XCEL SOLUTIONS LIFE AND HEALTH
LICENSE EXAM (CA) QUESTIONS
WITH COMPLETE SOLUTIONS
Which of the following is NOT included in comprehensive major medical plans? -
ANSWER-First-dollar coverage
Which of the following does specified disease insurance NOT cover? - ANSWER-
Costs covered by medical expense insurance
Major medical expense plans typically use a cost containment measure for
emergency hospital care. This is referred to as a(n) - ANSWER-deductible
All of these are examples of cost sharing in a health insurance policy EXECPT -
ANSWER-Coordination
An insured is protected from the expense of a catastrophic illness by which of the
following health insurance provisions? - ANSWER-Stop-loss
Which of the following types of policies pay a stated amount for each day an
individual is hospitalized? - ANSWER-Hospital confinement indemnity
What is considered the most common type of specified disease insurance policy? -
ANSWER-Cancer
What does a Hospital Confinement indemnity policy pay for? - ANSWER-Pays a
specified daily amount while the insured is confined to a hospital
Medical expense policies will typically cover which of the following? - ANSWER-
Injuries caused by accidents
Which of the following refers to a condition that may increase the chance of a loss? -
ANSWER-Hazard
A situation in which there is ONLY a chance of loss or no loss is a - ANSWER-pure
risk
Moral hazard is described as the - ANSWER-increased chance of a loss because of
an insured's dishonest tendencies
Restoring an insured to the same condition as before a loss is known as - ANSWER-
Principle of indemnity
Which of the following describes the increase in probability of a loss due to an
insured's dishonest tendencies - ANSWER-Moral hazard
, All of the following circumstances must be met for loss retention to be an effective
risk management technique, EXCEPT - ANSWER-Probability of loss is unknown
A hazard can be best described as - ANSWER-a condition that may increase the
likelihood of a loss occurring
Which of the following is any situation that presents that possibility of a loss? -
ANSWER-Loss exposure
Which of the following is NOT an element of an insurable risk? - ANSWER-Loss
must be catastrophic
Which of the following would NOT be accomplished with the purchase of an
insurance policy? - ANSWER-Risk is eliminated
What area of group health insurance is regulated under the Employee Retirement
Security Act of 1974 (ERISA)? - ANSWER-Disclosure and reporting
Under a 10-year vesting schedule, what percentage of employer contributions must
be vested after 10 years of service? - ANSWER-100%
Employer contributions to qualified plans are - ANSWER-Tax deductible by the
employer
How are Roth IRA's treated for tax purposes? - ANSWER-Non-deductible
contributions and tax-free distributions
What does ESOP stand for? - ANSWER-Employee Stock Ownership Plan
Which of the following are two examples of activities of daily life (ADL's) used in
qualifying for long-term care benefits? - ANSWER-Eating and dressing
Which of the following would be considered an activity of daily living under a long
term care policy? - ANSWER-Bathing
Periodic increases in policy benefits are allowed in which long-term care policy
provision? - ANSWER-Inflation protection
All of these statements concerning Medicare are true EXCEPT - ANSWER-Long-
term care is covered by Medicare Part C
----- - ANSWER------
Which statement is NOT true regarding Social Security benefits? - ANSWER-
Benefits are designed to replace the entire amount of the worker's earnings
An individual that has 40 quarters of coverage, for Social Security purposes, is
considered to be - ANSWER-Fully insured
LICENSE EXAM (CA) QUESTIONS
WITH COMPLETE SOLUTIONS
Which of the following is NOT included in comprehensive major medical plans? -
ANSWER-First-dollar coverage
Which of the following does specified disease insurance NOT cover? - ANSWER-
Costs covered by medical expense insurance
Major medical expense plans typically use a cost containment measure for
emergency hospital care. This is referred to as a(n) - ANSWER-deductible
All of these are examples of cost sharing in a health insurance policy EXECPT -
ANSWER-Coordination
An insured is protected from the expense of a catastrophic illness by which of the
following health insurance provisions? - ANSWER-Stop-loss
Which of the following types of policies pay a stated amount for each day an
individual is hospitalized? - ANSWER-Hospital confinement indemnity
What is considered the most common type of specified disease insurance policy? -
ANSWER-Cancer
What does a Hospital Confinement indemnity policy pay for? - ANSWER-Pays a
specified daily amount while the insured is confined to a hospital
Medical expense policies will typically cover which of the following? - ANSWER-
Injuries caused by accidents
Which of the following refers to a condition that may increase the chance of a loss? -
ANSWER-Hazard
A situation in which there is ONLY a chance of loss or no loss is a - ANSWER-pure
risk
Moral hazard is described as the - ANSWER-increased chance of a loss because of
an insured's dishonest tendencies
Restoring an insured to the same condition as before a loss is known as - ANSWER-
Principle of indemnity
Which of the following describes the increase in probability of a loss due to an
insured's dishonest tendencies - ANSWER-Moral hazard
, All of the following circumstances must be met for loss retention to be an effective
risk management technique, EXCEPT - ANSWER-Probability of loss is unknown
A hazard can be best described as - ANSWER-a condition that may increase the
likelihood of a loss occurring
Which of the following is any situation that presents that possibility of a loss? -
ANSWER-Loss exposure
Which of the following is NOT an element of an insurable risk? - ANSWER-Loss
must be catastrophic
Which of the following would NOT be accomplished with the purchase of an
insurance policy? - ANSWER-Risk is eliminated
What area of group health insurance is regulated under the Employee Retirement
Security Act of 1974 (ERISA)? - ANSWER-Disclosure and reporting
Under a 10-year vesting schedule, what percentage of employer contributions must
be vested after 10 years of service? - ANSWER-100%
Employer contributions to qualified plans are - ANSWER-Tax deductible by the
employer
How are Roth IRA's treated for tax purposes? - ANSWER-Non-deductible
contributions and tax-free distributions
What does ESOP stand for? - ANSWER-Employee Stock Ownership Plan
Which of the following are two examples of activities of daily life (ADL's) used in
qualifying for long-term care benefits? - ANSWER-Eating and dressing
Which of the following would be considered an activity of daily living under a long
term care policy? - ANSWER-Bathing
Periodic increases in policy benefits are allowed in which long-term care policy
provision? - ANSWER-Inflation protection
All of these statements concerning Medicare are true EXCEPT - ANSWER-Long-
term care is covered by Medicare Part C
----- - ANSWER------
Which statement is NOT true regarding Social Security benefits? - ANSWER-
Benefits are designed to replace the entire amount of the worker's earnings
An individual that has 40 quarters of coverage, for Social Security purposes, is
considered to be - ANSWER-Fully insured
