XCEL TESTING SOLUTIONS -
CALIFORNIA PRE-LICENSING
EDUCATION - LIFE, ACCIDENT AND
HEALTH INSURANCE EXAM
QUESTIONS WITH VERIFIED
ANSWERS
An employee for XYZ Corp is injured on the job. Where does coverage for the
employee's injuries come from? - ANSWER-Workers' Compensation
All of the following are considered characteristics of group life insurance EXCEPT -
ANSWER-individual policies
A situation in which there is ONLY a chance of loss or no loss is a - ANSWER-pure
risk
Which of the following is NOT a requirement for a terminated employee that has
exercised the conversion privilege? - ANSWER-Provide proof of insurability
When an applicant applies for insurance, the process by which the insurer
determines whether to issue a policy is called - ANSWER-underwriting
Which of the following statements correctly describes a contract of indemnity? -
ANSWER-One party is restored to the same financial position the party was in
before the loss occurred
Which type of health insurance policy cannot be canceled by the insurer nor increase
the premiums? - ANSWER-Noncancellable
How long must a policy be in force before an insurer is prohibited from denying
claims based on misstatements made on the health policy application? - ANSWER-2
years
Who is NOT eligible for Social Security survivor benefits? - ANSWER-A deceased
worker's dependent parents of any age
Which of these is NOT a valid policy dividend option? - ANSWER-Monthly income
payments
What is considered to be the definition of disability, according to Social Security? -
ANSWER-Unable to engage in any substantial gainful activity
According to Social Security, an individual with 6 credits of coverage during the
previous 13-quarter period is considered to be - ANSWER-currently insured
, Which statement is CORRECT when describing a contract of adhesion? - ANSWER-
Contract may be accepted or rejected by the insured
What is a participating life insurance policy? - ANSWER-Contract that allows the
policyowner to receive a share of surplus in the form of policy dividends
Both the Federal and state governments jointly finance which health insurance
entitlement program? - ANSWER-Medi-Cal
Which of these factors affects the Social Security normal retirement age? -
ANSWER-Year in which worker was born
What distinguishes a deferred annuity from an immediate annuity? - ANSWER-The
time at which benefit payments start
What does ESOP stand for? - ANSWER-Employee Stock Ownership Plan
What are collateral assignments normally associated with? - ANSWER-Bank loans
The cost of services charged by the Health Insurance Counseling Advocacy
Program (HiCap) is - ANSWER-no cost
Which of the following describes a contributory group insurance plan? - ANSWER-
Part of the premium is paid by the employee
A life insurance policy that pays the face amount if the insured survives to a specified
period of time is called - ANSWER-endowment insurance
MRMIP stands for - ANSWER-Major Risk Medical Insurance Program
Which of the following does NOT have to be included on life insurance policy
illustrations? - ANSWER-Statement that all values and benefits are guaranteed
Pam is the primary beneficiary of a life insurance policy and wants to let the death
benefit accumulate and receive only the monthly investment proceeds. Which
settlement option should she choose? - ANSWER-Interest Option
Which of the following does specified disease insurance NOT cover? - ANSWER-
costs covered by medical expense insurance
Which of the following describes the statement "The more times an event is
repeated, the more predictable the outcome becomes"? - ANSWER-Law of large
numbers
Which of the following life insurance classifications charges the highest premium? -
ANSWER-Substandard
At what age is a surviving spouse without dependents eligible for Social Security
survivor benefits? - ANSWER-60
CALIFORNIA PRE-LICENSING
EDUCATION - LIFE, ACCIDENT AND
HEALTH INSURANCE EXAM
QUESTIONS WITH VERIFIED
ANSWERS
An employee for XYZ Corp is injured on the job. Where does coverage for the
employee's injuries come from? - ANSWER-Workers' Compensation
All of the following are considered characteristics of group life insurance EXCEPT -
ANSWER-individual policies
A situation in which there is ONLY a chance of loss or no loss is a - ANSWER-pure
risk
Which of the following is NOT a requirement for a terminated employee that has
exercised the conversion privilege? - ANSWER-Provide proof of insurability
When an applicant applies for insurance, the process by which the insurer
determines whether to issue a policy is called - ANSWER-underwriting
Which of the following statements correctly describes a contract of indemnity? -
ANSWER-One party is restored to the same financial position the party was in
before the loss occurred
Which type of health insurance policy cannot be canceled by the insurer nor increase
the premiums? - ANSWER-Noncancellable
How long must a policy be in force before an insurer is prohibited from denying
claims based on misstatements made on the health policy application? - ANSWER-2
years
Who is NOT eligible for Social Security survivor benefits? - ANSWER-A deceased
worker's dependent parents of any age
Which of these is NOT a valid policy dividend option? - ANSWER-Monthly income
payments
What is considered to be the definition of disability, according to Social Security? -
ANSWER-Unable to engage in any substantial gainful activity
According to Social Security, an individual with 6 credits of coverage during the
previous 13-quarter period is considered to be - ANSWER-currently insured
, Which statement is CORRECT when describing a contract of adhesion? - ANSWER-
Contract may be accepted or rejected by the insured
What is a participating life insurance policy? - ANSWER-Contract that allows the
policyowner to receive a share of surplus in the form of policy dividends
Both the Federal and state governments jointly finance which health insurance
entitlement program? - ANSWER-Medi-Cal
Which of these factors affects the Social Security normal retirement age? -
ANSWER-Year in which worker was born
What distinguishes a deferred annuity from an immediate annuity? - ANSWER-The
time at which benefit payments start
What does ESOP stand for? - ANSWER-Employee Stock Ownership Plan
What are collateral assignments normally associated with? - ANSWER-Bank loans
The cost of services charged by the Health Insurance Counseling Advocacy
Program (HiCap) is - ANSWER-no cost
Which of the following describes a contributory group insurance plan? - ANSWER-
Part of the premium is paid by the employee
A life insurance policy that pays the face amount if the insured survives to a specified
period of time is called - ANSWER-endowment insurance
MRMIP stands for - ANSWER-Major Risk Medical Insurance Program
Which of the following does NOT have to be included on life insurance policy
illustrations? - ANSWER-Statement that all values and benefits are guaranteed
Pam is the primary beneficiary of a life insurance policy and wants to let the death
benefit accumulate and receive only the monthly investment proceeds. Which
settlement option should she choose? - ANSWER-Interest Option
Which of the following does specified disease insurance NOT cover? - ANSWER-
costs covered by medical expense insurance
Which of the following describes the statement "The more times an event is
repeated, the more predictable the outcome becomes"? - ANSWER-Law of large
numbers
Which of the following life insurance classifications charges the highest premium? -
ANSWER-Substandard
At what age is a surviving spouse without dependents eligible for Social Security
survivor benefits? - ANSWER-60
