Final Exam - California Life and Health
Study online at https://quizlet.com/_eub110
1. How does a conditional receipt differ from a bind- Binding receipts always provide
ing receipt? insurance which starts from the
- Conditional receipts always provide insurance date of receipt
which starts from the date of receipt
- Conditional receipts always provide insurance
which starts from the date of receipt
- Binding receipts always provide insurance which
starts from the date of receipt
-Conditional receipts always require an initial
premium payment
2. Which of the following is NOT an element of an Loss must be catastrophic
insurable risk?
Loss must be due to chance
Loss must be catastrophic
Loss must be measurable
Loss frequency must be predictable
3. Who would be most likely to submit a Medicare Hospital
Part A claim?
State
Hospital
HICAP
Insured
4. Which of the following statements do NOT apply Only children born prior to policy's
to child coverage in a family policy? issue date may be included
Only children born prior to policy's issue date
may be included
Child coverage comes in the form of term insur-
ance
Children are covered up to an age stated in the
, Final Exam - California Life and Health
Study online at https://quizlet.com/_eub110
policy
Child coverage is convertible to permanent insur-
ance
5. What does the term "illustration" mean when Presentation of policy features
used in the phrase "life insurance policy illus- that includes non-guaranteed ele-
tration", according to the California Insurance ments
Code?
A copy of the terms given for the free-look peri-
od
A copy of the sales materials used in an insurance
transaction
Publication designed to help an applicant reach
an informed decision about which coverage is
appropriate
Presentation of policy features that includes
non-guaranteed elements
6. Which of the following is NOT considered to be a Probability that an event will occur
definition of the term "loss"?
Unintentional decrease in the value of an asset
due to a peril
An insurable event that takes place which results
in a payment made by the insurance company
Probability that an event will occur
The amount an insurance company must pay
because of an insurable event
7. Health insurance policies typically contain a pro- Coinsurance
vision stating that insureds and their insurer will
share covered losses in an agreed proportion.
Which provision does this refer to?
, Final Exam - California Life and Health
Study online at https://quizlet.com/_eub110
Internal limit
Coinsurance
Deductible
Stop-loss
8. Periodic increases in policy benefits are allowed Inflation protection
in which long-term care policy provision?
Entire contract
Inflation protection
Non-forfeiture
Deflation protection
9. Which of the following is NOT included in compre- First-dollar coverage
hensive major medical plans?
First-dollar coverage
Deductibles
Coinsurance
Maximum coverage limits
10. Bruce is involved in an accident and becomes Waiver of premium provision
totally and permanently disabled. His insurance
policy continues in force without payment of fur-
ther premiums. Which policy provision is respon-
sible for this?
Insuring provision
Return of premium provision
Waiver of premium provision
Automatic premium loan provision
11. What is a common reason people purchase an To protect against the risk of out-
annuity? living their financial resources
To create an immediate estate
To pay off a debt in the event of death
Study online at https://quizlet.com/_eub110
1. How does a conditional receipt differ from a bind- Binding receipts always provide
ing receipt? insurance which starts from the
- Conditional receipts always provide insurance date of receipt
which starts from the date of receipt
- Conditional receipts always provide insurance
which starts from the date of receipt
- Binding receipts always provide insurance which
starts from the date of receipt
-Conditional receipts always require an initial
premium payment
2. Which of the following is NOT an element of an Loss must be catastrophic
insurable risk?
Loss must be due to chance
Loss must be catastrophic
Loss must be measurable
Loss frequency must be predictable
3. Who would be most likely to submit a Medicare Hospital
Part A claim?
State
Hospital
HICAP
Insured
4. Which of the following statements do NOT apply Only children born prior to policy's
to child coverage in a family policy? issue date may be included
Only children born prior to policy's issue date
may be included
Child coverage comes in the form of term insur-
ance
Children are covered up to an age stated in the
, Final Exam - California Life and Health
Study online at https://quizlet.com/_eub110
policy
Child coverage is convertible to permanent insur-
ance
5. What does the term "illustration" mean when Presentation of policy features
used in the phrase "life insurance policy illus- that includes non-guaranteed ele-
tration", according to the California Insurance ments
Code?
A copy of the terms given for the free-look peri-
od
A copy of the sales materials used in an insurance
transaction
Publication designed to help an applicant reach
an informed decision about which coverage is
appropriate
Presentation of policy features that includes
non-guaranteed elements
6. Which of the following is NOT considered to be a Probability that an event will occur
definition of the term "loss"?
Unintentional decrease in the value of an asset
due to a peril
An insurable event that takes place which results
in a payment made by the insurance company
Probability that an event will occur
The amount an insurance company must pay
because of an insurable event
7. Health insurance policies typically contain a pro- Coinsurance
vision stating that insureds and their insurer will
share covered losses in an agreed proportion.
Which provision does this refer to?
, Final Exam - California Life and Health
Study online at https://quizlet.com/_eub110
Internal limit
Coinsurance
Deductible
Stop-loss
8. Periodic increases in policy benefits are allowed Inflation protection
in which long-term care policy provision?
Entire contract
Inflation protection
Non-forfeiture
Deflation protection
9. Which of the following is NOT included in compre- First-dollar coverage
hensive major medical plans?
First-dollar coverage
Deductibles
Coinsurance
Maximum coverage limits
10. Bruce is involved in an accident and becomes Waiver of premium provision
totally and permanently disabled. His insurance
policy continues in force without payment of fur-
ther premiums. Which policy provision is respon-
sible for this?
Insuring provision
Return of premium provision
Waiver of premium provision
Automatic premium loan provision
11. What is a common reason people purchase an To protect against the risk of out-
annuity? living their financial resources
To create an immediate estate
To pay off a debt in the event of death
