California Life, Accident, and Health
Insurance Final Exam: Questions With
Complete Solutions
What is an insurance solicitor authorized to do? - Correct
Answers ✅Help an agent or broker sell insurance
According to the California Insurance Code, what is
"insurance"? - Correct Answers ✅A contract
What does a Hospital Confinement indemnity policy pay for? -
Correct Answers ✅Pay a specified daily amount while the
insured is confined to a hospital
According to the California Insurance Code, how is the word
"may" interpreted? - Correct Answers ✅Permissive
Which statement is CORRECT when describing a contract of
adhesion? - Correct Answers ✅Contract may be accepted
or rejected by the insured.
Retirement plans are prevented from favoring highly
compensated employees under which government regulation
- Correct Answers ✅Nondiscrimination
When calculating life insurance premium rates, which
component would an agent's commission fall under? -
Correct Answers ✅Insurer's expenses
,California Life, Accident, and Health
Insurance Final Exam: Questions With
Complete Solutions
All of the following circumstances must be met for loss
retention to be an effective risk management technique,
EXCEPT - Correct Answers ✅Probability of loss is unknown
An insurance policy written after 1988 that fails to pass the
seven-pay test is known as - Correct Answers ✅a modified
endowment contract
All of these are reasons the Commissioner may disapprove a
licensee's request to use a fictitious name EXCEPT - Correct
Answers ✅The name is the licensee's actual name
Which of the following services are health maintenance
organizations (HMO's) NOT required to provide? - Correct
Answers ✅Prescription drugs
Which of the following is NOT true regarding a family policy
that covers children? - Correct Answers ✅Conversion 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? -
Correct Answers ✅Universal life
, California Life, Accident, and Health
Insurance Final Exam: Questions With
Complete Solutions
What determines the Social Security normal retirement age? -
Correct Answers ✅Year in which worker was born
When an insurance company requests an attending
physician's report, the request must be accompanied by a -
Correct Answers ✅copy of the signed authorization
A savings vehicle designed to first accumulate funds and
then systematically liquidates the funds is called a - Correct
Answers ✅deferred annuity
what does ESOP stand for? - Correct Answers ✅Employee
Stock Ownership Plan
Which Social Security status does a worker with 6 quarters of
coverage during the last 13-quarter period have? - Correct
Answers ✅Currently insured
When a claimant has coverage under more than one health
plan, which group medical plan provision applies? - Correct
Answers ✅Coordination of benefits
How is an agent's first-year commission calculated for a
replacement long-term policy? - Correct Answers ✅Based
Insurance Final Exam: Questions With
Complete Solutions
What is an insurance solicitor authorized to do? - Correct
Answers ✅Help an agent or broker sell insurance
According to the California Insurance Code, what is
"insurance"? - Correct Answers ✅A contract
What does a Hospital Confinement indemnity policy pay for? -
Correct Answers ✅Pay a specified daily amount while the
insured is confined to a hospital
According to the California Insurance Code, how is the word
"may" interpreted? - Correct Answers ✅Permissive
Which statement is CORRECT when describing a contract of
adhesion? - Correct Answers ✅Contract may be accepted
or rejected by the insured.
Retirement plans are prevented from favoring highly
compensated employees under which government regulation
- Correct Answers ✅Nondiscrimination
When calculating life insurance premium rates, which
component would an agent's commission fall under? -
Correct Answers ✅Insurer's expenses
,California Life, Accident, and Health
Insurance Final Exam: Questions With
Complete Solutions
All of the following circumstances must be met for loss
retention to be an effective risk management technique,
EXCEPT - Correct Answers ✅Probability of loss is unknown
An insurance policy written after 1988 that fails to pass the
seven-pay test is known as - Correct Answers ✅a modified
endowment contract
All of these are reasons the Commissioner may disapprove a
licensee's request to use a fictitious name EXCEPT - Correct
Answers ✅The name is the licensee's actual name
Which of the following services are health maintenance
organizations (HMO's) NOT required to provide? - Correct
Answers ✅Prescription drugs
Which of the following is NOT true regarding a family policy
that covers children? - Correct Answers ✅Conversion 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? -
Correct Answers ✅Universal life
, California Life, Accident, and Health
Insurance Final Exam: Questions With
Complete Solutions
What determines the Social Security normal retirement age? -
Correct Answers ✅Year in which worker was born
When an insurance company requests an attending
physician's report, the request must be accompanied by a -
Correct Answers ✅copy of the signed authorization
A savings vehicle designed to first accumulate funds and
then systematically liquidates the funds is called a - Correct
Answers ✅deferred annuity
what does ESOP stand for? - Correct Answers ✅Employee
Stock Ownership Plan
Which Social Security status does a worker with 6 quarters of
coverage during the last 13-quarter period have? - Correct
Answers ✅Currently insured
When a claimant has coverage under more than one health
plan, which group medical plan provision applies? - Correct
Answers ✅Coordination of benefits
How is an agent's first-year commission calculated for a
replacement long-term policy? - Correct Answers ✅Based
