Exam 8
An insurer owned by a parent that provides insurance to cover the parent company's loss exposure is a A. Reciprocal insurer B. Captive insurer C. Mutual insurer D. Stock insurer
B. Captive insurer
Which of the following allows employees to share in the financial success of the company? A. Tax sheltered account B. Simplified employee pension plan C. Keogh plan D. Profit sharing plan
Profit sharing plan
When an insurer presents an illustration for life insurance all of the following are prohibited Except: A. Stating that the amount of non guaranteed elements is guaranteed B. Using the insurers "disciplined current scale" in the illustration C. Including a description of a " vanishing premium" D. Providing the applicant with an incomplete illustration
Using the insurers "disciplined current scale" in the illustration
Which of the following is not excluded bu group life A. War B. Military services C. Aviation D. Accidental Injury
D. Accidental Injury
Which of the following is Not covered bu CLHIGA? A. Direct group life insurance B. Individual (non-group) health insurance C. Group stop loss plans D. Individual term life
Group stop loss plans
In a group life plan, unmarried children may be covered as dependent until age A. 19 B. 20 C. 21 D. 22
21
In a group life plan, a dependent child attending an educational institution may be covered until age: A. 21 B. 19 C. 24 D. 20
24
If an insurer inadvertently is found guilty of unfair trade practices while issuing renewing & servicing a policy the insurer could be prosecuted for how many years A. 4 B. 3 C. 1 D. 0
3
Medicare part A, begins automatically at age? A. 55 B. 60 C. 62 D. 65
65
All the following apply to an insurance broker(not an insurance agent) except A. A broker represent the insured B. A broker can charge a fee to the insured C . A broker is appointed by an insurer to transact insurance D. A broker acts on behalf of an insurer
A broker is appointed by an insurer to transact insurance
All of the following are required to be included in life insurance illustrations Except A. The name of the insured B. The page number showing its relationship to the total number of pages in the illustration C. The page number D. A statement that the benefits in the illustrations are guaranteed
A statement that the benefits in the illustrations are guaranteed
A disability income policy covers injuries suffered by an insured on or off the job is called? A. An occupational policy B. A non-occupational policy C. A wraparound policy D. Twenty four hour policy
An occupational policy
The minimum number of employees for group life insurance in California is A. 10 B. 50 C. 2 D. 100
C. 2
The usual amount of death benefit in an industrial policy is A. $10,000 to $25,000 B. $50,000 to $100,000 C. Less than $2,000 D. $100,000
Less than $2,000
Life insurance illustrations showing premiums, values, credits or charges that are not determined at issue demonstrate A. Non guaranteed elements B. Guaranteed elements C. Minimum assumed expenses D. Supplemental illustrations
Non guaranteed elements
If an insurer indicates that the illustration will be used, they must do which of the following? A. Send the form to the Commissioner for approval B. Update & revise the policy annually C. Send a summary status report to the policy owner annually D A,B & C are corrext
Send a summary status report to the policy
What does a stop loss provision in a medical expense insurance plan set a maximum for ?
The limit of out-of- pocket expense payments covered each year under a policy
Which of the following is Not regarding Managing General Agents? A. They can be licensed life agent B. They have the power to appoint the supervise and terminate the apt of local agents C. They have the power toa accept & decline risk D. They do not collect premium money from producing brokers agents
They do not collect premium money from producing brokers agents
Any insurer that provided claims forms must include which of the following statement?
Answer a
If a dependent child covered by a group life plan is incapable of self-support, coverage under the plan may continue up to age: A.24 B. Any age C. 21 D. 19
Any age
If a physician is paid through a Preferred Provider Organization (PPO) the normal way of paying him/ her is A. Through a system called " capitation" B. By payment directly for each service C. By reimbursement D. A flat amount per subscriber on a monthly basis
By payment directly for each service
Which of the following conditions would Not be included among chronic illness triggers of a Ltc policy? A. Deafness B. Alzheimers C. Incontinence D. Dementia
Deafness
In which of the following qualified pension plans are benefits linked to the employees years of service &/ or amount of compensation A. Defined benefit plan B. Keogh plan C. Defined contribution plan D. Tax- sheltered account
Defined benefit plan
In order to qualify for social security retirement benefits the workers must be A. Fully insured B. Disability insured C. Currently insured D. Partially insured
Fully insured
A parent who lives at home is being cared for by an adult daughter on a full time basis. Which of the following would provide care if the daughter needs a period of separation A. Adult day care B. Respite care C. Home care D. Intermediate care
Respite care
If an insurer knowingly allows one of its agents to mislead a member of the public in order to induce the person to change their existing insurance, the Commissioner may: A. Suspend the insurers certificate of authority for the class of business involved B. Impose a $1,500 fine
Suspend the insurers certificate of authority for the class of business involved
The social security age of retirement is dependent upon A. The individual date of birth B. The amount of compensation earned prior to retirement C. The number of quarters earned
The individuals date of birth
Which of the following is the definition of morbidity? A. The likelihood of illness or injury B. The assumption of wellness or ailment C. The probability if death or disablement
The likelihood of illness or injury
Eligibility for social security retirement benefits is based on A. The workers age at retirement B. The number of quarters earned C. The workers date of birth
The number of quarters earned
The federal lawn knows as COBRA does which of the following?
D
What does the phrase "life insurance creates immediate estate" mean? A. The total death benefit will be paid to a beneficiary on the death of the insured B. The death benefit will always be paid to the estate of the insured C. The total premium must be pid to the insurer D. The policy creates cash value
A. The total death benefit will be paid to a beneficiary on the death of the insured
The insured policy has a deductible that is applied between the exhaustion of basic plan limits and the commencement of excess coverage. This is called? A. Family deductible B. Per cause deductible C. Corridor deductible D. Stop loss limit
Corridor deductible
Medicare part B does/ is not A. Mandate a premium payment for the participant B. Optional for those who are enrolled in part A C. Cover the expenses of virtually all drugs prescribed by a doctor D. Cover the expense of a doctors services
Cover the expenses of virtually all drugs prescribed by a doctor
The rules regarding life insurance policy illustrations are intended to ensure all of the following except A. Ensure that illustrations are understandable by prescribing standards formats to be followed when illustrations are used B. Ensure that illusrations do not mislead purchasers of life insurance and annuities C. Ensure that the disclosures that are required in connection to illustrations are specified D. Ensure that the illustration specifies that both guranteed & non guranteed elements will continue un changed for all years shown
D. Ensure that the illustration specifies that both guranteed & non guranteed elements will continue un changed for all years shown
Which of the following could be used to pay off the mortgage on a home, providing a death benefit that equals the amount of outstanding debt on the home no more and no less A. Home and services insurance B. Decreasing term insurance C. Home warranty
Decreasing term insurance
Which of the following are activities of Daily living? A. Eating & dressing B. Speaking & incontinence C. Sleeping & walking D. Bathing & hearing
Eating & Dressing
A waiting period between the onset of disability & the time when benefits begin is the A. Elimination period B. Incontestable period C. Probationary period D. Grace period
Elimination period
All of the following are covered by the CLHIGA except A. individual annuities B. Employer self funded plans C group term insurance D. Disability income
Employer self funded plans
An ESOP invest in A. Employer stock B. Mutual funds C. Corporate bonds D. Employers investments
Employer stock
Every insurer offering individual life insurance policies or annuities to senior citizens that use non-guaranteed elements in illustrations must provide a statement to that effect. Which of the following is correct regarding this statement? A. Non guaranteed elements must be in bold print B. Guaranteed and Non Guaranteed elements must be in bold print, at the discretion of the agent C. Guaranteed elements must be in bold print and non guaranteed elements must be in plain type D. All statements in plain type
Non guaranteed elements must be in bold print
In a group life policy with a death benefit of more than 50,000$ A. Premium cost is not taxable B. Premium cost for insurance above $50,000 is taxable as income to the insured
Premium cost for insurance above $50,000 is taxable as income to the insured
An insurance company which is owned by individuals who purchase shares of stock in the company share in profits in proportion to share owned and vote for a board of directors is know as what type of insurer? A. Lloyds of London B. Fraternal insurer C. Mutual Insurer D. Stock insurer
Stock insurer
When a corporation ceases to exist entirely their insurance license ? A. Is suspended temporarily B. Becomes inactive C. Terminates unless the corporation files an application to continue to transact D. Terminates
Terminates
