California Life, Accident, and Health
Licensing Exam Questions And Answers
Verified 100% Correct
In the original Medicare program, it is the provider which is responsible for -
ANSWER -submitting the claim
403(b) are available to - ANSWER -employees of public educational institutions
and certain non-profit charitable or religious organizations. Contributions are made
in before tax dollars on a payroll deduction basis
Renewable term has a level death benefit and - ANSWER -increasing premium.
Each time the policy renews, the premium will go up
The automatic premium loan rider will go into effect at the end of - ANSWER -the
grace period. It can only be added to a cash value policy and was created to keep
the policy in force if the insured forgets to pay their premium
HMOs are required to cover all of the following - ANSWER -preventive services,
physician services, emergency services.
Except prescription drugs
Insurance contracts must identify 6 required specifications - ANSWER -1) the
parties between whom the contract is made
2) the property or life insured
3) the interest of the insured in the property insured
4) the risks (perils) insured against
5) the policy period
6) the premium
, Primary (also known as "ceding") insurers who elect to offer insurance coverage
for high risk exposures, such as earthquake, often buy reinsurance from larger
reinsurance companies (reinsurers) in an effort to lower their exposure to -
ANSWER -catastrophic risk.
Under the CIC, an insured may cover a child attending an educational institutional
as a dependent on their group life insurance policy through - ANSWER -age 24
What does a deferred annuity have that an immediate annuity does not? -
ANSWER -an accumulation period
Standard levels of care provided by LTC insurance does not include - ANSWER -
Medical expenses
Part A of Medicare covers - ANSWER -Hospital services. For example,
Hospitalization, Hospice care, home health care
Part B of Medicare covers - ANSWER -Physician services
Life annuity - ANSWER -a product that will pay out every year for the rest of a
person's life
To be considered as disability for social security - ANSWER -a person must be
total disability
Flexible premium variable life - ANSWER -also known as variable universal life.
Allows the insured to pay a flexible premium and direct the case value into a
varying selection of investments
Distributions taken from modified endowment contracts (MECs) are subject to a -
ANSWER -10% IRS penalty
Eligibility of Social Security is based upon - ANSWER -the total number of
quarters worked. 40 quarters is needed for fully insured status
, Under a 7 year graded vesting schedule, the IRS requires that employer
contributions to the plan be - ANSWER -vested (owned by the employee) at least
40% after 4 years, 60% after 5 years, 80% after 6 years and 100% after 7 years
Three types of ordinary life insurance - ANSWER -WET
Whole life
Endowment
Term
A disability recurs within 90 days, the insurer will waive waiting (elimination)
period. Nonetheless, since the disability recurs 6 months later, a new - ANSWER -
elimination (waiting) period and benefit period will apply. A new policy need not
be written
If an employee is receiving benefits under a policy and still able to work, they
have a - ANSWER -partial disability
A guaranteed renewable disability policy is one where the insurer - ANSWER -has
the right to change the premiums, but may not change any of the policy terms
Accidental death benefit rider - ANSWER -Double indemnity
If the owner of the policy has named on irrevocable beneficiary, they cannot -
ANSWER -assign the policy without their consent
underwriting risk classification - ANSWER -preferred, standard, non-standard
Frequency pricing principle - ANSWER -Determining how frequently or how
often a loss will occur within a group of individuals, how these loses will effect
rates
Non medical life insurance applications - ANSWER -usually buy low amount of
coverage, need not take a physical exam, usually young.
but they have to ANSWER medical questions on the application
Licensing Exam Questions And Answers
Verified 100% Correct
In the original Medicare program, it is the provider which is responsible for -
ANSWER -submitting the claim
403(b) are available to - ANSWER -employees of public educational institutions
and certain non-profit charitable or religious organizations. Contributions are made
in before tax dollars on a payroll deduction basis
Renewable term has a level death benefit and - ANSWER -increasing premium.
Each time the policy renews, the premium will go up
The automatic premium loan rider will go into effect at the end of - ANSWER -the
grace period. It can only be added to a cash value policy and was created to keep
the policy in force if the insured forgets to pay their premium
HMOs are required to cover all of the following - ANSWER -preventive services,
physician services, emergency services.
Except prescription drugs
Insurance contracts must identify 6 required specifications - ANSWER -1) the
parties between whom the contract is made
2) the property or life insured
3) the interest of the insured in the property insured
4) the risks (perils) insured against
5) the policy period
6) the premium
, Primary (also known as "ceding") insurers who elect to offer insurance coverage
for high risk exposures, such as earthquake, often buy reinsurance from larger
reinsurance companies (reinsurers) in an effort to lower their exposure to -
ANSWER -catastrophic risk.
Under the CIC, an insured may cover a child attending an educational institutional
as a dependent on their group life insurance policy through - ANSWER -age 24
What does a deferred annuity have that an immediate annuity does not? -
ANSWER -an accumulation period
Standard levels of care provided by LTC insurance does not include - ANSWER -
Medical expenses
Part A of Medicare covers - ANSWER -Hospital services. For example,
Hospitalization, Hospice care, home health care
Part B of Medicare covers - ANSWER -Physician services
Life annuity - ANSWER -a product that will pay out every year for the rest of a
person's life
To be considered as disability for social security - ANSWER -a person must be
total disability
Flexible premium variable life - ANSWER -also known as variable universal life.
Allows the insured to pay a flexible premium and direct the case value into a
varying selection of investments
Distributions taken from modified endowment contracts (MECs) are subject to a -
ANSWER -10% IRS penalty
Eligibility of Social Security is based upon - ANSWER -the total number of
quarters worked. 40 quarters is needed for fully insured status
, Under a 7 year graded vesting schedule, the IRS requires that employer
contributions to the plan be - ANSWER -vested (owned by the employee) at least
40% after 4 years, 60% after 5 years, 80% after 6 years and 100% after 7 years
Three types of ordinary life insurance - ANSWER -WET
Whole life
Endowment
Term
A disability recurs within 90 days, the insurer will waive waiting (elimination)
period. Nonetheless, since the disability recurs 6 months later, a new - ANSWER -
elimination (waiting) period and benefit period will apply. A new policy need not
be written
If an employee is receiving benefits under a policy and still able to work, they
have a - ANSWER -partial disability
A guaranteed renewable disability policy is one where the insurer - ANSWER -has
the right to change the premiums, but may not change any of the policy terms
Accidental death benefit rider - ANSWER -Double indemnity
If the owner of the policy has named on irrevocable beneficiary, they cannot -
ANSWER -assign the policy without their consent
underwriting risk classification - ANSWER -preferred, standard, non-standard
Frequency pricing principle - ANSWER -Determining how frequently or how
often a loss will occur within a group of individuals, how these loses will effect
rates
Non medical life insurance applications - ANSWER -usually buy low amount of
coverage, need not take a physical exam, usually young.
but they have to ANSWER medical questions on the application
