California Life, Accident, and Health
Licensing Exam Questions And Answers
Co-insurance - AnswerThe policy provision which requires the insurer and the insured
to share in the cost of services rendered
.Exclusion ratio - AnswerThe formula which is used by the IRS to determine how much
is taxable to an annuitant during the pay out period.
.Occupational policy - AnswerWhen a disability income policy provides coverage for
injuries which occur on and off the job
.Most disability income policies are non occupational, meaning - AnswerThey only cover
the insured if they become disabled while away from work.
.Self employed individuals doesn't have - Answerworkers compensation coverage. They
need coverage both on and off the job (occupational).
.A life agent who offers for sale or sells any financial product on the basis of its
treatment under the MediCal Program must provide - AnswerThe Notice Regarding
Standards for Medi-Cal Eligibility. Must be signed by applicant.
.A widow or widower without any children is eligible for social security survivors benefits
at age - Answer60
.A surviving spouse is eligible for social security survivor's benefits at age - Answer60
.An authorized, or admitted carrier (insurer) - Answerone which is under compliance
with the California Insurance Code (CIC) and can operate legally in California
.Which type of life insurance utilizes the "level premium concept" - AnswerTraditional
whole life
.Disability income policy proceeds must be paid out at least - Answermonthly
.What life insurance rider will pay a monthly benefit to the insured when they become
disabled - AnswerThe disability income rider. It is a type of health (disability) insurance
.Dread (Specified) Disease policies, such as cancer insurance, covers -
AnswerTreatment for one specific disease
.The benefit paid out for a residual disability in a disability income policy is based upon -
Answera loss of a minimum of 20% of income
,.Agent may be either - AnswerCaptive (Exclusive) or independent
.Captive agents - Answeragents who agree by contract to represent only one insurer in
the sale of insurance
.Independent agents - Answerusually self-employed and often represent several
insurance companies
.Under state law, agents must have at least - Answerone appointment in order to keep
their license active
.Agents are prohibited from engaging in any of the following activities - Answer1. using
a business name that implies that they are an insurer
2. advertising on behalf of a non-admitted insurer
3. offering free insurance as an inducement to purchase or sale
.Under a group insurance plan a certificate of insurance is issued to - Answerthe
participants, usually employees. The policy owner, usually employer, gets the master
policy
.Domestic insurer - Answerone that domiciled (organized) in this state
.Foreign insurer - Answerone that organized in another state
.Alien insurer - Answerone that organized in another country.
.All insurers need to obtain - Answera Certificate of Authority from the Commissioner in
order to be admitted to transact insurance in this state, except for Surplus Line insurers
.Indemnity plans allow - Answerthe insured to select any provider they wish.
.Traditional indemnity plan - Answerthe insured generally is supposed to submit their
claims directly to an insurer, in reality an "assignment of benefits" form is utilized and
the medical care provider submits the claim on the insured's behalf
.Participants in a managed care indemnity plan - Answerselect a provider and submits
claims to the insurer
.When an insurer wants to have the applicant complete an HIV test, they must do -
Answer1) Have the applicant sign a consent form
2) Find out which doctor they should provide the results to
3) Provide information on where they can receive counseling
.When an insurer wants to have the applicant complete an HIV test, they do not need to
- Answergo over a privacy notice
, .75% of all eligible employees must enroll in a contributory plan. All eligible employees
are required to enroll in a - Answernon contributory plan
.Loss exposure - Answera situation which presents the possibility of loss
.Deductibles, co-payments and co-insurance are all features of health insurance which
are called - Answercost sharing
.Life insurance death benefit policy proceeds paid from an insurer are - AnswerFederal
tax free when paid to a beneficiary
.When an insured with a cash value elects to take the reduced paid-up non-forfeiture
option, the cash value will be - Answerused to buy him a new hole life policy with a
reduced face amount that is paid-up for life
.The traditional net cost method of evaluating the true cost of insurance does not take
into consideration - Answerthe time value of money
.The primary difference between using the interest adjusted net cost method and the net
cost method when evaluating the true cost of a life insurance policy - Answertime value
of money
.Dividends may never be - Answerguaranteed
.All are true about "stock" insurance companies - Answer1) Dividends are taxable
2) The stockholders own the company
3) They may pay dividends to share holders out of divisible surplus
4) they issue non-participating policies
.Under the Family and Medical Leave Act, how many weeks of leave must be provided
per year for a qualifying person - Answer12 weeks
.ESOP invest in - AnswerStock of the employer
.Riders may be added to a policy at issue for an additional premium charge. Examples
of riders - Answer1) accidental Death benefit
2) Cost of living
3) Waiver of Premium
.as used in the CIC the word "shall" is mandatory and the word "may" is -
Answerpermissive
.Agents own a policyholder or a prospective policyholder a duty of - Answerhonesty,
good faith, and fair dealing
.Insurance underwriters are responsible for - Answerrisk selection and classification.
Licensing Exam Questions And Answers
Co-insurance - AnswerThe policy provision which requires the insurer and the insured
to share in the cost of services rendered
.Exclusion ratio - AnswerThe formula which is used by the IRS to determine how much
is taxable to an annuitant during the pay out period.
.Occupational policy - AnswerWhen a disability income policy provides coverage for
injuries which occur on and off the job
.Most disability income policies are non occupational, meaning - AnswerThey only cover
the insured if they become disabled while away from work.
.Self employed individuals doesn't have - Answerworkers compensation coverage. They
need coverage both on and off the job (occupational).
.A life agent who offers for sale or sells any financial product on the basis of its
treatment under the MediCal Program must provide - AnswerThe Notice Regarding
Standards for Medi-Cal Eligibility. Must be signed by applicant.
.A widow or widower without any children is eligible for social security survivors benefits
at age - Answer60
.A surviving spouse is eligible for social security survivor's benefits at age - Answer60
.An authorized, or admitted carrier (insurer) - Answerone which is under compliance
with the California Insurance Code (CIC) and can operate legally in California
.Which type of life insurance utilizes the "level premium concept" - AnswerTraditional
whole life
.Disability income policy proceeds must be paid out at least - Answermonthly
.What life insurance rider will pay a monthly benefit to the insured when they become
disabled - AnswerThe disability income rider. It is a type of health (disability) insurance
.Dread (Specified) Disease policies, such as cancer insurance, covers -
AnswerTreatment for one specific disease
.The benefit paid out for a residual disability in a disability income policy is based upon -
Answera loss of a minimum of 20% of income
,.Agent may be either - AnswerCaptive (Exclusive) or independent
.Captive agents - Answeragents who agree by contract to represent only one insurer in
the sale of insurance
.Independent agents - Answerusually self-employed and often represent several
insurance companies
.Under state law, agents must have at least - Answerone appointment in order to keep
their license active
.Agents are prohibited from engaging in any of the following activities - Answer1. using
a business name that implies that they are an insurer
2. advertising on behalf of a non-admitted insurer
3. offering free insurance as an inducement to purchase or sale
.Under a group insurance plan a certificate of insurance is issued to - Answerthe
participants, usually employees. The policy owner, usually employer, gets the master
policy
.Domestic insurer - Answerone that domiciled (organized) in this state
.Foreign insurer - Answerone that organized in another state
.Alien insurer - Answerone that organized in another country.
.All insurers need to obtain - Answera Certificate of Authority from the Commissioner in
order to be admitted to transact insurance in this state, except for Surplus Line insurers
.Indemnity plans allow - Answerthe insured to select any provider they wish.
.Traditional indemnity plan - Answerthe insured generally is supposed to submit their
claims directly to an insurer, in reality an "assignment of benefits" form is utilized and
the medical care provider submits the claim on the insured's behalf
.Participants in a managed care indemnity plan - Answerselect a provider and submits
claims to the insurer
.When an insurer wants to have the applicant complete an HIV test, they must do -
Answer1) Have the applicant sign a consent form
2) Find out which doctor they should provide the results to
3) Provide information on where they can receive counseling
.When an insurer wants to have the applicant complete an HIV test, they do not need to
- Answergo over a privacy notice
, .75% of all eligible employees must enroll in a contributory plan. All eligible employees
are required to enroll in a - Answernon contributory plan
.Loss exposure - Answera situation which presents the possibility of loss
.Deductibles, co-payments and co-insurance are all features of health insurance which
are called - Answercost sharing
.Life insurance death benefit policy proceeds paid from an insurer are - AnswerFederal
tax free when paid to a beneficiary
.When an insured with a cash value elects to take the reduced paid-up non-forfeiture
option, the cash value will be - Answerused to buy him a new hole life policy with a
reduced face amount that is paid-up for life
.The traditional net cost method of evaluating the true cost of insurance does not take
into consideration - Answerthe time value of money
.The primary difference between using the interest adjusted net cost method and the net
cost method when evaluating the true cost of a life insurance policy - Answertime value
of money
.Dividends may never be - Answerguaranteed
.All are true about "stock" insurance companies - Answer1) Dividends are taxable
2) The stockholders own the company
3) They may pay dividends to share holders out of divisible surplus
4) they issue non-participating policies
.Under the Family and Medical Leave Act, how many weeks of leave must be provided
per year for a qualifying person - Answer12 weeks
.ESOP invest in - AnswerStock of the employer
.Riders may be added to a policy at issue for an additional premium charge. Examples
of riders - Answer1) accidental Death benefit
2) Cost of living
3) Waiver of Premium
.as used in the CIC the word "shall" is mandatory and the word "may" is -
Answerpermissive
.Agents own a policyholder or a prospective policyholder a duty of - Answerhonesty,
good faith, and fair dealing
.Insurance underwriters are responsible for - Answerrisk selection and classification.
