Final Exam: California Life, Accident, and Health
Insurance
What is considered the most common type of specified disease insurance policy?
Cancer
Minimum participation standards exist for a group health insurance plans in order
to
Prevent Adverse Selection
How does underwriting differ between group life and individual life insurance?
Medical questions must be answered on individual life insurance
when handling premiums for an insured an agent is acting in which capacity?
Fiduciary
what is the term used to describe the frequency and severity of certain illnesses
and accidents?
Morbidity
Which of the following describes the statement "The more times an event is
repeated, the more predictable the outcome becomes"?
Law of large numbers
In order to be considered "currently insured" under Social Security, an individual
must be credited with?
6 quarters of coverage during the last 13-quarter period
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
Which of the following does the California Insurance Code NOT require an
insurance policy to specify?
Insurer's financial rating
Which of the following is NOT required in the content of a policy?
Probability of loss
Which of the following pieces of information is NOT gathered during the personal
financial planning process?
An individual's civic organization memberships
Which of the following is not considered to be an unfair claims settlement
practice?
Advising a claimant to hire an attorney
When an applicant applies for insurance, the process by which the insurer
determines whether to issue a policy is called?
Underwriting
How is a Medicare claim submitted?
Expenses are submitted to Medicare by the health provider
According to the PPACA, the medical enrollment tier that has 80% actuarial value
is called:
Gold
Employer contributions to qualified plans are
Tax-deductible by the employer
Employee participation in a noncontributory group life plan must be
, 100%
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 includes non-guaranteed elements
Which of the following is NOT a characteristic of a preferred provider
organization (PPO)?
Primary physicians serve as gatekeepers
John owns an insurance policy that gives him the right to share in the insurer's
surplus. What kind of policy is this?
Participating
a life agent who has misappropriated fiduciary funds to his own use. What is Pete
guilty of?
Theft
If an insured dies because of an accident, which type of life insurance rider will
provide additional coverage?
Accidental death rider
Tom is shopping for a policy that covers two people and would pay the face
amount ONLY when the first person dies. The type of life policy he is looking for
is called a
Joint life policy
Which of these statements is NOT true concerning recurrent disabilities?
The insurer continues coverage after a new elimination period
An insurer owned by its policyholders is called a?
Mutual Insurer
Medicare Part B Covers?
Physician Expenses
Which of these is NOT a relevant factor in the health insurance principle of
morbidity?
Intelligence
Which of these factors do not affect the rates of medical insurance?
Race
Which of the following types of life insurance is normally associated with a
mortgage loan?
Decreasing term
which of the following is not included in comprehensive major medical plans?
First-Dollar Coverage
Moral hazard is described as the
Increased chance of a loss because of an insured's dishonest tendencies
Which principle is accurately described with the statement "Insureds are entitled
to recover an amount NOT greater than the amount of their loss"?
Indemnity
What time period allows an insured's life insurance policy to remain in force even
if the premium was not paid on the due date?
Grace Period
How long must life agents keep their transaction records?
5 Years
Insurance
What is considered the most common type of specified disease insurance policy?
Cancer
Minimum participation standards exist for a group health insurance plans in order
to
Prevent Adverse Selection
How does underwriting differ between group life and individual life insurance?
Medical questions must be answered on individual life insurance
when handling premiums for an insured an agent is acting in which capacity?
Fiduciary
what is the term used to describe the frequency and severity of certain illnesses
and accidents?
Morbidity
Which of the following describes the statement "The more times an event is
repeated, the more predictable the outcome becomes"?
Law of large numbers
In order to be considered "currently insured" under Social Security, an individual
must be credited with?
6 quarters of coverage during the last 13-quarter period
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
Which of the following does the California Insurance Code NOT require an
insurance policy to specify?
Insurer's financial rating
Which of the following is NOT required in the content of a policy?
Probability of loss
Which of the following pieces of information is NOT gathered during the personal
financial planning process?
An individual's civic organization memberships
Which of the following is not considered to be an unfair claims settlement
practice?
Advising a claimant to hire an attorney
When an applicant applies for insurance, the process by which the insurer
determines whether to issue a policy is called?
Underwriting
How is a Medicare claim submitted?
Expenses are submitted to Medicare by the health provider
According to the PPACA, the medical enrollment tier that has 80% actuarial value
is called:
Gold
Employer contributions to qualified plans are
Tax-deductible by the employer
Employee participation in a noncontributory group life plan must be
, 100%
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 includes non-guaranteed elements
Which of the following is NOT a characteristic of a preferred provider
organization (PPO)?
Primary physicians serve as gatekeepers
John owns an insurance policy that gives him the right to share in the insurer's
surplus. What kind of policy is this?
Participating
a life agent who has misappropriated fiduciary funds to his own use. What is Pete
guilty of?
Theft
If an insured dies because of an accident, which type of life insurance rider will
provide additional coverage?
Accidental death rider
Tom is shopping for a policy that covers two people and would pay the face
amount ONLY when the first person dies. The type of life policy he is looking for
is called a
Joint life policy
Which of these statements is NOT true concerning recurrent disabilities?
The insurer continues coverage after a new elimination period
An insurer owned by its policyholders is called a?
Mutual Insurer
Medicare Part B Covers?
Physician Expenses
Which of these is NOT a relevant factor in the health insurance principle of
morbidity?
Intelligence
Which of these factors do not affect the rates of medical insurance?
Race
Which of the following types of life insurance is normally associated with a
mortgage loan?
Decreasing term
which of the following is not included in comprehensive major medical plans?
First-Dollar Coverage
Moral hazard is described as the
Increased chance of a loss because of an insured's dishonest tendencies
Which principle is accurately described with the statement "Insureds are entitled
to recover an amount NOT greater than the amount of their loss"?
Indemnity
What time period allows an insured's life insurance policy to remain in force even
if the premium was not paid on the due date?
Grace Period
How long must life agents keep their transaction records?
5 Years
