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(LIFE AGENT) CA PSI SITE - LIFE, ACCIDENT AND
HEALTH AGENT
EXAMINATION QUESTIONS AND ANSWERS
All of the following are examples of the dividend options available on a whole
life insurance policy, except:
A. One-year term option
B. Application to reduce premium
C. Paid-up additions
D. Life income with period certain -- ANSWER--D
A policy owner makes the last premium payment on his $250,000 non-par
whole life policy today. The owner is 70 years of age. When will the cash value
reach $250,000.
A. About 13 years from now
B. The cash value is $250,000 today
C. Never, he didn't pay up to age 100
D. When he reaches the age of 100 -- ANSWER--D
Arnold and Bertha are married and work for different firms. Arnold has group
health insurance through his company that also insures Bertha. Likewise Bertha
has group health insurance also covering Arnold. Select the correct statement
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below about how benefits are affected by the coordination of benefits provision
in both plans.
A. If Bertha files a medical claim Arnold's company is considered
secondary.
B. If Arnold files a medical claim Bertha's company is considered primary
C. First the secondary insurer will decide what it won't pay for which will
dictate what the primary insurer will pay
D. Since both Arnold and Bertha are covered by a group plan neither insurer
will pay if the other insurer is primary -- ANSWER--D
All of the following are used in determining life insurance rates, except:
A. Investment and interest return
B. Insurance company expenses
C. Mortality expenses
D. Policy reserves -- ANSWER--Policy Reserves
In the California Insurance Code there is a definition that reads, in short, "....a
person who, for a fee, offers to advise any insured having any interest in life or
disability insurance contracts..." This is the definition of :
A. An insurance broker paid on a fee-for-service
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B. A solicitor
C. A life and disability analyst -- ANSWER--C
Which of the following is false about dividends paid from life insurance policies
? A dividend is:
A. Treated as a return of excess premium paid by the owner and is therefore
taxable.
B. Interest earned on dividends and paid to the policy owner. It is considered
taxable.
C. Not guaranteed to be paid to the policy owner. -- ANSWER--A
In order for insurers to help avoid the problem of over-insurance they include
___ provisions in their policies.
A. Maximum limits
B. Coordination of benefits
C. Neither of the above -- ANSWER--Coordination of benefits
An agent mostly sells long-term care insurance to individuals. He obtained his
insurance license (life and health) in January of 1998. In 1998 he must:
A. Complete 25 hours of life and health continuing education only
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B. Complete 25 hours of life and health continuing education and, in
addition, complete 8 hours of LTC specific continuing education, a total of 33
hours
C. Complete 25 hours of life and health continuing education, 8 of which are
LTC specific
D. None of the above -- ANSWER--C
Disability income insurance pays a weekly or monthly income to replace a
portion of the one's lost salary due to an inability to work. When a disability
income insurance application is submitted, what reason might the underwritting
department use to reject it?
A. Insurers are willing to only accept applications with extremely small risks
exposure.
B. Underwriters have to reject a certain number of applications per a certain
number of approved applications
C. Disability insurers have to eliminate applications that seem likely to have
losses much more frequently or much more severely than what the insurer's
rates anticipate.
D. None of the above. -- ANSWER--C
When any change in residence address occurs, every licensee and every
applicant for a license must notify the Commissioner _______________. (Select
the most correct response)
(LIFE AGENT) CA PSI SITE - LIFE, ACCIDENT AND
HEALTH AGENT
EXAMINATION QUESTIONS AND ANSWERS
All of the following are examples of the dividend options available on a whole
life insurance policy, except:
A. One-year term option
B. Application to reduce premium
C. Paid-up additions
D. Life income with period certain -- ANSWER--D
A policy owner makes the last premium payment on his $250,000 non-par
whole life policy today. The owner is 70 years of age. When will the cash value
reach $250,000.
A. About 13 years from now
B. The cash value is $250,000 today
C. Never, he didn't pay up to age 100
D. When he reaches the age of 100 -- ANSWER--D
Arnold and Bertha are married and work for different firms. Arnold has group
health insurance through his company that also insures Bertha. Likewise Bertha
has group health insurance also covering Arnold. Select the correct statement
, Page 2 of 39
below about how benefits are affected by the coordination of benefits provision
in both plans.
A. If Bertha files a medical claim Arnold's company is considered
secondary.
B. If Arnold files a medical claim Bertha's company is considered primary
C. First the secondary insurer will decide what it won't pay for which will
dictate what the primary insurer will pay
D. Since both Arnold and Bertha are covered by a group plan neither insurer
will pay if the other insurer is primary -- ANSWER--D
All of the following are used in determining life insurance rates, except:
A. Investment and interest return
B. Insurance company expenses
C. Mortality expenses
D. Policy reserves -- ANSWER--Policy Reserves
In the California Insurance Code there is a definition that reads, in short, "....a
person who, for a fee, offers to advise any insured having any interest in life or
disability insurance contracts..." This is the definition of :
A. An insurance broker paid on a fee-for-service
, Page 3 of 39
B. A solicitor
C. A life and disability analyst -- ANSWER--C
Which of the following is false about dividends paid from life insurance policies
? A dividend is:
A. Treated as a return of excess premium paid by the owner and is therefore
taxable.
B. Interest earned on dividends and paid to the policy owner. It is considered
taxable.
C. Not guaranteed to be paid to the policy owner. -- ANSWER--A
In order for insurers to help avoid the problem of over-insurance they include
___ provisions in their policies.
A. Maximum limits
B. Coordination of benefits
C. Neither of the above -- ANSWER--Coordination of benefits
An agent mostly sells long-term care insurance to individuals. He obtained his
insurance license (life and health) in January of 1998. In 1998 he must:
A. Complete 25 hours of life and health continuing education only
, Page 4 of 39
B. Complete 25 hours of life and health continuing education and, in
addition, complete 8 hours of LTC specific continuing education, a total of 33
hours
C. Complete 25 hours of life and health continuing education, 8 of which are
LTC specific
D. None of the above -- ANSWER--C
Disability income insurance pays a weekly or monthly income to replace a
portion of the one's lost salary due to an inability to work. When a disability
income insurance application is submitted, what reason might the underwritting
department use to reject it?
A. Insurers are willing to only accept applications with extremely small risks
exposure.
B. Underwriters have to reject a certain number of applications per a certain
number of approved applications
C. Disability insurers have to eliminate applications that seem likely to have
losses much more frequently or much more severely than what the insurer's
rates anticipate.
D. None of the above. -- ANSWER--C
When any change in residence address occurs, every licensee and every
applicant for a license must notify the Commissioner _______________. (Select
the most correct response)
