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Final Exam-California Life, Accident, and Health Insurance (complete actual exam update)
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Final Exam-California Life, Accident, and Health Insurance(complete 2024-2025 actual exam update)
What is considered the most common type of specified disease insurance policy - Ans: Cancer
Minimum participation standards exist for a group health insurance plan in order to- Ans - Ans: Prevent Adverse Selectio
How does underwriting differ between group life and individual life insurance? - Ans: Medical questions must be
answered on individual life insurance
When handling premiums for an insured an agent is acting in which capacity? - Ans: Fiduciary
What is the term used to describe the frequency and severity of certain illnesses and accidents? - Ans: Morbidity
Which of the following describes the statement "The more times an event is repeated, the more predictable the outcome
becomes"?- Ans - Ans: Law of large numbers
In order to be considered "currently insured" under Social Security, an individual must be credited with? - Ans: 6 quarters
of coverage during the last 13-quarter period
How long must a policy be in force before an insurer is prohibited from denying claims based on misstatements made on
the health policy application? - Ans: 2 Years
Which of the following does the California Insurance Code NOT require an insurance policy to specify? - Ans: Insurer's
financial rating
Which of the following is NOT required in the content of a policy? - Ans: Probability of loss
Which of the following pieces of information is NOT gathered during the personal financial planning process? - Ans: An
individual's civic organization member- ships
Which of the following is not considered to be an unfair claims settlement practice? - Ans: Advising a claimant to hire an
attorney 13.When an applicant applies for insurance, the process by which the insurer determines whether to issue a policy
is called? - Ans: Underwriting
How is a Medicare claim submitted? - Ans: Expenses are submitted to Medicare by the health provider
According to the PPACA, the medical enrollment tier that has 80% actuarial value is called: - Ans: Gold
Employer contributions to qualified plans are - Ans: Tax-deductible by the employer
Employee participation in a noncontributory group life plan must be - Ans: 100%
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
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, Which of the following is NOT a characteristic of a preferred provider organization (PPO)? - Ans: Primary physicians serve
as gatekeepers
John owns an insurance policy that gives him the right to share in the insurer's surplus. What kind of policy is this? - Ans:
Participating
A life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of? - Ans: Theft
If an insured dies because of an accident, which type of life insurance rider will provide additional coverage? - Ans:
Accidental death rider
Tom is shopping for a policy that covers two people and would pay the face amount ONLY when the first person dies. The
type of life policy he is looking for is called a - Ans: Joint life policy
Which of these statements is NOT true concerning recurrent disabilities? - Ans: The insurer continues coverage after a ne
elimination period
An insurer owned by its policyholders is called a? - Ans: Mutual Insurer
Medicare Part B Covers? - Ans: Physician Expenses
Which of these is NOT a relevant factor in the health insurance principle of morbidity? - Ans: Intelligence
Which of these factors do not affect the rates of medical insurance? - Ans: Race
Which of the following types of life insurance is normally associated with a mortgage loan? - Ans: Decreasing term
Which of the following is not included in comprehensive major medical plans? - Ans: First-Dollar Coverage
Moral hazard is described as the - Ans: Increased chance of a loss because of an insured's dishonest tendencies
Which principle is accurately described with the statement "Insured’s are entitled to recover an amount NOT greater than
the amount of their loss"? - Ans: - Indemnity
What time period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due
date? - Ans: Grace Period
How long must life agents keep their transaction records? - Ans: 5 Years
What does the insurance term indemnity refer to? - Ans: Make whole
Individual health insurance coverage typically excludes injuries at an employee's workplace because? - Ans: It's covered b
the state Worker's Compensation program
Which of the following refers to a condition that may increase the chance of a loss? - Ans: Hazard
Life insurance surplus must be distributed to policy-owners at what frequency? - Ans: Annually
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