Life Agent Exam #1 Questions and
Answers
What is required when an applicant reveals conditions that require more information? - correct
answers:Attending physician statement
Which risk classication carries the lowest premium? - correct answers:Preferred
During the disability elimination period - correct answers:No benefits are payable
Which of the following statements defines partial disability? - correct answers:A disabled employee
while he is working part-time and receiving lost income under their long-term disability benefit
Which statement best describes a life insurance policy dividend? - correct answers:It is a distribution of
excess funds accumulated by the insurer on participating policies
If a person was in violation of Section 770 of the CA Insurance Code, what action would the insurance
Commissioner most likely take if the violation dealt with loans on the security of real or personal
property? - correct answers:Charge the violator with a felony with a six month maximum jail sentence
per violation
If no other method of payment is selected, which of the following is the automatic mode of settlement
for life insurance policy proceeds? - correct answers:Lump-sum settlement in cash
The process whereby a mutual insurer becomes a stock company is called: - correct
answers:Demutualization
A supplemental insurance policy that pays a set amount for each day that an individual is hospitalized is
known as: - correct answers:Hospital confinement indemnity
Any situation that presents the possibility of a loss is known as: - correct answers:A Loss exposure
, A commonly used cost containment measure for emergency hospital care under a major medical
expense plan is: - correct answers:deductible
Which settlement option allows only the death bene - correct answers:Interest option
An agent acting as an insurance agent, broker, solicitor, life agent, or bail agent acts in which capacity
when handling premiums or return premiums for an insured? - correct answers:Fiduciary
Which statement is true regarding participating in a group health insurance plan? - correct answers:A
non-contributory group health plan must cover all eligible members
According to state law, what size print must be used for the licensee's license number on all price quotes,
business cards, and printed material? - correct answers:The same size print as the licensee's phone
number, fax number or address
Social Security disability benefits are paid to persons expected to die or be disabled at least: - correct
answers:12 months
Which non-forfeiture option uses cash surrender values to purchase paid-up term insurance for the full
face amount of the policy? - correct answers:extended term insurance
The group medical plan provision that applies when a claimant has coverage under more than one plan
is known as? - correct answers:coordination of benefits
All of the following statements about the gatekeeper system are true, except: - correct
answers:Specialists can choose to be gatekeepers for their patients
Which coverage is available at no cost to persons at age 65? - correct answers:Medicare Part A
Which optional program is only for individuals age 65 or older? - correct answers:Medicare Part B
Answers
What is required when an applicant reveals conditions that require more information? - correct
answers:Attending physician statement
Which risk classication carries the lowest premium? - correct answers:Preferred
During the disability elimination period - correct answers:No benefits are payable
Which of the following statements defines partial disability? - correct answers:A disabled employee
while he is working part-time and receiving lost income under their long-term disability benefit
Which statement best describes a life insurance policy dividend? - correct answers:It is a distribution of
excess funds accumulated by the insurer on participating policies
If a person was in violation of Section 770 of the CA Insurance Code, what action would the insurance
Commissioner most likely take if the violation dealt with loans on the security of real or personal
property? - correct answers:Charge the violator with a felony with a six month maximum jail sentence
per violation
If no other method of payment is selected, which of the following is the automatic mode of settlement
for life insurance policy proceeds? - correct answers:Lump-sum settlement in cash
The process whereby a mutual insurer becomes a stock company is called: - correct
answers:Demutualization
A supplemental insurance policy that pays a set amount for each day that an individual is hospitalized is
known as: - correct answers:Hospital confinement indemnity
Any situation that presents the possibility of a loss is known as: - correct answers:A Loss exposure
, A commonly used cost containment measure for emergency hospital care under a major medical
expense plan is: - correct answers:deductible
Which settlement option allows only the death bene - correct answers:Interest option
An agent acting as an insurance agent, broker, solicitor, life agent, or bail agent acts in which capacity
when handling premiums or return premiums for an insured? - correct answers:Fiduciary
Which statement is true regarding participating in a group health insurance plan? - correct answers:A
non-contributory group health plan must cover all eligible members
According to state law, what size print must be used for the licensee's license number on all price quotes,
business cards, and printed material? - correct answers:The same size print as the licensee's phone
number, fax number or address
Social Security disability benefits are paid to persons expected to die or be disabled at least: - correct
answers:12 months
Which non-forfeiture option uses cash surrender values to purchase paid-up term insurance for the full
face amount of the policy? - correct answers:extended term insurance
The group medical plan provision that applies when a claimant has coverage under more than one plan
is known as? - correct answers:coordination of benefits
All of the following statements about the gatekeeper system are true, except: - correct
answers:Specialists can choose to be gatekeepers for their patients
Which coverage is available at no cost to persons at age 65? - correct answers:Medicare Part A
Which optional program is only for individuals age 65 or older? - correct answers:Medicare Part B
