CA LIFE HEALTH INSURANCE - GUARANTEE EXAM
Which of the following would be TRUE of both the fixed period and fixed amount settlement options?
Both guarantee that the principal and interest will be fully paid out
What would someone purchase for skilled nursing care?
Medicare and medicare supplements, but it is limited
A guarantee universal life policy has all of the following features EXCEPT
cash value
An ee that becomes ineligible for group coverage because of termination of employment must exercise COBRA within __ days.
60
If an agent follows the rules and terms of his agent contract, he is exercising his
Express authority (expressed in contract)
When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?
Paid-up additions
Which dividend option will increase the death benefit?
Paid-up additions
If the annuitant dies before the annuity start date, the interest is
the interest is taxable
In whole life insurance, when is the policy cash value scheduled to equal the face amount?
At the insured's age 100
An individual is approaching retirement age and is concerned about having proper coverage in an LTC facility, agent tells him LTC policies cover all EXCEPT
Acute care (covers intermediate, skilled, and custodial)
A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will
Continue to increase (it will build its own cash value and remains in force until death or maturity)
Annual enrollment period for state insurance exchanges runs November through
January
What is the only diff between blanket and group insurance?
The insured members are not named
Slippery floors, reckless driving, or providing false information are examples of
hazards
Which of the following is NOT normally an excluded cause of disability in an individual disability income policy?
Complications from a pregnancy
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
Decreasing term
Which is NOT a type of hazard?
Exposure
Guaranteeing future dividends is considered to be an unfair or deceptive act known as
Misrepresentation
Credit disability insurance will pay
Monthly payments until the insured recovers or the loan is paid off
Under the ACA, would pregnancy be considered a pre-existing condition?
Never
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
Underwriters use all of these methods to protect the insurer against adverse selection EXCEPT?
Only accepting a small percentage of applicants
An annuity would normally be purchased by an individual who wants to
Provide income for retirement
With a conditionally renewable policy, the premiums are more like to be
increased
Family Protection Policy
1. Add children born are already covered 2. Consists of whole life on base insured and riders on others 3. Convertible term riders cover both spouse and children
Features of a health insurance plan from marketplace:
1. Coverage for pre-existing conditions 2. Guaranteed renewability 3. Coverage for emergency services
What does an annuity protect the annuitant against?
Living longer than expected
Do medicare and medicap policies provide covers for long term custodial or nursing home care?
No. Medicare will cover nursing home care if it is part of the treatment for a covered injury or illness.
What is the difference between a straight life policy and a 20 pay whole life policy?
Premium payment period
Core benefits are included in all Medicare supplement policies. What percentage of Part B coinsurance is required?
20%
A medicare supplement policy must have a free look period of at least
30 days (SUPPLEMENT KEY WORD)
How long is the grace period for an individual life insurance policy in CA?
60 days
ALL of the following could qualify as a group for the purpose of purchasing group health insurance EXCEPT
an association of 35 years (would qualify= multiple er trust, single employer with 14 ee's, labor union)
Answers to questions in an insurance application are called representations and they are
believed to be true to the best of the applicant's knowledge
What are exclusions for cause of disability in an individual disability income policy?
Injury resulting from illegal activity, suicide, and war
To qualify for disability income benefits under SS, the disability must be expected to result in death or last for at least
12 months
What are the continuing education req for agents who market LTC policies?
8 hours of LTC specific education included in the regular CE requirements
What is it called when doctor approves Medicare amount?
Assignment
Which of the following is the cause of loss?
Peril
Which of the following is true regarding taxation of accelerated benefits paid under a life insurance policy?
They are received tax free (if for someone terminally ill)
A specified disease policy would cover which of the following?
Cancer (specified in contract such as cancer or heart disease)
Which of the following is true of the taxation of cash values in a business life insurance policy?
Cash values grow tax deferred
Concerning the Family Protection Policy, all of the following are true EXCEPT
Children upon reaching age of majority, are permitted to convert to an individual policy without proof of insurability
In order to be financially solvent, an insurer must accomplish all of the following EXCEPT
Contribute a specific amount of capital reserves to the state
Key person insurance taxes
Death benefit is not taxable to the business and the premiums are not deductible by the business
Which time period is general enrollment for Medicare Part B?
January 1 through March 31
What is the most common name for a single policy that is designed to insure two or more with a standard premium, and pays death benefit upon first death
Joint life
Who would be insured in business disability insurance?
Key employees
When may HIV related test results be provided to the MIB?
Only if the individual is not identified
If a basic medical insurance plan's benefits are exhausted, what type of plan will then begin covering those losses?
Supplementary major medical
All of the following are true about key person insurance except
The death benefit is taxable to the business (EE must give consent)
Who is the annuity owner?
The person who purchases the annuity
An insurance company that is owned by the policyholders is called a
mutual insurer
What does the application of contract of adhesion mean?
Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured
All of the following are features of a health insurance plan purchased on the health insurance marketplace EXCEPT
Dollar limits on essential benefits (YOU CAN'T PUT A LIMIT ON ESSENTIALS)
A graded premium life insurance policy is a modified form of
Whole Life
Does medicaid pay for nursing home care?
Yes, but it provides coverage only for those who qualify with low income and low assests
What is survivorship life?
Pays out at second death, also called second to die or last survivor
If the annuitant dies before the annuity start date, which of the following is true?
The interest is tax free if the beneficiary is a spouse
What is the minimum # of members in a group for life insurance in CA?
10
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
Fixed amount
An applicant completes an app for disab and pays the premium. The producer gives conditional receipt. Coverage becomes effective when
The insurance company accepts the risk
The purpose of the California insurance guarantee association is to protect interest of policyholders from insolvent insurers. All are covered EXCEPT
The insurers within the last 10 years held a license in the states in which the persons reside
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
Medical Loss Ratio
How much of the health coverage premium must go toward actual medical care
Under what circumstances will the contingent beneficiary receive the death benefit?
If the primary beneficiary dies before the insured
In order for an alum association to purchase group health, all must be true EXCEPT
Has been active for 5 years minimum (it can be a brand new association and doesn't have to wait 5 years duh) Req: 100 members, constitution, organized for reasons other than insurance
What are annuity contracts designed to do?
Liquidate an estate and to protect a person against outliving his or her money
Regarding the PPACA health care tax credit, which is true?
Persons receiving Medicaid are not eligible
In some cases, in order for an insurer to legally disclose privileged information to appropriate sources, the insured must sign an auth form. What is the max amt of time that can legally pass between the completion of the form and the disclosure of the info?
1 year (They have one year of consent basically)
If an insurance company issues a policy even though some questions on the app were unanswered, when can the insurer get the answers?
Never! The insurer has waived its right to those answers by issuing the policy
If an insured purchases an insurance policy with a large deductible, what risk management technique is the insured exercising?
Retention
An individual was denied coverage under SS because disability did not meet the strict definition. Which of the following would provide disability income coverage?
SIS rider