Fix exam

Harry has a disability that prevents him from doing certain kinds of work. Because of his qualifications, he responds to a recruitment ad and is hired for the position. What federal act allows him to apply for the job? a) Equal Opportunity Employment Act b) Americans with Disabilities Act c) There is no federal law; he can apply for any job. d) Social Security Act

Americans with Disabilities Act

All of the following are personal uses of life insurance EXCEPT a) Estate creation. b) Cash accumulation. c) Buy-sell agreement. d) Survivor protection.

Buy-sell agreement

Which of the following is NOT covered under Basic Hospital Expense Coverage? a) Lab charges b) X-ray charges c) Surgeons' fees d) Hospital room and board

C- surgeons' fees

The act of revoking or terminating an insurance policy is called a) Cancellation. b) Forfeiture. c) Nonrenewal. d) Lapse.

Cancelation

Creditable coverage includes a) Credit-only insurance b) Coverage only for accident or disability income insurance. c) Coverage under a state health benefits risk pool. d) Workers compensation.

Coverage under a state health benefits risk pool.

Which of the following is correct regarding credit life insurance? a) It is purchased on an installment basis. b) It insures the life of a creditor. c) It has a maximum term of 20 years. d) It insures the life of a debtor.

D- it insures the life of a debtor

Who determines the eligibility and contribution limits in a HRA? a) The employer determines eligibility and the insurer determines contribution limits b) The insurer determines eligibility and the employer determines contribution limits c) The insurer determines both d) The employer determines both

D- the employer determines both

What is creditable coverage? a) Health coverage that applies to a waiting period for pre-existing conditions b) Former health coverage that shares responsibility for claims c) Former health coverage that gives an individual rights when applying for new coverage d) Any overlap between an old health insurance policy and a new one

Former health coverage that gives an individual rights when applying for new coverage

What term refers to a listing of approved drugs covered by a Medicare prescription drug plan? a) Authorized listing b) Supplemental benefits c) Formulary d) Tiers

Formulary

Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity? a) Guaranteed Minimum Income b) Guaranteed Minimum Accumulation c) Guaranteed Lifetime Earning d) Guaranteed Lifetime Withdrawal

Guarantee lifetime withdrawal

When agents are acting within the scope of their contract, their actions will be assumed to be the acts of the a) Department of Insurance. b) Insured. c) Insurer. d) Policyowner.

Insurer

Which of the following is true of a PPO? a) Claim forms are completed by members on each claim. b) No copayment fees are involved. c) Its goal is to channel patients to providers that discount services. d) The most common type of PPO is the staff model.

Its goal is to channel patients to providers that discount services.

What do living benefit riders do? a) Provide a way for beneficiaries to receive money from the policy before the death benefit is paid b)Pay part of the policy death benefit to insureds in order to help fund long-term care or nursing home care c) Allow the insured to obtain an early death benefit to pay medical costs, in the event that the insured is expected to die within one year d) Allow the insured to take out policy loans for the purpose of funding major life expenses.

Pay part of the policy death benefit to insureds in order to help fund long-term care or nursing home care

Which of the following is NOT allowed under the no-loss/no-gain provision? a) Pre-existing Condition exclusion b) Insurance With Other Insurers c) Payment of Claims d) Free Look/Right of Rescission

Pre-existing Condition exclusion

What is the main purpose of Medi-Cal? a) To insure children under the age of 21 b) To provide coverage for medical services for individuals with limited income c) To insure disabled individuals d) To provide health coverage for elderly state residents

b) To provide coverage for medical services for individuals with limited income

Which of the following statements concerning a Medical Savings Account (MSA) is/are correct? a) Amounts deposited for the employee are income tax deductible. b) During the year, the employee may deduct from the MSA to cover out of pocket expenses such as deductibles and coinsurance. c) If there is a balance left in the MSA, the balance can be carried over to future years. d) All of the statements above are true.

All of the statements above are true

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost? a) Reasonable expectations b) Indemnity c) Stop-loss d) Consideration

B- indemnity

Peril is most easily defined as a) Something that increases the chance of loss. b) The cause of loss insured against. c) An unhealthy attitude about safety. d) The chance of a loss occurring.

B- the cause of loss insured against

Which of the following is true regarding elimination periods and the cost of coverage? a) Elimination periods have no effect on the cost of coverage. b) The longer the elimination period, the lower the cost of coverage c) The shorter the elimination period, the lower the cost of coverage d) The longer the elimination period, the higher the cost of coverage

The longer the elimination period, the lower the cost of coverage

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT a) Most term policies contain a convertibility option. b) Upon conversion, the premium for the permanent policy will be based upon attained age. c) Upon conversion, the death benefit of the permanent policy will be reduced by 50%. d) Evidence of insurability is not required.

Upon conversion, the death benefit of the permanent policy will be reduced by 50%.

Manny has been injured in an accident. Although she is still receiving benefits from her policy, she does not have to pay premiums. Her policy includes a) Waiver of Benefit rider. b) Waiver of Premium rider. c) Return of Premium rider. d) Benefit of Payment clause.

Waiver of premium rider

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy? a) The employer is the owner and the key employee is the beneficiary. b) The key employee is the owner and beneficiary. c) The key employee is the owner and the employer is the beneficiary. d) The employer is the owner and beneficiary.

b) The key employee is the owner and beneficiary.

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT a) The loss produced by the risk must be definite. b) The loss may be intentional. c) The loss must not be catastrophic d) There must be a sufficient number of homogeneous exposure units to make losses reasonably predictable.

b) The loss may be intentional.

In forming an insurance contract, when does acceptance usually occur? a) When an insurer delivers the policy b) When an insurer receives an application c) When an insured submits an application d) When an insurer's underwriter approves coverage

d) When an insurer's underwriter approves coverage