CALIFORNIA LIFE ACCIDENT AND HEALTH
INSURANCE FINAL EXAM ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS | ALREADY
GRADED A+
Which of the following statements correctly describes a contract of indemnity ? -
ans -One party is restored to the same financial position the part was in before
the loss occurred
Under a noncancellable health insurance policy, an insurer can - ans -Cancel the
policy for nonpayment of premium
What does ESOP stand for? - ans -Employee Stock Ownership Plan
What does the term "illustration" mean when used in the phrase "life insurance
policy illustration" , according to the California Insurance Code - ans -Presentation
of policy features that includes non-guaranteed elements
Life insurance creates an immediate estate. This phrase means - ans -when the
insured dies, a death benefit is paid; Life insurance creates an immediate estate
by paying a death benefit whenever the insured dies.
When handling premiums for an insured, an agent is acting in which capacity? -
ans –Fiduciary
An agent acting as an insurance agent, broker, solicitor, life agent, or bail agent
acts in fiduciary capacity when handling premiums or return premiums
Health insurance policies typically contain a provision stating that insureds and
their insurer will share covered losses in an agreed proportion. Which provision
does this refer to? - ans -Coinsurance is a sharing of expenses by the insured and
the insurer. Once the insured satisfies the deductible, the insurance company
pays a high percentage of the additional expenses (usually 75% or 80%) and the
insured pays the remainder.
Kimberly is an employee on leave under the Family and Medical Leave Act
(FMLA). What will happen to her group health coverage? - ans -She continues to
, be enrolled during the leave; FMLA requires the same group health insurance
benefits that would exist if the employee were not on leave.
Which of the following is NOT true regarding a family policy that covers children?
- ans -Conversion of child's coverage to permanent insurance requires evidence of
insurability
Which of the following describes a contributory group insurance plan? - ans -Part
of the premium is paid by the employee
What is a common reason people purchase an annuity? - ans -To protect against
the risk of outliving their financial resources
of the After the annual deductible is met, Medicare Part B will pay remaining
approved charges. - ans -80%
A contract requires - ans -an offer and acceptance of the contract terms
When selling a long term care insurance rider to an applicant, a life agent must
take into consideration all of these factors. EXCEPT - ans -Attending physician's
statement
correct answer- ability to pay, needs of the client, goals of the client
What is the proper order of initial life insurance premiums, from lowest to highest
? - ans -Modified premium, ordinary life, single premium
What does the insurance term "indemnity " refer to? - ans -"Make whole"
Contracts of indemnity attempt to return the
insured to their original financial position, or "made whole".
The probability of death, listed by year, is demonstrated in - ans -"Mortality
tables".
Mortality tables give a measure of the number of deaths in a given population
over a certain period of time.
INSURANCE FINAL EXAM ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS | ALREADY
GRADED A+
Which of the following statements correctly describes a contract of indemnity ? -
ans -One party is restored to the same financial position the part was in before
the loss occurred
Under a noncancellable health insurance policy, an insurer can - ans -Cancel the
policy for nonpayment of premium
What does ESOP stand for? - ans -Employee Stock Ownership Plan
What does the term "illustration" mean when used in the phrase "life insurance
policy illustration" , according to the California Insurance Code - ans -Presentation
of policy features that includes non-guaranteed elements
Life insurance creates an immediate estate. This phrase means - ans -when the
insured dies, a death benefit is paid; Life insurance creates an immediate estate
by paying a death benefit whenever the insured dies.
When handling premiums for an insured, an agent is acting in which capacity? -
ans –Fiduciary
An agent acting as an insurance agent, broker, solicitor, life agent, or bail agent
acts in fiduciary capacity when handling premiums or return premiums
Health insurance policies typically contain a provision stating that insureds and
their insurer will share covered losses in an agreed proportion. Which provision
does this refer to? - ans -Coinsurance is a sharing of expenses by the insured and
the insurer. Once the insured satisfies the deductible, the insurance company
pays a high percentage of the additional expenses (usually 75% or 80%) and the
insured pays the remainder.
Kimberly is an employee on leave under the Family and Medical Leave Act
(FMLA). What will happen to her group health coverage? - ans -She continues to
, be enrolled during the leave; FMLA requires the same group health insurance
benefits that would exist if the employee were not on leave.
Which of the following is NOT true regarding a family policy that covers children?
- ans -Conversion of child's coverage to permanent insurance requires evidence of
insurability
Which of the following describes a contributory group insurance plan? - ans -Part
of the premium is paid by the employee
What is a common reason people purchase an annuity? - ans -To protect against
the risk of outliving their financial resources
of the After the annual deductible is met, Medicare Part B will pay remaining
approved charges. - ans -80%
A contract requires - ans -an offer and acceptance of the contract terms
When selling a long term care insurance rider to an applicant, a life agent must
take into consideration all of these factors. EXCEPT - ans -Attending physician's
statement
correct answer- ability to pay, needs of the client, goals of the client
What is the proper order of initial life insurance premiums, from lowest to highest
? - ans -Modified premium, ordinary life, single premium
What does the insurance term "indemnity " refer to? - ans -"Make whole"
Contracts of indemnity attempt to return the
insured to their original financial position, or "made whole".
The probability of death, listed by year, is demonstrated in - ans -"Mortality
tables".
Mortality tables give a measure of the number of deaths in a given population
over a certain period of time.
