Final Exam - California Life and Health
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1. How does a conditional receipt differ from a binding receipt?
- Conditional receipts always provide insurance which starts from the date of
receipt
- Conditional receipts always provide insurance which starts from the date of
receipt
- Binding receipts always provide insurance which starts from the date of
receipt
-Conditional receipts always require an initial premium payment: Binding
receipts always provide insurance which starts from the date of receipt
2. Which of the following is NOT an element of an insurable risk?
Loss must be due to chance
Loss must be catastrophic
Loss must be measurable
Loss frequency must be predictable: Loss must be catastrophic
3. Who would be most likely to submit a Medicare Part A claim?
State
Hospital
HICAP
Insured: Hospital
4. Which of the following statements do NOT apply to child coverage in a family
policy?
Only children born prior to policy's issue date may be included
Child coverage comes in the form of term insurance
Children are covered up to an age stated in the policy
Child coverage is convertible to permanent insurance: Only children born prior
to policy's issue date may be included
5. What does the term "illustration" mean when used in the phrase "life
insurance policy illustration", according to the California Insurance Code?
A copy of the terms given for the free-look period
A copy of the sales materials used in an insurance transaction
Publication designed to help an applicant reach an informed decision about
which coverage is appropriate
Presentation of policy features that includes non-guaranteed elements: Pre-
sentation of policy features that includes non-guaranteed elements
6. Which of the following is NOT considered to be a definition of the term
"loss"?
Unintentional decrease in the value of an asset due to a peril
An insurable event that takes place which results in a payment made by the
insurance company
, Final Exam - California Life and Health
Study online at https://quizlet.com/_5dfowz
Probability that an event will occur
The amount an insurance company must pay because of an insurable event-
: Probability that an event will occur
7. Health insurance policies typically contain a provision stating that insureds
and their insurer will share covered losses in an agreed proportion. Which
provision does this refer to?
Internal limit
Coinsurance
Deductible
Stop-loss: Coinsurance
8. Periodic increases in policy benefits are allowed in which long-term care
policy provision?
Entire contract
Inflation protection
Non-forfeiture
Deflation protection: Inflation protection
9. Which of the following is NOT included in comprehensive major medical
plans?
First-dollar coverage
Deductibles
Coinsurance
Maximum coverage limits: First-dollar coverage
10. Bruce is involved in an accident and becomes totally and permanently
disabled. His insurance policy continues in force without payment of further
premiums. Which policy provision is responsible for this?
Insuring provision
Return of premium provision
Waiver of premium provision
Automatic premium loan provision: Waiver of premium provision
11. What is a common reason people purchase an annuity?
To create an immediate estate
To pay off a debt in the event of death
To minimize their tax burden
To protect against the risk of outliving their financial resources: To protect
against the risk of outliving their financial resources
12. Reasonably necessary acts that an agent must perform for carrying out
his/her expressly authorized duties are covered by an agent's
Express authority
Evident authority
Study online at https://quizlet.com/_5dfowz
1. How does a conditional receipt differ from a binding receipt?
- Conditional receipts always provide insurance which starts from the date of
receipt
- Conditional receipts always provide insurance which starts from the date of
receipt
- Binding receipts always provide insurance which starts from the date of
receipt
-Conditional receipts always require an initial premium payment: Binding
receipts always provide insurance which starts from the date of receipt
2. Which of the following is NOT an element of an insurable risk?
Loss must be due to chance
Loss must be catastrophic
Loss must be measurable
Loss frequency must be predictable: Loss must be catastrophic
3. Who would be most likely to submit a Medicare Part A claim?
State
Hospital
HICAP
Insured: Hospital
4. Which of the following statements do NOT apply to child coverage in a family
policy?
Only children born prior to policy's issue date may be included
Child coverage comes in the form of term insurance
Children are covered up to an age stated in the policy
Child coverage is convertible to permanent insurance: Only children born prior
to policy's issue date may be included
5. What does the term "illustration" mean when used in the phrase "life
insurance policy illustration", according to the California Insurance Code?
A copy of the terms given for the free-look period
A copy of the sales materials used in an insurance transaction
Publication designed to help an applicant reach an informed decision about
which coverage is appropriate
Presentation of policy features that includes non-guaranteed elements: Pre-
sentation of policy features that includes non-guaranteed elements
6. Which of the following is NOT considered to be a definition of the term
"loss"?
Unintentional decrease in the value of an asset due to a peril
An insurable event that takes place which results in a payment made by the
insurance company
, Final Exam - California Life and Health
Study online at https://quizlet.com/_5dfowz
Probability that an event will occur
The amount an insurance company must pay because of an insurable event-
: Probability that an event will occur
7. Health insurance policies typically contain a provision stating that insureds
and their insurer will share covered losses in an agreed proportion. Which
provision does this refer to?
Internal limit
Coinsurance
Deductible
Stop-loss: Coinsurance
8. Periodic increases in policy benefits are allowed in which long-term care
policy provision?
Entire contract
Inflation protection
Non-forfeiture
Deflation protection: Inflation protection
9. Which of the following is NOT included in comprehensive major medical
plans?
First-dollar coverage
Deductibles
Coinsurance
Maximum coverage limits: First-dollar coverage
10. Bruce is involved in an accident and becomes totally and permanently
disabled. His insurance policy continues in force without payment of further
premiums. Which policy provision is responsible for this?
Insuring provision
Return of premium provision
Waiver of premium provision
Automatic premium loan provision: Waiver of premium provision
11. What is a common reason people purchase an annuity?
To create an immediate estate
To pay off a debt in the event of death
To minimize their tax burden
To protect against the risk of outliving their financial resources: To protect
against the risk of outliving their financial resources
12. Reasonably necessary acts that an agent must perform for carrying out
his/her expressly authorized duties are covered by an agent's
Express authority
Evident authority
