Life, Health, and Accident Exam
Which of the following is an example of the insured's consideration? A. Intent B. A paid premium C. Insurer's promise to pay benefits D. Legal Purpose
B. A paid premiuim.
Which of the following refers to a condition that may increase the chance of a loss? A. Adverse Selection B. Hazard . C. Peril D. Risk
B. Hazard
All of these statements concerning Medicare are true EXCEPT: A. Hospice is covered by Medicare Part A B. Long-term care is covered by Medicare Part C C. Medicare is primarily funded by Federal payroll and self-employment taxes D. Doctors' services are covered by Medicare Part B
B. Long-term care is covered by Medicare Part C
An example of naming a beneficiary by class would be: A. To the children born of my union with Ned Jackson: David Jackson, Jennifer Jackson, and Scott Jackson. B. To the children born of my union with Ned Jackson C. To the child born of my union with Ned Jackson: Scott Jackson D. To Ned Jackson
B. To the children born of my union with Ned Jackson.
Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT: A. the insured B. the beneficiary C. the producer. D. the policyowner
B. the beneficiary
Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled ?: A. Disability buy-sell policy B. Disability overhead policy C. Business overhead expense policy D. Business continuation
Business overhead expense policy
A hazard can be best described as: A. a risk that has the potential for both loss and gain B. the tendency for poorer than average risks to seek out insurance. C. a condition that may increase the likelihood of a loss occuring D. the potential for loss
C. A condition that may increase the likelihood of a loss occurring.
Which of the following is not a required uniform provision in individual health policies? A. reinstatement B. Notice of claim C. Change of occupation D. legal action
Change of occupation
Which of the following actions is NOT allowed by Health insurance Counseling and Advocacy Program (HiCAP) counselors? A. assist in policy evaluation B. charge a fee C. Medical record keeping assistance D. assist in understanding Medicare Supplements
Charge a fee
Which of the following would be considered an underwriting duty of an agent? A. completing all applications and collecting initial premiums
Completing all applications and collecting initial premiums
Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place? A. Extension of benefits B. Conversion C. Coordination of benefits D. Rollover
Conversion
All of the these are examples of cost sharing in a health insurance policy EXCEPT A. Coinsurance B. Copayments C. Coordination D. deductibles
Coordination
The problem of overinsurance is addressed in which health insurance provision? A. Entire contact B. reinstatement C. Suitability D. Coordination of benefits
Coordination of benefits
Lorenzo is self employed with and S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year? A. 100% of his health insurance costs can be paid with tax credits B. 50$ of his health insurance C. 75% of his health D. 100% of his health insurance costs can be deducted from his gross income
D. 100 of his health insurance costs can be deducted from his gross income.
A report which is based on creditworthiness and personal characteristics that influences an insurance applicant's eligibility for life and health insurance is called a: A. medical report B. agent's report C. MIB report D. Consumer report
D. Consumer Report
What guarantees that the statements supplied by an insurance applicant are true? A. Promise B. Assurance C. Representation D. Warranty
D. Warranty
Which of the following is NOT a provision in a disability income policy? A. Deductible and coinsurance provision B. Elimination period provision C. Recurrent disability provision D. Change of occupation provision
Deductible and coinsurance provision
What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)? A. disclosure and reporting B. Long-term care C. Underwriting procedures D. Workers Compensation
Disclosure and reporting
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n): A. 1040 Exchange B. 1035 Exchange C. Endowment Exchange D. Modified Exchange
1035 Exchange
How long is a person expected to be disabled in order to receive Social security disability benefits? A. 4 months B 12 months C. 18 months D. 6 months
12 months
A policyholder has a major medical plan with a 80%/20% coinsurance and a deductible of 75$. If the insured has previously met her deductible and receives a bill for 175$, how much will the insurer pay? A. 140 B. 75 C. 100 D. 35
140
An employer may qualify for health care tax credits through SHOP Marketplace if that employer has fewer than how many employees? A. 10 B. 25 C. 20 D. 15
25
Which of the following is NOT an eligible dependent on an Accident and Health policy? A. 19 year old full time student B. 25 year old married child C. 27 year old married child D. Unmarried disabled child
27 year old married child
How long must life agents keep their transaction records? A. 5 y B. 4 y C. 6 y D. 3 y
5 years
Employer provided group term life insurance is exempt from income taxation up to A. 40000 B. 10000 C. 25000 D. 50000
50000
What is implied authority defined as? A. Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties B. Authority given to an agent to act outside the scope of the agency agreement C. Authority given in writing to an agent in the agency agreement D. Authority give to handle claims and process payments.
A. Authority that is not specifically
How does life insurance create an immediate estate? A. Non forfeiture options are immediately available B. the insured estate receives the death benefit C. cash value may be borrowed upon at any time D. after first premium is paid the face amount may be available to the beneficiary
After the first premium
Which of the of the following does coordination of benefits allow? A. allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid B. Allows both a group health plan and individual health plan to coordinate their benefit payments C. Allows each health provider to pay 100% of the claim D. Allows the deductible to be spread out between all the health providers
Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid
According to California Insurance Code, which of the following is NOT and example of an insurable event? A. An insured is sued for unintentional slander of another person B. A guest is injured by a fall from the insured's driveway C. An insured is admitted to the hospital for delivery of a newborn D. An insured suffers a financial loss in the state lottery.
An insured suffers a financial loss in the state lottery
Which of the following is considered to be the period when the accumulated value in an annuity is paid out? A. accumulation phase B. annuitization phase C. principal phase D. Period certain phase
Annuitization phase
Which statement is TRUE regarding workers' compensation coverage A. workers compensation benefits are usulaly received in a lump sum B. employer pays the entire premium for workers' compensation coverage C. The maount received from workers' compensation is usualy greater than the employee might receive if he or she sued a negligent employer D. negligence is a factor in determining the employers liability
Employer pas the entire premium
All of these are settlement options for life insurance policies EXCEPT: A. Lump sum B. Extended term C. Fixed period D. Life income
Extended term
An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with? A. McCarran-Ferguson Act B. personal information Act C. USA Patriot Act D. Fair Credit Reporting Act
Fair Credit Reporting
When handling premium for an insured, and agent is acting in which capacity? A. fiduciary B. manager C. Proxy D. representative
Fiduciary
Which of the following is NOT included in comprehensive major medical plans? A. First-dollar coverage B. Coinsurance C. Deductibles D. Maximum coverage limits
First-dollar coverage
When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable? A. gains B. principal C. Contributions made by employer D. Contributions made by employee
Gains
Which of the following healthcare providers provides both the healthcare services and healthcare coverage? A. Tri-care B. health Maintenance Organization (HMO) C. Multiple Employer Welfare Arrangements (MEWA) D. Preferred Provider Organization
Health maintenance Organization(HMO)
Which of these is a method determining the level of funds required for ongoing support in the event of the breadwinners death? A. replacement value B. Financial loss value C. Assessment value D. human life value
Human life value
Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss" ? A. Unilateral B. Utmost good faith C. Aleatory D. Indemnity
Indemnity
Which type of life insurance is normally associated with a Payor Benefit rider? A. Spouse insurance B. Juvenile insurance C. Term rider D. Family income insurance
Juvenile insurance
The time limit for filing claim disputes is addressed in which provision of an accident and health policy? A. Legal actions B. Entire Contract C. payment of claims D. time of payment of claims
Legal actions
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? A. installment refund B. life income C. interest only D. fixed period
Life income
All of the following are examples of pure risk EXCEPT: A. jewelry stolen during a home robbery B. Falling at a casino and breaking a hip. C. Losing money at a casino D. Injured while playing football.
Losing money at a casino
Which of the following acts is NOT a Federal offense committed by an insurance agent? A. insurance fraud B. Misrepresentation on an insurance application C. Falsify records D. Embezzlement
Misrepresenting
how does one become eligible for Part D: Prescription Drug Coverage? A. Must meet certain undrewriting guidelines B. Must have Medicare Coverage C. Must have a valid prescription D. Must have Medicaid coverage
Must have Medicare Coverage
Disability icnome plans which require that the insurer can NEVER change or alter premium rates usually considered A. conditionally renewable B. Noncancelable C. Guaranteed renewable D. Optionally renewable
Noncancelable
Shirley has a 500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? A. nothing B. 500,000 C. 250,000 D. 100,000
Nothing
The cause of a risk due to a loss is referred to as:
Peril
What is known as the immediate specific event causing loss and giving rise to risk? A. loss factor B. liability C. Hazard D. Peril
Peril
In what form do disability income policies typically pay benefits? A. periodic income B. annuity C. tax credit D. lump sum
Periodic income
Which situation accurately describes a reduced paid-up nonforfeiture option? A. premiums must continue to be paid B. Policy has a decreased face amount C. face amount of the new policy equals that of the original policy D. Cash value is surrendered to policyowner
Policy has a decreased face amount
Which of the following is NOT considered to be insurer expenses? A. utilities B. Policy premiums C. employees' salaries D. Maintenance costs
Policy premiums
All of the following are considered appropriate uses of life insurance for business purposes EXCEPT: A. protecting the business by covering key employees with life insurance B. Funding an entity buy-sell agreement C. Protecting the business by covering entry level employees with life insurance D. Attracting quality employees by offering a group life plan
Protecting the business by covering entry level employees with life insurance
Which of the following is NOT Considered to be an act of insurance solicitation? A. an agency sending out direct mail for a promotion B. an agent giving a rate quatation C. Publishing a magazine where on of the advertisers is an insurer D. Airing a television commercial recommending an insurance product
Publisihing a magazine where one
Which of these factors do NOT affect the rates of medical insurance: A. Race B. Gender C. Occupation D. health
Race
Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? A. Charge of penalty B. Nothing C. Rescinding the contract D. Charge a higher premium
Rescinding the contract
Which of hte follow does NOT have to be included on life insurance policy illustrations? A. name of the agent B. Name of the insurer C. Age of the insured D. Statement that all values and benefits are guaranteed
Statements that all values and benefits are guaranteed
In a long-term care policy, activates of daily living (ADLs) can be each of the following EXCEPT A. feeding oneself B. Transferring C. dressing D. Talking
Talking
what determines the Social Security normal retirement age? A. Number of quarters employed B. Number of dependents C. Worker's average lifetime income D. year in which worker was born
Year in which worker was born
A hazard can be best described as A. a risk has the potential for both loss and gain B. the potential for loss C. the tendency for poorer than average risks to seek out insurance D. a condition that may increase the likelihood of a loss occuring
a condition that may increase the likelihood of a loss occuring
Medical expense insurance would cover: A. elective surgeries B. an injury cause by war C. an injury occurring at work. D. an injury occurring at the insures' residence
an injury occurring at the insured's residence
The California insurance Code allows an individual how many days to cancel a life policy for a full-refund? A. up to 10 days B. Between 10 and 30 days C. between 30 and 45 days D. between 15 and 20 days
between 10 and 30 days
All of the following are elements of an insurance policy EXCEPT A. claim forms B. conditions C. definitions D. other insurance
claim forms
An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called A. stop loss B. a managed plan C. coinsurance D. a deductible
coinsurance
In order for a contract to be valid, it must A. be signed and witnessed by an attorney B. contain an offer and acceptance C. be in writing D. be filed with the state
contain an offer and acceptance
Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the smae accident? A. children of the insured B. primary beneficiary's estate C. contingent beneficiary D. insured's estate
contingent beneficiary
Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt A. is killed while committing a felony B. dies instantly from a car accident C. is injured in a skiing accident and dies 18 months later D. dies of a stroke
dies instantly from a car accident
A life insurance policy that pays the face amount if the insured survives to a specified period of time is called A. universal life B. endowment insurance C. modified life D. whole life
endowment insurance
the taxable portion of each annuity payment is calculated using which method? A. Exclusion ration B. tax basis C. cost basis D. taxable ration
exclusion ratio
When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? A. The insurance company's financial rating B. The families financial objectives if the income earner were to die or become disabled C. The income earners Credit score D. the income earners future projected income
familys financial objectives if the income earner
Premium mode is a term used to describe the A. frequency of the premium payment B. method of payment C. premium past due D. premium paid
frequency of the premium payment
index whole life insurance contains a securities component that acts as a(n) A. incentive to purchase more coverage B. means to lowering taxes on earnings C. premium stabilizer D. hedge against inflation
hedge against inflation
The Human Life Value concept is based on A. income B. occupation C. education level D. age
income
Who does a life settlement broker represent? A. life agent B. individual wanting to sell their life policy to a third party C. Insurance company D. Private firm
individual wanting to sell their life
Health insurance will typically cover which of the following perils?: A. death due to illness B. dismemberment C. death due to accident D. injury due to accident
injury due to accident
Medicare Part A covers A. doctors fees B. prescription drugs C. inpatient hospital stay D. outpatient services
inpatient hospital stay
An accident and health policy that provides reimbursement benefits makes them payable to the: A. provider B. facility providing service C. insured spouse D. Insured
insured
Which of the following is NOT protected under the California Life and Health Guarantee Association> A. insureds B. Policyowners C. insurers D. Primary beneficiaries
insurers
Which of the following does the California Insurance Code NOT require an insurance policy to specify? A. insures financial rating B. what or who is being insured C. Premium D. Policy period
insurers financial rating
Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? A. Formed for the sole benefit of employees and their beneficiaries B. Contribution are applied with no regard to income C. Contains a vesting schedule D. it is temporary
it is temporary
A life insurance policy written on one contract for two people in which it is payable upon the first death is called A. joint B. Survivorship C. Split D. Shared
joint
An insured was injured as an innocent bystander when someone committed a felony. The insurer is A. likely to void the policy B. liable for the loss C. partially liable for the loss D. not liable
liable for the loss
All of these are considered key factors in underwriting life insurance EXCEPT A. marital Status B. Age C. Health History D. Tobacco use
marital status
In contrast to a guaranteed renewable policy, a noncancelable policy A. may never raise premiums B. may cancel the policy only at renewal C. may raise premiums at anytime D. may raise premiums at policy renewal
may never raise premiums
A participating company is also referred to as which type of insurer? A. Mutual insurer B. Reciprocal insurer C. Re-insurer D. Domestic insurer
mutual insurer
An insurer owned by its policyholders is called a A. stock insurer B. multi-line insurer C. mutual insurer D. reinsurer
mutual insurer
Under the Affordable care act, a large employer that does NOT provide health insurance and owes and employer mandate penalty MUST pay an annual penalty, which is calculated by multiplying 2000 by A. the number subsidized employees minus 10 B. the number of full time employees minus the 30 C. the number of full time employees minus 20 D. the total number of full time employees
number of full time minus 30
which type of disability would be less than total impairments and equal to permanent impairment? A. Partial total disability B. Temporary partial disability C. permanent partial disability D. Residual partial disability
permanent disability
According to the California insurance code, how is the word "may" interpreted? A. mandatory B. irrevocable C. voluntary D. permissive
permissive
Medicaid is intender for: A. Poverty stricken people B. people aged 65 and older C. people with kidney failure D. unemployed people
poverty stricken people
An insurance applicant with a below-average likelihood of loss is typically considered to be a A. preferred risk B. declined risk C. subpar risk D. standard risk
preferred risk
A situation in which their is ONLY a chance of loss or no loss is a A. particular risk B. speculative risk C. pure risk D. fundamental risk
pure risk
the "blackout period" affects whose benefits? A. Employer B. Disabled worker C. Surviving spouse D. Surviving children
surviving spouse
Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because: A. the MEC is considered an illegal product B. the MEC does not accumulate cash value C. the MEC tends to be an investment vehicle D. the MEC has tax deductible premiums
the MEC tends to be an investment vehicle
A life insurance policy's limit of liability would be A. the total premiums paid B. the policy's face amount C. determined by insurance company's reinsurer D. determined by the department of insurance
the policy's face amount
What does the term "indemnity" mean as it pertains to insruance? A. to over-insure B.. to assume risk C. to award punitive damages D. to make whole
to make whole
In an insurance contract, the insurer is the only part legally obligated to perform. Because of this, and insurance contract is considered. A. conditional B. voidable C. unilateral D. aleatory
unilateral
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 contact. This is considered a: A. deferred annuity B. illegal transaction C. Unnecessary replacement D. immediate annuity
unnecessary replacement
David submits a 500 claim for medical expenses. There is a past-due amount owned for insurance premiums of 200. As a result, the insurer only pays 300 for the claim. This deduction came as a result of which provision? A. Reduced benefit clause B. Consideration Clause C. Unpaid provision D. Waiver of premium provision
unpaid provision
Funding for Medicare Part B is partially provided by A. user premiums B. municipal bonds C. private insurers D. State boards
user premiums