CA Life & Health Agent Exam 116 Questions with Answers,100% CORRECT

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CA Life & Health Agent Exam 116 Questions with Answers a commonly used cost containment measure for emergency hospital care under a major medical expense plan is - CORRECT ANSWER deductible all... of the following are used in determining life insurance rates, EXCEPT - CORRECT ANSWER policy reserves which settlement option allows only the death benefit earnings to be paid to the beneficiary - CORRECT ANSWER interest option capitation can be described as - CORRECT ANSWER an HMO concept that pays doctors a predetermined monthly fee which of the following best defines risk? - CORRECT ANSWER uncertainty of financial loss the premium loan rider on a life insurance policy kicks in: - CORRECT ANSWER at the end of the grace period the insurance code definition of an "insurance broker" is: - CORRECT ANSWER someone paid to transact insurance on behalf of another person, but not on behalf of the insurer the professional liability insurance that an agent should purchase is known as errors & omissions coverage. Which of the following statements concerning this type of insurance is correect? - CORRECT ANSWER it would cover an agent who creates a financial loss by forgetting to renew a policy - a negligeent act a life insurance policy dividend is - CORRECT ANSWER legally defined as a return of excess premium and not taxable which provision will pay a portion of the death benefit prior to the insured/s death due to a serious illness? - CORRECT ANSWER accelerated death benefit for income tax purposes, premiums for personal life insurance are - CORRECT ANSWER not deductible the term "consideration" applies to the issuance on an insurance policy. choose the best description of this term from the choices below - CORRECT ANSWER none of the above your customer pays her insurance premium for one year. on november 1st the policy has two months left to run. the portion of her premium payment for which the insurer has provided insurance coverage (the first ten months) is called: - CORRECT ANSWER the earned premium whcih contract promises to pay the owner a guaranteed minimum income for as long as the individual lies? - CORRECT ANSWER a life annuity a type of receipt stating that coverage begins on the date of the application as long as the insurer approves the application is a: - CORRECT ANSWER conditional receipt is the employees of a company pay a part of their group health insurance premium, it is referred to as a: - CORRECT ANSWER contributory group policy according to the california insurance code, an insurance policy mist be - CORRECT ANSWER in writing which of these statements concerning medicare is not true? - CORRECT ANSWER Part C provides long-term care benefits in financial planning, what is the needs approach concept based on? - CORRECT ANSWER family needs in financial planning, what is the human life value concept based on? - CORRECT ANSWER income an example of a moral hazard in relation to a life insurance application would be - CORRECT ANSWER misstating your health history to an insurance company the best description of a hazard is a/an: - CORRECT ANSWER condition that may increase the chance that a loss may occur which of these categories of insurance combines insurance protection together with cash accumulation? - CORRECT ANSWER permanent insurance contracts an insured has a disability income policy with a $1500 monthly benefit and a 90 day elimination period. the insured is unable to work for 90 days following the accident. what amount will the policy pay? - CORRECT ANSWER nothing which of the following is an express authority of an agent in an agency agreement? - CORRECT ANSWER authority to represent the insurer which of the following may be offered by insurers providing medicare supplement policies? - CORRECT ANSWER the core benefit plan without any additional benefits what occurs during the accumulation period of an annuity? - CORRECT ANSWER allows the annuity to build on a tax-deferred basis of the following, which best describes an annuity? - CORRECT ANSWER it has an obligatioon that is different to the insurance company for both the accumulation period and the liquidation period which type of insurance guaarantees the right to renew the policy each year, regardless of health, but at an increased premium? - CORRECT ANSWER renewable term which is NOT part of transacting insurance? - CORRECT ANSWER establishing a list of clients what is a morbidity table? - CORRECT ANSWER a table that has information on the probability of disabilities because of sickness or accidents what is a morbidity table? - CORRECT ANSWER a table that has information on the probability of disabilities because of sicknesses or accidents when are parties to a contract required to communicate information solely based on personal judgment for a matter in question? - CORRECT ANSWER never what is the limit of liability in a term life insurance policy? - CORRECT ANSWER the face amount of the policy all of the following are optional group medical coverages EXCEPT - CORRECT ANSWER maternity what is the first step in the personal financial planning process? - CORRECT ANSWER define objectives unless certifies by another governmental agency, which entity has jurisdiction over providers of coverage designed to pay for health care services? - CORRECT ANSWER the dept. of insurance what is the penalty tax imposed on amounts received from a modified endowment contract? - CORRECT ANSWER 10% which plan covers the medical expenses that are NOT covered by medicare? - CORRECT ANSWER medicare supplement insurance negatively affects society in all of the following ways EXCEPT - CORRECT ANSWER paid claims do not actually replace the damages as a whole there are four basic classes of life insurance. all of the selections listed below are regarded as ordinary insurance EXCEPT - CORRECT ANSWER term life insurance policy choose the payments from an insurance policy which are not subject to federal income taxes: - CORRECT ANSWER the death benefit paid to a beneficiary in a lump sum which type of insurance coverage has both a savings element and a flexible premium option? - CORRECT ANSWER universal life long term care insurance may be purchased in all of the following forms EXCEPT - CORRECT ANSWER federal government sponsored policies an automatic premium loan, found only is cash value policies: - CORRECT ANSWER will pay a premium that is due by using the policy's cash value john pays the premium for a $200,000 life insurance policy and is issued a binding receipt. john dies in an accident the next day. in the course of underwriting, the company determines john was not insurable by their guidelines at the time the binding receipt was issued. what must the insurer do? - CORRECT ANSWER pay the claim in full which type of beneficiary designation gives the policyowner the right to change the beneficiary designation without requiring the beneficiary's consent? - CORRECT ANSWER a revocable beneficiary designation medicare part A provides coverage for all of the following EXCEPT - CORRECT ANSWER physician's services which of the following statements about life insurance policy loans is correct? - CORRECT ANSWER policy loans may be repaid at any time while the policy is in force which statement about medicare is NOT correct? - CORRECT ANSWER Medicare Part C covers long-term care. under a disability income insurance policy with an own occupation clause, an individual who can no longer perform the tasks of the job held at the time of injury is considered - CORRECT ANSWER totally disabled in a reinsurance agreement, the insurance company that transfers its loss exposure to another insurer is called: - CORRECT ANSWER primary insurer creditors have rights to life insurance policy proceeds when the beneficiary is the - CORRECT ANSWER insured's estate all of the following are reasons for an indicidual to purchase personal life insurance EXCEPT - CORRECT ANSWER to cover a buy/sell agreement subject to the restrictions of the california insurance code, any person capable of making a contract may be considered - CORRECT ANSWER an insurer in insurance terms a representation can be considered - CORRECT ANSWER an implied warranty all of the following types of insurance pay benefits in addition to those paid by other insurance policies held by the insured EXCEPT - CORRECT ANSWER medical expense on which of the following dates does the authority given to a licensee from an insurer to transact insurance become effective? - CORRECT ANSWER the date the insurer signs the notice of appointment if the owner of a life insurance policy does not select a settlement option on behalf of the beneficiary, the beneficiary - CORRECT ANSWER can choose a settlement since it was not chosen by the owner which of the following is true regarding an aleatory contract? - CORRECT ANSWER if there were a loss, the insurer would pay out considerably more compared to the insured's premium when premium paments on a whole life insurance policy are being waived because the person whose life is insured is totally disabled, the actual effect on the policy's cash value will be to - CORRECT ANSWER provide for the continued increase in the cash value during the period of disability disability income insurance payments are based on - CORRECT ANSWER an amount agreed upon by the insurer and the insured in a reinsurance agreement the insurer that transfers its loss exposure to another is called the - CORRECT ANSWER primary insurer all of the following statements apply to a producer acting as an agent insurance broken (not an agent) EXCEPT - CORRECT ANSWER a broker acts on behalf of the insurer in life insurance the only measure of liability is the amount - CORRECT ANSWER payable as provided in the policy what is used to dtermine the amount of an annuity distribution that is exempt from taxation? - CORRECT ANSWER the exclusion ration when an insured becomes totally and permanently disabled, her condition triggers a provision that keeps the policy in fornce even though the insured stops making premium payments. this is a/an - CORRECT ANSWER waiver of premium provision a disability policy, described as "guaranteed renewable" is one where the insurance company - CORRECT ANSWER reserves the right to change the premiums, but may not change any of its terms what uses the law of averages to determine life rates? - CORRECT ANSWER mortality table a health insurance compayment is - CORRECT ANSWER a payment paid by the insured to the provider for the service self-funding of emplyee benefit plans cannot be used for - CORRECT ANSWER death benefits how would "peril" best be defined - CORRECT ANSWER reason for the loss if a service provider is paid a fixed monthly fee in an HMO, what is this called? - CORRECT ANSWER capitation all of the following are associated with accident insurance EXCEPT - CORRECT ANSWER it covers loss of time away from the job bc of an accident as well as sickness what rider doubles the face amount of the policy? - CORRECT ANSWER double indemnity rider the face amount of a mortgage redemption life insurance policy - CORRECT ANSWER decreases to match the principal amount owed under a mortgage loan choose the correct statement about a cost of living rider. the policy owner - CORRECT ANSWER pays an additional premium for the extra protection the rider provides and will see the face amount of the contract increase according to the increase of the index The insurer can do which of the following under a noncancelable health insurance policy? - CORRECT ANSWER cancel the policy for nonpayment of premium all of the following statements about the election of a life insurance policy's settlement options are true EXCEPT - CORRECT ANSWER when no settlement option is chosen, the proceeds are automatically paid to the policy owner's estate which of the following coveraged is NOT one of the three traditional benefits of a group basic medical expense plan? - CORRECT ANSWER private nursing expense what type of annuity has a minimum fixed interest rate and can also achieve stock market like gains? - CORRECT ANSWER equity indexed anuity exclusive agents - CORRECT ANSWER generally represent only one insurer medicare part A will send a statement to which of the following? - CORRECT ANSWER insured which of these statements is not true with regard to insurers and policies that provide medicare supplement coverage? - CORRECT ANSWER the insurers are prohibited from any exclusion for all preexisting conditions within the scope of insurance contracts, what is "consideration"? - CORRECT ANSWER a monthly payments is made by the insured one important method of dealing with risk is to avoid it. all of the following describe risk avoidance EXCEPT the insured - CORRECT ANSWER recognizing that his driving skills are deteriorating and therefore increasing the liability limit on his auto policy in order to receive the principal sum benefit for death from a disability policy, the death must occur - CORRECT ANSWER within a specified number of days after injury in disability insurance, several riders are available for insureds to purchase. the "return of premium" rider - CORRECT ANSWER provides for the return of a percentage of premiums paid at periodic intervals, provided the insured has made no claims a product provides annuity benefits that may vary according to any separate account or accounts maintained by the insurer. this describes - CORRECT ANSWER variable annuity after receiving care by a physician, how is a patient notified of medicare's decision to cover it? - CORRECT ANSWER medicare summary notice (MSN) in life insurance, the only measure of liability is the amount - CORRECT ANSWER payable as provided in the policy if a service provider is paid a fixed monthly fee in an HMO, what is this called? - CORRECT ANSWER capitation when does the license of an agent become inactive - CORRECT ANSWER when the agent is not currently appointed by an insurer, but renewal fees are paid and continuing education requirements have been met what is a seniors age as in pertains to life and annuities? - CORRECT ANSWER 60 all of the following would be considered benefits of insurance, EXCEPT - CORRECT ANSWER retention of the loss exposure risk by the insured agents must act on behalf of their clients in such a way that upholds "fiduciary duty" select the best example of this duty from th choices below - CORRECT ANSWER quickly sending an insured's premium to the home office a possibiility of financial loss resulting from the ownership of property is known as - CORRECT ANSWER property loss exposure negotiating an insurance policy means which of the following - CORRECT ANSWER promising a comission rebate to an existing insured is she renews is a worker is now earning $25k a year working part time ($35k a year less than he earned a couple of years agp) and is earning less because of a disability, this disability would be called - CORRECT ANSWER partial which of the following (recall) provisisons of a disbaility contract is likely to change the contract least and cost the most? - CORRECT ANSWER non-cancelable contract an individual is allowed to enroll in individual health insurance under the following circumstances except - CORRECT ANSWER withtin 30 days of being diagnosed with an illlness death benefits that are received by a beneficiary are generallly - CORRECT ANSWER exempt from federal income tax what is the first step in submitting medicare claims? - CORRECT ANSWER the medical provider submuts expenses to medicare the docial securoty blackout period ends when the surviving spouse reaches the age of - CORRECT ANSWER 60 certain principles apply to the business of insurance, one of them is the concept of insurance issued as an "aleatory" contract. what does aleatory mean here? - CORRECT ANSWER performance depends on an uncertain future event what would we call a representation which fails to correspong with its stipulations of assertions? - CORRECT ANSWER false health maintenance organizations (HMOs) are required to provide for all of the following EXCEPT - CORRECT ANSWER prescription drugs all of the following statements regarding policy dividends are true except - CORRECT ANSWER non-par policies generally pay large dividends If a life agent sells a whole life policy to a prospect on behalf of an insurer without an appointment, the - CORRECT ANSWER insurer must submit a notice of appointment to the commissioner while an insurer is paying the premium for a life insurance policy under the waiver of premium rider: - CORRECT ANSWER the policy remains in full force in every respect which of the following is a characteristic of nonqualified annuities? - CORRECT ANSWER tax-deferred earnings all of the following statements about mortality tables are true EXCEPT - CORRECT ANSWER the tables track a group of people from the year they were born until they all die in a group life insurance policy who are the parties to the master contract? - CORRECT ANSWER the insurer and the employer which of the following applies to social security? - CORRECT ANSWER contributions are compulsory for most workers an individual might purchase LTC protection out of concern for all of the following EXCEPT - CORRECT ANSWER ineligibility for medigap coverage relative value units use a conversion table to determine benefits for - CORRECT ANSWER surgical procedures [Show More]

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