Download Final Exam - California Life and Health 148 complete solutions latest 2025 and more Exams Public Health in PDF only on Docsity!
148 complete solutions latest 2025
Final Exam - California Life and Health
148 complete solutions latest 2025
Employer-provided group term life insurance is exempt from income taxation up to - ANSWER $50,
Medicare Part B has an initial enrollment period. How many months after an individual's 65th birthday month does this enrollment period end? - ANSWER 3 months
Which statement is true regarding policy dividends? - ANSWER A dividend option is selected by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to? - ANSWER Make whole
What is a common reason people purchase an annuity? - ANSWER To protect against the risk of outliving their financial resources
The importance of a representation is demonstrated in what rule? - ANSWER Materiality of concealment
Who does a life settlement broker represent? - ANSWER Individual wanting to sell their life policy to a third party
Who is financially liable for the payment of covered claims in a fully insured group health plan? - ANSWER Insurer
The Human Life Value concept is based on - ANSWER income
Business Overhead Expense Insurance pays for - ANSWER business expenses when a business owner becomes disabled
148 complete solutions latest 2025
At what point does a self-insured group qualify for stop-loss coverage? - ANSWER When claims exceed a specified limit in a set period of time
What percentage of eligible employees must participate in a noncontributory group health plan before it can be put in effect? - ANSWER 100%
A life insurance policy where the insured can choose where the cash value can be invested is called - ANSWER variable life
Which of these statements correctly describes risk? - ANSWER Pure and speculative risks are both insurable
The elimination period in a disability income policy serves the same purpose as a(n) ______ in a medical expense policy. - ANSWER deductible
What is required after a life agent sells an insurance policy to an applicant without being appointed by the insurer? - ANSWER Notice of appointment must be submitted to the Commissioner
Retirement plans are prevented from favoring highly compensated e mployees under which government regulation? - ANSWER Nondiscrimination
ESOPs are typically invested in - ANSWER employer stock
The reason for social insurance is to - ANSWER protect certain vulnerable segments of the population
Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? - ANSWER 60 payments
he free-look period for life insurance policyowners age 60 or older is - ANSWER 30 days
148 complete solutions latest 2025
What is an "insurance broker" according to California Insurance Code? - ANSWER A person authorized to assist a broker or agent in transacting insurance.
A participating company is also referred to as which type of insurer? - ANSWER Mutual insurer
Which of the following is NOT considered to be an act of insurance solicitation? - ANSWER Publishing a magazine where one of the advertisers is an insurer
Restoring an insured to the same condition as before a loss is an example of the principle of - ANSWER Indemnity
All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious name EXCEPT - ANSWER The name is the licensee's actual name
A life insurance policy that pays the face amount if the insured survives to a specified period of time is called - ANSWER endowment insurance
Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event? - ANSWER Insurance policy
Which of the following is a situation where there is a possibility of either a loss or a gain? - ANSWER Speculative risk
An agent's attempt to stop the replacement of an existing life insurance policy is known as - ANSWER conservation
Who would be most likely to submit a Medicare Part A claim? - ANSWER Hospital
In California, an insurer organized under the state laws of Oregon is called a(n) - ANSWER foreign insurer
148 complete solutions latest 2025
Under a health insurance policy, the provision that states the kind of benefits provided and the circumstances under which they will be paid is called the? - ANSWER insuring clause
What distinguishes a deferred annuity from an immediate annuity? - ANSWER The time at which benefit payments start
The elimination period in a disability income policy serves the same purpose as - ANSWER a deductible
Which of the following is NOT a common life insurance policy rider? - ANSWER extended term
When an accidental death benefit is added to a whole life policy, how does this affect the policy's cash value? - ANSWER Policy's cash value is not affected
An insured is protected from the expense of a catastrophic illness by which of the following health insurance provisions? - ANSWER Stop-loss
A hazard can be best described as - ANSWER a condition that may increase the likelihood of a loss occuring
Which of the following is NOT a true description of non-medical life insurance? - ANSWER Applicants are not required to answer medical questions on the application
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 - ANSWER Joint life policy
What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code? - ANSWER Presentation of policy features that includes non- guaranteed elements
What type of license is required for an individual who charges a fee to review an insured's existing life insurance policy? - ANSWER Life and disability analyst
148 complete solutions latest 2025
Coverage for care received from a network provider pays more than care received from a non-network provider in what type of health plan? - ANSWER Preferred Provider Organization (PPO)
An eligible individual who would like to obtain group health insurance without providing evidence of insurability must - ANSWER enroll within a specified eligibility period
Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's - ANSWER Implied authority
An insurer enters into a contract with a third party to insure itself against losses from insurance policies it issues. What is this agreement called? - ANSWER Reinsurance
What are residual disability income insurance payments based on? - ANSWER The amount of the insured's income is reduced by the disability
Medicare Part A covers what type of care? - ANSWER Skilled nursing facility care
Jim is the insured on a health insurance policy and holds two jobs. If "occupation" is used to classify the risk, the insurer will most likely classify Jim according to the occupation that - ANSWER is most hazardous
In a modified endowment contract, the penalty tax imposed on premature withdrawals is - ANSWER 10%
Life insurance surplus must be distributed to policyowners at what frequency? - ANSWER Annually
Which of the following is an example of a third-party administrator? - ANSWER Outside organization that processes claims for an employer's self-funded group plan
148 complete solutions latest 2025
Bruce is involved in an accident and becomes totally and permanently disabled. His insurance policy continues in force without payment of further premiums. Which policy provision is responsib le for this?
- ANSWER Waiver of premium provision
A unilateral contract is one in which - ANSWER only one party (the insurer) makes any kind of legally enforceable promise
The problem of overinsurance is addressed in which health insurance provision? - ANSWER Coordination of benefits
What prevents a life insurance policy from being rescinded by the insurer after being in force for two years? - ANSWER Incontestability clause
Which of the following is NOT included under long-term care insurance? - ANSWER Hospital acute care
Which of the following could lower the premium of a proposed disability income policy? - ANSWER Increase in the elimination period
The misstatement of age provision in a health policy states that if an insured gives the wrong age at the time of application, what action can the insurance company take? - ANSWER Benefits can be adjusted
Which of the following is NOT a risk classification that an underwriter would use? - ANSWER Dividend risk
Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of? - ANSWER Theft
An insurer that has been found using higher rates based on race, religion, or ethnicity is said to be engaging in - ANSWER unfair discrimination
148 complete solutions latest 2025
What is the price of insurance for each exposure unit? - ANSWER Rate
Which of the following risk classifications charges the lowest premium? - ANSWER Preferred
According to the California Insurance Code, what is the maximum penalty per violation for anyone who unwillfully commits an unfair method of competition? - ANSWER $5,
Jim is applying to become an insurance agent and has a past misdemeanor conviction that was later expunged due to California Penal Code 1203.4. Which of the following statements is correct? - ANSWER Jim must still disclose the conviction on his insurance license application
Which of the following are two examples of activities of daily living (ADL's) used in qualifying for long - term care benefits? - ANSWER Eating and dressing
Which of the following is NOT typically covered under vision care insurance? - ANSWER Eye surgery
The "blackout period" affects whose benefits? - ANSWER Surviving spouse
The insurer has the option of terminating a health insurance policy on a date stated in the contract. What type of policy is this? - ANSWER Optionally renewable
A spendthrift clause in a life insurance policy - ANSWER restricts the ability of the beneficiary to assign benefits
Which of the following plans will cover medical costs that Medicare doesn't cover? - ANSWER Medicare supplement
Periodic increases in policy benefits are allowed in which long-term care policy provision? - ANSWER Inflation protection
148 complete solutions latest 2025
Coverage is limited for vision and dental insurance in all of the following ways, EXCEPT - ANSWER Specific dollar amount for examinations
How is the cost of employer-provided group life insurance with coverage amounts above $50, treated for tax purposes? - ANSWER Taxable income to the employee
Which statement is CORRECT when describing a contract of adhesion? - ANSWER Contract may be accepted or rejected by the insured
Which word implies permissiveness according to the California Insurance Code? - ANSWER May
What does the term coinsurance refer to? - ANSWER After the deductible is satisfied, the percentage paid by the insured for the remaining covered expenses
Which of the following is any situation that presents the possibility of a loss? - ANSWER Loss exposure
The conditions, times, and circumstances under which an insured is NOT covered by a health policy are called? - ANSWER exclusions
Medical expense policies will typically cover which of the following? - ANSWER Injuries caused by accidents
Any changes in background information that occur after a producer application has been submitted or a license has been issued MUST be reported to the Insurance Commissioner within - ANSWER 30 days
Which of the following would NOT be accomplished with the purchase of an insurance policy? - ANSWER Risk is eliminated
148 complete solutions latest 2025
A worker is entitled to Social Security disability benefits if all of the following are true, EXCEPT for: - ANSWER worker cannot perform his or her current job, but is actively seeking other employment
Which of the following is NOT considered a definition of risk? - ANSWER The cause of a loss
The California Insurance Code allows an individual how many days to cancel a life policy for a full - refund? - ANSWER Between 10 and 30 days
Disabled workers are covered under Workers' Compensation medical expense be nefits for how long? - ANSWER No limit
An annuitant would like to determine the amount of an annuity distribution that is exempt from taxation. What is used to calculate this? - ANSWER Exclusion ratio
Which of these factors do NOT affect the rates of medical insurance? - ANSWER Race
When does a life insurance policy's waiver of premium take effect? - ANSWER Insured becomes totally disabled
Minimum participation standards exist for group health insurance plans in order to - ANSWER prevent adverse selection
Dyan is considered partially disabled by her insurance company. Which of the following BEST describes her situation? - ANSWER She is working part-time and receiving lost income under her long-term disability benefit
Which of the following does a policyowner NOT have a right to change? - ANSWER Dividend schedule
mployee participation in a noncontributory group life plan must be - ANSWER 100%
148 complete solutions latest 2025
A person who asserts a right of recovery under an insurance policy is called - ANSWER claimant
Which of the following pieces of information is NOT gathered during the personal financial planning process? - ANSWER An individual's civic organization memberships
How are Roth IRA's treated for tax purposes? - ANSWER Non-deductible contributions and tax-free distributions
At age 65, which of the following is available at no cost to all individuals? - ANSWER Medicare Part A
According to the California Insurance Code, how is the word "may" interpreted? - ANSWER Permissive
How is a life insurance policy dividend legally defined? - ANSWER A return of excess premium and not taxable
Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance - ANSWER solicitor
Under a disability income insurance policy, which criteria must be met for "bodily injury" to be classified as accidental? - ANSWER The cause may be intentional, but the result must be accidental
Express power given to an agent in an agency agreement is - ANSWER the authority to represent the insurer
Which of the following is a life insurance policy that does NOT require a physical exam? - ANSWER Non- medical
