Life, Health, and Accident Exam

Which of the following is an example of the insured's consideration? A. Intent B. A paid premium C. Insurer's promise to pay benefits D. Legal Purpose

B. A paid premiuim.

Which of the following refers to a condition that may increase the chance of a loss? A. Adverse Selection B. Hazard . C. Peril D. Risk

B. Hazard

All of these statements concerning Medicare are true EXCEPT: A. Hospice is covered by Medicare Part A B. Long-term care is covered by Medicare Part C C. Medicare is primarily funded by Federal payroll and self-employment taxes D. Doctors' services are covered by Medicare Part B

B. Long-term care is covered by Medicare Part C

An example of naming a beneficiary by class would be: A. To the children born of my union with Ned Jackson: David Jackson, Jennifer Jackson, and Scott Jackson. B. To the children born of my union with Ned Jackson C. To the child born of my union with Ned Jackson: Scott Jackson D. To Ned Jackson

B. To the children born of my union with Ned Jackson.

Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT: A. the insured B. the beneficiary C. the producer. D. the policyowner

B. the beneficiary

Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled ?: A. Disability buy-sell policy B. Disability overhead policy C. Business overhead expense policy D. Business continuation

Business overhead expense policy

A hazard can be best described as: A. a risk that has the potential for both loss and gain B. the tendency for poorer than average risks to seek out insurance. C. a condition that may increase the likelihood of a loss occuring D. the potential for loss

C. A condition that may increase the likelihood of a loss occurring.

Which of the following is not a required uniform provision in individual health policies? A. reinstatement B. Notice of claim C. Change of occupation D. legal action

Change of occupation

Which of the following actions is NOT allowed by Health insurance Counseling and Advocacy Program (HiCAP) counselors? A. assist in policy evaluation B. charge a fee C. Medical record keeping assistance D. assist in understanding Medicare Supplements

Charge a fee

Which of the following would be considered an underwriting duty of an agent? A. completing all applications and collecting initial premiums

Completing all applications and collecting initial premiums

Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place? A. Extension of benefits B. Conversion C. Coordination of benefits D. Rollover

Conversion

All of the these are examples of cost sharing in a health insurance policy EXCEPT A. Coinsurance B. Copayments C. Coordination D. deductibles

Coordination

The problem of overinsurance is addressed in which health insurance provision? A. Entire contact B. reinstatement C. Suitability D. Coordination of benefits

Coordination of benefits

Lorenzo is self employed with and S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year? A. 100% of his health insurance costs can be paid with tax credits B. 50$ of his health insurance C. 75% of his health D. 100% of his health insurance costs can be deducted from his gross income

D. 100 of his health insurance costs can be deducted from his gross income.

A report which is based on creditworthiness and personal characteristics that influences an insurance applicant's eligibility for life and health insurance is called a: A. medical report B. agent's report C. MIB report D. Consumer report

D. Consumer Report

What guarantees that the statements supplied by an insurance applicant are true? A. Promise B. Assurance C. Representation D. Warranty

D. Warranty

Which of the following is NOT a provision in a disability income policy? A. Deductible and coinsurance provision B. Elimination period provision C. Recurrent disability provision D. Change of occupation provision

Deductible and coinsurance provision

What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)? A. disclosure and reporting B. Long-term care C. Underwriting procedures D. Workers Compensation

Disclosure and reporting

Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n): A. 1040 Exchange B. 1035 Exchange C. Endowment Exchange D. Modified Exchange

1035 Exchange

How long is a person expected to be disabled in order to receive Social security disability benefits? A. 4 months B 12 months C. 18 months D. 6 months

12 months

A policyholder has a major medical plan with a 80%/20% coinsurance and a deductible of 75$. If the insured has previously met her deductible and receives a bill for 175$, how much will the insurer pay? A. 140 B. 75 C. 100 D. 35

140

An employer may qualify for health care tax credits through SHOP Marketplace if that employer has fewer than how many employees? A. 10 B. 25 C. 20 D. 15

25

Which of the following is NOT an eligible dependent on an Accident and Health policy? A. 19 year old full time student B. 25 year old married child C. 27 year old married child D. Unmarried disabled child

27 year old married child

How long must life agents keep their transaction records? A. 5 y B. 4 y C. 6 y D. 3 y

5 years

Employer provided group term life insurance is exempt from income taxation up to A. 40000 B. 10000 C. 25000 D. 50000

50000

What is implied authority defined as? A. Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties B. Authority given to an agent to act outside the scope of the agency agreement C. Authority given in writing to an agent in the agency agreement D. Authority give to handle claims and process payments.

A. Authority that is not specifically

How does life insurance create an immediate estate? A. Non forfeiture options are immediately available B. the insured estate receives the death benefit C. cash value may be borrowed upon at any time D. after first premium is paid the face amount may be available to the beneficiary

After the first premium

Which of the of the following does coordination of benefits allow? A. allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid B. Allows both a group health plan and individual health plan to coordinate their benefit payments C. Allows each health provider to pay 100% of the claim D. Allows the deductible to be spread out between all the health providers

Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid

According to California Insurance Code, which of the following is NOT and example of an insurable event? A. An insured is sued for unintentional slander of another person B. A guest is injured by a fall from the insured's driveway C. An insured is admitted to the hospital for delivery of a newborn D. An insured suffers a financial loss in the state lottery.

An insured suffers a financial loss in the state lottery

Which of the following is considered to be the period when the accumulated value in an annuity is paid out? A. accumulation phase B. annuitization phase C. principal phase D. Period certain phase

Annuitization phase

Which statement is TRUE regarding workers' compensation coverage A. workers compensation benefits are usulaly received in a lump sum B. employer pays the entire premium for workers' compensation coverage C. The maount received from workers' compensation is usualy greater than the employee might receive if he or she sued a negligent employer D. negligence is a factor in determining the employers liability

Employer pas the entire premium

All of these are settlement options for life insurance policies EXCEPT: A. Lump sum B. Extended term C. Fixed period D. Life income

Extended term

An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with? A. McCarran-Ferguson Act B. personal information Act C. USA Patriot Act D. Fair Credit Reporting Act

Fair Credit Reporting

When handling premium for an insured, and agent is acting in which capacity? A. fiduciary B. manager C. Proxy D. representative

Fiduciary

Which of the following is NOT included in comprehensive major medical plans? A. First-dollar coverage B. Coinsurance C. Deductibles D. Maximum coverage limits

First-dollar coverage

When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable? A. gains B. principal C. Contributions made by employer D. Contributions made by employee

Gains

Which of the following healthcare providers provides both the healthcare services and healthcare coverage? A. Tri-care B. health Maintenance Organization (HMO) C. Multiple Employer Welfare Arrangements (MEWA) D. Preferred Provider Organization

Health maintenance Organization(HMO)

Which of these is a method determining the level of funds required for ongoing support in the event of the breadwinners death? A. replacement value B. Financial loss value C. Assessment value D. human life value

Human life value

Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss" ? A. Unilateral B. Utmost good faith C. Aleatory D. Indemnity

Indemnity

Which type of life insurance is normally associated with a Payor Benefit rider? A. Spouse insurance B. Juvenile insurance C. Term rider D. Family income insurance

Juvenile insurance

The time limit for filing claim disputes is addressed in which provision of an accident and health policy? A. Legal actions B. Entire Contract C. payment of claims D. time of payment of claims

Legal actions

Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? A. installment refund B. life income C. interest only D. fixed period

Life income

All of the following are examples of pure risk EXCEPT: A. jewelry stolen during a home robbery B. Falling at a casino and breaking a hip. C. Losing money at a casino D. Injured while playing football.

Losing money at a casino

Which of the following acts is NOT a Federal offense committed by an insurance agent? A. insurance fraud B. Misrepresentation on an insurance application C. Falsify records D. Embezzlement

Misrepresenting

how does one become eligible for Part D: Prescription Drug Coverage? A. Must meet certain undrewriting guidelines B. Must have Medicare Coverage C. Must have a valid prescription D. Must have Medicaid coverage

Must have Medicare Coverage

Disability icnome plans which require that the insurer can NEVER change or alter premium rates usually considered A. conditionally renewable B. Noncancelable C. Guaranteed renewable D. Optionally renewable

Noncancelable

Shirley has a 500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? A. nothing B. 500,000 C. 250,000 D. 100,000

Nothing

The cause of a risk due to a loss is referred to as:

Peril

What is known as the immediate specific event causing loss and giving rise to risk? A. loss factor B. liability C. Hazard D. Peril

Peril

In what form do disability income policies typically pay benefits? A. periodic income B. annuity C. tax credit D. lump sum

Periodic income

Which situation accurately describes a reduced paid-up nonforfeiture option? A. premiums must continue to be paid B. Policy has a decreased face amount C. face amount of the new policy equals that of the original policy D. Cash value is surrendered to policyowner

Policy has a decreased face amount

Which of the following is NOT considered to be insurer expenses? A. utilities B. Policy premiums C. employees' salaries D. Maintenance costs

Policy premiums

All of the following are considered appropriate uses of life insurance for business purposes EXCEPT: A. protecting the business by covering key employees with life insurance B. Funding an entity buy-sell agreement C. Protecting the business by covering entry level employees with life insurance D. Attracting quality employees by offering a group life plan

Protecting the business by covering entry level employees with life insurance

Which of the following is NOT Considered to be an act of insurance solicitation? A. an agency sending out direct mail for a promotion B. an agent giving a rate quatation C. Publishing a magazine where on of the advertisers is an insurer D. Airing a television commercial recommending an insurance product

Publisihing a magazine where one

Which of these factors do NOT affect the rates of medical insurance: A. Race B. Gender C. Occupation D. health

Race

Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? A. Charge of penalty B. Nothing C. Rescinding the contract D. Charge a higher premium

Rescinding the contract

Which of hte follow does NOT have to be included on life insurance policy illustrations? A. name of the agent B. Name of the insurer C. Age of the insured D. Statement that all values and benefits are guaranteed

Statements that all values and benefits are guaranteed

In a long-term care policy, activates of daily living (ADLs) can be each of the following EXCEPT A. feeding oneself B. Transferring C. dressing D. Talking

Talking

what determines the Social Security normal retirement age? A. Number of quarters employed B. Number of dependents C. Worker's average lifetime income D. year in which worker was born

Year in which worker was born

A hazard can be best described as A. a risk has the potential for both loss and gain B. the potential for loss C. the tendency for poorer than average risks to seek out insurance D. a condition that may increase the likelihood of a loss occuring

a condition that may increase the likelihood of a loss occuring

Medical expense insurance would cover: A. elective surgeries B. an injury cause by war C. an injury occurring at work. D. an injury occurring at the insures' residence

an injury occurring at the insured's residence

The California insurance Code allows an individual how many days to cancel a life policy for a full-refund? A. up to 10 days B. Between 10 and 30 days C. between 30 and 45 days D. between 15 and 20 days

between 10 and 30 days

All of the following are elements of an insurance policy EXCEPT A. claim forms B. conditions C. definitions D. other insurance

claim forms

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called A. stop loss B. a managed plan C. coinsurance D. a deductible

coinsurance

In order for a contract to be valid, it must A. be signed and witnessed by an attorney B. contain an offer and acceptance C. be in writing D. be filed with the state

contain an offer and acceptance

Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the smae accident? A. children of the insured B. primary beneficiary's estate C. contingent beneficiary D. insured's estate

contingent beneficiary

Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt A. is killed while committing a felony B. dies instantly from a car accident C. is injured in a skiing accident and dies 18 months later D. dies of a stroke

dies instantly from a car accident

A life insurance policy that pays the face amount if the insured survives to a specified period of time is called A. universal life B. endowment insurance C. modified life D. whole life

endowment insurance

the taxable portion of each annuity payment is calculated using which method? A. Exclusion ration B. tax basis C. cost basis D. taxable ration

exclusion ratio

When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? A. The insurance company's financial rating B. The families financial objectives if the income earner were to die or become disabled C. The income earners Credit score D. the income earners future projected income

familys financial objectives if the income earner

Premium mode is a term used to describe the A. frequency of the premium payment B. method of payment C. premium past due D. premium paid

frequency of the premium payment

index whole life insurance contains a securities component that acts as a(n) A. incentive to purchase more coverage B. means to lowering taxes on earnings C. premium stabilizer D. hedge against inflation

hedge against inflation

The Human Life Value concept is based on A. income B. occupation C. education level D. age

income

Who does a life settlement broker represent? A. life agent B. individual wanting to sell their life policy to a third party C. Insurance company D. Private firm

individual wanting to sell their life

Health insurance will typically cover which of the following perils?: A. death due to illness B. dismemberment C. death due to accident D. injury due to accident

injury due to accident

Medicare Part A covers A. doctors fees B. prescription drugs C. inpatient hospital stay D. outpatient services

inpatient hospital stay

An accident and health policy that provides reimbursement benefits makes them payable to the: A. provider B. facility providing service C. insured spouse D. Insured

insured

Which of the following is NOT protected under the California Life and Health Guarantee Association> A. insureds B. Policyowners C. insurers D. Primary beneficiaries

insurers

Which of the following does the California Insurance Code NOT require an insurance policy to specify? A. insures financial rating B. what or who is being insured C. Premium D. Policy period

insurers financial rating

Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? A. Formed for the sole benefit of employees and their beneficiaries B. Contribution are applied with no regard to income C. Contains a vesting schedule D. it is temporary

it is temporary

A life insurance policy written on one contract for two people in which it is payable upon the first death is called A. joint B. Survivorship C. Split D. Shared

joint

An insured was injured as an innocent bystander when someone committed a felony. The insurer is A. likely to void the policy B. liable for the loss C. partially liable for the loss D. not liable

liable for the loss

All of these are considered key factors in underwriting life insurance EXCEPT A. marital Status B. Age C. Health History D. Tobacco use

marital status

In contrast to a guaranteed renewable policy, a noncancelable policy A. may never raise premiums B. may cancel the policy only at renewal C. may raise premiums at anytime D. may raise premiums at policy renewal

may never raise premiums

A participating company is also referred to as which type of insurer? A. Mutual insurer B. Reciprocal insurer C. Re-insurer D. Domestic insurer

mutual insurer

An insurer owned by its policyholders is called a A. stock insurer B. multi-line insurer C. mutual insurer D. reinsurer

mutual insurer

Under the Affordable care act, a large employer that does NOT provide health insurance and owes and employer mandate penalty MUST pay an annual penalty, which is calculated by multiplying 2000 by A. the number subsidized employees minus 10 B. the number of full time employees minus the 30 C. the number of full time employees minus 20 D. the total number of full time employees

number of full time minus 30

which type of disability would be less than total impairments and equal to permanent impairment? A. Partial total disability B. Temporary partial disability C. permanent partial disability D. Residual partial disability

permanent disability

According to the California insurance code, how is the word "may" interpreted? A. mandatory B. irrevocable C. voluntary D. permissive

permissive

Medicaid is intender for: A. Poverty stricken people B. people aged 65 and older C. people with kidney failure D. unemployed people

poverty stricken people

An insurance applicant with a below-average likelihood of loss is typically considered to be a A. preferred risk B. declined risk C. subpar risk D. standard risk

preferred risk

A situation in which their is ONLY a chance of loss or no loss is a A. particular risk B. speculative risk C. pure risk D. fundamental risk

pure risk

the "blackout period" affects whose benefits? A. Employer B. Disabled worker C. Surviving spouse D. Surviving children

surviving spouse

Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because: A. the MEC is considered an illegal product B. the MEC does not accumulate cash value C. the MEC tends to be an investment vehicle D. the MEC has tax deductible premiums

the MEC tends to be an investment vehicle

A life insurance policy's limit of liability would be A. the total premiums paid B. the policy's face amount C. determined by insurance company's reinsurer D. determined by the department of insurance

the policy's face amount

What does the term "indemnity" mean as it pertains to insruance? A. to over-insure B.. to assume risk C. to award punitive damages D. to make whole

to make whole

In an insurance contract, the insurer is the only part legally obligated to perform. Because of this, and insurance contract is considered. A. conditional B. voidable C. unilateral D. aleatory

unilateral

Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him than the existing contact. This is considered a: A. deferred annuity B. illegal transaction C. Unnecessary replacement D. immediate annuity

unnecessary replacement

David submits a 500 claim for medical expenses. There is a past-due amount owned for insurance premiums of 200. As a result, the insurer only pays 300 for the claim. This deduction came as a result of which provision? A. Reduced benefit clause B. Consideration Clause C. Unpaid provision D. Waiver of premium provision

unpaid provision

Funding for Medicare Part B is partially provided by A. user premiums B. municipal bonds C. private insurers D. State boards

user premiums