1|Page
CA INSURANCE EXAM LIFE, ACCIDENT SICKNESS
OR HEALTH TEST EXAM|| ACCURATE AND
FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS WITH RATIONALES|| LATEST
AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS!!
What would someone purchase for skilled nursing care? - ANSWER: Medicare
and medicare supplements, but it is limited
Does medicaid pay for nursing home care? - ANSWER: Yes, but it provides
coverage only for those who qualify with low income and low assests
What does an annuity protect the annuitant against? - ANSWER: Living longer
than expected
What are annuity contracts designed to do? - ANSWER: Liquidate an estate and to
protect a person against outliving his or her money
Which of the following is NOT normally an excluded cause of disability in an
individual disability income policy? - ANSWER: Complications from a pregnancy
What are exclusions for cause of disability in an individual disability income
policy? - ANSWER: Injury resulting from illegal activity, suicide, and war
Under the ACA, would pregnancy be considered a pre-existing condition? -
ANSWER: Never
Who is the annuity owner? - ANSWER: The person who purchases the annuity
,2|Page
When a whole life policy is surrendered for its nonforfeiture value, what is the
automatic option? - ANSWER: Extended term
A medicare supplement policy must have a free look period of at least -
ANSWER: 30 days (SUPPLEMENT KEY WORD)
In some cases, in order for an insurer to legally disclose privileged information to
appropriate sources, the insured must sign an auth form. What is the max amt of
time that can legally pass between the completion of the form and the disclosure of
the info? - ANSWER: 1 year (They have one year of consent basically)
All of the following are features of a health insurance plan purchased on the health
insurance marketplace EXCEPT - ANSWER: Dollar limits on essential benefits
(YOU CAN'T PUT A LIMIT ON ESSENTIALS)
Features of a health insurance plan from marketplace: - ANSWER: 1. Coverage
for pre-existing conditions
2. Guaranteed renewability
3. Coverage for emergency services
The McCarran-Ferguson Act - ANSWER: Gave the States the right to regulate the
majority of the Insurance Industry at the State level
According to the insurance code, which of the following terms is mandatory? -
ANSWER: Shall
,3|Page
According to Proposition 103, the commissioner of insurance became an elected
official. The commissioner may serve: - ANSWER: Two consecutive terms (8
Years)
Any person capable of making a contract of insurance subject to the insurance code
is: - ANSWER: An Insurer
Which of the following best describes a broker? - ANSWER: A person who is
NOT appointed by any insurer, but may receive compensation for the policies
he/she places through the insurer and may charge the client a fee
What describes an exclusive agent? - ANSWER: An agent who transacts for one
insurer or a group of related insurers
An insurance agent with a LIFE license can transact:
A. Auto Insurance
B. Life Insurance
C. Homeowners Insurance
D. All the Above - ANSWER: D. All the Above
(only those with a P&C license can be called "an insurance agent" this is a trick
question... this is a person who already has their p&c license AND their life
license.
Which of these best describes an "agent"? - ANSWER: one who is appointed by
any number of insurers, receives commissions from them and transacts on their
behalf
Which of the following best describes an express authority? - ANSWER:
Authority of an agent that is specifically granted by the insurer
, 4|Page
Implied Authority is: - ANSWER: Authority given to an agent other than in the
agent's contract
Stock Insurance Company - ANSWER: An insurance company with a stated
amount of capital stock owned by stockholders who compose the company and
direct it by means of officers and directors
Which of the following best describes a mutual insurance company? - ANSWER:
A corporation owned by individuals who contribute capital through the purchase of
policies
Which of the following is true regarding taxation of accelerated benefits paid under
a life insurance policy? - ANSWER: They are received tax free (if for someone
terminally ill)
What are the continuing education req for agents who market LTC policies? -
ANSWER: 8 hours of LTC specific education included in the regular CE
requirements
A specified disease policy would cover which of the following? - ANSWER:
Cancer (specified in contract such as cancer or heart disease)
Do medicare and medicap policies provide covers for long term custodial or
nursing home care? - ANSWER: No. Medicare will cover nursing home care if it
is part of the treatment for a covered injury or illness.
What does the application of contract of adhesion mean? - ANSWER: Since the
insured does not participate in preparing the contract, any ambiguities would be
resolved in favor of the insured
CA INSURANCE EXAM LIFE, ACCIDENT SICKNESS
OR HEALTH TEST EXAM|| ACCURATE AND
FREQUENTLY TESTED QUESTIONS AND 100%
CORRECT ANSWERS WITH RATIONALES|| LATEST
AND COMPLETE UPDATE WITH EXPERT VERIFIED
SOLUTIONS|| SURE PASS!!
What would someone purchase for skilled nursing care? - ANSWER: Medicare
and medicare supplements, but it is limited
Does medicaid pay for nursing home care? - ANSWER: Yes, but it provides
coverage only for those who qualify with low income and low assests
What does an annuity protect the annuitant against? - ANSWER: Living longer
than expected
What are annuity contracts designed to do? - ANSWER: Liquidate an estate and to
protect a person against outliving his or her money
Which of the following is NOT normally an excluded cause of disability in an
individual disability income policy? - ANSWER: Complications from a pregnancy
What are exclusions for cause of disability in an individual disability income
policy? - ANSWER: Injury resulting from illegal activity, suicide, and war
Under the ACA, would pregnancy be considered a pre-existing condition? -
ANSWER: Never
Who is the annuity owner? - ANSWER: The person who purchases the annuity
,2|Page
When a whole life policy is surrendered for its nonforfeiture value, what is the
automatic option? - ANSWER: Extended term
A medicare supplement policy must have a free look period of at least -
ANSWER: 30 days (SUPPLEMENT KEY WORD)
In some cases, in order for an insurer to legally disclose privileged information to
appropriate sources, the insured must sign an auth form. What is the max amt of
time that can legally pass between the completion of the form and the disclosure of
the info? - ANSWER: 1 year (They have one year of consent basically)
All of the following are features of a health insurance plan purchased on the health
insurance marketplace EXCEPT - ANSWER: Dollar limits on essential benefits
(YOU CAN'T PUT A LIMIT ON ESSENTIALS)
Features of a health insurance plan from marketplace: - ANSWER: 1. Coverage
for pre-existing conditions
2. Guaranteed renewability
3. Coverage for emergency services
The McCarran-Ferguson Act - ANSWER: Gave the States the right to regulate the
majority of the Insurance Industry at the State level
According to the insurance code, which of the following terms is mandatory? -
ANSWER: Shall
,3|Page
According to Proposition 103, the commissioner of insurance became an elected
official. The commissioner may serve: - ANSWER: Two consecutive terms (8
Years)
Any person capable of making a contract of insurance subject to the insurance code
is: - ANSWER: An Insurer
Which of the following best describes a broker? - ANSWER: A person who is
NOT appointed by any insurer, but may receive compensation for the policies
he/she places through the insurer and may charge the client a fee
What describes an exclusive agent? - ANSWER: An agent who transacts for one
insurer or a group of related insurers
An insurance agent with a LIFE license can transact:
A. Auto Insurance
B. Life Insurance
C. Homeowners Insurance
D. All the Above - ANSWER: D. All the Above
(only those with a P&C license can be called "an insurance agent" this is a trick
question... this is a person who already has their p&c license AND their life
license.
Which of these best describes an "agent"? - ANSWER: one who is appointed by
any number of insurers, receives commissions from them and transacts on their
behalf
Which of the following best describes an express authority? - ANSWER:
Authority of an agent that is specifically granted by the insurer
, 4|Page
Implied Authority is: - ANSWER: Authority given to an agent other than in the
agent's contract
Stock Insurance Company - ANSWER: An insurance company with a stated
amount of capital stock owned by stockholders who compose the company and
direct it by means of officers and directors
Which of the following best describes a mutual insurance company? - ANSWER:
A corporation owned by individuals who contribute capital through the purchase of
policies
Which of the following is true regarding taxation of accelerated benefits paid under
a life insurance policy? - ANSWER: They are received tax free (if for someone
terminally ill)
What are the continuing education req for agents who market LTC policies? -
ANSWER: 8 hours of LTC specific education included in the regular CE
requirements
A specified disease policy would cover which of the following? - ANSWER:
Cancer (specified in contract such as cancer or heart disease)
Do medicare and medicap policies provide covers for long term custodial or
nursing home care? - ANSWER: No. Medicare will cover nursing home care if it
is part of the treatment for a covered injury or illness.
What does the application of contract of adhesion mean? - ANSWER: Since the
insured does not participate in preparing the contract, any ambiguities would be
resolved in favor of the insured
