Chapter 20 California Life Insurance
Advising a claimant to hire an attorney
Which of the following is NOT considered to be an unfair claims settlement practice?
Traveling overseas with a spouse
Which of the following is NOT covered by the Family and Medical Leave Act (FMLA)?
insurers
Which of the following is NOT protected under the California Life and Health Guarantee Association?
$170,000
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?
solicitor
Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance
foreign insurer
In California, an insurer organized under the state laws of Oregon is considered a
The Health Insurance Counseling and Advocacy Program (HiCAP)
In California, the elderly can receive information about health related issues from
theft
Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?
An insured suffers a financial loss in the state lottery
According to the California Insurance Code, which of the following is NOT an example of an insurable event?
conservation
An agent's attempt to stop the replacement of an existing life insurance policy is known as
2 years
How long must a policy be in force before an insurer is prohibited from denying claims based on misstatements made on the health policy application?
Annually
Life insurance surplus must be distributed to policyowners at what frequency?
Medi-Cal
People with low income can be provided with medical assistance through which program?
Its paid-in capital
The California Insurance Code requires that an insurer must have enough assets to cover its liabilities a
30 days
The free-look period for life insurance policyowners age 60 or older is
Fiduciary
When handling premiums for an insured, an agent is acting in which capacity?
Statement that all values and benefits are guaranteed
Which of the following does NOT have to be included on life insurance policy illustrations?
Up to age 26
According to PPACA, how long can an adult be covered as a dependent under their parents' insurance plan?
An entity to which individuals and small businesses can have access to affordable health coverage
According to PPACA, what is a health benefits exchange?
Permissive
According to the California Insurance Code, how is the word "may" interpreted?
$5,000
According to the California Insurance Code, what is the maximum penalty per violation for anyone who unwillfully commits an unfair method of competition?
Materiality
According to the California Insurance Code, what term is used to describe a fact so important it could affect the policy premium?
gold
According to the PPACA, the medical enrollment tier that has 80% actuarial value is called
The name is the licensee's actual name
All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious name EXCEPT
Institutional (nursing facilities) and home care
An insurance policy issued in California may be called a comprehensive long-term care insurance policy if benefits are provided for
unfair discrimination
An insurer that has been found using higher rates based on race, religion, or ethnicity is said to be engaging in
30 days
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
all of these
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
Based on the date an individual's application is received
In what order are people on the MRMIP waiting list allowed to enroll?
at all times
Insurance agents and brokers must make their insurance records available to the Commissioner
Major Risk Medical Insurance Program (MRMIP)
MRMIP stands for
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 than the existing contract. This is considered a(n)
Between 10 and 30 days
The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund?
Lance Manyon Insurance Services
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?
Self-funded plans
The California Life and Health Insurance Guarantee Association covers all of these types of policies EXCEPTWhole life
Presentation of policy features that includes non-guaranteed elements
What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code?
Pregnancy must be treated as any other medical condition
What effect did the Pregnancy Discrimination Act have on the health industry?
A person compensated for transacting insurance on behalf of another person with an insurer
What is an "insurance broker" according to California Insurance Code?
Incontestability Clause
What prevents a life insurance policy from being rescinded by the insurer after being in force for two years?
admitted
When an insurer has met the qualifications necessary to transact business in California, it is said to be
California
Where must you specifically reside to qualify for MRMIP?
Charge a fee
Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy Program (HiCAP) counselors?
Misrepresentation on an insurance application
Which of the following acts is NOT a Federal offense committed by an insurance agent?
Medicare
Which of the following does the California Department of Insurance (CDI) have NO jurisdiction over?
Interpret policy provisions
Which of the following is NOT a primary objective of insurance regulation?
Publishing a magazine where one of the advertisers is an insurer
Which of the following is NOT considered to be an act of insurance solicitation?
Individual wanting to sell their life policy to a third party
Who does a life settlement broker represent?
The free-look period begins on the policy delivery date
Why is the delivery of a life insurance policy important?
