California Life, Accident, and Health
Insurance UPDATED ACTUAL Questions
and CORRECT Answers
Which of the following are common personal uses for life insurance - CORRECT
ANSWER✔✔- Estate planning, Cash accumulation, Protection of survivors
Which of the following is a characteristic of an interest sensitive whole life policy -
CORRECT ANSWER✔✔- Flexible premiums, Guaranteed minimum death benefit,
Guaranteed minimum rate of return.
What type of policy provides coverage for life, but the premiums are not due beyond age 65,
has guaranteed premium, accumulates cash value and the coverage will never decrease -
CORRECT ANSWER✔✔- A limited pay life policy
Under the PPACA, the shared responsibility payment is assessed on what basis? - CORRECT
ANSWER✔✔- Monthly
Which of the following statements is true about conditions to reinstate a lapsed life insurance
policy? - CORRECT ANSWER✔✔- The policy has been expired no more than 3 years
An insurance company whose main responsibility is to make money for its policyholders is
called a: - CORRECT ANSWER✔✔- Mutual insurance company
How does the California Insurance Code define an insurance contract? - CORRECT
ANSWER✔✔- A legal agreement made between an insurance company and an individual
An individual disability policy will be characterized in all of the following ways - CORRECT
ANSWER✔✔- The benefit is a stated dollar amount based on a percentage of income per
month.
The premium is established by the insured's occupation and health status
, The company may be able to increase premiums
Disability benefits are required to be paid no less than monthly..
Which of the following nonforfeiture options permits the policyowner to use the cash values
to purchase paid-up term life insurance coverage? - CORRECT ANSWER✔✔- Extended
term
Which of the following statements is true about the Guaranteed Insurability rider? -
CORRECT ANSWER✔✔- The policy will provide specific dates on which additional life
insurance policies can be bought.
Which of the following is true about licensed life-only agents? - CORRECT ANSWER✔✔-
Licensed life-only agents can be appointed by an unlimited number of companies.
What kind of policy provides the option for the policyowner to pay for the entire policy over
a specific and usually shorter period of time and grows cash value faster than ordinary life
and matures when the insured reaches age 100 or dies? - CORRECT ANSWER✔✔- A
limited-payment whole life
What business continuation plan would be best for a furniture company owned by five
partners? - CORRECT ANSWER✔✔- Entity plan
When is maternity coverage available on a family health plan? - CORRECT ANSWER✔✔-
Maternity coverage is effective immediately.
Who has jurisdiction over entities that provide coverages designed to pay for health care
providers' services that are not certified by other governmental agencies? - CORRECT
ANSWER✔✔- The California Department of Insurance
A qualified retirement plan that blends an IRA with a profit-sharing plan and allows the
employer to deduct up to 25% of contributions made to all employees is called a: -
CORRECT ANSWER✔✔- SEP
Insurance UPDATED ACTUAL Questions
and CORRECT Answers
Which of the following are common personal uses for life insurance - CORRECT
ANSWER✔✔- Estate planning, Cash accumulation, Protection of survivors
Which of the following is a characteristic of an interest sensitive whole life policy -
CORRECT ANSWER✔✔- Flexible premiums, Guaranteed minimum death benefit,
Guaranteed minimum rate of return.
What type of policy provides coverage for life, but the premiums are not due beyond age 65,
has guaranteed premium, accumulates cash value and the coverage will never decrease -
CORRECT ANSWER✔✔- A limited pay life policy
Under the PPACA, the shared responsibility payment is assessed on what basis? - CORRECT
ANSWER✔✔- Monthly
Which of the following statements is true about conditions to reinstate a lapsed life insurance
policy? - CORRECT ANSWER✔✔- The policy has been expired no more than 3 years
An insurance company whose main responsibility is to make money for its policyholders is
called a: - CORRECT ANSWER✔✔- Mutual insurance company
How does the California Insurance Code define an insurance contract? - CORRECT
ANSWER✔✔- A legal agreement made between an insurance company and an individual
An individual disability policy will be characterized in all of the following ways - CORRECT
ANSWER✔✔- The benefit is a stated dollar amount based on a percentage of income per
month.
The premium is established by the insured's occupation and health status
, The company may be able to increase premiums
Disability benefits are required to be paid no less than monthly..
Which of the following nonforfeiture options permits the policyowner to use the cash values
to purchase paid-up term life insurance coverage? - CORRECT ANSWER✔✔- Extended
term
Which of the following statements is true about the Guaranteed Insurability rider? -
CORRECT ANSWER✔✔- The policy will provide specific dates on which additional life
insurance policies can be bought.
Which of the following is true about licensed life-only agents? - CORRECT ANSWER✔✔-
Licensed life-only agents can be appointed by an unlimited number of companies.
What kind of policy provides the option for the policyowner to pay for the entire policy over
a specific and usually shorter period of time and grows cash value faster than ordinary life
and matures when the insured reaches age 100 or dies? - CORRECT ANSWER✔✔- A
limited-payment whole life
What business continuation plan would be best for a furniture company owned by five
partners? - CORRECT ANSWER✔✔- Entity plan
When is maternity coverage available on a family health plan? - CORRECT ANSWER✔✔-
Maternity coverage is effective immediately.
Who has jurisdiction over entities that provide coverages designed to pay for health care
providers' services that are not certified by other governmental agencies? - CORRECT
ANSWER✔✔- The California Department of Insurance
A qualified retirement plan that blends an IRA with a profit-sharing plan and allows the
employer to deduct up to 25% of contributions made to all employees is called a: -
CORRECT ANSWER✔✔- SEP
