Life Accident & Health Exam Bundle Questions & Answers with Highest Ratings

Annuity - ANSWER--A contract between a person and an insurance company that requires the insurer to make payments to you. -You buy an annuity by making either a single payment or a series of payments -Annuity Death benefits are NOT tax deductible or taxfree Dividends - ANSWER--Declared by the b...

Insurance is defined as? - ANSWER-A contract whereby one undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event. A written instrument in which a contract of insurance is set forth is the? An agreement between the insurer and the insured, the...

Exclusion ratio - ANSWER-An annuitant would life to determine the amount of an annuity distribution that is exempt from taxation. What is used to calculate this? Mortality rate, Exclusion ratio, Morbidity rate, Debt-to-Equity ration Offers a maximum interest rate that increases annually - ANS...

What is insurance? - ANSWER-Insurance is the legal contract where two parties agree that if something will happen, a value will be exchanged. What's the difference between pure risk and speculative risk? - ANSWER-Pure risk is when you'll lose it all or there will be no change. Speculative risk ...

Reduced Paid Up - ANSWER-Nonforfeiture option provides new whole life policy at reduced face amount of protection. Provides coverage for longest time. Extended Term - ANSWER-Nonforfeiture option provides new TERM policy with same face amount of coverage as original policy Guaranteed Lifetime W...

1. What is meant by referring to an insurance policy as a unilateral contract? - ANSWER-*Only one party makes a legally enforceable promise. 2. When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? - ANSWER-*At all times. 3. Any situation ...

1. What is meant by referring to an insurance policy as a unilateral contract? - ANSWER-*Only one party makes a legally enforceable promise. 2. When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? - ANSWER-*At all times. 3. Any situation ...

The insurance applicant is - ANSWER-the individual who is applying to purchase insurance Before making a sale, the first thing an agent should do is - ANSWER-identify the applicant's overall financial objectives.The insurance applicant is - ANSWER-the individual who is applying to purchase insu...

f an insurer indicates that an illustration will be used, they must do which of the following? - ANSWER-Send a summary status report to policy owner annually What does the phrase "life insurance creates an immediate estate" mean? - ANSWER-The total death benefit will be paid to a beneficiary on...

Salary continuation plan - ANSWER-An agreement by an employer to continue a key employee's salary upon retirement, death or disability as long as the employee continues employment during the term. Flexible Life Insurance - ANSWER-Universal and Variable Universal Life policies offer the policy-ow...

When an insurance company request an attending physician's report, the request must be accompanied by a - ANSWER-Copy of the signed authorization Which of these is the automatic mode of settlement for life insurance policy proceeds? - ANSWER-lump sum Which of the following best describes the ...

A Long Term care insurance rider can include coverage for all of the following EXCEPT : - ANSWER-Hospital acute care Which statement best describes a life insurance policy dividend ? - ANSWER-Legally defined as a return of excess premium and not taxable. Which of the following information is n...

What is a participating life insurance policy? A. Contract that allows the policyowner to receive a share of surplus in the form of policy dividends B. Contract that gives beneficiaries the right to participate in any dividends C. Agreement that insures two or more lives D. Agreement that allo...

Pure Risk - ANSWER-Type of insurable risk in which the situation can only result in a loss or no change. No potential for financial gain. Speculative Risk - ANSWER-Type of non-insurable risk which involves a chance of gain. Hazard - ANSWER-Any condition or exposure that increases the possibili...

Which of the following pieces of information is NOT gathered during the personal financial planning process? - ANSWER-"An individual's civic organization memberships" are NOT gathered. An individual's expenses, assets, and income. All of these pieces of information are normally gathered during t...

The California life and health insurance guarantee association covers all of these types of policies, EXCEPT - ANSWER-Self-funded plans All of these are common exclusions to a life insurance policy EXCEPT - ANSWER-accidental death An individual can enroll in a part C Medicare advantage plan at...

According to the California Insurance Code, what is "insurance"? - ANSWER-A contract Which of these statements correctly describes risk? - ANSWER-Pure risk is the only insurable risk Only pure risks are insurable Which of the following does NOT have to be included on life insurance policy...

A hazard that deals with attitudes, behavior, and habits is an example of: - ANSWER-Moral Hazard When can a representation be altered or withdrawn? - ANSWER-It can be altered or withdrawn before the insurance is issued. The function of insurance is best described as: - ANSWER-It spreads financ...

Which of the following is NOT a benefit of insurance - ANSWER-Losses due to fraud are eliminated An individual that has 40 quarters of coverage for social security purposes it's considered to be - ANSWER-Fully insured Anyone employed in California to assist an insurance agent in transacting i...

A key person is typically all of the following, except: - ANSWER--Not directly involved in sales, production, or service Key persons are employees whose contributions have a significant impact on the revenue and profitability of the company, especially in small businesses. They are typically: par...

The risk management technique that is used to prevent a specific loss by not exposing oneself to that activity is called A) Transfer B) Reduction C) Sharing D) Avoidance - ANSWER-D) Avoidance What do individuals use to transfer their risk of loss to a larger group? A) Indemnity ...

What is another name for Interest-sensitive whole life insurance? and what does this type of insurance do? - ANSWER-Current assumption life Cash value of policy has an interest rate comparable with money market, so it may change. This benefit may allow for either greater cash value, or a shorter ...

nsurance - ANSWER-Contract whereby one undertakes to indemnify another against loss, damage, or liabilty arising from a unknown event. Insurer - ANSWER-Any person capable of making a contract; subject to restrictions imposed by the CA insurance code. Speculative risk - ANSWER-Chance of loss an...

A participating company is also referred to as which type of insurer? - ANSWER-Mutual insurer An insurer owned by its policyholders, is called a - ANSWER-Mutual insurer What is a participating life insurance policy? - ANSWER-Contract that allows the policyowner to receive a share of surplus in...

A special characteristic of the insurance contract where equal value is not exchanged between parties is known as - ANSWER-Aleatory Life insurance contracts are these agreements - ANSWER-Unilateral What is the proper definition of a take it or leave it contract, written by an insurer: - ANSWER...

A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is called a(n) - ANSWER-Deferred Annuity 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 th...

Regarding an organizational license, what happens when a corporation is dissolved? - ANSWER-The license is terminated john applies for a variable annuity and does not request that the premiums be immediately invested in a stock or bond portfolio. After the annuity is issued, John returns the annu...

What happens under a misstatement of age clause on a disability policy? 1. The policy would be terminated and all premiums would be returned to the policy owner. 2. The policy would be terminated and all premiums would be retained by the insurance company. 3. All amounts payable under this ...

who is not eligible for social security survivor benefits? A. Full-time students under the age of 19 B. A deceased worker's dependent parents of any age C. A widow at any age who is caring for children younger than 16 D. A widow at full retirement age - ANSWER-A deceased worker's dependent p...

Your license will be considered to be inactive when you: - ANSWER-No longer have any appointments On a "participating" health insurance policy issued by a mutual insurance company, dividends paid to policy holders are: - ANSWER-Not taxable since the IRS treats them as a refund of a portion of t...

What parties are involved in a group contract? - ANSWER-A group contract is between the insurer and the employer. What is a Keogh plan? - ANSWER-A retirement plan for those who are self employed. What is an "Illustration"? - ANSWER-A presentation or depiction that includes non-guaranteed ele...

Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application? - ANSWER-Benefits are adjusted to an amount that the premium would have purchased at the correct age or gender. Whic...

Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select plans? 1 The insurer is able to cancel, or deny renewal of an existing policy, based solely on the health of the insured. 2 There is no restriction for benefits after the coverage has been in effect fo...

A Modified Endowment Contract (MEC) is best described as - ANSWER-A life insurance contract which accumulates cash values higher than the IRS will allow According to life insurance contract law, insurable interest exists - ANSWER-At the Time of the application Under Workers' Compensation, inj...

A saving vehicle designed to first accumulate funds and then systematically liquidates the funds - ANSWER-Deferred annuity An annuity which is backed by a life insurer's separate account - ANSWER-Variable Annuity Cindy buys a 10-year certain annuity with an installment refund. After receiving...

H has suffered a covered disability away from her job and will shortly begin collecting benefits. The insurer sends a letter to H stating that she will not receive any benefit amounts greater than her income. This clause is known as: A: Over-insurance clause B: free look C: relation of earning to...

If an insurer indicates that an illustration will be used, they must do which of the following? - ANSWER-Send a summary status report to policy owner annually What does the phrase "life insurance creates an immediate estate" mean? - ANSWER-The total death benefit will be paid to a beneficiary o...

What are the members of the Medical Bureau (MIB) required to report? - ANSWER-Medical ailments discovered during the underwriting process When an insurance company requests an attending physician's report, the request must be accompanied by a - ANSWER-copy of the signed authorization Tim was ...

The payment of the first premium, the promise to pay a covered loss, and the agreement to abide by policy conditions are all examples of... - ANSWER-consideration The insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. This m...

The California Insurance Code - ANSWER-The Insurance Code is the set of statutes enacted by the state legislature which regulate the business of insurance in California. The Commissioner does not have the authority to change the Insurance Code; only the state legislature has the authority to write o...

Group health plans obligated by the consolidated omnibus budget reconciliation act (cobra) cover groups of at least - ANSWER-20 employees Benefits under social security are available only for workers who are - ANSWER-fully insured Which program pays the cost of nursing home care for people who...

Which of the following is a FALSE Statement concerning the CC of Insurance? A. The commissioner conducts hearings to determine B. The commissioner determines insurance company reserve amounts C. The commissioner appoints insurance examiners D. The commissioner is appointed by the governor - ANS...

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 According to Proposition 103, the commissioner of insurance became an el...

Under the California Financial Information Privacy Act, what must consumers be advised of? - ANSWER-A financial institution has authority to share their personal financial information Which term describes the probability of loss? - ANSWER-Risk Elements of an insurable risk do not include: - AN...

The Social Security age of retirement is dependent upon: - ANSWER-The individual's date of birth. Whole Life insurance is permanent insurance provides a _________ death benefit combining __________ insurance protection and __________ cash value. - ANSWER-Level, Decreasing, Increasing An agent...

When health care insurers negotiate with health care providers or physicians to provide health care services for subscribers at a favorable cost, it is called A) Indemnity plans B) Point of Service Plans (POS) C) Preferred Provider Organization (PPO) D) Managed care - ANSWER-C) Preferred...

Two methods of determining insurance need: - ANSWER-- Human Life Approach - Needs Approach Human Life Value Approach~ - ANSWER-- One of two ways of calculating insurance need. - By discounting estimated future income - Calculating the amount of life insurance a family will need based on the fi...

Risk is: a. the chance that might prove profitable. b. what everybody takes when dealing with insurance. c. an unknown loss. d. the uncertainty or chance of a loss occurring. - ANSWER-d. the uncertainty or chance of a loss occurring. When can a representation be altered or withdrawn? a. It c...

When an insurance company requests an attending physician's report, the request must be accompanied by a - ANSWER-Copy of the signed authorization Which of the following is NOT a required uniform provision in individual health policies? - ANSWER-Change of occupation "Life insurance creates a...

Guaranteed Renewable Insurance Contract - ANSWER-A life or health insurance policy that cannot be changed, except for the rate. Double Indemnity - ANSWER-A policy rider that doubles the death benefit if the insured dies in an accident Common Disaster Clause - ANSWER-Protects the beneficiaries ...

3 channels of regulation - ANSWER-ferderal regulation state regulation self-regulation paul v. virginia - ANSWER-ny insurer selling insurance in Virginia. did not comply with state law. court decision was selling insurance across state lines is not interstate commerece and should be regulated b...

Only one party makes a legally enforceable promise - ANSWER-What is meant by referring to an insurance policy as a unilateral contract? At all times - ANSWER-When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? a loss exposure - ANSWER-An...

Which of the following is NOT an activity of daily living? - ANSWER-Talking What can happen if a person who has been served a subpoena refuses to testify in an insurance case? - ANSWER-The individual can be found in contempt of court An example of an alien insurer doing business in this state ...

What is the procedure regarding change of address for a licensee? - ANSWER-The commissioner must be notified immediately of any change in the personal, business, or email address. What is the punishment for a person who refuses to deliver books, records, or assets to the commissioner when subject...

Reciprocal Insurance Company - ANSWER-Group-Owned Insurance whose main activity is risk sharing. Treaty Agreements - ANSWER-Reinsurance agreement that covers all risks contained in the subject lines of the business automatically. Facultative Agreements - ANSWER-Reinsurance agreement that allow...

Who must be notified of a producer's change of address? - ANSWER-The Department of Insurance (Commissioner/Director/Superintendent) When can the commissioner or director examine insurers? - ANSWER-Whenever deemed necessary, but at least once every few years Who may share in the commission fro...

Why is a life insurance policy's delivery date important? - ANSWER-The California Insurance Code gives an individual between 10 and 30 days to return a life policy for cancellation. This free-look period begins on the policy delivery date. Which of the following is a type of insurance where an i...

According to the California Insurance Code, an "Insurance broker" is - ANSWER-compensated for transacting insurance on behalf of another person with an insurer. The California Code of Regulations governing claim settlement practices prohibits all of the following acts of unfair discrimination E...

Which of the following provides benefits for the treatment of gum disease? A. Endodontics B. Orthodontics C. Periodontics D. Prosthodontics - ANSWER-C. Periodontics The Insured and primary beneficiary die in a common accident. The insured dies at the scene and the beneficiary dies thirty six ...

What is it called when a doctor accepts the medicare approved amount? - ANSWER-Assignment Which is not included on an insurance premium? Number of beneficiaries, mortality cost, insurers expenses, investment return - ANSWER-number of beneficiaries What type of insurance covers acute care? - AN...

Which type of disability would be less than total impairment and equal to permanent impairment? 1. Residual Partial Disability 2. Partial Total Disability 3. Temporary Partial Disability 4. Permanent Partial Disability - ANSWER-4. Permanent Partial Disability A limited payment whole life po...

Insurance - ANSWER-defined as the transfer of PURE risk to the insurance company in consideration for a premium. The chance of loss without any chance of gain is called - ANSWER-pure risk Speculative risk - ANSWER-has the possibility for gain or loss and is not insurable. Risk is defined as...

The more times an event is repeated, the more predictable the outcome becomes. This is an example of - ANSWER-%1. the law of large numbers. Insurer expenses include all of the following EXCEPT - ANSWER-2. policy premiums. What rule is used to determine the importance of a representatio - ANSWE...

Basic Medical Expense policies - ANSWER-Provide coverage for Hospital, Surgical and Physicians Medical Expense. -Purchased as a individual or group policy. -provide first dollar coverage (no deductibles). -limited benefit periods and low coverage limits. Major Medical Expense Policy - ANSWER-...

A family's need for income is greatest during the - ANSWER-Family Dependency Period Time after the insured has died, leaving a surviving spouse with dependent children to support. Which of the following would be least likely to be considered a legitimate need that would be paid by insurance p...

Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death? - ANSWER-30-year decreasing term. How many days notice does the ACA require insurers to give before rescinding coverage? - ANSWER-30 A signed go...