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California Life, Accident, and Health Licensing 2024/2025 already graded A+
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California Life, Accident, and Health Licensing 2024/2025 already graded A+
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California Life, Accident, and HealthLicensing
Co-insurance - ANSThe policy provision which requires the insurer and the insured to share in
the cost of services rendered
Exclusion ratio - ANSThe formula which is used by the IRS to determine how much is taxable to
an annuitant during the pay out period.
Occupational policy - ANSWhen a disability income policy provides coverage for injuries which
occur on and off the job
Most disability income policies are non occupational, meaning - ANSThey only cover the
insured if they become disabled while away from work.
Self employed individuals doesn't have - ANSworkers compensation coverage. They need
coverage both on and off the job (occupational).
A life agent who offers for sale or sells any financial product on the basis of its treatment under
the MediCal Program must provide - ANSThe Notice Regarding Standards for Medi-Cal
Eligibility. Must be signed by applicant.
A widow or widower without any children is eligible for social security survivors benefits at age -
ANS60
A surviving spouse is eligible for social security survivor's benefits at age - ANS60
An authorized, or admitted carrier (insurer) - ANSone which is under compliance with the
California Insurance Code (CIC) and can operate legally in California
Which type of life insurance utilizes the "level premium concept" - ANSTraditional whole life
Disability income policy proceeds must be paid out at least - ANSmonthly
What life insurance rider will pay a monthly benefit to the insured when they become disabled -
ANSThe disability income rider. It is a type of health (disability) insurance
Dread (Specified) Disease policies, such as cancer insurance, covers - ANSTreatment for one
specific disease
,The benefit paid out for a residual disability in a disability income policy is based upon - ANSa
loss of a minimum of 20% of income
Agent may be either - ANSCaptive (Exclusive) or independent
Captive agents - ANSagents who agree by contract to represent only one insurer in the sale of
insurance
Independent agents - ANSusually self-employed and often represent several insurance
companies
Under state law, agents must have at least - ANSone appointment in order to keep their license
active
Agents are prohibited from engaging in any of the following activities - ANS1. using a business
name that implies that they are an insurer
2. advertising on behalf of a non-admitted insurer
3. offering free insurance as an inducement to purchase or sale
Under a group insurance plan a certificate of insurance is issued to - ANSthe participants,
usually employees. The policy owner, usually employer, gets the master policy
Domestic insurer - ANSone that domiciled (organized) in this state
Foreign insurer - ANSone that organized in another state
Alien insurer - ANSone that organized in another country.
All insurers need to obtain - ANSa Certificate of Authority from the Commissioner in order to be
admitted to transact insurance in this state, except for Surplus Line insurers
Indemnity plans allow - ANSthe insured to select any provider they wish.
Traditional indemnity plan - ANSthe insured generally is supposed to submit their claims directly
to an insurer, in reality an "assignment of benefits" form is utilized and the medical care provider
submits the claim on the insured's behalf
Participants in a managed care indemnity plan - ANSselect a provider and submits claims to the
insurer
When an insurer wants to have the applicant complete an HIV test, they must do - ANS1) Have
the applicant sign a consent form
2) Find out which doctor they should provide the results to
3) Provide information on where they can receive counseling
, When an insurer wants to have the applicant complete an HIV test, they do not need to - ANSgo
over a privacy notice
75% of all eligible employees must enroll in a contributory plan. All eligible employees are
required to enroll in a - ANSnon contributory plan
Loss exposure - ANSa situation which presents the possibility of loss
Deductibles, co-payments and co-insurance are all features of health insurance which are called
- ANScost sharing
Life insurance death benefit policy proceeds paid from an insurer are - ANSFederal tax free
when paid to a beneficiary
When an insured with a cash value elects to take the reduced paid-up non-forfeiture option, the
cash value will be - ANSused to buy him a new hole life policy with a reduced face amount that
is paid-up for life
The traditional net cost method of evaluating the true cost of insurance does not take into
consideration - ANSthe time value of money
The primary difference between using the interest adjusted net cost method and the net cost
method when evaluating the true cost of a life insurance policy - ANStime value of money
Dividends may never be - ANSguaranteed
All are true about "stock" insurance companies - ANS1) Dividends are taxable
2) The stockholders own the company
3) They may pay dividends to share holders out of divisible surplus
4) they issue non-participating policies
Under the Family and Medical Leave Act, how many weeks of leave must be provided per year
for a qualifying person - ANS12 weeks
ESOP invest in - ANSStock of the employer
Riders may be added to a policy at issue for an additional premium charge. Examples of riders -
ANS1) accidental Death benefit
2) Cost of living
3) Waiver of Premium
as used in the CIC the word "shall" is mandatory and the word "may" is - ANSpermissive
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