Califomia Life, Accident, And Health Insurance Exam Questions And Answers

Califomia Life, Accident, And Health Insurance Exam Questions And Answers What is an insurance solicitor authorized to do? — ANSWER: Help an agent or broker sell insurance According to the California Insurance Code, what is "insurance"? - ANSWER: A contract What does a Hospital Confinement indemnity policy pay for? - ANSWER: Pay a specified daily amount while the insured is confined to a hospital According to the California Insurance Code, how is the word "may" interpreted? ANSWER: Permissive Which statement is CORRECT when describing a contract of adhesion? - ANSWER: Contract may be accepted or rejected by the insured. Retirement plans are prevented from favoring highly compensated employees under which government regulation - ANSWER: Nondiscrimination When calculating life insurance premium rates, which component would an agent's commission fall under? - ANSWER: Insurer's expenses All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT - ANSWER: Probability ofloss is unknown An insurance policy written after 1988 that fails to pass the seven-pay test is known as - ANSWER: a modified endowment contract All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious name EXCEPT - ANSWER: The name is the licensee's actual name Which ofthe following services are health maintenance organizations (HMO's) NOT required to provide? - ANSWER: Prescription drugs Which of the following is NOT true regarding a family policy that covers children? ANSWER: Conversion of child's coverage to permanent insurance requires evidence of insurability Which of the following types of life insurance combines a savings element along with a flexible premium option? - ANSWER: Universal life