California Life, Accident, and Health
Insurance Final20
What is an insurance solicitor authorized to do? - ANSWERSHelp an agent or broker sell
insurance
According to the California Insurance Code, what is "insurance"? - ANSWERSA contract
What does a Hospital Confinement indemnity policy pay for? - ANSWERSPay a specified daily
amount while the insured is confined to a hospital
According to the California Insurance Code, how is the word "may" interpreted? -
ANSWERSPermissive
Which statement is CORRECT when describing a contract of adhesion? - ANSWERSContract may
be accepted or rejected by the insured.
Retirement plans are prevented from favoring highly compensated employees under which
government regulation - ANSWERSNondiscrimination
When calculating life insurance premium rates, which component would an agent's commission
fall under? - ANSWERSInsurer's expenses
All of the following circumstances must be met for loss retention to be an effective risk
management technique, EXCEPT - ANSWERSProbability of loss is unknown
,An insurance policy written after 1988 that fails to pass the seven-pay test is known as -
ANSWERSa modified endowment contract
All of these are reasons the Commissioner may disapprove a licensee's request to use a
fictitious name EXCEPT - ANSWERSThe name is the licensee's actual name
Which of the following services are health maintenance organizations (HMO's) NOT required to
provide? - ANSWERSPrescription drugs
Which of the following is NOT true regarding a family policy that covers children? -
ANSWERSConversion of child's coverage to permanent insurance requires evidence of
insurability
Which of the following types of life insurance combines a savings element along with a flexible
premium option? - ANSWERSUniversal life
What determines the Social Security normal retirement age? - ANSWERSYear in which worker
was born
When an insurance company requests an attending physician's report, the request must be
accompanied by a - ANSWERScopy of the signed authorization
A savings vehicle designed to first accumulate funds and then systematically liquidates the funds
is called a - ANSWERSdeferred annuity
what does ESOP stand for? - ANSWERSEmployee Stock Ownership Plan
Which Social Security status does a worker with 6 quarters of coverage during the last 13-
quarter period have? - ANSWERSCurrently insured
, When a claimant has coverage under more than one health plan, which group medical plan
provision applies? - ANSWERSCoordination of benefits
How is an agent's first-year commission calculated for a replacement long-term policy? -
ANSWERSBased on the difference between the new and original policy annual premiums
Jerry is an insured who understated his age on his life insurance application, paying $12 per
$1,000 of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be
calculated? - ANSWERS12/15th of the policy's face amount
What is considered the most common type of specified disease insurance policy? -
ANSWERSCancer
Cancer affects 1 in 2 men and 1 in 3 women and typically involves a lot of out-of-pocket
expenses. Considered most common type of specified disease insurance.
Both the Federal and state governments jointly finance which health insurance entitlement
program? - ANSWERSMedi-Cal
Which of these is NOT a valid policy dividend option? - ANSWERSMonthly income payments
An insurance policy issued in California may be called a comprehensive long-term care
insurance policy if benefits are provided for - ANSWERSInstitutional (nursing facilities) and home
care
According to the PPACA, an adult can be covered by a parent's health care plan until what age? -
ANSWERSAge 26
Insurance Final20
What is an insurance solicitor authorized to do? - ANSWERSHelp an agent or broker sell
insurance
According to the California Insurance Code, what is "insurance"? - ANSWERSA contract
What does a Hospital Confinement indemnity policy pay for? - ANSWERSPay a specified daily
amount while the insured is confined to a hospital
According to the California Insurance Code, how is the word "may" interpreted? -
ANSWERSPermissive
Which statement is CORRECT when describing a contract of adhesion? - ANSWERSContract may
be accepted or rejected by the insured.
Retirement plans are prevented from favoring highly compensated employees under which
government regulation - ANSWERSNondiscrimination
When calculating life insurance premium rates, which component would an agent's commission
fall under? - ANSWERSInsurer's expenses
All of the following circumstances must be met for loss retention to be an effective risk
management technique, EXCEPT - ANSWERSProbability of loss is unknown
,An insurance policy written after 1988 that fails to pass the seven-pay test is known as -
ANSWERSa modified endowment contract
All of these are reasons the Commissioner may disapprove a licensee's request to use a
fictitious name EXCEPT - ANSWERSThe name is the licensee's actual name
Which of the following services are health maintenance organizations (HMO's) NOT required to
provide? - ANSWERSPrescription drugs
Which of the following is NOT true regarding a family policy that covers children? -
ANSWERSConversion of child's coverage to permanent insurance requires evidence of
insurability
Which of the following types of life insurance combines a savings element along with a flexible
premium option? - ANSWERSUniversal life
What determines the Social Security normal retirement age? - ANSWERSYear in which worker
was born
When an insurance company requests an attending physician's report, the request must be
accompanied by a - ANSWERScopy of the signed authorization
A savings vehicle designed to first accumulate funds and then systematically liquidates the funds
is called a - ANSWERSdeferred annuity
what does ESOP stand for? - ANSWERSEmployee Stock Ownership Plan
Which Social Security status does a worker with 6 quarters of coverage during the last 13-
quarter period have? - ANSWERSCurrently insured
, When a claimant has coverage under more than one health plan, which group medical plan
provision applies? - ANSWERSCoordination of benefits
How is an agent's first-year commission calculated for a replacement long-term policy? -
ANSWERSBased on the difference between the new and original policy annual premiums
Jerry is an insured who understated his age on his life insurance application, paying $12 per
$1,000 of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be
calculated? - ANSWERS12/15th of the policy's face amount
What is considered the most common type of specified disease insurance policy? -
ANSWERSCancer
Cancer affects 1 in 2 men and 1 in 3 women and typically involves a lot of out-of-pocket
expenses. Considered most common type of specified disease insurance.
Both the Federal and state governments jointly finance which health insurance entitlement
program? - ANSWERSMedi-Cal
Which of these is NOT a valid policy dividend option? - ANSWERSMonthly income payments
An insurance policy issued in California may be called a comprehensive long-term care
insurance policy if benefits are provided for - ANSWERSInstitutional (nursing facilities) and home
care
According to the PPACA, an adult can be covered by a parent's health care plan until what age? -
ANSWERSAge 26
