FINAL EXAM: CALIFORNIA LIFE,
ACCIDENT, AND HEALTH
DETAILED ANSWERS (A+ GUIDE
Quiz_________________?
A beneficiary receives only the death benefit earnings in which settlement option? -
Answer✅
Interest option
Quiz_________________?
A hazard can be best described as -
Answer✅
a condition that may increase the likelihood of a loss occurring
Quiz_________________?
A life insurance policy can be surrendered for its cash value under which policy provision? -
Answer✅
Nonforfeiture options
Quiz_________________?
1
, A life insurance policy that pays the face amount if the insured survives to a specified period
of time is called -
Answer✅
endowment insurance
Quiz_________________?
A life insurance policy where the insured can choose where the cash value can be invested
is called -
Answer✅
variable life
Quiz_________________?
A life insurance policy's limit of liability would be -
Answer✅
the policy's face amount
Quiz_________________?
A report which is based on creditworthiness and personal characteristics that influences an
insurance applicant's eligibility for life and health insurance is called a(n) -
Answer✅
consumer report
Quiz_________________?
A situation in which there is ONLY a chance of loss or no loss is a -
Answer✅
pure risk
Quiz_________________?
A spendthrift clause in a life insurance policy -
2
, Answer✅
restricts the ability of the beneficiary to sign benefits
Quiz_________________?
A terminated employee that has exercised the conversion privilege is able to convert -
Answer✅
term insurance into permanent insurance
Quiz_________________?
According to Social Security, an individual with 6 credits of coverage during the previous 13-
quarter is considered to be: -
Answer✅
currently insured
Quiz_________________?
According to the California Insurance Code, what is "insurance"? -
Answer✅
A contract
Quiz_________________?
According to the California Insurance Code, what term is used to describe a fact so
important it could affect the policy premium? -
Answer✅
Materiality
Quiz_________________?
According to the PPACA, an adult can be covered by a parent's health care plan until what
age? -
Answer✅
3
, Age 26
Quiz_________________?
After the annual deductible is met, a Medicare Part B patient will pay ____ of the remaining
covered expenses. -
Answer✅
20%
Quiz_________________?
After the annual deductible is met, Medicare Part B will pay ____ of the remaining approved
charges. -
Answer✅
80%
Quiz_________________?
All of the following circumstances must be met for loss retention to be an effective risk
management technique, EXCEPT -
Answer✅
Probability of loss is unknown
Quiz_________________?
All of these are examples of cost sharing in a health insurance policy EXCEPT -
Answer✅
Coordination
Quiz_________________?
An agent's attempt to stop the replacement of an existing life insurance policy is known as -
Answer✅
conservation
4
ACCIDENT, AND HEALTH
DETAILED ANSWERS (A+ GUIDE
Quiz_________________?
A beneficiary receives only the death benefit earnings in which settlement option? -
Answer✅
Interest option
Quiz_________________?
A hazard can be best described as -
Answer✅
a condition that may increase the likelihood of a loss occurring
Quiz_________________?
A life insurance policy can be surrendered for its cash value under which policy provision? -
Answer✅
Nonforfeiture options
Quiz_________________?
1
, A life insurance policy that pays the face amount if the insured survives to a specified period
of time is called -
Answer✅
endowment insurance
Quiz_________________?
A life insurance policy where the insured can choose where the cash value can be invested
is called -
Answer✅
variable life
Quiz_________________?
A life insurance policy's limit of liability would be -
Answer✅
the policy's face amount
Quiz_________________?
A report which is based on creditworthiness and personal characteristics that influences an
insurance applicant's eligibility for life and health insurance is called a(n) -
Answer✅
consumer report
Quiz_________________?
A situation in which there is ONLY a chance of loss or no loss is a -
Answer✅
pure risk
Quiz_________________?
A spendthrift clause in a life insurance policy -
2
, Answer✅
restricts the ability of the beneficiary to sign benefits
Quiz_________________?
A terminated employee that has exercised the conversion privilege is able to convert -
Answer✅
term insurance into permanent insurance
Quiz_________________?
According to Social Security, an individual with 6 credits of coverage during the previous 13-
quarter is considered to be: -
Answer✅
currently insured
Quiz_________________?
According to the California Insurance Code, what is "insurance"? -
Answer✅
A contract
Quiz_________________?
According to the California Insurance Code, what term is used to describe a fact so
important it could affect the policy premium? -
Answer✅
Materiality
Quiz_________________?
According to the PPACA, an adult can be covered by a parent's health care plan until what
age? -
Answer✅
3
, Age 26
Quiz_________________?
After the annual deductible is met, a Medicare Part B patient will pay ____ of the remaining
covered expenses. -
Answer✅
20%
Quiz_________________?
After the annual deductible is met, Medicare Part B will pay ____ of the remaining approved
charges. -
Answer✅
80%
Quiz_________________?
All of the following circumstances must be met for loss retention to be an effective risk
management technique, EXCEPT -
Answer✅
Probability of loss is unknown
Quiz_________________?
All of these are examples of cost sharing in a health insurance policy EXCEPT -
Answer✅
Coordination
Quiz_________________?
An agent's attempt to stop the replacement of an existing life insurance policy is known as -
Answer✅
conservation
4
