Final Exam: California Life, Accident, and Health Insurance Questions with complete solutions

What is considered the most common type of specified disease insurance policy? - ANSWER-Cancer Minimum participation standards exist for a group health insurance plans in order to - ANSWER-Prevent Adverse Selection How does underwriting differ between group life and individual life insurance? - ANSWER-Medical questions must be answered on individual life insurance when handling premiums for an insured an agent is acting in which capacity? - ANSWER-Fiduciary what is the term used to describe the frequency and severity of certain illnesses and accidents? - ANSWER-Morbidity Which of the following describes the statement "The more times an event is repeated, the more predictable the outcome becomes"? - ANSWER-Law of large numbers In order to be considered "currently insured" under Social Security, an individual must be credited with? - ANSWER-6 quarters of coverage during the last 13-quarter period How long must a policy be in force before an insurer is prohibited from denying claims based on misstatements made on the health policy application? - ANSWER-2 Years Which of the following does the California Insurance Code NOT require an insurance policy to specify? - ANSWER-Insurer's financial rating