California Insurance State Exam Questions With complete solutions

Which of the following is NOT a benefit of insurance - ANSWER-Losses due to fraud are eliminated An individual that has 40 quarters of coverage for social security purposes it's considered to be - ANSWER-Fully insured Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance - ANSWER-solicitor A contracts requires - ANSWER-An offer and acceptance of the contract terms What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)? - ANSWER-Disclosure and reporting Which of the following is NOT a feature of equity - indexed annuities - ANSWER-Offers a maximum interest rate that increases annually Which of the following best describes the statement "the more times an event is repeated, the more predictable the outcome becomes"? - ANSWER-Law of large numbers Before an insurer is allowed to test an individual for HIV, what must be completed? - ANSWER-consent form Which of the following is NOT a true description of non- medical life insurance - ANSWER-Applicants are not required to answer medical questions on the application When calculating life insurance premium rates, which component is affected by an insured's age and gender? - ANSWER-Mortality