insurer will
II II II II II II II II II II II II II II II
pay 100% of the remaining expenses.
II II II II II II
Which of the following does Medicare Part A NOT provide coverage for? - Doctor's
II II II II II II II II II II II II II II II II
services. Doctor's services are covered in Medicare Part B.
II II II II II II II II II
If a material warranty violation on the part of the insured is found, what recourse does an
II II II II II II II II II II II II II II II II II
insurer have? - Rescind the policy
II II II II II II II II
An annuitant would like to determine the amount of an annuity distribution that is exempt
II II II II II II II II II II II II II II II
from taxation. What is used to calculate this? - Exclusion ratio. Annuity benefit payments
II II II II II II II II II II II II II II II II
are a combination of principle and interest. A formula called the exclusion ratio is used to
II II II II II II II II II II II II II II II II
determine the amount of annual annuity income that is exempt from federal income taxes.
II II II II II II II II II II II II II II
, People with low income can be provided with medical assistance through which
II II II II II II II II II II II II
program? - Medi-Cal
II II II II II
A spendthrift clause in a life insurance policy - Restricts the ability of the beneficiary to
II II II II II II II II II II II II II II II II II II
assign benefits.
II II
A spendthrift clause prevent a beneficiary from recklessly spending benefits.
II II II II II II II II II
A life insurance policy can be surrendered for its cash value under which policy provision?
II II II II II II II II II II II II II II II
- Nonforfeiture options
II II II II II
II ESOPs (employee stock ownership plan) are typically invested in - employer stock
II II II II II II II II II II II II II
Victoria owns a life annuity and elects to receive annuity payments monthly for the
II II II II II II II II II II II II II II
remainder of her life with "ten years certain". Her annuity will make payments - for a
II II II II II II II II II II II II II II II II II II
minimum of 120 months and a maximum of the remainder of her life. If the annuitant dies,
II II II II II II II II II II II II II II II II II
the designated beneficiary would receive any monthly payments for the remainder of the
II II II II II II II II II II II II II
certain period-in this case 10 years.
II II II II II II
Kim is insured under a disability income insurance policy with an "own-occupation"
II II II II II II II II II II II II
clause. She was recently injured in an automobile accident and can no longer perform the
II II II II II II II II II II II II II II II
tasks of her job. Kim is now considered to be - Totally disabled
II II II II II II II II II II II II II II II II
The own occupation definition of total disability requires that the insured be unable to
II II II II II II II II II II II II II
perform the insured's current occupation as a result of an accident or sickness.
II II II II II II II II II II II II II
What portion does an insured pay for covered expenses under Medicare Part B after the
II II II II II II II II II II II II II II II
deductible? - 20% After the deductible, a patient pays 20% of covered expenses under
II II II II II II II II II II II II II II II II
Medicare Part B
II II II
The misstatement of age provision in a health policy states that is an insured gives the
II II II II II II II II II II II II II II II II
wrong age at the time of application, what action can the insurance company take? -
II II II II II II II II II II II II II II II II II
Benefits can be adjusted
II II II II
Who would be most likely to submit a Medicare Part A claim? - Hospital A health care
II II II II II II II II II II II II II II II II II II II
provider would be responsible for filing the claim
II II II II II II II II
Which of the following is NOT a characteristic of reinsurance? - Increases the unearned
II II II II II II II II II II II II II II II II
premium reserve
II II
Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete
II II II II II II II II II II II II II II II II II
guilty of? - Theft
II II II II II II
Under a noncancellable health insurance policy, an insurer can - cancel the policy for
II II II II II II II II II II II II II II II II
nonpayment of premium
II II II
