FInal Exam: California Life, Accident,
and Health Insurance
A beneficiary receives only the death benefit earnings in which settlement option? -
ANS-Interest option
A hazard can be best described as - ANS-a condition that may increase the likelihood of
a loss occurring
A life insurance policy can be surrendered for its cash value under which policy
provision? - ANS-Nonforfeiture options
A life insurance policy that pays the face amount if the insured survives to a specified
period of time is called - ANS-endowment insurance
A life insurance policy where the insured can choose where the cash value can be
invested is called - ANS-variable life
A life insurance policy's limit of liability would be - ANS-the policy's face amount
A report which is based on creditworthiness and personal characteristics that influences
an insurance applicant's eligibility for life and health insurance is called a(n) - ANS-
consumer report
A situation in which there is ONLY a chance of loss or no loss is a - ANS-pure risk
A spendthrift clause in a life insurance policy - ANS-restricts the ability of the beneficiary
to sign benefits
A terminated employee that has exercised the conversion privilege is able to convert -
ANS-term insurance into permanent insurance
According to Social Security, an individual with 6 credits of coverage during the previous
13-quarter is considered to be: - ANS-currently insured
According to the California Insurance Code, what is "insurance"? - ANS-A contract
According to the California Insurance Code, what term is used to describe a fact so
important it could affect the policy premium? - ANS-Materiality
, According to the PPACA, an adult can be covered by a parent's health care plan until
what age? - ANS-Age 26
After the annual deductible is met, a Medicare Part B patient will pay ____ of the
remaining covered expenses. - ANS-20%
After the annual deductible is met, Medicare Part B will pay ____ of the remaining
approved charges. - ANS-80%
All of the following circumstances must be met for loss retention to be an effective risk
management technique, EXCEPT - ANS-Probability of loss is unknown
All of these are examples of cost sharing in a health insurance policy EXCEPT - ANS-
Coordination
An agent's attempt to stop the replacement of an existing life insurance policy is known
as - ANS-conservation
An individual that has 40 quarters of coverage, for Social Security purposes, is
considered to be - ANS-fully insured
An individual who transacts life, disability, or life and accident and health insurance on
behalf of an insurer is called a(n): - ANS-life agent
An insurance policy issued in California may be called a comprehensive long-term care
insurance policy if benefits are provided for - ANS-Institutional (nursing facilities) and
home care
An insurance policy written after 1988 that fails to pass the seven-pay test is known as -
ANS-a modified endowment contract
An insured owned by its policyholders is called a - ANS-mutual insurer
An insurer can be protected from adverse selection with which policy provision? - ANS-
Suicide clause
An insurer enters into a contract with a third party to insure itself against losses from
insurance policies it issues. What is the agreement called? - ANS-Reinsurance
Any changes in background information that occur after a producer application has
been submitted or a license has been issued MUST be reported to the Insurance
Commissioner within - ANS-30 days
Anyone employed in California to assist an insurance agent in transacting insurance is
called an insurance - ANS-solicitor
and Health Insurance
A beneficiary receives only the death benefit earnings in which settlement option? -
ANS-Interest option
A hazard can be best described as - ANS-a condition that may increase the likelihood of
a loss occurring
A life insurance policy can be surrendered for its cash value under which policy
provision? - ANS-Nonforfeiture options
A life insurance policy that pays the face amount if the insured survives to a specified
period of time is called - ANS-endowment insurance
A life insurance policy where the insured can choose where the cash value can be
invested is called - ANS-variable life
A life insurance policy's limit of liability would be - ANS-the policy's face amount
A report which is based on creditworthiness and personal characteristics that influences
an insurance applicant's eligibility for life and health insurance is called a(n) - ANS-
consumer report
A situation in which there is ONLY a chance of loss or no loss is a - ANS-pure risk
A spendthrift clause in a life insurance policy - ANS-restricts the ability of the beneficiary
to sign benefits
A terminated employee that has exercised the conversion privilege is able to convert -
ANS-term insurance into permanent insurance
According to Social Security, an individual with 6 credits of coverage during the previous
13-quarter is considered to be: - ANS-currently insured
According to the California Insurance Code, what is "insurance"? - ANS-A contract
According to the California Insurance Code, what term is used to describe a fact so
important it could affect the policy premium? - ANS-Materiality
, According to the PPACA, an adult can be covered by a parent's health care plan until
what age? - ANS-Age 26
After the annual deductible is met, a Medicare Part B patient will pay ____ of the
remaining covered expenses. - ANS-20%
After the annual deductible is met, Medicare Part B will pay ____ of the remaining
approved charges. - ANS-80%
All of the following circumstances must be met for loss retention to be an effective risk
management technique, EXCEPT - ANS-Probability of loss is unknown
All of these are examples of cost sharing in a health insurance policy EXCEPT - ANS-
Coordination
An agent's attempt to stop the replacement of an existing life insurance policy is known
as - ANS-conservation
An individual that has 40 quarters of coverage, for Social Security purposes, is
considered to be - ANS-fully insured
An individual who transacts life, disability, or life and accident and health insurance on
behalf of an insurer is called a(n): - ANS-life agent
An insurance policy issued in California may be called a comprehensive long-term care
insurance policy if benefits are provided for - ANS-Institutional (nursing facilities) and
home care
An insurance policy written after 1988 that fails to pass the seven-pay test is known as -
ANS-a modified endowment contract
An insured owned by its policyholders is called a - ANS-mutual insurer
An insurer can be protected from adverse selection with which policy provision? - ANS-
Suicide clause
An insurer enters into a contract with a third party to insure itself against losses from
insurance policies it issues. What is the agreement called? - ANS-Reinsurance
Any changes in background information that occur after a producer application has
been submitted or a license has been issued MUST be reported to the Insurance
Commissioner within - ANS-30 days
Anyone employed in California to assist an insurance agent in transacting insurance is
called an insurance - ANS-solicitor
