California Life, Accident, and Health
Licensing Exam Questions And Answers
Verified 100% Correct
When a disability income policy provides occupational coverage and the insured
has 2 jobs, the insurer will base the premium on - ANSWER -the most hazardous
job
AD&D (Accidental Death and Dismemberment) insurance - ANSWER -is not a
life insurance
AD&D (Accidental Death and Dismemberment) insurance - ANSWER -has both a
Capital and Principal sum.
Principal sum pays a lump sum for accidental death. Capital Sum pays a lump sum
for accidental dismemberment
Principle of indemnity - ANSWER -the insured should not profit from a loss or
damage but should be returned (as near as possible) to the same financial position
that existed before the loss or damaged occurred
Managing General Agents (MGA) - ANSWER -Fire and Casualty broker/ agent or
a life agent who represents one or more admitted insurers and manages the
transaction of insurance by those insurers in a specific territory
Surplus Lines Broker - ANSWER -a person licensed by the Commissioner to
solicit and place insurance with non-admitted insurers when the insurance cannot
be procured from admitted insurers
Proof of loss - ANSWER -must be provided in order to collect on a valid claim
,In Group Health insurance, the period of time that starts when a new employee is
hired and ends on the date they become eligible for the employer's Group Health
plan - ANSWER -Probationary period
Disability income policy covers - ANSWER -only loss of income due to disability,
not medical expenses.
Medical expense policies exclude coverage for losses resulting at work in order to
reinforce the principle of indemnity, which states - ANSWER -the insured cannot
recover more than they actually lost
Equity indexed annuity - ANSWER -an annuity that has a fixed guaranteed
minimum rate of return but has an excess rate of return which could also keep up
with the performance of stock market
Variable annuity - ANSWER -the owner of an annuity has to multiply the value of
accumulation unit held in the separate account by the number of accumulation
units owned
In regards to an organizational license, what occurs when a corporation is
dissolved - ANSWER -it is terminated
Under the CIC, if a person refuses to submit books and records to the
commissioner they would be guilty of - ANSWER -misdemeanor
Characteristics of Ideally insurable risk - ANSWER -Loss must not be
catastrophic in nature, must create economic hardship, must be definable. EXCEPT
loss must be certain. Death is certain but it is okay because time of death is
uncertain
Coordination of benefits - ANSWER -the provision that applies in group insurance
when an insured has coverage under multiple plans at one time
Industrial life insurance has a face amount of - ANSWER -2000 or less
, Industrial life is sold by - ANSWER -debit insurance agents who call the clients in
person on a weekly basis. Policies accrue a cash value. Premiums are paid weekly,
the grace period is 28 days
a supplementary benefit in a dread disease policy - ANSWER -Treatment, travel
and lodging expenses when treatment is far from home, and normal living
expenses such as a car payment, mortgage/rent and utility bills
Medicare Supplement insurance policies - ANSWER -Insurers may offer plans
that contain only the "core" benefits. (Plan A)
There are 12 standardized Medicare Supplement policies, identified as -
ANSWER -Plans A through L
Medicare Supplements are sold by private insurers to supplement Medicare, which
is generally only available to those who are at least age - ANSWER -65
In disability income insurance in order for bodily injury to be classife3d as
accidental - ANSWER -the cause may be intentional but the result must be
accidental
Which of the following best illustrates the Principle of Indemnity - ANSWER -
Insurable Interest
Factors used to underwrite group medical expense insurance policies - ANSWER -
the location of the group, term of the probationary period, the age and gender of
those making up the group
morbidity - ANSWER -the likelihood of illness or injury
The minimum number of employees which must be covered in a group life
insurance plan in California is - ANSWER -2
Persistency - ANSWER -the continued existence of a policy being in force.
Licensing Exam Questions And Answers
Verified 100% Correct
When a disability income policy provides occupational coverage and the insured
has 2 jobs, the insurer will base the premium on - ANSWER -the most hazardous
job
AD&D (Accidental Death and Dismemberment) insurance - ANSWER -is not a
life insurance
AD&D (Accidental Death and Dismemberment) insurance - ANSWER -has both a
Capital and Principal sum.
Principal sum pays a lump sum for accidental death. Capital Sum pays a lump sum
for accidental dismemberment
Principle of indemnity - ANSWER -the insured should not profit from a loss or
damage but should be returned (as near as possible) to the same financial position
that existed before the loss or damaged occurred
Managing General Agents (MGA) - ANSWER -Fire and Casualty broker/ agent or
a life agent who represents one or more admitted insurers and manages the
transaction of insurance by those insurers in a specific territory
Surplus Lines Broker - ANSWER -a person licensed by the Commissioner to
solicit and place insurance with non-admitted insurers when the insurance cannot
be procured from admitted insurers
Proof of loss - ANSWER -must be provided in order to collect on a valid claim
,In Group Health insurance, the period of time that starts when a new employee is
hired and ends on the date they become eligible for the employer's Group Health
plan - ANSWER -Probationary period
Disability income policy covers - ANSWER -only loss of income due to disability,
not medical expenses.
Medical expense policies exclude coverage for losses resulting at work in order to
reinforce the principle of indemnity, which states - ANSWER -the insured cannot
recover more than they actually lost
Equity indexed annuity - ANSWER -an annuity that has a fixed guaranteed
minimum rate of return but has an excess rate of return which could also keep up
with the performance of stock market
Variable annuity - ANSWER -the owner of an annuity has to multiply the value of
accumulation unit held in the separate account by the number of accumulation
units owned
In regards to an organizational license, what occurs when a corporation is
dissolved - ANSWER -it is terminated
Under the CIC, if a person refuses to submit books and records to the
commissioner they would be guilty of - ANSWER -misdemeanor
Characteristics of Ideally insurable risk - ANSWER -Loss must not be
catastrophic in nature, must create economic hardship, must be definable. EXCEPT
loss must be certain. Death is certain but it is okay because time of death is
uncertain
Coordination of benefits - ANSWER -the provision that applies in group insurance
when an insured has coverage under multiple plans at one time
Industrial life insurance has a face amount of - ANSWER -2000 or less
, Industrial life is sold by - ANSWER -debit insurance agents who call the clients in
person on a weekly basis. Policies accrue a cash value. Premiums are paid weekly,
the grace period is 28 days
a supplementary benefit in a dread disease policy - ANSWER -Treatment, travel
and lodging expenses when treatment is far from home, and normal living
expenses such as a car payment, mortgage/rent and utility bills
Medicare Supplement insurance policies - ANSWER -Insurers may offer plans
that contain only the "core" benefits. (Plan A)
There are 12 standardized Medicare Supplement policies, identified as -
ANSWER -Plans A through L
Medicare Supplements are sold by private insurers to supplement Medicare, which
is generally only available to those who are at least age - ANSWER -65
In disability income insurance in order for bodily injury to be classife3d as
accidental - ANSWER -the cause may be intentional but the result must be
accidental
Which of the following best illustrates the Principle of Indemnity - ANSWER -
Insurable Interest
Factors used to underwrite group medical expense insurance policies - ANSWER -
the location of the group, term of the probationary period, the age and gender of
those making up the group
morbidity - ANSWER -the likelihood of illness or injury
The minimum number of employees which must be covered in a group life
insurance plan in California is - ANSWER -2
Persistency - ANSWER -the continued existence of a policy being in force.
