Life and Health Practice Exam Wrong Questions
#79. What is the typical deductible for basic surgical expense insurance? a) $0 b) $100 c) $200 d) $500
a) $0
#51. What percentage of eligible employees must participate in a noncontributory health insurance plan before the plan can become effective? a) 100% b) 75% c) 50% d) 25%
a) 100%
An insurance applicant is requesting more information from her agent about a claim that is currently being settled. Within what period of time must the agent respond? a) 15 days b) 21 days c) 31 days d) 90 days
a) 15 days
#47. An IRA owner is almost 75 years old when she chooses to collect distributions. What is the penalty the IRA owner would pay? a) 50% tax on the amount that was not distributed as required b) No penalties, since the owner is older than 59 ½ c) 10% for early withdrawal d) 15% for early withdrawal
a) 50% tax on the amount that was not distributed as required
#42. In which of the following situations is it illegal for an insurance provider to disclose privileged information about an insured? a) A researcher for marketing purposes b) The Department of Insurance to determine legal compliance c) Law enforcement authorities for law oriented purposes d) An auditor for auditing purposes #43. The section of a health policy that specifies the eligible causes of loss under which an insured is presumed to be disabled is the a) Consideration clause. b) Probationary period. c) Insuring clause. d) Incontestability clause.
a) A researcher for marketing purposes
Underwriting for disability insurance is unique because of the type of risk involved. Which of the following situations demonstrates this? a) A window washer pays a higher premium and receives a poorer classification of disability. b) A stunt performer pays a low premium and receives a superior classification of disability. c) An accountant pays a higher premium and receives a poorer classification of disability. d) An administrative assistant pays a higher premium and receives a superior classification of disability.
a) A window washer pays a higher premium and receives a poorer classification of disability.
#64. An individual that DOES NOT work on the behalf of the insurer for which they do business, but rather represents the prospect, client, or insured is called a) An insurance broker. b) An insurance solicitor. c) An insurer's agent. d) A fiduciary trustee.
a) An insurance broker.
#65. Which describes the characteristics of a comprehensive major medical policy? a) Basic medical expense benefits are offered in a single package. b) The deductible is always expressed as a deferred amount. c) It is identical to major medical insurance. d) There is no coinsurance.
a) Basic medical expense benefits are offered in a single package. Comprehensive major medical policy combination of basic expense coverage and major medical coverage sold as single policy
A group policy used to provide accident and health insurance to a group of individuals being transported by a common carrier, without individually naming the insureds is called a a) Blanket policy. b) Universal policy. c) Comprehensive policy. d) Limited benefit policy.
a) Blanket policy.
#62. Which of the following terms best describes the arrangement in which an insured receives an annual life insurance dividend check? a) Cash option b) Reduction of Premium c) Annual Dividend Provision d) Accumulation at Interest
a) Cash option
The purpose of managed care health insurance plans is to a) Control health insurance claims expenses. b) Allow for the continuation of coverage when an employee leaves the plan. c) Give the insured an unlimited choice of care providers. d) Coordinate benefits.
a) Control health insurance claims expenses.
#72. A long stretch of national economic hardship results in a 7% rate of inflation. A policyholder notices that the face value of his life insurance policy increased 7% because of this. Which policy rider caused this change? a) Cost of Living Rider b) Value Adjustment Rider c) Return of Premium Rider d) Inflation Rider
a) Cost of Living Rider
#123. A health insurance policy that pays a lump sum if the insured suffers a stroke or heart attack is known as a) Critical illness. b) Major medical. c) AD&D. ) Medical expense.
a) Critical illness.
#138. As it pertains to group health insurance, COBRA stipulates that a) Group coverage has to be extended for terminated employees up to a certain time period at the expense of the former employee. b) Retiring employees need to be allowed to convert their group coverage to individual policies. c) Terminated employees need to be allowed to convert their group coverage to individual policies. d) Group coverage has to be extended for terminated employees up to a certain time period at the expense of the employer.
a) Group coverage has to be extended for terminated employees up to a certain time period at the expense of the former employee.
#5. Events or conditions that increase the likelihood of an insured loss occurring are referred to as a) Hazards. b) Exposures. c) Risks. d) Perils.
a) Hazards. Conditions like existing health and lifestyle, or activities such as scuba diving *Hazard, increase the likelihood of a loss occuring
#63. Which of the following types of long-term care is NOT provided in an institutional setting? a) Home health care b) Custodial care c) Skilled nursing care d) Intermediate care
a) Home health care
#77. Which foundational principle of insurance states that if a policy allows for greater compensation than the financial loss sustained, the insured can only receive benefits for the amount lost? a) Indemnity b) Stop-loss c) Consideration d) Reasonable expectations
a) Indemnity
#19. Regarding the annuity period, which of the following is TRUE? a) It can last for the annuitant's lifetime. b) During this period of time the annuity payments grow interest tax-deferred. c) It is also called the accumulation period. d) It is the period of time during which premiums are paid into the annuity by the annuitant.
a) It can last for the annuitant's lifetime. Annuity period, accumulated funds are converted into a stream of income that can last for annuitant's entire life
#78. The Small Employer classification means any individual actively engaged in a business that on at least 50% of its working days during the previous year employed a) No more than 50 employees. b) At least 10 and not more than 100 employees. c) No more than 25 employees. d) At least 3 and not more than 25 employees.
a) No more than 50 employees. Small Employer is defined as any individual involved in a business that on at least 50% of its working days, during the previously year employed not more than 50 eligible employees
All of the following are examples of risk retention EXCEPT a) Premiums. b) Deductibles. c) Copayments. d) Self-insurance.
a) Premiums.
#118. If an individual receives benefits for longterm care from Medi-Cal, when that recipient dies, the state can a) Pursue asset recovery against the recipient's estate. b) Pursue asset recovery against the recipient's heirs. c) Both 1 and 2. d) Neither 1 nor 2.
a) Pursue asset recovery against the recipient's estate.
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain time period, and proof of insurability is provided. Which policy provision allows this? a) Reinstatement provision b) Waiver of premium provision c) Incontestable d) Grace Period
a) Reinstatement provision
A domestic insurer issuing variable contracts needs to establish one or more a) Separate accounts. b) Liability accounts. c) Annuity accounts. d) General accounts.
a) Separate accounts.
Which of the following settlement options provide a single beneficiary with income for the rest of their life? a) Single Life b) Fixed Amount c) Lump Sum d) Retained Assets
a) Single Life
An applicant purchases a non-qualified annuity, but dies before the starting date. For which of the following beneficiaries would the annuity's accumulated interest NOT be taxable? a) Spouse b) Charitable organization c) Dependents d) Annuitant
a) Spouse
Group underwriting is beneficial in comparison to individual underwriting because of which of the following reasons? a) The cost of coverage is usually lower because of the reduction of risk b) Every member is eligible for the entire contract period c) There are no enrollment restrictions d) Previous claims are never a consideration
a) The cost of coverage is usually lower because of the reduction of risk
#33. In employee benefit plans, selection of coverage refers to a) The employee selecting benefits. b) The employer selecting providers. c) The employer selecting the benefits for employees. d) None of the above.
a) The employee selecting benefits. Selection of coverage lets employees select benefits that best suit their needs
Under a Key Person Life Insurance policy, who is the owner and who is the beneficiary? a) The employer is the owner and the beneficiary. b) The employer is the owner and the key employee is the beneficiary. c) The key employee is the owner and the beneficiary. d) The key employee is the owner and the employer is the beneficiary.
a) The employer is the owner and the beneficiary.
An insured had $500 left in her Health Reimbursement Account when she quit her job. What happens to that money? a) The insured can have access to the $500 at the discretion of her previous employer. b) The previous employer will issue a check for $500 payable to the insured. c) It can be rolled over into an HRA with her new employer. d) The insured can use up the $500 provided that she has qualified medical expenses.
a) The insured can have access to the $500 at the discretion of her previous employer.
#50. In which of the following instances would an "any occupation" disability income policy pay benefits? a) The insured is unable to perform any jobs in the field related to the insured's experience and education. b) The insured is unable to perform the duties of their specific occupation. c) The insured begins a new job and is injured as a result of a more hazardous occupation. d) The insured's family has unexpected expenses because of the insured's disability.
a) The insured is unable to perform any jobs in the field related to the insured's experience and education.
#150. If a Medicare insured uses a health care provider who does not accept Medicare payments, which of the following will be true? a) The insured may need to sign a private contract with the provider. b) Medicare insureds cannot use nonparticipating providers. c) The provider may need to sign a private contract with Medicare. d) The insured needs to notify their Medicare agency.
a) The insured may need to sign a private contract with the provider.
#148. An insured obtained a non-cancelable health insurance policy 1 year ago. Which of the following situations would NOT be a reason for the insurance provider to cancel the policy? a) The insured suffers an accident and incurs a large claim. b) The insured does not pay the premium. c) The insured reaches the maximum age limit stated in the policy. d) Within two years of the application, the insurance provider discovers a misrepresentation.
a) The insured suffers an accident and incurs a large claim.
#134. Which of the following policies would contain an IRS-required corridor or gap between the death benefit and the cash value? a) Universal Life - Option A b) Universal Life - Option B c) Equity Indexed Universal Life d) Variable Universal Life
a) Universal Life - Option A
Under the long-term care's assisted living care, what types of services may NOT be provided? a) Visits by a registered nurse b) Linens and personal laundry service c) Assistance with dressing and bathing d) Reminders regarding medication
a) Visits by a registered nurse
An insured is covered under 2 group health plans - his own and his spouse's. He had incurred a loss of $2,000. After the insured paid the total of $500 in coinsurance and deductibles, the primary insurer paid $1,500 of medical expenses. What amount, if any, would be covered by the secondary insurer? a) $0 b) $500 c) $1,000 d) $2,000
b) $500
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the policy's grace period? a) 7 days b) 10 days c) 31 days d) 60 days
b) 10 days
COBRA applies to employers with at least how many employees? a) 50 b) 20 c) 80 d) 60
b) 20
A worker must have earned at least how many credits during the last 13 quarters to attain currently insured status under Social Security? a) 4 credits b) 6 credits c) 10 credits d) 40 credits
b) 6 credits
#143. Employers can lower health plan costs by combining a Health Reimbursement Account (HRA) with a) Nothing; HRAs cannot be combined with any other health plan. b) A high deductible health plan (HDHP). c) A low deductible health plan. d) An Individual Retirement Account (IRA).
b) A high deductible health plan (HDHP).
Who is a third-party owner? a) An irrevocable beneficiary b) A policyholder who is not the insured c) An insurance provider who issues a policy for two people d) An employee in a group policy Third-party owner is a legal term
b) A policyholder who is not the insured
The two types of assignments are a) Complete and proportionate. b) Absolute and collateral. c) Absolute and partial. d) Complete and partial.
b) Absolute and collateral.
In which distribution system must the potential client take the initiative and respond to an advertisement through a mail or telephone contact with the insurance provider? a) Direct agency system b) Direct response system c) Managing general agent d) Home Service System
b) Direct response system
Which of the following employees insured under a group life plan would be able to convert to individual insurance of the same coverage once the plan is terminated? a) Employees who have no history of claims b) Employees who have been insured under the plan for at least 5 years c) Employees who have worked in the company for at least 3 years d) Employees who have dependents If the master contract is terminated,
b) Employees who have been insured under the plan for at least 5 years
#125. With respect to the standard Medicare Supplement benefits plans, what does the term "standard" mean? a) Coverage options and conditions are designed for average individuals. b) Every provider will have the same coverage options and conditions for each plan. c) Coverage options and conditions comply with the law but will be different from provider to provider. d) All plans must include basic benefits A-N.
b) Every provider will have the same coverage options and conditions for each plan.
Equity indexed annuities a) Are security instruments. b) Invest conservatively. c) Seek higher returns. d) Are more risky than variable annuities.
c) Seek higher returns.
#21. A policyholder owns a policy in which he is insured as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy does this insured own? a) Family Protection Policy b) Family Income Policy c) Family Policy d) Family Maintenance Policy
b) Family Income Policy If insured dies during the income period, monthly benefits are paid to the survivors for remainder of income phase. The beneficiary is then paid the death benefit
#71. Which of the following is an eligibility requirement for all Social Security Disability Income benefits? a) Be at least age 50 b) Have attained fully insured status c) Be disabled for at least 1 year d) Have permanent kidney failure
b) Have attained fully insured status Although Social Security offers many benefits like retirement, survivors and Medicare, only those who have attended fully insured status are eligible for disability income benefits. Contribution benefits: 10 years, 40 quarters attains fully insured status
Units with the same or similar exposure to loss are known as a) Law of large numbers. b) Homogeneous. c) Catastrophic loss exposure. d) Insurable risks.
b) Homogeneous.
Which of the following plans could an individual employed at a manufacturing company qualify for if he decides to fund a retirement plan for himself? a) Simplified Employee Pension Plan b) Individual Retirement Account c) 403(b) TSA d) HR-10
b) Individual Retirement Account
#128. A life insurance policy has a legal purpose if both of which of the following elements exist? a) Policy owners and named beneficiaries b) Insurable interest and consent c) Underwriting and reciprocity d) Offer and counteroffer
b) Insurable interest and consent
An insured claims to have injured his back at work. He tells the doctor that he cannot lift, bend, or even sit comfortably without pain. Based on the insured's statements, the doctor certifies his disability and he begins to receive disability benefits. If it can be shown that the insured did not suffer the injury he has claimed or that he is not suffering the effects he is claiming, the insured will be charged with a) Unfair claims practices. b) Insurance fraud. c) Medical misrepresentation. d) Financial abuse of an insurance provider.
b) Insurance fraud.
Which of the following does NOT describe hospice care? a) It delivers care to terminally-ill people. b) It delivers care to people with life expectancies of 1 to 2 years. c) It delivers continuous care. d) It delivers care in a home-like setting.
b) It delivers care to people with life expectancies of 1 to 2 years.
Regarding installments for a fixed period annuity settlement option, all of the following statements are true EXCEPT a) The insurance provider determines the amount for each payment. b) It is a life contingency option. c) It will pay the benefit only for a designated period of time. d) The payments are not guaranteed for life.
b) It is a life contingency option.
#133. For an insured group's reported losses to become more likely to equal the statistical probability of loss for that particular class, the insured group needs to become a) More active. b) Larger. c) Smaller. d) Older.
b) Larger.
Which of the following is the most common time for errors and omission to take place on the part of an insurance provider? a) Application process b) Policy delivery c) Policy renewal d) Underwriting
b) Policy delivery
The CEO of a corporation is starting an annuity and decides that her company will be the annuitant. Which of the following statements is true? a) The contract can be issued without an annuitant. b) The annuitant has to be a natural person. c) A corporation can be an annuitant provided that it is also the owner. d) A corporation can be an annuitant provided that the beneficiary is a natural person.
b) The annuitant has to be a natural person.
#6. An insured has a handicapped grown-up child who is chiefly dependent upon him for support and maintenance. How will that affect the insured's insurability in the group plan? a) The insured will receive full benefits, but his dependent will not be covered. b) The insured's dependent's condition will not affect his eligibility or rating. c) The insured will not qualify for group benefits because of his dependent's physical condition. d) The insured can qualify for partial benefits
b) The insured's dependent's condition will not affect his eligibility or rating.
#20. Which of the following is accomplished by having an elimination period in a policy? a) To ensure that claims are not paid until an investigation can be done to verify that the claim is valid and covered by the policy. b) To give the client some flexibility in determining their own premium. c) To give the insured time to save up the initial premium charged when they receive a premium rating. d) To allow the insurance provider to do an in depth background check on ethnic groups
b) To give the client some flexibility in determining their own premium. Allow balance premium expense and benefits
Under Social Security, all of the following benefits are available EXCEPT a) Death benefits. b) Welfare benefits. c) Old-age and retirement benefits. d) Disability benefits.
b) Welfare benefits.
Under a long-term care policy, when can an insured deduct unreimbursed medical expenses? a) Only if the insured does not itemize the expenses b) When the expenses exceed a specified percentage of the insured's adjusted gross income (AGI) c) Only if the insured is age 65 or older d) All LTC expenses are tax-deductible. In either medical expense
b) When the expenses exceed a specified percentage of the insured's adjusted gross income (AGI)
#126. An insured obtained a 15-year level term life insurance policy with a face amount of $100,000. The policy included an accidental death rider, offering a double indemnity benefit. The insured was severely injured in a car accident, and after 10 weeks of hospitalization, died from the injuries. What amount would the insured's beneficiary receive as a settlement? a) $0 b) $100,000 c) $200,000 d) $100,000 plus the total of any premiums paid
c) $200,000
What is the penalty for IRA distributions that are below the required minimum for the year? a) 10% b) 25% c) 50% d) 60%
c) 50%
The filling of cavities would be covered by which of the following dental insurance categories? a) This type of work is not covered. b) Routine and preventative maintenance c) Routine and major restorative care d) Orthodontic care
c) Routine and major restorative care
In insurance, an offer is typically made when a) The producer hands the policy to the policy owner. b) A producer explains a policy to a potential applicant. c) An applicant submits an insurance application to the insurer. d) The insurance provider approves the application and.
c) An applicant submits an insurance application to the insurer.
The minimum rate of interest on an equity indexed annuity is often based on a) The annuitant's individual stock portfolio. b) The insurer's general account investments. c) An index such as the S&P 500. d) The returns from the insurer's separate account.
c) An index such as the S&P 500.
When an insured incurs medical expenses during the final 90 days of a calendar year, the Carry-Over Provision allows them to a) Transfer their expenses to the credit of a covered family member if the claim is ongoing from January 1st. b) Waive premium payments for the new year. c) Apply such expenses to the new year's deductible. d) Lower their premium for the new year if the claim is finalized before December 31st.
c) Apply such expenses to the new year's deductible.
#131. Who is required to sign the notice regarding replacement? a) Applicant only b) Agent only c) Both the agent and applicant d) Both the insurer and the agent
c) Both the agent and applicant
What is the size of the companies that are eligible for health reimbursement accounts (HRAs)? a) Sole proprietors only b) Companies with at least 100 employees only c) Companies of all sizes d) Small employers only
c) Companies of all sizes
#144. Your client wants to purchase a par policy to supplement her retirement savings program. What does your client need to know about insurance policy dividends? a) Dividends require the purchase of additional insurance. b) Dividends are guaranteed. c) Dividends are considered a refund of unused premiums. d) Dividends are written into the contract.
c) Dividends are considered a refund of unused premiums.
#69. Under a group insurance policy, when an employee's coverage is terminated, the coverage remains in force a) Until the employee can secure coverage under a new group plan. b) Until the employee notifies the group insurance provider that a coverage conversion policy is issued. c) For 31 days. d) For 60 days.
c) For 31 days. Under the conversion privilege, an employee has 31 days to convert to an individual policy
Mortality - Interest + Expense = a) Operating expenses b) Net premium c) Gross premium d) Benefits budget
c) Gross premium
#147. What will happen if a producer submits an insurance application to an insurer to which she is not appointed? a) The insurance company will not accept the policy. b) The producer will be found guilty of a misdemeanor. c) If the insurance company accepts the policy, it must appoint the agent. d) The application will not have to be approved by an underwriter.
c) If the insurance company accepts the policy, it must appoint the agent.
#43. The section of a health policy that specifies the eligible causes of loss under which an insured is presumed to be disabled is the a) Consideration clause. b) Probationary period. c) Insuring clause. d) Incontestability clause.
c) Insuring clause. Insuring Clause a provision on the first page of the policy that specifies the coverage and when does it applies
#22. Which statement is INCORRECT concerning Medicare Part B? a) It provides limited prescription drug coverage. b) It offers partial coverage for medical expenses not fully covered by Part A. c) It is fully funded by FICA (Social Security taxes). d) It is referred to as medical insurance.
c) It is fully funded by FICA (Social Security taxes). Plan B is subsidized by monthly premiums and funded from the federal government's general revenues
Regarding a term health policy, which of the following is true? a) It is guaranteed renewable. b) It is non-cancelable. c) It is nonrenewable. d) It is conditionally renewable.
c) It is nonrenewable.
#1. Regarding the Medical Information Bureau (MIB), all of the following are true EXCEPT a) MIB reports include previous insurance information. b) Insurance providers cannot refuse to accept an application solely because of information in an MIB report. c) MIB reports are put together from information supplied by doctors and hospitals. d) MIB information is reported to underwriters in coded form.
c) MIB reports are put together from information supplied by doctors and hospitals. (Comes from underwriting disclosure made by applicants to MIB member insurance companies on past insurance application)
#7. How often must all insurance companies doing business in California report its financial condition to the Commissioner? a) January 1st of odd-numbered years b) Every year, on or before March 1st c) March 1st of even-numbered years d) Every year, on or before January 1st
c) March 1st of even-numbered years
Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy but is uncertain whether the free-look provision applies. Where could the insured find that information? a) Buyer's Guide b) Certificate of Coverage c) Notice Regarding Replacement d) Policy application
c) Notice Regarding Replacement
#26. Where in the long-term care policy must the insurance company state the renewal provision? a) In the policy appendix b) Anywhere the insurance company deems appropriate c) On the first page d) In the Provisions and Exclusions section
c) On the first page
#16. An applicant for health insurance has not had a medical claim in 5 years. She does not smoke or drink and exercises daily. What classification do you assume the applicant would receive from her insurer? a) Standard b) Superior c) Preferred d) Low-risk
c) Preferred
#67. All the factors are NOT TRUE when used to provide statistics and data to an insurance company to project losses and the ensuing cost of insuring risks in a group disability policy, EXCEPT a) The group's number of eligible participants. b) The number of group carriers. c) Price, stability, and longevity with a certain carrier. d) Expenses, interest, and experience of a particular carrier's premiums. #68. Skilled care would more than Chant, Leland. California Life and Health Insurance License Exam Prep: Updated Yearly Study Guide Includes State Law Supplement and 3 Complete Practice Tests (p. 320). Bright Idea Publishers. Kindle Edition.
c) Price, stability, and longevity with a certain carrier. Determinant factors of losses and cost of insuring risks in a group
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a a) Nonforfeiture option. b) Rollover. c) Settlement option. d) Nontaxable exchange.
c) Settlement option.
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT a) Respite care. b) Home health care. c) Skilled care. d) Custodial care in the insured's house.
c) Skilled care.
Under Plan A in Medigap insurance, which of the following is NOT covered? a) The 20% Part B coinsurance amounts for services approved by Medicare b) The first three pints of blood every year c) The Medicare Part A deductible d) Approved hospital costs for 365 additional days after Medicare benefits end
c) The Medicare Part A deductible
#34. Which of the following determines a variable life policy's cash value? a) The policy's guarantees. b) The premium mode c) The performance of the policy portfolio d) The company's general account
c) The performance of the policy portfolio
#141. Under an extended term nonforfeiture option, the policy cash value is converted to a) A smaller face amount than the whole life policy. b) A higher face amount than the whole life policy. c) The same face amount as the whole life policy. d) The face amount equal to the cash value.
c) The same face amount as the whole life policy.
#61. Regarding taxation, how are contributions to a tax-sheltered annuity treated? a) They are taxed as income to the employee. b) They are taxed as income to the employee, but are tax-free once withdrawn. c) They are not included as income for the employee, but are taxable upon distribution. d) They are not taxed.
c) They are not included as income for the employee, but are taxable upon distribution.
What is the purpose of the buyer's guide? a) To list every policy rider b) To provide information about the issued policy c) To let the consumer compare the costs of different policies d) To provide the name and address of the producer issuing the policy
c) To let the consumer compare the costs of different policies
The insured is also the policyholder of a whole life policy. What age must the insured reach to receive the policy's face amount? a) 65 b) 70 ½ c) 90 d) 100
d) 100
#76. Which of the following would be exempt from the California Department of Insurance's jurisdiction? a) An insurance provider that offers coverage for chiropractic services. b) A producer transacting insurance in the state of California. c) Health care service plan. d) An admitted insurer subject to jurisdiction in Nevada.
d) An admitted insurer subject to jurisdiction in Nevada.
#114. Creditable coverage includes a) Workers compensation. b) Credit-only insurance c) Coverage only for accident or disability income insurance. d) Coverage under a state health benefits risk pool.
d) Coverage under a state health benefits risk pool.
#11. Vinnie owns a home and has no mortgage payments. He makes $100,000 a year and has $500,000 invested in CDs. His brother Darrell has a mortgage payment of $1,500, and a car payment of $300 every month. He makes $50,000 a year. Both Vinnie and Darrell become disabled and apply for disability income. Which of the following would most likely be true, all other things being equal? a) Vinnie and Darrell will receive equal benefits. b) Vinnie will receive no benefits since he has no financial obligations. c) Vinnie will be more likely to receive a larger benefit since his net-worth is higher. d) Darrell will be more likely to receive a larger benefit since he has more financial obligations.
d) Darrell will be more likely to receive a larger benefit since he has more financial obligations.
#40. The automatic premium loan provision is activated at the end of the a) Free-look period b) Elimination period. c) Policy period. d) Grace period.
d) Grace period.
#2. A Medicare supplement plan needs to have at least which of the following renewal provisions? a) Conditionally renewable b) Nonrenewable c) Non-cancelable d) Guaranteed renewable
d) Guaranteed renewable
#73. If an annuity or retirement plan is qualified, this means a) It has an early withdrawal penalty. b) It accepts after-tax contributions. c) It is non-cancelable. d) It is approved by the IRS.
d) It is approved by the IRS.
#70. What type of care is provided with intermediate care in LTC insurance? a) Non-medical daily care b) Daily care, but not nursing care c) Intensive care d) Occasional nursing or rehabilitative care
d) Occasional nursing or rehabilitative care
#37. The causes of loss insured against in an insurance policy are known as a) Losses b) Risks c) Hazards d) Perils
d) Perils Perils cause of loss insured against in a insurance policy
#30. All long-term care insurers in California have to submit to the Commissioner a list of every agent or other insurer representative authorized to solicit individual consumers for the sale of LTC insurance. These submitted agent lists need to be updated at least a) Monthly. b) Quarterly. c) Annually. d) Semiannually.
d) Semiannually.
#60. Which of the following would give an underwriter information regarding the health history of an applicant? a) A medical examination b) The agent's report c) The inspection report d) The Medical Information Bureau
d) The Medical Information Bureau
The premium for a variable annuity can be invested in all of the following during the free-look period EXCEPT a) Fixed-income investments. b) Money-market funds. c) Mutual funds (only upon the investor's request). d) Value funds.
d) Value funds.
