California Life, Accident, And Health Insurance Exam Test
Questions with Answers Graded A+
Which of the following statements correctly proportion. Which provision does this refer to? -
describes a contract of indemnity ? - ANSWER -Coinsurance is a sharing of
ANSWER -One party is restored to the expenses by the insured and the insurer. Once
same financial position the part was in before the the insured satisfies the deductible, the insurance
loss occurred company pays a high percentage of the
additional expenses (usually 75% or 80%) and
the insured pays the remainder.
Under a noncancellable health insurance policy,
an insurer can - ANSWER -Cancel the
policy for nonpayment of premium Kimberly is an employee on leave under the
Family and Medical Leave Act (FMLA). What will
happen to her group health coverage? -
What does ESOP stand for? - ANSWER - ANSWER -She continues to be enrolled
Employee Stock Ownership Plan during the leave; FMLA requires the same group
health insurance benefits that would exist if the
employee were not on leave.
What does the term "illustration" mean when
used in the phrase "life insurance policy
illustration" , according to the California Which of the following is NOT true regarding a
Insurance Code - ANSWER -Presentation family policy that covers children? -
of policy features that includes non-guaranteed ANSWER -Conversion of child's coverage
elements to permanent insurance requires evidence of
insurability
Life insurance creates an immediate estate. This
phrase means - ANSWER -when the Which of the following describes a contributory
insured dies, a death benefit is paid; Life group insurance plan? - ANSWER -Part of
insurance creates an immediate estate by paying the premium is paid by the employee
a death benefit whenever the insured dies.
What is a common reason people purchase an
When handling premiums for an insured, an annuity? - ANSWER -To protect against the
agent is acting in which capacity? - risk of outliving their financial resources
ANSWER -Fiduciary
An agent acting as an insurance agent, broker, of the After the annual deductible is met,
solicitor, life agent, or bail agent acts in fiduciary Medicare Part B will pay remaining approved
capacity when handling premiums or return charges. - ANSWER -80%
premiums
A contract requires - ANSWER -an offer
Health insurance policies typically contain a and acceptance of the contract terms
provision stating that insureds and their insurer
will share covered losses in an agreed
, California Life, Accident, And Health Insurance Exam Test
Questions with Answers Graded A+
When selling a long term care insurance rider to
an applicant, a life agent must take into An employee for XYZ Corp is injured on the job.
consideration all of these factors. EXCEPT - Where does coverage for the employee's injuries
ANSWER -Attending physician's statement come from? - ANSWER -Workers'
Compensation; In this situation, coverage for the
correct answer- ability to pay, needs of the client, employee's injuries comes from XYZ's Workers'
goals of the client Compensation.
What is the proper order of initial life insurance Which of the following could lower the premium
premiums, from lowest to highest ? - of a proposed disability income policy ? -
ANSWER -Modified premium, ordinary life, ANSWER -Increase in the elimination
single premium period
What does the insurance term "indemnity " refer Employer contributions to qualified plans are -
to? - ANSWER -"Make whole" ANSWER -Tax deductible by the employer
Contracts of indemnity attempt to return the
insured to their original financial position, or Periodic increases in policy benefits are allowed
"made whole". in which long-term care policy provision? -
ANSWER -Inflation protection; An inflation
protection provision allows for a periodic increase
The probability of death, listed by year, is in policy benefits due to inflation.
demonstrated in - ANSWER -"Mortality
tables".
Which of the following is NOT included in
Mortality tables give a measure of the number of comprehensive major medical plans? -
deaths in a given population over a certain ANSWER -First-dollar coverage
period of time.
An insurer can be protected from adverse
Which type of health insurance policy cannot be selection with which policy provision? -
canceled by the insurer nor increase the ANSWER -"Suicide clause".
premiums? - ANSWER -Noncancellable
A noncancellable policy cannot be cancelled nor The suicide clause protects the insurer against
can its premium rates be increased under any possible
circumstances. adverse selection.
What must an applicant do in order to authorize Which of these statements is NOT true
the release of an attending physician report? - concerning recurrent disabilities? -
ANSWER -sign a consent form ANSWER -The insurer continues coverage
after a new elimination period
Questions with Answers Graded A+
Which of the following statements correctly proportion. Which provision does this refer to? -
describes a contract of indemnity ? - ANSWER -Coinsurance is a sharing of
ANSWER -One party is restored to the expenses by the insured and the insurer. Once
same financial position the part was in before the the insured satisfies the deductible, the insurance
loss occurred company pays a high percentage of the
additional expenses (usually 75% or 80%) and
the insured pays the remainder.
Under a noncancellable health insurance policy,
an insurer can - ANSWER -Cancel the
policy for nonpayment of premium Kimberly is an employee on leave under the
Family and Medical Leave Act (FMLA). What will
happen to her group health coverage? -
What does ESOP stand for? - ANSWER - ANSWER -She continues to be enrolled
Employee Stock Ownership Plan during the leave; FMLA requires the same group
health insurance benefits that would exist if the
employee were not on leave.
What does the term "illustration" mean when
used in the phrase "life insurance policy
illustration" , according to the California Which of the following is NOT true regarding a
Insurance Code - ANSWER -Presentation family policy that covers children? -
of policy features that includes non-guaranteed ANSWER -Conversion of child's coverage
elements to permanent insurance requires evidence of
insurability
Life insurance creates an immediate estate. This
phrase means - ANSWER -when the Which of the following describes a contributory
insured dies, a death benefit is paid; Life group insurance plan? - ANSWER -Part of
insurance creates an immediate estate by paying the premium is paid by the employee
a death benefit whenever the insured dies.
What is a common reason people purchase an
When handling premiums for an insured, an annuity? - ANSWER -To protect against the
agent is acting in which capacity? - risk of outliving their financial resources
ANSWER -Fiduciary
An agent acting as an insurance agent, broker, of the After the annual deductible is met,
solicitor, life agent, or bail agent acts in fiduciary Medicare Part B will pay remaining approved
capacity when handling premiums or return charges. - ANSWER -80%
premiums
A contract requires - ANSWER -an offer
Health insurance policies typically contain a and acceptance of the contract terms
provision stating that insureds and their insurer
will share covered losses in an agreed
, California Life, Accident, And Health Insurance Exam Test
Questions with Answers Graded A+
When selling a long term care insurance rider to
an applicant, a life agent must take into An employee for XYZ Corp is injured on the job.
consideration all of these factors. EXCEPT - Where does coverage for the employee's injuries
ANSWER -Attending physician's statement come from? - ANSWER -Workers'
Compensation; In this situation, coverage for the
correct answer- ability to pay, needs of the client, employee's injuries comes from XYZ's Workers'
goals of the client Compensation.
What is the proper order of initial life insurance Which of the following could lower the premium
premiums, from lowest to highest ? - of a proposed disability income policy ? -
ANSWER -Modified premium, ordinary life, ANSWER -Increase in the elimination
single premium period
What does the insurance term "indemnity " refer Employer contributions to qualified plans are -
to? - ANSWER -"Make whole" ANSWER -Tax deductible by the employer
Contracts of indemnity attempt to return the
insured to their original financial position, or Periodic increases in policy benefits are allowed
"made whole". in which long-term care policy provision? -
ANSWER -Inflation protection; An inflation
protection provision allows for a periodic increase
The probability of death, listed by year, is in policy benefits due to inflation.
demonstrated in - ANSWER -"Mortality
tables".
Which of the following is NOT included in
Mortality tables give a measure of the number of comprehensive major medical plans? -
deaths in a given population over a certain ANSWER -First-dollar coverage
period of time.
An insurer can be protected from adverse
Which type of health insurance policy cannot be selection with which policy provision? -
canceled by the insurer nor increase the ANSWER -"Suicide clause".
premiums? - ANSWER -Noncancellable
A noncancellable policy cannot be cancelled nor The suicide clause protects the insurer against
can its premium rates be increased under any possible
circumstances. adverse selection.
What must an applicant do in order to authorize Which of these statements is NOT true
the release of an attending physician report? - concerning recurrent disabilities? -
ANSWER -sign a consent form ANSWER -The insurer continues coverage
after a new elimination period
