quiz 4

Every insurer must pay the claim within what time period after all the parties are in agreement of the amount of the claim? a.30 calendar days b.60 calendar days c.60 business days d.30 business days

a.30 calendar days

All the following are true concerning fraud or are examples of fraud except: a.80% of all claims reported are fraud b.arson for profit c.fake life claims d.if insured signs a fraudulent claim they may be committing perjury

a.80% of all claims reported are fraud

The CLHIGA would cover which of the following? a.Life insurance contracts b.Unallocated annuity contracts c.Employer and association plans d.Synthetic guaranteed interest contracts

a.Life insurance contracts

All the following are important reasons why people buy life insurance. Which is the most important reason? a.because someone needs to keep on living b.estate taxes c.pay off debts d.college education fund

a.because someone needs to keep on living

Limit of liability in life insurance is what? a.death benefit b.loan value c.cash value d.there is none

a.death benefit

Under the False and Fraudulent Claims Article, If a person is convicted of insurance fraud, the fine can be up to: a.$25,000 b.$150,000 c.$10,000 d.$5,000 if prosectuted as a misdemeanor

b.$150,000

The CLHIGA provides protection for insolvency of member life and health insurers for which of the following limits? a.80% of contractual obligation or 250,000 cash per contract. b.$250,000 per one insured life c.Health claims up to $250,000 d.None of these are correct.

b.$250,000 per one insured life

Any insurer has how many days to accept or deny a claim? a.30 calendar days b.40 calendar days. c.15 days d.30 business days

b.40 calendar days.

The primary purpose of key person life insurance is to protect: a.To provides benefits to be paid by the business to the employee's family upon their death. b.A business against the financial loss of an important executive or employee. c.A family against the death of the key breadwinners d.To protect the lending institution by paying an outstanding business loan upon the death of a key employee of that business.

b.A business against the financial loss of an important executive or employee.

A life, health, or disability insurer can discriminate based upon: a.Blindness or partial blindness. b.Age and sex of the proposed insured c.None of these can be used to discriminate against a proposed insured. d.The fact that the proposed insured carries a gene that may be associated with a disability in that person or their offspring.

b.Age and sex of the proposed insured

Concerning fraud the false statement would be: a.All claim forms must contain the statement that: For your protection California law requires the following to appear on this form: Any person who knowingly presents a false or fraudulent claim for the payment of a loss is guilty of a crime and may be b.Every insurer must maintain their own fraud unit to investigate fraudulent claims from other insurers. c.The monetary fine for fraud is up to $150,000 or twice the value of the fraud. d.Fraud can include time in a state prison of up to 5 years.

b.Every insurer must maintain their own fraud unit to investigate fraudulent claims from other insurers.

Which one of the following is a classification upon which risk and insurability are present? a.Religion b.Location of the home c.National origin d.Sexual orientation

b.Location of the home

Every licensee who receives an inquiry from the DOI concerning a claim must furnish a complete written response, including any documentation and claim files requested within: a.Within 15 business days b.Within 21 calendar days c.Immediately. d.Within 10 days

b.Within 21 calendar days

Which one is the least practical method of managing risk? a.reduction b.avoidance c.sharing d.retention

b.avoidance

The CLHIGA provides protection against insolvency for all of the following except: a.MEWAs b.Stop loss plans c.All are excluded from the guarantee association protection. d.Self funded plans

c.All are excluded from the guarantee association protection.

Any carrier that provides replacement coverage for hospital, medical or surgical benefits within 60 days of discontinuance of a prior policy must: a.The replacing carrier can impose a new preexisting waiting period. b.The level of benefits can be lower than the prior policy. c.Cover all employees and dependents that were validly covered under the previous policy at the time of discontinuance. d.On-going claims do not need to continue coverage.

c.Cover all employees and dependents that were validly covered under the previous policy at the time of discontinuance.

Which of the following would not be a method of how much insurance is needed? a.human life approach b.capital needs approach c.agent needs approach d.needs approach

c.agent needs approach

All the following can be the insured except: a.owner b.payor c.beneficiary d.applicant

c.beneficiary

All the following are examples of fair discrimination except: a.age b.smoking c.religion d.hobbies

c.religion

All of the following are false regarding mailing requirements on Life Policy information, except: a. send to applicant b.send to insured c.send to owner d.send to beneficiary

c.send to owner

Which one bests describes key person insurance? a.to help employee to qualify for a group rate on insurance b.to protect employee's family c.to protect business in case of death of employee d.to help employee to qualify for a loan

c.to protect business in case of death of employee

Which statement is true concerning definitions for the words "shall and may"? a.neither are true b.both are true c.the word shall means permissive d.the word may means mandatory

a.neither are true

There are 3 provisions that the code protects people with group life and disability which is not one? a.subrogation b.extension of benefits c.discontinuance d.replacement coverage

a.subrogation

All the following are true concerning conviction of insurance fraud except: a.twice the amount of the fraud if greater b.5 years in state prison is the max. c.$150,000 fine is the max d.$10,000 fine is the max

d.$10,000 fine is the max

All the following are true concerning life and health guarantee association except: a.$250,000 is the max paid for a single life policy b.annuities also fall under this association c.80% max paid or a $100,000 for a life policy cash value d.$250,000 max paid for a single health policy

d.$250,000 max paid for a single health policy

Which of the following statement is true? a.A proposed insureds birthplace can be used to identify the insured as well as to discriminate. b.Agents can use the existence of the guarantee association in sales presentations. c.Race, color, religion national ancestry or sexual orientation can be used as a reason to charge a higher premium. d.Disclosing results of a genetic test in a manner that provides identifying characteristics is submit to a fine.

d.Disclosing results of a genetic test in a manner that provides identifying characteristics is submit to a fine.

This is an estimate of the financial loss caused by a person's death using the present value of future earnings: a.Need based approach to life insurance b.Capital needs analysis approach to life insurance c.Buy Sell approach to life insurance d.Human life value approach to life insurance

d.Human life value approach to life insurance

All the following are not true concerning mortality tables except: a.deals with disability insurance b.deals with health insurance c.deals with property and casualty insurance d.deals with life insurance

d.deals with life insurance

All the following beneficiaries receive the death benefits exempt from probate except: a.spouse b.charity c.children d.estate

d.estate

All the following are examples of unfair discrimination except: a.religion b.race c.national origin d.sex

d.sex