Life, Health and Accident Questions for PSI Exams
When the insured dies, a death benefit is paid
" life insurance creates an immediate estate" this phrase means?
Both institutional care and home care
A "comprehensive" long-term care policy must provide coverage for
Copayment
A _________ is the amount That and insured person is expected to pay for a medical expenses at the time of the visit.
Death Benefit
A beneficiary on the life insurance policy will receive what value upon the death of the insured?
Interest Option
A beneficiary receives only the death benefit earnings in which settlement option
HSA (Health Savings Account)
A business client is looking for ways to decrease its monthly premiums. To get it down to the premium level sought after by the company, the agent releases they have to go to a high deductible health plan. As part of your advice to the business, what should you include in your discussion?
volcanic eruption
A commercial property coverage part with the basic causes of loss form attached covers all of the following pearls except which one?
Medical underwriting exam
A consumer report used to determine audibility for insurance may include all the following EXCEPT?
An offer and acceptance of the contract terms
A contract requires.
The insured's estate
A creditor would be allowed rights to life insurance policy proceeds. Which of the following beneficiaries is chosen?
Deductible
A device that is used to minimize small nuisance claims and that helps to keep insurance premiums done is called what?
Provides a payment only when the insured is totally disabled, but not receiving any social insurance benefits plans
A disability income policy social insurance supplement (SIS) benefit rider:
Reserves the right to change the premiums, but may not change any of its terms
A disability policy, described as " guaranteed renewable" is one where the insurance company.
6 months
A disability that reoccurs with in how many months is considered a continuation of previous claim and will pay full benefits
respite care
A form of rest or relief offered to family members who are caring for a person who requieres continual care is.
A condition that may increase the likelihood of a loss occurring.
A hazard can be best described as.
The amount of covered expenses that the insured pay before the insurer pays
A health insurance deductible is
Preventive care
A health maintenance organization (HMO) plan contains caused by promoting
Name living primary beneficiaries
A life insurance claim which involves a per capita the distribution of policy proceeds would be payable to that
Nonforfeiture Options
A life insurance policy can be served entered for it's cash value under which policy provision
Critical Illness Insurance
A limited house insurance policy that will pay a lump sum to the insured if they are diagnosed with life-threatening cancer, stroke, Heart attack of Alzheimer's disease is known as?
activities of daily living
A measure for rating an individual's need for LTC benefits is called
Mutual Insurer
A participating company is also referred to as what type of insurer
Policies written for insurance under 18
A payor Benefit Rider is usually found attached to what type of life insurance policy?
claimant
A person who is Thursday right of recovery under an insurance policy is called
Without producing proof of insurability
A renewable term life insurance policy allows the policy owner the right to renew the policy.
Consumer's Report
A report which is based on credit witness and personal characteristics that influences and insurance applicants eligibility for life and health insurance is called a(n)
Only be for the insurance is in effect
A representation may be altered with drawn
Preferred Risk
A risk whose physical condition, occupation, mode of living and other characteristics indicate a prospect for longevity for unimpaired lives of the same age.
Differed Annuity
A savings vehicle design to first accumulate funds and then systematically liquidates the funds is called a(n)
Pure Risk
A situation in which there is only a chance of loss or no loss is a?
Restricts the ability of the beneficiary to as sign benefits
A spendthrift clause is a life insurance policy
Warranties
A statement that is guaranteed to be true
Worker cannot perform his or her current job, but is actively seeking another employment
A worker is entitled to Social Security disability benefits if all of the following are true, capital EXCEPT for.
Insuring Clause
A(n) __________ is an insurance contract is a statement by the insurance company that sets out the essential central element of insurance to pay for losses covered in the policy.
Primary Insurer
AAA insurance company has transferred a portion of it lost exposure to BBB insurance company. In this reinsurance transaction, what is AAA insurance company called?
Currently Insured
According to Social Security, an individual with 6 credits of credits of coverage during the previous 13 quarter considered to be.
Misdemeanor charges filed, not result in any convention
According to section 1729.2 at the California insurance Cohen, which of these does NOT qualify as "background information?"
Denial of claim based on reckless behavior
According to the California Code governing claim settlement practices, which of the following is NOT considered to be an act of unfair discrimination?
Insurer
According to the California Insurance Code who is responsible for submitting a life agents appointment.
permissive
According to the California insurance called how is the word "may "interpreted?
contract
According to the California insurance called, what is "insurance"
$5000
According to the California insurance called, what is the maximum penalty for violation for anyone who unwillfully commits an unfair method of competition?
Uninsured suffers a financial loss in the state lottery
According to the California insurance cold which of the following is NOT an example of an insurable event
Materiality
According to the California insurance: what term is used to describe a fact so important it could affect the policy premium
Reinstatement Provision
After a policy has lapsed, which provision allows the insured to continue coverage?
80%
After the deductible is met, Medicare part B will pay________ the Medicare approved amount for the medical services provided
Restatement provision
After the policy has lapsed, which promotion allows the insured to continue coverage?
Cash Dividend Option
All of the following are Nonforfeiture options EXCEPT.
Change in medical privacy procedures
All of the following are characteristics of COPRA EXCEPT
Non-nicotine
All of the following are classifications of risk EXCEPT
Individual policies
All of the following are considered characteristics of group life insurance EXCEPT.
mortality
All of the following are factors that ensures considered in calculating health insurance rates EXCEPT
Part D - Medi-Cal
All of the following are part of Medicare EXCEPT
Insurer, Beneficiary and Insured
All of the following are parties to life insurance contract EXCEPT
The minor in a juvenile policy
All of the following are require signatures on the life insurance application EXCEPT
employers
All of the following are subject to the laws of HIPAA regarding patient confidentiality, EXCEPT
the measure the probability of death
All of the following are true regarding "morbidity" tables EXCEPT
Part C provides coverage for long- term care
All of the following are true regarding Medicare EXCEPT
MIB reports are based upon information supplied by doctors and hospitals
All of the following are true regarding the Medical Information Bureau (MIB) EXCEPT
Change in job title
All of the following can be considered an eye test changing events that could result in a change in the amount of life insurance coverage needed capital EXCEPT
Probability of loss is a unknown
All of the following is a circumstance must be met for loss retention to be an effective risk management technique except?
The contingent beneficiary shared death proceeds equally with the primary beneficiary
All of the following statement about contingent beneficiaries are true, EXCEPT
The policy face amount is paid out only upon the death of the first insured to die
All of the following statements about survivorship life insurance are true EXCEPT
When no settlement option is chosen, the proceeds are automatically paid to the policy owner state
All of the following statements about the election of a life insurance policy set them an option are true EXCEPT.
Fund a buy-sell agreement
All of these are common person of uses of life insurance EXCEPT
Find a buy - sell agreement
All of these are common personal uses of life insurance EXCEPT?
The name is the licensees actual name
All of these are reasons the commissioner me disapproval license request to use a fictitious name EXCEPT
A nonforfeiture option can be used to insurance the death benefit
All of these are valid options for an adjustable life policy EXCEPT ?
Annuities
An "insurance agent" means a person who operates, Biane on behalf of an insurer, to transact which of the following class of insurance?
Conservation
An agent attempt to stop the replacement of an existing life insurance policy is known as
Unfair method of competition
An agent has advertised and insured to watch the appointed what is a member of the insurance guaranty Association. This agent has committed a(n)
No; Twisting
An agent is in need of generating business. He gets an idea for asking is playing today his policy lapse so that the agent can sell him a new similar policy. Is this purpose and not what is this action called?
Exclusion Ratio
An annuitant would like to determine the amount of annuity distribution that is exempt from taxation. What is used to calculate this?
Variable Annuity
An annuitant would like to determine the current value of her annuity. To do this, she multiples the number of "accumulation units" she owns times the unit value of the "separate account." What kind of annuity BEST matches this description?
Verbal annuity
An annuity Which is backed by a life insurance separate account is called a(n)
Attending physician statement
An applicant has been built conditions that require more information. Which of the following is needed next?
An outside organization that process claims for an employer's self- funded plans
An example of a third party administrator is
fully insured
An individual that has 40 quarters of coverage, for social security purposes, is considered to be
Live Agent
An individual who transact life, disability, life and accident, health insurance on behalf of an insurer is called an?
Term Insurance
An individual with a low income and high insurance needs should buy.
Verbal Life
An insurance policy where the insured can choose where the cash value can be invested is called
$150,000
An insured bought a $150,000 non- participating whole life policy many year ago. He is 100 years old today. He has never borrowed from the policy's cash value and has faithfully made all the payments when due. The policy's cash value is ?
Suicide Clause
An insurer can be protected from adverse selection with which policy provisions?
Physical Damage Coverage
An insurer has subrogation rights under all personal auto policy coverages exit which other
Mutual Insurer
An insurer on by its policyholders is called a
The policy's face amount
And a life insurance policies limit of liability would be.
10%
And a modified endowment contract, the penalty tax imposed a premature withdraws is.
The greater the number insured, the more accurately the number the insured can predict losses and set appropriate premiums
And ensure having a large number of similar exposure unit is considered important because?
Unfair discrimination
And ensure that has been found using higher rates based on race, religion, or ethnicity is said to be engaging in
Admitted Carrier
And insurance company entitled to transact business in California is called a(n)
Modified Endowment Contract (MEC)
And insurance policy Braden after 1988 the fails to pass to seven- pay test is known as.
The greater the number insured the more accurately than sure can predict losses and set appropriate premiums
And insured having a large number of similar exposure unit it's considered important because.
Reinsurance
And insurer enters into a contract with a three party to ensure itself against losses from insurance policies it issues. What is the agreement called?
Policy and attached application
And the life insurance policy, the entire contract consist of
Only one party (the insurer) makes any kind of legally enforceable promise.
And unliteral contract is one which?
30 days
Any changes and background info that occur after a procedure application has been submitted with a license has been issued M US team be reported to the insurance commissioner within
solicitor
Anyone employed in California to assist and insurance agent is transacting insurance is called an insurance
The members of the public and reasonably assume that an agent has
Apparent authority of an insurance agent is the authority
No; Rebating
As a marketing tool, Ted, a health insurance agent offered a to send an application and his wife on a weekend vacation to a local resort to induce the applicant to purchase a policy. Is this practice permit needed or not what is it called?
Own Occupation
As a professional surgeon, which type of disability coverage would offer the most liberal definition of benefit receipt if the insured were to break his or her hand?
Part A of Medicare
At age 65, and individual would be a job offer which of the following at no charge?
65
At what age can an individual with draw from his or her HSA account for living expenses and not face an extra penalty?
60-year-old
At what age is surviving spouse without dependents eligible for Social Security survivor benefits
consent form
Before an insured is allowed to test an individual for HIV, what must be completed?
Buy-Sell Agreement
Bob and Tom are parents in a business. If one of them were to die, which of the following work guaranteed a market for each of their share of the business?
waiver-of-premium provision
Bruce is involved in an accident and becomes totally and permanently disable. His insurance policy continues in force without payment of further premiums. Which policy promotion is responsible for this?
Life insurance and disability insurance
But- Sell agreements are typically fund by which to insurance products
Risk
Chance of a windstorm causing a loss to one's property is
60 payments
Cindy by say 10 year certain annuity with an installment refund. After receiving monthly payment for five years, since he dies. How many remaining payments will danger make to her beneficiary?
all of the above
Cooperate on life insurance proceeds may be used for the following purposes.
Comprehensive dental
Dental plan that has deductible and co-payments
Keogh Plan
Designed to fund retirement of self- employed individuals
Term group life coverage into permanent insurance
Determine employee that has exercise the conversion privilege is able to convert
probationary period
During which period of disability income policy is coverage affective for during which no benefits will be paid under the policy?
Employer stock
ESOPs are typically invested in
Loss in the stock market
Each of the following involves her risk capital EXCEPT
Tax deductible by the employer
Employee contributions to qualified plans are
100%
Employee participation in a non-con contributory group life plan must be
Tax deductible by the employer
Employer contributions to qualified plans are?
$50,000
Employer-provided group term life insurance X exempt from income taxation up to
Consumer Report
Every port which is based on credit whiteness and personal characteristics that influences and insurance applicants I'll debility for life and health insurance is called a(n)
The authority to present the insurer
Express power given to an agent in an agency agreement is
Fine, suspension, denial
Failure to report background changes within 30 days as required under section 1729.2 at the California insurance Code subject and license/applicant to
Age
For an individual policy there is an annual dollar limit for a tax deductions that is based on which of the following?
Binding Receipt
Given by a company upon an applicant's first premium payment. The policy, if approved, becomes effective from the date of the receipt.
HMO (Health Maintenance Organization)
Group insurance that entitles members to services provided by participating hospitals, clinics, and providers.
open panel
HMO can use doctors outside of HMO employees, what is this called?
Provide the payment only when the insured is totally disabled but not receiving any social insurance benefit plans
He disability income policy social insurance supplement (SIS) benefit rider
The comprehensive form (HO-5) only
Homeowners coverage for loss of personal property because of "mysterious disappearance" is provided by what?
Non deductible contributions and tax free distributions
How are ROTH IRAs treated for tax purposes
Exempt from federal income taxes
How are the benefits that I received by a beneficiary normally treated for tax purposes?
An irrevocable beneficiary has a vested right that neither the policy owner nor his creditors can impair without the beneficiary constent.
How do rights of an irrevocable beneficiary differ from those of the revocable beneficiary?
Individual has been credited with the appropriate number of quarters of coverage
How does one qualify a fully insured individual under Social Security disability coverage?
Binding receipts always provide insurance which starts from date of receipt
How does the confidential receipt after form a binding receipt?
Medical questions must be answered on individual life insurance
How does underwriting difference between group live an individual life insurance?
A return of excess premium and not taxable
How is a life insurance policy dividends legally defined?
A return of excess premium and not taxable
How is life insurance policy dividends equally defined?
Taxable income to the employee
How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes?
2 years
How long after being entitled to disability benefits will an individual be Archibald to receive Medicare benefits?
12 months
How long is a person expected to be disabled in order to receive Social Security disability benefits?
5 years
How long must live agent keep their transaction with records?
180 days
How many days do you have for " proof of loss?"
About 1-3% of his or her income
How much will it typically cost for a potential policyholder temperatures disability income insurance?
Rescind a policy
If a material warranty violation on the part of the insurance is found, what recourse does an insurer have?
Accidental death rider
If an insured dies because of an accident, which type of life insurance rider will provide additional coverage?
insolvent
If an insurer is not able to meet financial obligations when due, the insurer would be considered.
$1000 per person
If coverage for personal liability and medical payment is attached to it while in policy, what basic limit of coverage applies to medical payments unless a higher amount is purchased?
Carryover Provision
If you meet deductible in the last 3 months of the year then some of the expenses can be used towards the deductible of the following year what is this called ?
Foreign Insurer
In California, an insurer organization under the state laws of Oregon is called a(n)
Closed panel
In a HMO only doctors that are employed by the HMO can be used, what is this called ?
The individuals policy pays first, the spouses policy pays the remaining up to coverage amount
In a case where an individual child is insured by both their own policy and their spouses policy, which policy pays in the event of an illness?
75%
In a contributory plan at least how many percent must participate?
Require a high premium payable at each renewal
In a renewable term life insurance policy the contract will usually.
Blood transfusions
In home health care benefit, all of the following are eligible expenses EXCEPT?
100%
In non-controversy plans, which percentage of eligible members must be participate?
6 quarters of coverage during the last 13-quarter period
In order to be considered "currently insured quotes under Social Security, an individual must be credited with.
Mandatory 12 month waiting period
In order to be considered to be "totally disabled" under the Social Security's definition, an individual must meet all of the following criteria EXCEPT
With a specified number of days after injury
In order to receive the principal sum benefit for death from a disability policy, the death must occur
In one lump sum
In the event of an accidental death, the principal sum in a disability policy will be paid.
At all times
Insurance agents and brokers must make their insurance records available to the commissioner
First dollar
Insurance company pays right away
Term Life Insurance
Jack and his wife land just purchased a home with a 15 year mortgage. Wanting to make sure that Lynn would be able to pay off the mortgage balance in the event of Jack's death, Jack had a "temporary" need for life insurance. What type of policy should Jackie purchase?
12/15th of the policy's face amount
Jerry is an insured who understand his age and his life insurance application, paying $12 per thousand dollars of insurance instead of $15 per $1000. If he dies, how will the adjusted death benefit be calculated?
Jim must still disclose the convention of his insurance application
Jim is applying to become an insurance agent and has a past misdemeanor convention that was later expunged due to California Penal Code 1203.4. Which of the following statements is correct?
Second-to-die policy
John and Mary having a handicapped child that is financially dependent upon them. The death of one of the parents will not be financially disastrous, however the death of both likely would be. Which policy would best suited for them?
Participating
John owns an insurance policy that gives him the right to share and the insurer's surplus. What kind of policy is this?
Yes, the claim was not settled with in 30 days of the claim
John, who had a life insurance policy with a death benefit, died on August 31, after a long bout with cancer. He had been hospitalized for a month before his death. His wife contacted the insurance company to file her claim for the death benefit on September 5, after Johnsbury and then after she had time to collect with his supervisor and the death benefit was settled on October 30. Were any laws violated in this scenario?
Cover businesses losses due to think the death of a key employee
Key person insurance is intended to
All of the above ; Heath history, occupation, and Hobbies
Life insurance underwriters look at a variety of factors when determining the acceptance of an applicant. These factors can include:
both A and B ; lump-sum and regular installment
Living benefits on a life insurance policy can be typically access via.
The probability of loss is unknown
Loss retention is an effective risk management technique when all of the following conditions exist EXCEPT
Natural disasters
Losses arising from all of the following conditions may be excluded from group life policies EXCEPT?
Renewable Term
Lynn owns a life policy the guaranteed the right to renew the policy each year, regardless of health, but an increased premium, what kind of policy is this?
If the applicant has a final conviction of a felony
MIB reports are based upon information supplied by doctors and hospitals
10%
Mark, age 45 has a modified endowment contract what is the tax penalty for taking a loan against his policy prior to age 59 1/2?
Residence Employee
Medical payments under a homeowners policy are available for expenses resulting from an injury to which of the following?
Mike has option of using his cash value to purchase a reduced amount of pay-up whole life insurance
Mike and Ike I 30 years old identical twins. Both are in excellent health. Each broker purchases in life policy that has a $750 annual premium. Mike buy a 10 year renewable term policy. Ike purchase a whole life policy. All of the following statements are true EXCEPT.
Increased chance of lost because of an insurance this honest tendencies.
Moral hazard is described as the
People and time
Morality is calculated by using a large risk pool of
Medical Information Bureau (MIB)
Most U.S. And life insurance companies belong to the
Medical Information Bureau (MIB)
Most U.S. life insurance companies belong to the
Roth IRA
Nondeductible contributions are typically associated with a
CPT Codes (current procedural terminology)
On a health insurance claim form, the exact produces that were performed for the insured are represented by standard codes that are referred to as
Elimination
On disability income insurance, another name for the "waiting period" is the ___________period .
Marketing
One important function of an insurance company is to identify and sell potential customers which of these BEST describes this function?
Interest Option
Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose?
hospice care
Part A of original Medicare provides coverage for those who are trying to meet you and have six months or less to live, which is known as?
Unnecessary Replacement
Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him then the existing contract. This is considered end.
Out living their financial resources
People commonly purchase an annuity to protect against the risk of .
Death benefit and Living benefits
Permanent life insurance policies always had two components. What are they?
Contingent Beneficiary
Person or persons named to receive benefits if the Primary Beneficiary is not alive when the insured dies. Also referred to as a secondary or tertiary beneficiary.
Theft
Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty for?
45 days
Policies issued under the National Flood Insurance Program provide removal coverage for property removed to protect it from flood. This coverage applies at another location for up to how many days?
The amount of insurance pays per unit of coverage
Premiums are best described as
Part D
Prescription drug coverage is added by what part of Medicare to the original Medicare plan?
Primary Insurance Amount (PIA)
Primary goal of social security benefits, will determine a worker's social security benefit at age 65.
Underwriter
Process through which an insurer determines whether, and on what basis, an insurance application will be.
RW and Associates underwriting for BLG Insurance Corporation
RW and Associates is an agency which represents BIG insurance corporation. RW and Associates may leave the name BIG Insurance Corporation in its advertisements by clearly stating the relationship between the two businesses in any of the following ways, EXCEPT.
Indemnity
Reasonably necessarily as a currently described with the statement " insureds are entitled to recover and amount not greater than the amount of the lights? "
Implied Authority
Reasonably necessary acts that an agent must perform for carrying out his/ her expressly authorize duties are covered by an agent?
A level death benefit with an increase in premium
Renewable term insurance can be best described as
Principle of indemnity
Restoring an insured to the same condition as before a loss is known as.
indemnity
Restoring and insured to the same condition as before a loss is an example of the principal of?
Non-discrimination
Retirement plans are prevented from favoring highly compensated employees under which government regulation?
Non-discrimination
Retirement plans cannot favor highly compensated employs. The government regulation that prevent this from happening is called
Mortgage Redemption
Scott has just purchased a new house. He is now shopping for a life insurance policy that provides a death benefit that matches the protecting a death benefit that matches the project is outstanding debt of his mortgage. Which live policy would best suit his needs?
Retirement, disability survivor and medical( Medicare and Medicade(death benefits)
Social security pays 4 types of benefits, what are they?
False
Social security should be considered one's primary source of disability income coverage
Valued or agreed amount policies
SomeProperty insurance policies provide for payment of the full policy Limit in the event of a total loss by a covered peril, regardless of the actual value of the property. These policies are known as which of the following?
Hazard
Something that might increase the likelihood that a loss will occur is called what?
AD&D policy
Specific amounts for specific accidents
10 participants
State generally define a true "group" for insurance as requiring a minimum of how many participants?
False
Term life insurance through the office and buy/ sell agreement
Elimination Period
The " deductible" in a long- term care insurance policy is referred to as the
surviving spouse
The "black-out period " affects whose benefits?
Between 10 and 30 days
The California Insurance Code allows an individual how many days to cancel a life policy for a full refund?
Between 10 and 30 days
The California insurance called allows an individual how many days to cancel a life policy for it for a fun refunds
written contract
The California insurance called define "policy" as a(n)
Lance Manyon insurance services
The California insurance called has authorize standard for names used by life insurance agents. Which of the following if any, are automatically excepted for Lance Manyon, a holder of the CLU designation
It's paid-in-capital
The California insurance code requires that an insured must have enough assets for to cover its liabilities and for reinsurance of all outstanding risk.
Self-funded plans
The California life and health insurance guaranteed association covers all of the following types of policies EXCEPT
Participants & Beneficiaries
The Employee Retirement Income Security Act ( ERISA) requires that employee benefit plans to be managed for the benefit of:
60%
The Federal government pay about what percentage of all Medicaid expenses?
80%
The Patient Protection and Affordable Care Act ( PPACA) requires had plans to provide rebates to consumers for the amount of the premium spent on clinical services and quality that is less than______ for plans in the individual market place
Select a provider and submit names to the insurance company
The basic feature of a managed indemnity plan is that the participants
Own Occupation
The components of a long-term care insurance policy include all of the following EXCEPT
Indemnify the insured
The deductible does each of these EXCEPT
100%
The enrollee pays what percentage of the premium for Medicare part B?
12 weeks of unpaid family leave
The family and Medical leave act (FMLA)
20 employees
The federal Consolidated Omnibus Budget Reconciliation Act ( COBRA) applies to groups of ______ or more employees
30 days
The free- look period for a life insurance policy owners age 60 or older is
30 days
The free-look period for life insurance policy owners age 60 or older is
During the annual benefits enrollment period
The group conversion option is allowed for all of the following EXCEPT?
Purchase additional insurance regardless of insurability
The guaranteed insurability option provides the ability to:
Income
The human life value concept is based on
Pre-existing condition
The impairment Rider is very similar to which other clause found in some insurance policies?
Materiality of concealment
The importance of a representation is demonstrated in what rule?
They sell long-term care insurance
The insurance commissioner may deny any insurance license application without a hearing
Age 100
The insured aged 65, owns $100,000 non- participating whole life policy. The policy is paid- up as of today. When would the cash value reach $100,000?
waiver-of-premium provision
The insured is totally and permanently disabled. The insured's policy continues in force with out the payment of a premium because the policy contains a.
Contracts of Adhesion
The insured party has no part in determining the wording of an insurance contract. And his respect, insurance contracts are considered to be.
The method of premium payment
The insuring clause of a disability policy usually states on the following EXCEPT?
endowment insurance
The life-insurance policy that pays the face amount if the insured survive to a specific period of time it's called.
Avoid selecting a test proportionate number of bad risk
The objective of underwriting is to
Upholds the principle of indemnity
The other insurance clause
Employers would be held responsible for the cost of their employee's work injuries regardless of fault
The passage of worker's compensation legislation meant.
The insurer will make the payments until the insured juvenile reaches a specified age
The payor rider on a juvenile life policy provides that if the payor dies or becomes disabled before the insured juvenile reaches the age specified on the policy.
Blackout Period
The period which there are no Social Security benefits for the surviving spouse is called the
Mortality tables
The probability of that, listed by year, is demonstrated in
Who joined the group after the effective date
The probability period in a group health policy is intended for people
Protect certain vulnerable segment of population
The reason for social insurance is to
Underwriting
The rest of the selection process is primarily given to which insurance company department
annuity
The systematic liquidation of a sum of money is provided by a(n)
Primary Care Physician (PCP)
This person makes all decisions regarding referrals and treatments
Conversion
Tim was recently terminated from his employment and up to change his existing group term life insurance to individual permanent life insurance. What is the process called?
40 calendar quarters
To attain "fully insured" status under Social Security and individual must work and contributed to Social Security for at least _________calendar quarters.
Until the end of the policy period
Tom Baxter has an Adam mobile injured by a personal auto policy. He treats in his care and purchase is a new private passenger auto as a replacement vehicle. If he does not notify the insurance company, the liability coverage for his replacement vehicle will play automatically for how long?
Joint Life Policy
Tom is shopping for a policy that covers two people I will pay the face amount ONLY when the first person dies the type of life policy he is looking for is called a period
100%
Under a 10 year vesting schedule what percentage of employer contributions must be vested after 10 years of service?
14 days
Under a personal auto policy, if an issue it already has physical damage coverage for at least one vehicle, a new vehicle will be on a Mac recover from the day it is acquired as long as the insured and notifies insurer and request the coverage within how many days?
Impact between a covered auto and a deer
Under a personal auto policy, which of the following is not a collision loss?
The same size print as the license phone number and fax number or address
Under the California insurance called, and licenses license number must be print it out what size and all price quotes, business cards and period materials?
19 years old
Under the Patient Protection and Affordable Care Act (PPACA) health plans cannot limit or deny benefits or deny coverage for a child younger than age_______.
All classes of newly acquired autos are automatically covered
Under the business auto coverage part, each of the following is true about the classifications of coverage of us, which are designated by numerical symbols shown in the declarations, EXCEPT for which of the following?
Yes, in all states EXCEPT for three
Under the critical illness benefit plan, is the a waiting period before A benefit can be paid out for the disease of cancer?
26 years old
Under the patient protection and affordable care act (PPACA) children may be covered under parents medical expense insurance plan up to the limiting age of.
45 days
Upon the issuance of a conditional receipt for a renewal when the premium is paid after the time granted by the insurer, what is the maximum amount of time for restatement of the policy?
For a minimum of 120 months and a maximum of the remainder of her life
Victoria owns a life annuity & elects to receive annuity payments monthly for the remainder of her life with ten years certain. " her annuity will make payments."
Bank loans
What are collateral assessments normally associated with?
Medical alignment discovered during the underwriting process
What are the members of the medical information bureau required to report?
Disclosure and reporting
What area of group health insurance is regulated under the employee retirement security act of 1974 ( ERISA) ?
Year in which a worker was born
What determines the social security normal retirement age?
The time at which benefit payment starts
What distinguishes a differed annuity from an immediate annuity?
Employee Stock Ownership Plan (ESOP)
What does ESOP stand for?
Individual wanting to sell their policy to a third-party
What does a live settlement broker represent?
The insurer and the insured share expenses over the deductible
What does coinsurance mean?
As soon as covered medical expenses are incurred, the policy begins to pay
What does first dollar coverage mean?
Make a premium payment after the due date without any loss of coverage
What does the grace. Allow a life insurance policy owner to do?
Purchase additional coverage with no evidence of insurability required
What does the guaranteed insurability option alarm and insured to do?
Purchase additional coverage with no evidence of insurability required
What does the guaranteed insurability option to allow an insured to do?
Suspend or revoke the license of the agent
What does the insurance Commissioner have the right to do if an agent lacks authority from an insurer named on a binder for coverage?
Make whole
What does the insurance term "indemnity" referred to?
Presentation of policy futures that includes non-guaranteed elements
What does the term "illustration quotes mean when you use the phrase "'s life insurance policy illustration quotes, according to the California insurable code?
To make whole
What does the term "indemnity quote me as it pertains to insurance
Deductible
What feature contain any major medical expense policy is designed to discourage the use of emergency room treatment?
Medical information on an applicant for assessing life of health insurance risk
What is a capital MIB report?
A person compensated for transacting insurance on behalf of another person with an insurer
What is an "insurance broker "according to California Insurance Code?
Help an agent/broker sell insurance
What is an insurance solicitor authorized to do
To protect against the risk of out living there and financial resources
What is common reason people purchase an annuity?
Unable to engage in the workers chosen career field
What is considered to be the definition of disability, according to Social Security?
Notice of appointment must be submitted to the commissioner
What is required after life agent sells an insurance policy to an applicant without being appointed by insurer ?
$50,000 and or imprisonment for a period not exceeding one year
What is the maximum fine for a person who transact insurance without a valid license
Death Benefit
What is the most common complement and all of life insurance policies?
Contract that allows the policy owner to receive a share surplus in the form of policy dividends.
What is the participating life insurance policy?
Rate
What is the price of insurance for each exposure unit
Modify premium, ordinary life, single premium
What is the proper order of initial life insurance premiums from lowest to highest?
To cover decreased business earnings due to the death of a key employee
What is the purpose of " key person" insurance?
The policy is originated primarily or solely for the purpose of re sale
What is the purpose of Stranger Originated Life Insurance ( STOLI) ?
Join and survival Annuity
What kind of annuity pays income two annuitants until their deaths?
Provides for both institutional and home care
What makes a comprehensive long-term care policy unique from other is long-term care policies?
Incontestability Clause
What prevents a life insurance policy from being rescinded by then sure after being in force for two years?
Rescission of the policy
What recourse does an insurer have if a violation of a material warranty on the part of the insured is discovered?
Establish an anti money laundering program
What specific new procedures does the USA Patriot Act requires insurance program?
Grace Period
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?
Key Person
What type of insurance should a company purchase if it wants to insure the life of its CEO?
Life and Disability Analyst
What type of license is required for an individual who charges a fee to review an insurance existing life insurance policy?
Variable Life Insurance
What type of life insurance is considered to be more risky based on its investment component?
MSN
What type of notice is used to show all of the services or supplies that were billed to Medicare during a 3-month period, what Medicare paid and what the patient may owe the provider?
Speculated Risk
What type of risk is gambling?
Deny the application with out hearing
What would be the insurance Commissioner's most likely course of action if an applicant for an insurance license had a previous application for a professional license denied for cause by any licensing authority with in five years of the date of the filing?
Demutualization
When a mutual insurer becomes a stock company the process is called?
Policy's cash value is not affected
When an accidental death benefit is added to a hope life policy, how does this affect the policy's cash value?
Underwriting
When an applicant applies for insurance, the process by which the insured determines whether to issue a policy is called?
copy of the signed authorization
When an insurance company request and attending physicians report, the request must be accompanied by a?
admitted
When an insurer has met the qualifications necessary to transact business in California it is said to be
The proximate cause of loss
When an interpret a chain of events resulting from a negligent act cause a loss, the act is considered to be which of the following?
Never
When are parties to a contract required to communicate information solely based on personal judgement for a matter in question?
mortality
When calculating life insurance premium rates, which component is affected by an insured's age and gender?
Insurers expenses
When calculating life insurance premium rates, which component would an agent's commission fall under?
The taxpayer's medical expenses exceed 7.5% of adjusted gross income during a taxable year
When can the premium myself and individually on health insurance policy be deducted from the individuals income taxes ?
Both a & b only ; policy deductible and Maximum out-of-pocket amount
When constructing a major medical insurance policy, and several criteria must be established including
Gate keeper
When doctor will not see you unless you are referred by primary care physician
The policy holder passes away
When does a whole life policy end?
Insured becomes totally disable
When does the life insurance policy's waiver of premium take affect?
Upon the termination of all appointments, or all endorsements
When does your license become inactive for a broker?
Fiduciary
When handling premiums for an insured, an agent is acting in which capacity?
Fiduciary
When handling premiums for insurance, and each and is acting in which capacity?
The policies cost basis is exempt from taxation
When her life insurance policy is surrendered, how does the cost recovery rule apply?
Recession of the contract
When intentional concealment is involved, what course of action is the injured party in titled to?
immediately
When must a licensee notify the insurance commissioner of a change of address?
When there is a buy-sell agreement funded with life insurance to buy out the interest of a deceased owner or partner
When should a buy- sell agreement include a provision for the buy-out of an owner's business interest in the event of disability?
2 year period
When the suicide class is inserted in a life insurance contract, death by suicide is not covered during the policies initials.
Sign of constent form
When was an applicant do in order to authorize the release of an attending physician report?
When particular benefits are not listed on a payment schedule
When will a policy on a UCR (Usual, Customary, Reasonable) basis?
Irrevocable Beneficiary
Where was policy proceeds be paid at both the insured and primary beneficiary were killed in the same accident?
Currently Insured
Which Social Security said it does a worker with 6 quarter of coverage during the last 13 quarter period have?
paid-in capital
Which are assets that are in excess often insurer's liability for reported losses, expenses, taxes, and reinsurance of outstanding risks?
Rescinding the contract
Which course of action is ensuring title II when deliberate concealment is committed by the insured?
Coverage for major medical expenses
Which coverage is A life insurance license not authorized to produce
The total disability definition used by the Social Security Administration
Which definition of disability is the most difficult for an injured worker to satisfy?
Medicare
Which insurance parents are gone the offer through the worksite (employer sponsored) EXCEPT?
The free- look period begins on the policy delivery date
Which is a life insurance policy delivery date important
Increases the unknown premium reserve
Which is not a characteristic for reinsurance?
Publishing a magazine were one of the advertisers is an insurer
Which is the following is NOT considered to be an act of insurance solicitation?
To assist covered employees with the payment of medical expenses on a high deductible plan funded through pretax contributions
Which is the primary purpose of health reimbursement accounts?( HRAs)
Accidental injuries
Which of the following are commonly covered by medical expenses policies?
Misrepresentation on an insurance application
Which of the following asked is NOT a federal offense committed by an insurance agent?
Law of Large Numbers
Which of the following best describes the statement? "the more times and event is repeating, the more predicting the outcome becomes?"
indemnity contract:
Which of the following contract is defined as "one that restores an injured party to the condition that was prison before the loss?"
Law of Agency
Which of the following deals with a set of relationships where one person is authorized to act on behalf of another in order to create a legal relationship with a third?
Insolvent
Which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risks ?
Part of the premium is paid by the employee
Which of the following describes the contributory group insurance plan?
Moral Hazard
Which of the following describes the increase in the probability of a loss due to ensure it's dishonest tendencies?
Statement that all values and benefits are guaranteed
Which of the following does NOT have to be included on life insurance policy illustrations?
Dividend Schedule
Which of the following does a policy owner NOT have a right to change?
Medicare
Which of the following does the California Department of insurance (CDI) have no jurisdiction over?
Medicare
Which of the following does the California Department of insurance have NO jurisdiction over
Insurer's financial rating
Which of the following does the California insurance called, NOT required an insurance policy to specify?
TERFA
Which of the following inmates the Social Security act to make Medicare secondary to group health plans?
Provide proof of insurability
Which of the following is NOT A requirement for a terminated employee that has exercise the conversion privilege?
Dividends
Which of the following is NOT a component of determining policies premiums?
Offers a maximum interest rate that increases annually
Which of the following is NOT a feature of equity- index annuities?
Extended Term Option
Which of the following is NOT a life insurance settlement option
Provide proof of insurability
Which of the following is NOT a requirement for a terminated employee that has exercised a conversion privilege?
equal consideration is required between the involved parties
Which of the following is NOT a requirement of a contract?
Dividend risk
Which of the following is NOT a risk classification that an underwriter would use?
The beneficiary must sign the application before the insured will issue the policy
Which of the following is NOT an important reason for 11 insurance application?
The beneficiary must sign the application before the insurer will issue the policy
Which of the following is NOT an important reason for your life insurance application?
Premiums
Which of the following is NOT and insured policy expense?
The cost of a loss
Which of the following is NOT considered a definition of risk?
Advising a claimant to hire an attorney
Which of the following is NOT considered to be an unfair claims settlement practice?
Insurers
Which of the following is NOT protected under the California life and have guaranteed association?
Probability of loss
Which of the following is NOT required in content of a policy?
The purchaser has the option to vary the amount of each premium payment fulling between a minimum & maximum amount
Which of the following is TRUe for a flexible premium annuity?
insurance policy
Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event?
Non-medical
Which of the following is a life insurance policy that does not require a physical exam?
Speculative risk
Which of the following is a situation where there is a possibility of either lost or a gain?
Risk is eliminated
Which of the following is a type of insurance where an insurer transfer loss exposures from written for it's insureds?
Living benefit
Which of the following is a writer that allows a terminally ill person to access at least a portion of the death benefit proceeds prior to death?
Interpret policy provisions
Which of the following is an NOT a primary objective of insurance regulation?
Capitive insurer
Which of the following is an insurer established by a parent company for the purpose of ensuring the parent companies loss exposures?
Loss Exposure
Which of the following is considered to be any situation that has the potential for loss?
Losses due to fraud are eliminated.
Which of the following is not a benefit of insurance?
Extended Term
Which of the following is not a common life insurance policy rider?
None of the above; dental, vision, disability and long-term insurance
Which of the following is not a form of death insurance?
Master Contract
Which of the following is not a requirement for a terminated employee that has exercise the conversions privilege?
Equal consideration is required between the involved parties
Which of the following is not a requirement of a contract?
Applicants are not requested to answer medical questions on the application
Which of the following is not a true description of a non-medical life insurance?
Lost must be castastrophic
Which of the following is not an element of an insurable risk?
Employer pays the premium for the converted policy
Which of the following is not characteristic of the conversion privilege?
Probability that an event will occur
Which of the following is not considered to be a definition of the term "loss"?
acute care in the hospital
Which of the following is not covered any long-term care policy?
Probability of loss
Which of the following is not required in the content of a policy?
Conversion of child's coverage to permanent insurance regarding evidence of insurability.
Which of the following is not true regarding a family policy that covers children?
Coverage offered by private insurers
Which of the following is the most common method to supplement Medicare coverage?
Variable life, whole life, Universal Life
Which of the following is the three common types of permanent individual life insurance?
the face amount reaches zero at policy expiration
Which of the following is true about increasing term life policy?
The face amount reached zero at policy expiration
Which of the following is true about the decreasing term life policy?
A patient's care is co-ordinated by an in- network primary care physician
Which of the following is true of a point of service plan (POS)?
Their insurance license number
Which of the following must be printed on every licensee's business cards, written price quotations and printed advertisements?
beneficiary
Which of the following needs to have an insurable interest for an underwriter to issue an insurance policy?
Part C (Medicare Advantage)
Which of the following parts of Medicare is known as the "managed-care option?"
An individual civic organization membership
Which of the following pieces of information is not gather during the personal financial planning process?
accidental death
Which of the following policy types is considered double indemnity?
Mode
Which of the following refers to her after the premium is paid?
Substandard Risk
Which of the following risk classification is charges the highest premium?
Preferred
Which of the following risk classifications charges the lowest premium?
The insured and insured contribution equally to the contract.
Which of the following statements about aleatory contract is not true?
Provides assistance for a free based upon ability to pay
Which of the following statements about the HICAP program is false? HICAP
One party is restored to the same financial position the party was in before the loss occurred
Which of the following statements correctly describes a contract of indemnity?
Only children born to policies insue date maybe including
Which of the following statements do not apply to child coverage in a family policy?
It is the distribution of successes of funds accumulated by the insurer and participating policies.
Which of the following statements regarding a life insurance policy Dividened is true?
Decreasing term
Which of the following type of life insurance is normally associated with a mortgage loan?
Ethnicity
Which of the following types of information is NOT required for a life insurance application?
Universal Life Insurance
Which of the following types of life insurance combined the savings element along with a flexible premium option?
NOIL Act
Which of the following was typically designed to address capital STOLI and IOLI practices?
beneficiary
Which of the following won't have to meet insurable interest order for a policy to issue?
Earnings are taxable when with drawn
Which of the statement concerning traditional IRASs is correct?
Monthly income payments
Which of these is NOT a valid policy dividend option?
lump sum
Which of these is the automatic mode of settlement for life insurance policy proceeds
Per risk is the only insurable risk
Which of these statements correctly describes risk?
Pure risk is the only insurable risk
Which of these statements correctly describes risk?
Grace Period
Which policy provision protect the policy owner from an international lapse of the contract?
indemnity
Which principle is accurately described with the statement "insureds are entitled to recover an amount not greater than the amount of their loss?"
Indemnity
Which principle is currently described what the statement "insureds are entitled to recover and in Mount capital NOT greater than the amount of their loss?"
Accelerated Death Benefit
Which provision will pay a portion of the death benefit prior to the insured's death due to a serious illness?
Accelerated Death Benefits
Which provision will pay a portion of the death benefit prior to the insured's death due to a serious illness?
A contract may be accepted/rejected by the insured
Which statement is correct when describing a contract adhesion?
Benefits are designed to replace the entire amount of the workers earnings
Which statement is not true regarding Social Security benefits?
Insurers may offer policies that contain only the core benefits.
Which statement is true regarding Medicare Supplement Insurance plans?
A dividend option is selected by the insured on of the policy is purchase
Which statement is true regarding policy dividends?
Joint Life Annuity
Which type of annuity covers two or more annuitants and provides to monthly income only until the first annuitant dies?
COBRA
Which type of health are coverage is usually sought after a person is laid-off from her place of employment?
Renewable term
Which type of insurance guarantees the right to renew the policy each year, regardless of health but at an increased premium ?
reciprocal exhange
Which type of insurer consists of an unincorporated group of members who share losses and provide insurance to each other?
Prior Approval
Which type of jurisdiction requires an injured to have its rates excepted by the insurance department prior to using them
Renewable Term
Which type of life policy can be continue year after year without a required medical examination by rates are depending on the insured's current age?
fully insured
Which type of worker has Social Security benefits available to them?
"May"
Which word implies permissiveness according to the California Insurance Code?
Insurer/Employer
Who are the parties to the master contract any group life insurance policy?
Individual wanting to sell their life policy to a third-party
Who does a life settlement broker represent
A deceased workers dependent parents of any age
Who is NOT eligible for Social Security survivor benefits
Fully insured workers
Who is eligible for retirement benefits under Social Security?
Participant
Who is issued a certificate of insurance with a group insurance policy?
The California Insurance Commissioner
Who is the California life and health and guaranteed association is regulated by?
The greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums
Why is having a larger number of similar exposures units important to insurers ?
It reduces insurance losses and helps regain the workers dignity
Why is rehabilitation considered worthy or federal help under worker's compensation?
The free- look period begins on the policy delivery date
Why is the life insurance policy's delivery day important?
