California Life, Accident and Health State Exam 2024-
2025 test bank with 400+ questions and correct
answers
According to the California Insurance Code, what is the maximum penalty per
violation for anyone who unwillfully commits an unfair method of competition? -
ANSWER-$5,000
What does a life insurance policy's premium take effect? - ANSWER-Insured
becomes totally disabled
Anyone employed in California to assist an insurance agent in transacting
insurance is called an insurance - ANSWER-solicitor
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?
- No payments
- 30 payments
- 60 payments
- 120 payments - ANSWER-60 Payments
Major medical expense plans typically use a cost containment measure for
emergency hospital care. This is refer to as a (n)
A) Exclusion
B) Limitation
,C) Deductible
D) Capitation - ANSWER-C) Deductible
All of the following are considered appropriate uses of life insurance for business
purposes EXCEPT
A) Protecting the business by covering entry level employees with life insurance
B) Protecting the business by covering key employees with life insurance
C) Attracting quality employees by offering a group life plan
D) Funding an entity buy-sell agreement - ANSWER-A) Protecting the business by
covering entry level employees with life insurance
Under a long-term care insurance policy, adult day care coverage will provide for
A) living arrangements in an assisted living center
B) full time care at a facility for elderly individuals
C) full time home health care
D) part time care at a facility for elderly individuals who live at - ANSWER-D)
part time care at a facility for elderly individuals who live at
What is the elimination period of an individual disability policy?
A) The point in time when benefits are no longer payable
B) Time period after the policy issue date in which the provisions are still
contestable
C) Time period a disabled person must walt before benefits are paid
,D) Time period an insured must wait before coverage begins - ANSWER-C) Time
period a disabled person must walt before benefits are paid
The period in which there are no Social Security benefits for the surviving spouse
is called the
A) blackout period
B) ineligible period
C) dependency period
D) elimination period - ANSWER-A) blackout period
A hospital or medical expense policy will typically cover dental treatment
expenses under which circumstance?
A) If treatment is performed at a in-network provider
B) Dental treatment is needed to repair an injury
C) After the annual limit of a dental policy's coverage is reached
D) Cosmetic dental treatment is performed - ANSWER-B) Dental treatment is
needed to repair an injury
Which of the following is NOT a common exclusion for a medical expense policy?
A) On-the-job injury
B) Physical therapy
C) Act of war
D) Self inflicted injury - ANSWER-B) Physical therapy
, Coverage for care received from a network provider pays more than care received
from a non-network provider in what type of health plan?
A) Health Maintenance Organization (HMO)
B) Self-insured plan
C) Preferred Provider Organization (PPO)
D) Hospital indemnity - ANSWER-C) Preferred Provider Organization (PPO)
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 contract. This is considered
a(n)
A) illegal transaction
B) immediate annuity
C) unnecessary replacement
D) deferred annuity - ANSWER-C) unnecessary replacement
Which of the following actions may an insurance company NOT do in a health
policy that contains a guaranteed renewable premium benefit?
A) Increase the premiums on an individual basis
B) Cancel policy if premiums are not paid
C) Increase the premiums on the basis of an entire
classification
D) Stop renewing policy when the insured reaches a specified age - ANSWER-A)
Increase the premiums on an individual basis
2025 test bank with 400+ questions and correct
answers
According to the California Insurance Code, what is the maximum penalty per
violation for anyone who unwillfully commits an unfair method of competition? -
ANSWER-$5,000
What does a life insurance policy's premium take effect? - ANSWER-Insured
becomes totally disabled
Anyone employed in California to assist an insurance agent in transacting
insurance is called an insurance - ANSWER-solicitor
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?
- No payments
- 30 payments
- 60 payments
- 120 payments - ANSWER-60 Payments
Major medical expense plans typically use a cost containment measure for
emergency hospital care. This is refer to as a (n)
A) Exclusion
B) Limitation
,C) Deductible
D) Capitation - ANSWER-C) Deductible
All of the following are considered appropriate uses of life insurance for business
purposes EXCEPT
A) Protecting the business by covering entry level employees with life insurance
B) Protecting the business by covering key employees with life insurance
C) Attracting quality employees by offering a group life plan
D) Funding an entity buy-sell agreement - ANSWER-A) Protecting the business by
covering entry level employees with life insurance
Under a long-term care insurance policy, adult day care coverage will provide for
A) living arrangements in an assisted living center
B) full time care at a facility for elderly individuals
C) full time home health care
D) part time care at a facility for elderly individuals who live at - ANSWER-D)
part time care at a facility for elderly individuals who live at
What is the elimination period of an individual disability policy?
A) The point in time when benefits are no longer payable
B) Time period after the policy issue date in which the provisions are still
contestable
C) Time period a disabled person must walt before benefits are paid
,D) Time period an insured must wait before coverage begins - ANSWER-C) Time
period a disabled person must walt before benefits are paid
The period in which there are no Social Security benefits for the surviving spouse
is called the
A) blackout period
B) ineligible period
C) dependency period
D) elimination period - ANSWER-A) blackout period
A hospital or medical expense policy will typically cover dental treatment
expenses under which circumstance?
A) If treatment is performed at a in-network provider
B) Dental treatment is needed to repair an injury
C) After the annual limit of a dental policy's coverage is reached
D) Cosmetic dental treatment is performed - ANSWER-B) Dental treatment is
needed to repair an injury
Which of the following is NOT a common exclusion for a medical expense policy?
A) On-the-job injury
B) Physical therapy
C) Act of war
D) Self inflicted injury - ANSWER-B) Physical therapy
, Coverage for care received from a network provider pays more than care received
from a non-network provider in what type of health plan?
A) Health Maintenance Organization (HMO)
B) Self-insured plan
C) Preferred Provider Organization (PPO)
D) Hospital indemnity - ANSWER-C) Preferred Provider Organization (PPO)
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 contract. This is considered
a(n)
A) illegal transaction
B) immediate annuity
C) unnecessary replacement
D) deferred annuity - ANSWER-C) unnecessary replacement
Which of the following actions may an insurance company NOT do in a health
policy that contains a guaranteed renewable premium benefit?
A) Increase the premiums on an individual basis
B) Cancel policy if premiums are not paid
C) Increase the premiums on the basis of an entire
classification
D) Stop renewing policy when the insured reaches a specified age - ANSWER-A)
Increase the premiums on an individual basis
