California Life, Accident, & Health Insurance Final Exam || || || || || || || ||
with verified detailed answers|| || ||
Premiums are Best described as - ✔✔the amount an insured pays per unit of coverage
|| || || || || || || || || || || || || ||
Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly
|| || || || || || || || || || || || ||
payments for 5 years, Cindy dies. How many remaining payments will the insurer make to
|| || || || || || || || || || || || || || ||
her beneficiary? - ✔✔60 payments
|| || || ||
Who does a life settlement broker represent? - ✔✔Individual wanting to sell their life policy
|| || || || || || || || || || || || || ||
to a third party
|| || || ||
How is the cost of employer-provided group life insurance with coverage amounts above
|| || || || || || || || || || || || ||
$50,000 treated for tax purposes? - ✔✔Taxable income to the employee
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Which of the following is NOT considered to be insurer expenses? - ✔✔Policy premiums
|| || || || || || || || || || || || ||
Which of the following healthcare providers provides both the healthcare services and
|| || || || || || || || || || || ||
healthcare coverage? - ✔✔Health Maintenance Organization (HMO)|| || || || || ||
Which of the following describes a contributory group insurance plan? - ✔✔Part of the
|| || || || || || || || || || || || || ||
premium is paid by the employee. A contributory group insurance plan is one which
|| || || || || || || || || || || || || ||
employees share the cost of the premiums with the employer. || || || || || || || || ||
Which of the following is NOT a valid reason to replace an existing long-term care policy? -
|| || || || || || || || || || || || || || || || ||
✔✔New policy has higher premium with fewer benefits
|| || || || || || ||
,An insured is protected from the expense of a catastrophic illness by which of the following
|| || || || || || || || || || || || || || || ||
health insurance provisions? - ✔✔Stop-loss The Stop-loss provision states that after the
|| || || || || || || || || || || ||
insured has paid a specific amount toward a covered expense, the insurer will pay 100% of
|| || || || || || || || || || || || || || || ||
the remaining expenses.
|| ||
Which of the following does Medicare Part A NOT provide coverage for? - ✔✔Doctor's
|| || || || || || || || || || || || || ||
services. Doctor's services are covered in Medicare Part B.
|| || || || || || || ||
If a material warranty violation on the part of the insured is found, what recourse does an
|| || || || || || || || || || || || || || || || ||
insurer have? - ✔✔Rescind the policy || || || || ||
An annuitant would like to determine the amount of an annuity distribution that is exempt
|| || || || || || || || || || || || || || ||
from taxation. What is used to calculate this? - ✔✔Exclusion ratio. Annuity benefit
|| || || || || || || || || || || || ||
payments are a combination of principle and interest. A formula called the exclusion ratio is
|| || || || || || || || || || || || || ||
used to determine the amount of annual annuity income that is exempt from federal
|| || || || || || || || || || || || || || ||
income taxes. ||
People with low income can be provided with medical assistance through which program? -
|| || || || || || || || || || || || || ||
✔✔Medi-Cal
A spendthrift clause in a life insurance policy - ✔✔Restricts the ability of the beneficiary to
|| || || || || || || || || || || || || || || ||
assign benefits. ||
A spendthrift clause prevent a beneficiary from recklessly spending benefits.
|| || || || || || || || ||
A life insurance policy can be surrendered for its cash value under which policy provision? -
|| || || || || || || || || || || || || || ||
✔✔Nonforfeiture options
|| ||
ESOPs (employee stock ownership plan) are typically invested in - ✔✔employer stock
|| || || || || || || || || || ||
, Victoria owns a life annuity and elects to receive annuity payments monthly for the
|| || || || || || || || || || || || || ||
remainder of her life with "ten years certain". Her annuity will make payments - ✔✔for a
|| || || || || || || || || || || || || || || ||
minimum of 120 months and a maximum of the remainder of her life. If the annuitant dies,
|| || || || || || || || || || || || || || || || ||
the designated beneficiary would receive any monthly payments for the remainder of the
|| || || || || || || || || || || || ||
certain period-in this case 10 years.
|| || || || ||
Kim is insured under a disability income insurance policy with an "own-occupation" clause.
|| || || || || || || || || || || || ||
She was recently injured in an automobile accident and can no longer perform the tasks of
|| || || || || || || || || || || || || || || ||
her job. Kim is now considered to be - ✔✔Totally disabled
|| || || || || || || || || || ||
The own occupation definition of total disability requires that the insured be unable to
|| || || || || || || || || || || || || ||
perform the insured's current occupation as a result of an accident or sickness.
|| || || || || || || || || || || ||
What portion does an insured pay for covered expenses under Medicare Part B after the
|| || || || || || || || || || || || || || ||
deductible? - ✔✔20% After the deductible, a patient pays 20% of covered expenses under
|| || || || || || || || || || || || || ||
Medicare Part B || ||
The misstatement of age provision in a health policy states that is an insured gives the
|| || || || || || || || || || || || || || || ||
wrong age at the time of application, what action can the insurance company take? -
|| || || || || || || || || || || || || || ||
✔✔Benefits can be adjusted || || ||
Who would be most likely to submit a Medicare Part A claim? - ✔✔Hospital A health care
|| || || || || || || || || || || || || || || || ||
provider would be responsible for filing the claim || || || || || || ||
Which of the following is NOT a characteristic of reinsurance? - ✔✔Increases the unearned
|| || || || || || || || || || || || || ||
premium reserve ||
Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete
|| || || || || || || || || || || || || || || || ||
guilty of? - ✔✔Theft || || ||
with verified detailed answers|| || ||
Premiums are Best described as - ✔✔the amount an insured pays per unit of coverage
|| || || || || || || || || || || || || ||
Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly
|| || || || || || || || || || || || ||
payments for 5 years, Cindy dies. How many remaining payments will the insurer make to
|| || || || || || || || || || || || || || ||
her beneficiary? - ✔✔60 payments
|| || || ||
Who does a life settlement broker represent? - ✔✔Individual wanting to sell their life policy
|| || || || || || || || || || || || || ||
to a third party
|| || || ||
How is the cost of employer-provided group life insurance with coverage amounts above
|| || || || || || || || || || || || ||
$50,000 treated for tax purposes? - ✔✔Taxable income to the employee
|| || || || || || || || || ||
Which of the following is NOT considered to be insurer expenses? - ✔✔Policy premiums
|| || || || || || || || || || || || ||
Which of the following healthcare providers provides both the healthcare services and
|| || || || || || || || || || || ||
healthcare coverage? - ✔✔Health Maintenance Organization (HMO)|| || || || || ||
Which of the following describes a contributory group insurance plan? - ✔✔Part of the
|| || || || || || || || || || || || || ||
premium is paid by the employee. A contributory group insurance plan is one which
|| || || || || || || || || || || || || ||
employees share the cost of the premiums with the employer. || || || || || || || || ||
Which of the following is NOT a valid reason to replace an existing long-term care policy? -
|| || || || || || || || || || || || || || || || ||
✔✔New policy has higher premium with fewer benefits
|| || || || || || ||
,An insured is protected from the expense of a catastrophic illness by which of the following
|| || || || || || || || || || || || || || || ||
health insurance provisions? - ✔✔Stop-loss The Stop-loss provision states that after the
|| || || || || || || || || || || ||
insured has paid a specific amount toward a covered expense, the insurer will pay 100% of
|| || || || || || || || || || || || || || || ||
the remaining expenses.
|| ||
Which of the following does Medicare Part A NOT provide coverage for? - ✔✔Doctor's
|| || || || || || || || || || || || || ||
services. Doctor's services are covered in Medicare Part B.
|| || || || || || || ||
If a material warranty violation on the part of the insured is found, what recourse does an
|| || || || || || || || || || || || || || || || ||
insurer have? - ✔✔Rescind the policy || || || || ||
An annuitant would like to determine the amount of an annuity distribution that is exempt
|| || || || || || || || || || || || || || ||
from taxation. What is used to calculate this? - ✔✔Exclusion ratio. Annuity benefit
|| || || || || || || || || || || || ||
payments are a combination of principle and interest. A formula called the exclusion ratio is
|| || || || || || || || || || || || || ||
used to determine the amount of annual annuity income that is exempt from federal
|| || || || || || || || || || || || || || ||
income taxes. ||
People with low income can be provided with medical assistance through which program? -
|| || || || || || || || || || || || || ||
✔✔Medi-Cal
A spendthrift clause in a life insurance policy - ✔✔Restricts the ability of the beneficiary to
|| || || || || || || || || || || || || || || ||
assign benefits. ||
A spendthrift clause prevent a beneficiary from recklessly spending benefits.
|| || || || || || || || ||
A life insurance policy can be surrendered for its cash value under which policy provision? -
|| || || || || || || || || || || || || || ||
✔✔Nonforfeiture options
|| ||
ESOPs (employee stock ownership plan) are typically invested in - ✔✔employer stock
|| || || || || || || || || || ||
, Victoria owns a life annuity and elects to receive annuity payments monthly for the
|| || || || || || || || || || || || || ||
remainder of her life with "ten years certain". Her annuity will make payments - ✔✔for a
|| || || || || || || || || || || || || || || ||
minimum of 120 months and a maximum of the remainder of her life. If the annuitant dies,
|| || || || || || || || || || || || || || || || ||
the designated beneficiary would receive any monthly payments for the remainder of the
|| || || || || || || || || || || || ||
certain period-in this case 10 years.
|| || || || ||
Kim is insured under a disability income insurance policy with an "own-occupation" clause.
|| || || || || || || || || || || || ||
She was recently injured in an automobile accident and can no longer perform the tasks of
|| || || || || || || || || || || || || || || ||
her job. Kim is now considered to be - ✔✔Totally disabled
|| || || || || || || || || || ||
The own occupation definition of total disability requires that the insured be unable to
|| || || || || || || || || || || || || ||
perform the insured's current occupation as a result of an accident or sickness.
|| || || || || || || || || || || ||
What portion does an insured pay for covered expenses under Medicare Part B after the
|| || || || || || || || || || || || || || ||
deductible? - ✔✔20% After the deductible, a patient pays 20% of covered expenses under
|| || || || || || || || || || || || || ||
Medicare Part B || ||
The misstatement of age provision in a health policy states that is an insured gives the
|| || || || || || || || || || || || || || || ||
wrong age at the time of application, what action can the insurance company take? -
|| || || || || || || || || || || || || || ||
✔✔Benefits can be adjusted || || ||
Who would be most likely to submit a Medicare Part A claim? - ✔✔Hospital A health care
|| || || || || || || || || || || || || || || || ||
provider would be responsible for filing the claim || || || || || || ||
Which of the following is NOT a characteristic of reinsurance? - ✔✔Increases the unearned
|| || || || || || || || || || || || || ||
premium reserve ||
Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete
|| || || || || || || || || || || || || || || || ||
guilty of? - ✔✔Theft || || ||
