Life & Health Cram Course Exam Part 2
A guaranteed renewable disability policy is one where the insurer:
Has the right to change the premiums, but may not change any the policy terms.
Before obtaining an HIV test the insurer must do which of the following:
Have the applicant sign a consent form.
Life agents are prohibited from engaging in any of the following activities EXCEPT:
Having appointments to represent than one insurer.
** Part 'A' of Medicare covers all EXCEPT:
Hospitals
In the case of accidental death, the principal sum in an Accidental death & Death(AD&D) policy will be paid:
In a lump sum
Which of the following best illustrates the Principle of Indemnity:
Insurable Interest
Which of the following is true about Medicare supplement insurance policies:
Insurers may offer plans that contain only the "core' benefits.
All of the following are true regarding the Cost of Living rider on a life insurance policy EXCEPT:
It adjust the face amount, up or down, relative to cost of living changes in the economy.
All of the following are true about "fraud' EXCEPT:
It is defined as the failure to disclose a material fact that a party knows and ought to communicate.
If the cross-purchase transfer is covered under the transfer for value rule, the premiums paid are deductible:
It is treated as a loss or gain if they are common stock.
Which qualifying event will cause COBRA eligibility to terminate:
Job termination for gross misconduct.
Which of the following policies pays a death benefit when the first insured person dies:
Joint Life
Retirement Plan which was designed specifically for a self employed individual is:
KEOGH
A product that will pay out every year for the rest of a person's life:
Life Annuity
A situation which presents the possibility of the loss is know as a:
Loss Exposure
When selling a "qualified" Long Term Care(LTC) policy, agents must give clients a disclosure document stating that premiums:
May be deductible from both state and federal income taxes,
Under the California Insurance Code(CIC), if a person refuses to submit books and records to the commissioner they would be guilty of as:
Misdemeanor
The annual probability of death is shown in which of the following:
Mortality Tables
In regards to participation in Group Health Insurance, which of the following is true:
Non-Contributory, plans must cover all employee.
Items which are shown in a Life Insurance Policy illustration such as Credits, Charges, Premiums and Values which are not determined at issue are known as:
Non-Guaranteed Elements
Each insurer selling individual life/annuity contracts to senior citizens which uses non-guaranteed elements in illustrations must provide a statement to this effect. Which of the following is true regarding this statement above:
Non-guaranteed elements must be in BOLD TYPE.
On fully contributory group disability income policy, the benefits payable to disabled employee are:
Not taxable
Which of the following is not considered proof of loss:
Notice from an adjuster stating they are representing an insured.
In a disability income policy, the commonly used 30 day, 60 day, 90 day and 180 day terminology refers to the:
Number of days which no benefits will be paid.
When a disability income policy coverage for injuries which occur on and off the job it is referred to as a:
Occupational Policy
Which of the following is not a Life insurance rider:
Paid-up Additions
All of the following must be disclosed in Internet advertising EXCEPT an agent's:
Phone Number
Part A of Medicare covers all of the following EXCEPT:
Physicians Services
Upon the death of the insured life insurance creates an immediate estate. What does this mean:
The death benefit will be paid to the beneficiary upon the death of the insured.
All insurance contracts must specify all of the following EXCEPT:
The financial rating of the insurer.
During the waiting (elimination) period:
The insured is nor eligible for benefits.
In order to determine the importance of a representation, which rule is applied:
The materiality of the concealment.
If a person returns a variable invested in mutual funds the free look they will receive a return of what:
The valve of the account on the date of cancellation.
Regarding qualifications for residual disability by an insured which of the following is false:
They must be eligible for Social Security disability benefits.
What is the primary difference between using the interest adjusted new cost method and the net cost method when evaluating the true cost of a life insurance policy:
Time Value of Money.
Deductibles, co-payments and co-insurance all features of health insurance which are referred to as:
Utilization Management
When the parties to a contract depend upon the statements made by one another, the contract is based upon the Doctrine of:
Utmost Good Faith
The minimum number of employees which must be covered in a group life insurance plan in California is :
#2
Industrial life insurance has a face amount of :
$2,000 or less
40 year old client who has been insured on a $50,000 whole life policy for the last 10 years can no longer afford to pay his premium. If the policy has a current cash value of $11,000 and the client to take the reduced paid-up non -forfeiture option, he will nave a new policy for:
$20,000 Whole Life & Paid-Up For Life
** Which of the following is not required to be included in a Life Insurance Policy illustration:**
** A statement that all the benefits shown in the illustration are guaranteed.
**As used in the California Insurance Code the use of the word " Shall " is:**
**Mandatory**
**As used in the California Insurance Code the use of the word " May" is:**
**Permissive**
**In a Medicare claim, what is the first step in the process:**
**The individual's provider files the claim with the local Medicare carrier.**
Sam who is age 30, but claimed to be age 25 on a Life insurance application is given a premium rate of $10/$1,000 instead of the correct 12/1,000. The insurer will adjust the death benefit in the following manner.
10/12 x Face Amount
Under the Family and Medical Leave Act many weeks of leave must be provided per year for a qualifying reason:
12 weeks
After 5 years , a participant in a pension plan that vest 100% after 7 years is ________% vested:
60%
In which of the following circumstances is a partial disability present:
A employee is receiving lost income under a long term disability benefit while he/she is working part time.
The benefit paid out for a residual disability in disability income policy s based upon:
A loss of a minimum of 20% of income.
Which of the following is false in regards to a recurrent disability:
A new waiting (elimination) period will apply.
Which of the following cannot be covered as a dependent on a group life insurance policy in California:
A resident grandchild under age 21.
Renewable Term Insurance would be best described by which of the following statements:
A rising premium and an increasing death benefit.
What type of policy has both a Capital and Principal sum:
Accidental Death and Dismemberment (AD&D) insurance.
Under the California Insurance Code(CIC), an insured may covered a child attending an educational institution as a dependent on their Group Life Insurance policy through: OR On Group Life, a dependent child attending college can be covered through age:
Age 24
Widow or Widower without any children is eligible for Social Security Survivors benefits at age:
Age 60
Variable annuity premiums may be invested in all the following EXCEPT:
Agent's interest bearing trust account.
All are true regarding 403(b) Tax Sheltered Annuities EXCEPT:
All persons with earned income are eligible.
All of the following are true about Survivorship Life Insurance EXCEPT:
Although two persons are insured, proceeds are paid only upon death of the first party.
With regard to the ethical behavior of a Life agent, which of the following makes it easier for agents to conduct themselves in a ethical manner:
Always putting the best interests of clients and policyholders first.
An Insurance Company entitled to transact by complying with the California Insurance Code(CIC) is known as:
An Admitted Carrier
All of the following are about Managing General Agents (MGA) EXCEPT:
An Managing General Agents (MGA) primary responsibility is representing non-admitted Surplus Lines insurers in a specified territory.
What does a deferred annuity have that an immediate annuity does not:
An accumulation period
Who has to sign the Notice Regarding Standards for Medi-Cal Eligibility:
Applicant
If the owner of the policy has named an irrevocable beneficiary Which of the following can they not do with their consent:
Assign the poolicy
The policy provision which requires the insurer and the insured to share in the cost of the services rendered is:
Co-insurance
An agent owes a prospective Long Term Care applicant all of the following EXCEPT:
Compassion
Which of the following best describes the tax implications of a ROTH IRA:
Contributions are not tax deductible/qualified distributions are not taxable.
On what type of Life insurance is the beneficiary also the policyholder:
Credit Line
Which of the following is not considered to be an insurance underwriting risk classification:
Declined
The elimination Period (Waiting Period) in a disability income policy is most similar to the:
Deductible in a medical expense policy.
What life insurance rider will pay a monthly benefit should the insure become disabled:
Disability Income
The Accidental Death Benefit rider is also known as:
Double Indemnity
Which of the following policies provides coverage for expenses related to one illness only:
Dread Disease
The automatic premium loan rider will go into effect at the:
End of the grace period.
An annuity that has a fixed guaranteed minimum rate of return but has an excess rate of return which could also keep up will the performance of the stock market is known as a:
Equity Indexed Annuity
Persistency is important in health insurance for all the following reasons EXCEPT:
Every year a policy is in force more and more insureds will utilize their benefits.
Life Insurance death benefit policy proceeds paid from the insurer are:
Federal tax free when paid to a beneficiary.
If authorized, a California Life agent may transact of the following classes of insurance EXCEPT:
Fire
An immediate annuity is purchase with a lump sum and has no accumulation period:
Fraternal Insurer
When the pricing principle in a disability by the financial loss on a certain group of people occurring over a certain period of time it is know as:
Frequency
Which of the following is not covered by the Life and Health Insurance Guaranty Fund:
Group Stop-Loss Plans
The enactment of the Pregnancy Discrimination Act had which of the following effects on group health insurance:
Pregnancy of an employee must be treated in the same manner as any
HMO's are required to cover all of the following EXCEPT:
Prescription Drugs
An insurer who transfers part of its loss exposure to another insurer in a reinsurance transaction is known as the:
Primary Insurer
At what point in time may a representation be altered or withdrawn:
Prior to insurance going into effect only.
In Group Health Insurance, the period of time that starts when a new employee is hired and ends on the date they become eligible for the employee's Group Health Plan is the:
Probationary Period
The Social Insurance Supplement benefit rider in a disability income policy:
Provides payment when the insured is totally disabled only and not receiving any Social Security benefits.
All are required duties regarding the organizational license of a co-partnership whose membership has changed EXCEPT:
Return the old license with the signatures of all the original members to the co-partnership to the Commissioner.
An insurer's underwriting department is responsible for:
Risk Selection
Engaging in which of the following avocations will not cause a life insurer to reject or rate-up an applicant:
Roller Blading
California Life & Health Insurance Guarantee Association (CLHIGA) covers all of the following EXCEPT:
Self Funded Employer Plans
Under the California Insurance Code(CIC), if an agent receives a notice of claim, what are they supposed to do?:
Send the insured proper forms.
Which of the following terms used in the California Insurance Code is mandatory:
Shall
Which of the following does an Employee Stock Ownership Program(ESOP) invest in:
Stock of the employer
If an agent hires a Website Designer to create his new Website, who is responsible for the Website content:
The Agent
If an employees offers supplement group life insurance in addition to the underlying group life insurance coverage, and an employee elects to enroll, who pays the premium:
The Employer Only
The Facility of Payment Clause in a Group Life Policy allows the policy proceeds to be paid to :
The Guardian of a child who is the beneficiary.
The provision which keeps a policy which has been in force for two years from being rescinded by the insurer is:
The Incontestability Clause
If a Whole Life policy is being kept in-force by the Wavier of Premium rider:
The cash value will continue to increase as if the insured paid the premium.
which of the following criteria must be used to classify an injury as accidental under a disability income policy?:
The cause of the injury may be intentional, but the result of the injury must be accidental.