Life, health, & accident insurance exam
1. The license is terminated: Regarding an organizational license, what happens
when a corporation is dissolved?
2. The entire premium: john applies for a variable annuity and does not request that
the premiums be immediately invested in a stock or bond portfolio. After the annuity
is issued, John returns the annuity contract to the insurer within the free look period.
What will John receive from the insurer?
3. Funding a buy-sell agreement: Which of the following in NOT of the common
personal uses for life insurance?
4. Participating: Which type of life insurance policy gives the policy owner the right
to share in the insurer's surplus?
5. Variable annuity: The insured bought an annuity ten years ago. He will retire in
five years. To determine the value of his annuity, he must multiply the value of the
"accumulation units" he owns, times the value of the "separate account". This type
of annuity is known as a
6. 65: Medicare Part A begins automatically at age:
7. On the death of the licensee: An individual license is considered terminated:
8. Join the plan during the enrollment period: Usually, in order to join a group
insurance plan without proving insurability, an employee must:
9. Family deductible: A single deductible amount for all members of the same
family and a right to single family member deductibles is known as:
10. 20 employees: COBRA applies to employers with at least
11. Common disaster provision: The policy provision which comes into effect
when the insured and primary beneficiary die in a simultaneous (common) accident
with no evidence as to who died first is:
12. Promise: Unless it is merely a statement of an expectation or a belief, a repre-
sentation as to the future is considered which of the following?
13. The group members: In group insurance the Certificates of Insurance are
issued to:
14. An occupational policy: What is a disability income policy that covers injuries
suffered by an insured on or off the job called?
15. Workers Compensation: Twelve months ago, a man slipped and fell down a
flight of stairs at his workplace. As a result he has a paralysis for which he is not
expected to recover. This 46 year old person will probably be able to collect disability
income benefits from:
16. Forward to the Insurance Commissioner a Notice of Appointment within
14 days of receipt of application: What must an insurer do who accepts an
application from an agent who is not specifically appointed by an insurer and then
issues a policy from that application?
, Life, health, & accident insurance exam
17. Within a specified number of days after injury occurs: If one were to receive
the principal sum benefit of death in a disability policy, the death must occur:
18. A non-contributory group health plan must involve all members: Which of
the following is true regarding participation in a group health plan?
19. Mutual insurer: An insurer owned by policyholders is a:
20. To determine who receives the policy benefits if the primary beneficiary is
deceased: Why should a contingent beneficiary be named in a life insurance policy?
21. Evidence of insurability is required if coverage for children is permanent
insurance: When a family policy covers children, all of the following are true EX-
CEPT
22. Capitation: Each of the following terms is an important characteristic of a major
medical policy, EXCEPT:
23. Misdemeanor: What would a person be guilty of who refuses to submit books
and records to the Commissioner?
24. $150,000: An insured bought a $150,000 non-participating whole life policy
many years ago. She is 100 years old today. She has never borrowed from the policy,
and has made all premium payments when due. The policy cash value is:
25. Employee requires abdominal surgery after food poisoning in the lunch
room: Accidental Death and Dismemberment insurance, which of the following
would not be considered accidental?
26. MET: An association of industry specific employers who are joined together in
order to qualify for, or gain premium advantages, in group insurance is:
27. The program provides a minimum floor of income, and is meant to supple-
ment a retiree's own personal program: Which of the following is a true statement
regarding the social security (OASHI) program?
28. Divorce: Under the Consolidated Omnibus Budget Reconciliation Act (COBRA),
which of the following is a qualifying event?
29. Establishing a list of clients: Which is NOT part of transacting insurance?
30. The beneficiary: Which party has rights in a life insurance policy only after the
death of the insured?
31. Fixed income investments and money market funds: Unless the applicant
indicates otherwise during the right-to-return period in an individual annuity, the
premium for a variable annuity would be invested only in:
32. Emphasizing the use of specialty physicians: HMO's are involved in all of the
following EXCEPT:
33. Any occupation definition and is very restrictive: A person has a disability
policy with the following definition of disability: "the inability to perform any occupa-
tion for which the insured is suited through education, training, experience or prior
economic status." This is an:
, Life, health, & accident insurance exam
34. Frequency: If the financial loss on a certain group of people occurring over a
certain period of time defines the pricing of a disability policy, it is the pricing principle
known as:
35. Hospice care: Terminally ill persons would need which of the following?
36. The policyholder: Who has the right to change life insurance policy beneficia-
ries?
37. An election by the people: How is the Insurance Commissioner selected?
38. $2,000: A person has paid $50,000 into a fixed annuity over 20 years. When he
decides to begin income payments the insurer calculates that he will receive $4,000
per year for life, which means that he will receive a total of $100,000. In the first 10
years of payments how much is taxable each year?
39. The policy has a face amount of $100,000. Every five years, the premium
paid increases. After ten years, the policyholder stops paying premiums and
the coverage stops. The policy has no cash value: Listed below are descriptions
of four types of policies. Which is the term policy?
40. Paid-in capital: Along with having enough assets to provide for its liabilities and
for reinsurance for all outstanding risks, in order to remain solvent, the insurer must
also meet minimum requirements equal to what amount required by the California
Code?
41. A payment paid by the insured to the provider for the service: A health
insurance co payment is:
42. Suspend or revoke the license of the agent: What does the Insurance Com-
missioner have the right to do if an agent lacks authority from an insurer named on
a binder for coverage?
43. Who joined the group after the policy effective date: The probationary period
in a group health policy is intended for people:
44. Elect to continue coverage: Under the Consolidated Omnibus Budget Recon-
ciliation Act (COBRA), a qualifying event insures that an employee who is covered
can:
45. Convicted: According to the CA Insurance Code, a judgment against an appli-
cant who entered a plea of "nolo contendere" is considered to be:
46. Variable life policies: The SEC is involved in the regulation of:
47. Entire contract, grace period, reinstatement: Which of the following are com-
mon insurance policy provisions?
48. Submit a copy of the replacement notice to the existing insurer: An agent
who replaces an existing life insurance contract must do all of the following, EX-
CEPT:
49. Are covered by Medicare Part B. There is a charge for the coverage: Physi-
cians and surgeons services, whether provided in a hospital, or elsewhere:
1. The license is terminated: Regarding an organizational license, what happens
when a corporation is dissolved?
2. The entire premium: john applies for a variable annuity and does not request that
the premiums be immediately invested in a stock or bond portfolio. After the annuity
is issued, John returns the annuity contract to the insurer within the free look period.
What will John receive from the insurer?
3. Funding a buy-sell agreement: Which of the following in NOT of the common
personal uses for life insurance?
4. Participating: Which type of life insurance policy gives the policy owner the right
to share in the insurer's surplus?
5. Variable annuity: The insured bought an annuity ten years ago. He will retire in
five years. To determine the value of his annuity, he must multiply the value of the
"accumulation units" he owns, times the value of the "separate account". This type
of annuity is known as a
6. 65: Medicare Part A begins automatically at age:
7. On the death of the licensee: An individual license is considered terminated:
8. Join the plan during the enrollment period: Usually, in order to join a group
insurance plan without proving insurability, an employee must:
9. Family deductible: A single deductible amount for all members of the same
family and a right to single family member deductibles is known as:
10. 20 employees: COBRA applies to employers with at least
11. Common disaster provision: The policy provision which comes into effect
when the insured and primary beneficiary die in a simultaneous (common) accident
with no evidence as to who died first is:
12. Promise: Unless it is merely a statement of an expectation or a belief, a repre-
sentation as to the future is considered which of the following?
13. The group members: In group insurance the Certificates of Insurance are
issued to:
14. An occupational policy: What is a disability income policy that covers injuries
suffered by an insured on or off the job called?
15. Workers Compensation: Twelve months ago, a man slipped and fell down a
flight of stairs at his workplace. As a result he has a paralysis for which he is not
expected to recover. This 46 year old person will probably be able to collect disability
income benefits from:
16. Forward to the Insurance Commissioner a Notice of Appointment within
14 days of receipt of application: What must an insurer do who accepts an
application from an agent who is not specifically appointed by an insurer and then
issues a policy from that application?
, Life, health, & accident insurance exam
17. Within a specified number of days after injury occurs: If one were to receive
the principal sum benefit of death in a disability policy, the death must occur:
18. A non-contributory group health plan must involve all members: Which of
the following is true regarding participation in a group health plan?
19. Mutual insurer: An insurer owned by policyholders is a:
20. To determine who receives the policy benefits if the primary beneficiary is
deceased: Why should a contingent beneficiary be named in a life insurance policy?
21. Evidence of insurability is required if coverage for children is permanent
insurance: When a family policy covers children, all of the following are true EX-
CEPT
22. Capitation: Each of the following terms is an important characteristic of a major
medical policy, EXCEPT:
23. Misdemeanor: What would a person be guilty of who refuses to submit books
and records to the Commissioner?
24. $150,000: An insured bought a $150,000 non-participating whole life policy
many years ago. She is 100 years old today. She has never borrowed from the policy,
and has made all premium payments when due. The policy cash value is:
25. Employee requires abdominal surgery after food poisoning in the lunch
room: Accidental Death and Dismemberment insurance, which of the following
would not be considered accidental?
26. MET: An association of industry specific employers who are joined together in
order to qualify for, or gain premium advantages, in group insurance is:
27. The program provides a minimum floor of income, and is meant to supple-
ment a retiree's own personal program: Which of the following is a true statement
regarding the social security (OASHI) program?
28. Divorce: Under the Consolidated Omnibus Budget Reconciliation Act (COBRA),
which of the following is a qualifying event?
29. Establishing a list of clients: Which is NOT part of transacting insurance?
30. The beneficiary: Which party has rights in a life insurance policy only after the
death of the insured?
31. Fixed income investments and money market funds: Unless the applicant
indicates otherwise during the right-to-return period in an individual annuity, the
premium for a variable annuity would be invested only in:
32. Emphasizing the use of specialty physicians: HMO's are involved in all of the
following EXCEPT:
33. Any occupation definition and is very restrictive: A person has a disability
policy with the following definition of disability: "the inability to perform any occupa-
tion for which the insured is suited through education, training, experience or prior
economic status." This is an:
, Life, health, & accident insurance exam
34. Frequency: If the financial loss on a certain group of people occurring over a
certain period of time defines the pricing of a disability policy, it is the pricing principle
known as:
35. Hospice care: Terminally ill persons would need which of the following?
36. The policyholder: Who has the right to change life insurance policy beneficia-
ries?
37. An election by the people: How is the Insurance Commissioner selected?
38. $2,000: A person has paid $50,000 into a fixed annuity over 20 years. When he
decides to begin income payments the insurer calculates that he will receive $4,000
per year for life, which means that he will receive a total of $100,000. In the first 10
years of payments how much is taxable each year?
39. The policy has a face amount of $100,000. Every five years, the premium
paid increases. After ten years, the policyholder stops paying premiums and
the coverage stops. The policy has no cash value: Listed below are descriptions
of four types of policies. Which is the term policy?
40. Paid-in capital: Along with having enough assets to provide for its liabilities and
for reinsurance for all outstanding risks, in order to remain solvent, the insurer must
also meet minimum requirements equal to what amount required by the California
Code?
41. A payment paid by the insured to the provider for the service: A health
insurance co payment is:
42. Suspend or revoke the license of the agent: What does the Insurance Com-
missioner have the right to do if an agent lacks authority from an insurer named on
a binder for coverage?
43. Who joined the group after the policy effective date: The probationary period
in a group health policy is intended for people:
44. Elect to continue coverage: Under the Consolidated Omnibus Budget Recon-
ciliation Act (COBRA), a qualifying event insures that an employee who is covered
can:
45. Convicted: According to the CA Insurance Code, a judgment against an appli-
cant who entered a plea of "nolo contendere" is considered to be:
46. Variable life policies: The SEC is involved in the regulation of:
47. Entire contract, grace period, reinstatement: Which of the following are com-
mon insurance policy provisions?
48. Submit a copy of the replacement notice to the existing insurer: An agent
who replaces an existing life insurance contract must do all of the following, EX-
CEPT:
49. Are covered by Medicare Part B. There is a charge for the coverage: Physi-
cians and surgeons services, whether provided in a hospital, or elsewhere:
