ch.19.2

The California Insurance Code defines "policy" as

Written contract

Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?

Theft

Which of the following is NOT covererd by the family and medical leace act (FMLA)?

Traveling overseas with a spouse

Who does a life settlement broker represent?

Individual wanting to sell their life policy to a third party

MRMIP is a

state program that offers health coverage to California residents who are not able to obtain coverage due to pre-existing conditions

Which of the following is NOT a valide reason to replace existing long-term care policy?

New policy has higher premium with fewer benefits

How many "activities of daily living" must an insured be UNABLE to perform in order to meet the chronically ill requirement of a Long-Term Care policy?

2

An individual who transacts life, disability, or life and accident and health insurance on behalf of an insurer is called

life agent

According to the California insurance code, how is the word "may" interpreted?

permissive

ABC Insurance Company paid an insured $35,000 for hosptital costs, and $20,000 for physical therapy treatments. ABC later discovers thsi was fraudulent claim. How much may the insured by fined?

$170,000

Any changese in background information that occur after a produce application has been submitted or a license has been issued MUST be reported to the insurance commissioner within

30 days

According to PPACA, what is a health benefits exchange?

An entity to which individuals and small businesses can have access to affordable health coverage

What is an insurance solicitor authorized to do?

Help an agent or broker sell insurance

According to the California Insurance Code, what term is used to describe a fact so important it could affect the policy premium?

Materiality

The cost of services charged by the Health Insurance Couseling Advocay Program (HiCap) is

No cost

Kimberly is an employee on leave under the Family and Medical Leave Act (FMLA). What will happen to her group health coverage?

She continues to be enrolled during the leave

Why is a life insrance policy's delivery date important?

The free-look period begins on the policy delivery date

Failure to report background changes within 30 days as required under sections 1729.2 of the california insurance code could subject a license or applicant to

all of these

According to the california insurance code, which of the following is not an example of an insurable event?

an insured suffers a financial loss in the state lottery

Life insurance surpluss must be distributed to policyowners at what frequency?

annually

How is an agent's first year commission calculated for a replacement long-term policy?

based on the difference between the new and original policy annual premiums

Which entity has juristiction over health care coverage providers?

department of insurance

An insurance policy issued in California may be called comprehensive long-term care insurance policy if benefits are provided for

institutional (nursing facilities) and home care

According to the california insurance code, who is responsible for submittig a life agents appointment?

insurere

Which word implies permissiveness according to the California Insurance Code?

may

A representation may be altered or withdrawn

only before the insurance is in effect

Which type of juristiction required an insurer to have its rates accepted by the insurance department prior to using them?

prior approval

According to the california insurance code, what is the maximum penalty per violation for anyone who unwillfully commits an unfair method of competition?

$5000

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?

2 years

According to the PPACA, an adult can be covered by a parent's health care plan until what age?

26

The free-look period for life insurance policyowners age 60 or older is

30days

How long must life agents keep their transaction records?

5 years

When selling a long term care insurance rider to an applicant, a life agent must take into consideration all of these factors EXCEPT

Attending physiciams statement

Where must you specifically reside to qualify for MRMIP?

California

Which of the following actions is NOT allowed by health HiCap counselors?

Charge a fee

According to the california code governing claim settlement practices, which of the following is not considered to be an act of unfair discrimination?

Denial of claim based on reckless behavior

Jim is applying to become an insurance agent and has a past misdemeanor conviction that was later expunged due to California Penal Code 1203.4. Which of the following statements is correct?

Jim must still disclose the convistion on his insurance license application

The california insurance code has authorized standards for names used by life insurance agenst. which of the followig, if any, are automatically acceptable for lance manyon, a holder of the CLU designation?

Lance Manyon insurance services

MRMIP stands for

Major Risk Medical Insurance Program

Both the federal and state governments jointly finance which health insurance entitlement program?

Medi-Cal

People with low income can be provided with medical assistance through which program?

Medi-Cal

What is required afer a life agent sells an insurance policy to an applicant without being appointed by the insurer?

Notice of appointment must be submitted to the commissioner

Which of the following is NOT an accurate description of Access for Infants and Mothers Program (AIM)?

Only women who have private insurance plans with a maternity-only deductibles or copayment greater that $1500

What is the purpose of the pre-existing condition insurance plan (PCIP)?

PCIP was created by the PPACA for people rejected by private health insurers due to pre-existing conditions

What effect did the pregnancy discrimination act have on health industry?

Pregnancy must be treated as any other medical condition

What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code?

Presentation of policy features that include non-guranteed elements

Which of the following is nto condidered to be an act of insurance solicitation?

Publishing a magazine where one of the advertisers is an insurer

All of these are reasons the commisioner may disapprove a licensee's request to use a fictitious name except

The name is the licensee's actual name

According to the californis insurance code, what is "insurance"

a contract

What is an "insurance broker" according to california insurance code?

a person compensated for transacting insurance on behalf of another person with an insurer

What is the insurance term the state of california uses for an insurer that is eligeible to transact business in this state?

admitted

When an insurer has met the qualifications necessary to transact business in California, it is said to be

admitted

An insurance company entitled to transact business in california is called

admitted carrier

Which of the foloowing is NOT considered to be an unfair claims settlement practice?

advising a claimant to hire an attorney

Insurance agents and brokers must make their insurance records acailable to the commisioner

at all times

In what order are people on the MRMIP waiting list allowed to enroll?

based on the date an individuals application is received

The California Insurance Code allows an individual how many days to cancle a life policy for a full-refund?

between 10 and 30 days

A person who asserts a right of recovery under an insurance policy is called

claimant

Before an insurer is allowed to test an individual for HIV, what must be completed?

consent form

An agent's attempt to stop the replacement of an existing life insurance policy is known as

conservation

When handling premiums for an isnured, an agent is acting in which capacity?

fiduciary

In california, an insurer organized under the state laws of Oregon is called a

foreign insurer

According to the PPACA, the medical enrollemt tier that has 80% actuarial value is called

gold

What prevents a life insurance policy from being rescinded by the insurer afer being in force for two years?

incontestablility clause

Which of the following is not protected under the california life and health guarantee association?

insurers

Which of the following does the california insurance code not require an insurance policy to specify?

insurers financial rating

Which of the following is NOT a primary objective of insurance regulation?

interpret policy provisions

What type of license is required for an individual who charges a fee to review an insured existing life insurance polic?

life and disability analyst

Which of the following does the california department of insurance (CDI) have no juristiction over?

medicare

According to section 1729.2 of the californis insurance code, which of these does not qualify as "background information"?

mesdemeasnor charges filed, not resulting in a conviction

Which of the following acts is not a federal offense committed by an insurance agent?

missrepresentation

When intentional concealment is involved, what course of action is the injured party entitled to?

rescission of the contract

Under the california inssurance code, a licensee's license number must be printed at what sized on all price quotes

same size as numbers...

the californis life and health insurance guaranteee association covers all of these types of policies, except

self funded plans

Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance

solicitor

Which of the following does not have to be included on life insurance policy illustractions?

statement that all values and benefits are guaranteed

What does the term "indemnity" mean as it pertains to insurance?

to make whole

An insurer that has beed found using higher rates based on race, religion, or ethnicity is said to be engaging in

unfair discrimination

An agent has advertised that the insurer to which the agent is appointed with is a member of the Insurance Guarantee Association. This agent has committed a(n)

unfair method of competition

Pauls has an existinf annuity and is sold a new one, in which the new policy holder no greater financial benefit to him than the existing contract. this is considered

unnecessary replacement

According to PPACA, how long can an adult be covered as a dependent under their parents' insurance plan?

up to age 26