California Life, Accident and Health
Cram Course Exam(28
Which of the following statements can always be made by an agent during a tax qualified Long
Term Care insurance policy presentation: - ANSWERSThe plan may receive federal and state tax
advantages
As used in the California Insurance Code the use of the word "may" is: - ANSWERSPermissive
Which of the following statements can always be made by an agent during a tax qualified Long
Term Care insurance policy presentation: - ANSWERSThe plan may receive federal and state tax
advantages
When an insurer wants to have the applicant complete an HIV test, they must do all of the
following except: - ANSWERSGo over a privacy notice
If a whole life policy is being kept in-force by the Waiver of Premium rider: - ANSWERSThe cash
value will continue to increase as if the insured paid the premium
The enactment of the Pregnancy Discrimination Act had which of the following effects on group
health insurance: - ANSWERSPregnancy of an employee must be treated in the same manner as
any other health condition
Engaging in which of the following avocations will not cause a life insurer to reject or rate-up an
applicant: - ANSWERSRoller blading
The provision that applies in group insurance when an insured has coverage under multiple
plans at one time is known as: - ANSWERSCoordination of benefits
,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 is the: -
ANSWERSProbationary period
Variable annuity premiums may be invested in all of the following EXCEPT: - ANSWERSAgent's
interest bearing trust account
Before obtaining an HIV test the insurer must do which of the following: - ANSWERSHave the
applicant sign a consent form
HMOs are required to cover all of the following except: - ANSWERSPrescription drugs
At what point in time may a representation be altered or withdrawn: - ANSWERSPrior to the
insurance going into effect only
If a corporation uses life insurance to buy shares under a buy-sell agreement, which of the
following is true regarding taxation: - ANSWERSIt is treated as a loss or gain if they are common
stock
All of the following must be disclosed in Internet advertising EXCEPT an agent's: -
ANSWERSPhone number
When the pricing principle is defined in a disability policy by the financial loss on a certain group
of people occurring over a certain period of time it is known as: - ANSWERSFrequency
Dread (Specified) Disease policies covers which of the following: - ANSWERSTreatment for one
specific disease
, Which of the following criteria must be used to classify an injury as accidental under a disability
income policy? - ANSWERSThe cause of the injury may be intentional, but the result of the
injury must be accidental
Which of the following terms used in the California Insurance Code is mandatory: -
ANSWERSShall
An insurance company entitled to transact business by complying with the California insurance
Code (CIC) is known as: - ANSWERSAn admitted carrier
What type of policy has both a Capital and Principal sum: - ANSWERSAccidental Death and
Dismemberment (AD&D) insurance
What rider allows the insured to purchase additional amounts of insurance at specific intervals
without having to prove insurability - ANSWERSGuaranteed insurability
If the owner of an annuity has to multiply the value of an accumulation unit held in the separate
account by the number of accumulation units owned, the customer has a: - ANSWERSVariable
annuity
In a disability income policy, the commonly used 30 day, 60 day, 90 day and 180 day terminology
refers to the: - ANSWERSNumber of days which no benefits will be paid
In a Medicare claim, what is the first step in the process: - ANSWERSThe individual's provider
files the claim with a local Medicare carrier
When the parties to a contract depend upon the statements made by one another, the contract
is based upon the Doctrine of: - ANSWERSUtmost Good Faith
Cram Course Exam(28
Which of the following statements can always be made by an agent during a tax qualified Long
Term Care insurance policy presentation: - ANSWERSThe plan may receive federal and state tax
advantages
As used in the California Insurance Code the use of the word "may" is: - ANSWERSPermissive
Which of the following statements can always be made by an agent during a tax qualified Long
Term Care insurance policy presentation: - ANSWERSThe plan may receive federal and state tax
advantages
When an insurer wants to have the applicant complete an HIV test, they must do all of the
following except: - ANSWERSGo over a privacy notice
If a whole life policy is being kept in-force by the Waiver of Premium rider: - ANSWERSThe cash
value will continue to increase as if the insured paid the premium
The enactment of the Pregnancy Discrimination Act had which of the following effects on group
health insurance: - ANSWERSPregnancy of an employee must be treated in the same manner as
any other health condition
Engaging in which of the following avocations will not cause a life insurer to reject or rate-up an
applicant: - ANSWERSRoller blading
The provision that applies in group insurance when an insured has coverage under multiple
plans at one time is known as: - ANSWERSCoordination of benefits
,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 is the: -
ANSWERSProbationary period
Variable annuity premiums may be invested in all of the following EXCEPT: - ANSWERSAgent's
interest bearing trust account
Before obtaining an HIV test the insurer must do which of the following: - ANSWERSHave the
applicant sign a consent form
HMOs are required to cover all of the following except: - ANSWERSPrescription drugs
At what point in time may a representation be altered or withdrawn: - ANSWERSPrior to the
insurance going into effect only
If a corporation uses life insurance to buy shares under a buy-sell agreement, which of the
following is true regarding taxation: - ANSWERSIt is treated as a loss or gain if they are common
stock
All of the following must be disclosed in Internet advertising EXCEPT an agent's: -
ANSWERSPhone number
When the pricing principle is defined in a disability policy by the financial loss on a certain group
of people occurring over a certain period of time it is known as: - ANSWERSFrequency
Dread (Specified) Disease policies covers which of the following: - ANSWERSTreatment for one
specific disease
, Which of the following criteria must be used to classify an injury as accidental under a disability
income policy? - ANSWERSThe cause of the injury may be intentional, but the result of the
injury must be accidental
Which of the following terms used in the California Insurance Code is mandatory: -
ANSWERSShall
An insurance company entitled to transact business by complying with the California insurance
Code (CIC) is known as: - ANSWERSAn admitted carrier
What type of policy has both a Capital and Principal sum: - ANSWERSAccidental Death and
Dismemberment (AD&D) insurance
What rider allows the insured to purchase additional amounts of insurance at specific intervals
without having to prove insurability - ANSWERSGuaranteed insurability
If the owner of an annuity has to multiply the value of an accumulation unit held in the separate
account by the number of accumulation units owned, the customer has a: - ANSWERSVariable
annuity
In a disability income policy, the commonly used 30 day, 60 day, 90 day and 180 day terminology
refers to the: - ANSWERSNumber of days which no benefits will be paid
In a Medicare claim, what is the first step in the process: - ANSWERSThe individual's provider
files the claim with a local Medicare carrier
When the parties to a contract depend upon the statements made by one another, the contract
is based upon the Doctrine of: - ANSWERSUtmost Good Faith
