Chapter 20

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

ABC Insurance Company paid an insured $30,000 in lost wages, $35,000 for hospital costs, and $20,000 for physical therapy treatments. ABC later discovers this was a fraudulent claim. How much may the insured be fined?

$170,000

According to the California Insurance Code, what is the maximum penalty per violation for anyone who unwillfully commits an unfair method of competition?

$5,000

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

30 days

The free-look period for life insurance policyowners age 60 or older is

30 days

How long must life agents keep their transaction records?

5 years

What is the insurance term the State of California uses for an insurer that is eligible to transact business in this state?

Admitted

According to PPACA, what is a health benefits exchange? ​

An entity to which individuals and small businesses can have access to affordable health coverage

According to the California Insurance Code, which of the following is NOT an example of an insurable event?

An insured suffers a financial loss in the state lottery

Life insurance surplus must be distributed to policyowners at what frequency?

Annually

In what order are people on the MRMIP waiting list allowed to enroll?

Based on the date an individual's application is received

How is an agent's first year commission calculated for a replacement long-term policy?

Based on the difference between the new and original policy annual premiums

The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund?

Between 10 and 30 days

Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy Program (HiCAP) counselors?

Charge a fee

Before an insurer is allowed to test an individual for HIV, what must be completed?

Consent form

Which entity has jurisdiction over health care coverage providers?

Department of Insurance

Failure to report background changes within 30 days as required under section 1729.2 of the California insurance code could subject a license or applicant to

Fine, suspension, and denial

What is an insurance solicitor authorized to do?

Help an agent or broker sell insurance

What prevents a life insurance policy from being rescinded by the insurer after being in force for two years?

Incontestability clause

Who does a life settlement broker represent?

Individual wanting to sell their life policy to a third party

An insurance policy issued in California may be called a comprehensive long-term care insurance policy if benefits are provided for

Institutional (nursing facilities) and home care

Which of the following is NOT protected under the California Life and Health Guarantee Association?

Insurers

Which of the following is NOT a primary objective of insurance regulation?

Interpret policy provisions

The California Insurance Code has authorized standards for names used by life insurance agents. Which of the following, if any, are automatically acceptable for Lance Manyon, a holder of the CLU designation?

Lance Manyon Insurance Services

What type of license is required for an individual who charges a fee to review an insured's existing life insurance policy?

Life and disability analyst

MRMIP stands for

Major Risk Medical Insurance Program

Both the Federal and state governments jointly finance which health insurance entitlement program?

Medi-Cal

People with low income can be provided with medical assistance through which program?

Medi-Cal

Which of the following does the California Department of Insurance (CDI) have NO jurisdiction over?

Medicare

How many "activities of daily living" must an insured be UNABLE to perform in order to meet the chronically ill requirement of a Long-Term Care policy?

Minimum of two activities of daily living

Which of the following acts is NOT a Federal offense committed by an insurance agent?

Misrepresentation on an insurance application

What is the purpose of the Pre-Existing Condition Insurance Plan (PCIP)?

PCIP was created by the PPACA for people rejected by private health insurers due to pre-existing conditions

According to the California Insurance Code, how is the word "may" interpreted?

Permissive

What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code?

Presentation of policy features that includes non-guaranteed elements

Which of the following is NOT considered to be an act of insurance solicitation?

Publishing a magazine where one of the advertisers is an insurer

The California Life and Health Insurance Guarantee Association covers all of these types of policies, EXCEPT

Self-funded plans

Which of the following does NOT have to be included on life insurance policy illustrations?

Statement that all values and benefits are guaranteed

Why is a life insurance policy's delivery date important?

The free-look period begins on the policy delivery date

Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?

Theft

What does the term "indemnity" mean as it pertains to insurance?

To make whole

Which of the following is NOT covered by the Family and Medical Leave Act (FMLA)?

Travelling overseas with a spouse

A person who asserts a right of recovery under an insurance policy is called

claimant

An agent's attempt to stop the replacement of an existing life insurance policy is known as

conservation

In California, an insurer organized under the state laws of Oregon is called a(n)

foreign insurer

According to the PPACA, the medical enrollment tier that has 80% actuarial value is called

gold

An individual who transacts life, disability, or life and accident and health insurance on behalf of an insurer is called a(n):

life agent

The cost of services charged by the Health Insurance Counseling Advocacy Program (HiCap) is

no cost

Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance

solicitor

An insurer that has been found using higher rates based on race, religion, or ethnicity is said to be engaging in

unfair discrimination

Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him than the existing contract. This is considered a(n)

unnecessary replacement

The California Insurance Code defines "policy" as a(n)

written contract


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