California Life, Accident and Health Cram Course Exam Questions with Correct Solutions

Which of the following statements can always be made by an agent during a tax qualified Long Term Care insurance policy presentation: - ANSWER-The plan may receive federal and state tax advantages As used in the California Insurance Code the use of the word "may" is: - ANSWER-Permissive Which of the following statements can always be made by an agent during a tax qualified Long Term Care insurance policy presentation: - ANSWER-The plan may receive federal and state tax advantages When an insurer wants to have the applicant complete an HIV test, they must do all of the following except: - ANSWER-Go over a privacy notice If a whole life policy is being kept in-force by the Waiver of Premium rider: - ANSWER-The cash value will continue to increase as if the insured paid the premium The enactment of the Pregnancy Discrimination Act had which of the following effects on group health insurance: - ANSWER-Pregnancy of an employee must be treated in the same manner as any other health condition Engaging in which of the following avocations will not cause a life insurer to reject or rate-up an applicant: - ANSWER-Roller blading The provision that applies in group insurance when an insured has coverage under multiple plans at one time is known as: - ANSWER-Coordination of benefits In Group Health insurance, the period of time that starts when a new employee is hired and ends on the date they become eligible for the employer's Group Health plan is the: - ANSWER-Probationary period Variable annuity premiums may be invested in all of the following EXCEPT: - ANSWER-Agent's interest bearing trust account Before obtaining an HIV test the insurer must do which of the following: - ANSWER-Have the applicant sign a consent form HMOs are required to cover all of the following except: - ANSWER-Prescription drugs At what point in time may a representation be altered or withdrawn: - ANSWER-Prior to the insurance going into effect only If a corporation uses life insurance to buy shares under a buy-sell agreement, which of the following is true regarding taxation: - ANSWER-It is treated as a loss or gain if they are common stock All of the following must be disclosed in Internet advertising EXCEPT an agent's: - ANSWER-Phone number When the pricing principle is defined in a disability policy by the financial loss on a certain group of people occurring over a certain period of time it is known as: - ANSWER-Frequency Dread (Specified) Disease policies covers which of the following: - ANSWER-Treatment for one specific disease Which of the following criteria must be used to classify an injury as accidental under a disability income policy? - ANSWER-The cause of the injury may be intentional, but the result of the injury must be accidental Which of the following terms used in the California Insurance Code is mandatory: - ANSWER-Shall