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California Life, Accident, and Health Insurance
1.Which of the following are common personal uses for life insurance : >>>> Estate planning, Cash accumulation, Protection of survivors
- Which of the following is a characteristic of an interest sensitive whole life policy : >>>> Flexible premiums, Guaranteed minimum death benefit, Guaranteed minimum rate of return.
- What type of policy provides coverage for life, but the premiums are not due beyond age 65, has guaranteed premium, accumulates cash value and the coverage will never decrease : >>>> A limited pay life policy
- Under the PPACA, the shared responsibility payment is assessed on what basis >>>> Monthly
- Which of the following statements is true about conditions to reinstate a lapsed life insurance policy >>>> The policy has been expired no more than 3 years
- An insurance company whose main responsibility is to make money for its policyholders is called a >>>> Mutual insurance company
- How does the California Insurance Code define an insurance contract >>>> A legal agreement made between an insurance company and an individual
11.Which of the following is true about licensed life-only agents >>>> Licensed life-only agents can be appointed by an unlimited number of companies.
12. What kind of policy provides the option for the policyowner to pay for the entire policy over a specific and usually shorter period of time and grows
cash value faster than ordinary life and matures when the insured reaches age 100 or dies >>>> A limited-payment whole life 13.What business continuation plan would be best for a furniture company owned by five partners >>>> Entity plan 14.When is maternity coverage available on a family health plan >>>> Maternity coverage is effective immediately. 15.Who has jurisdiction over entities that provide coverages designed to pay for health care providers' services that are not certified by other governmen- tal agencies >>>> The California Department of Insurance 16.A qualified retirement plan that blends an IRA with a profit-sharing plan and allows the employer to deduct up to 25% of contributions made to all employees is called a >>>> SEP
life insurance policy, the insurer does NOT consider >>>> : Morbidity 23.The PPACA states that businesses required to buy insurance will be penalized if employees have to pay more than what percentage of their income for insurance >>>> 9.50% 24.Which of the following is not a characteristic of the guaranteed insurabil- ity rider >>>> The insurance can be purchased at any time. 25.Under the PPACA, what is the maximum an insurance company to charge for tobacco use >>>> 1.5: 26.Eligibility for Social Security disability benefits is determined by all of the following >>>> : Individuals under age 24 must earn 6 quarters of credit within the past
3 years. Individuals over age 31 must earn 20 quarters of credit within the past 10 years. 27.Once an insurer has looked at the facts pertaining to a life insurance applicant, the insurer will categorize the risk and calculate premiums based on >>>> The risk classification and mortality, interest earnings and expenses 28.Before starting a flexible spending account someone should do all of the following, EXCEPT >>>> Sign up for the maximum allowable, since she can carry any balance over to the next tax year 29.Insurance uses a pre-existing condition clause to prevent >>>> Adverse selec- tion 30.The PPACA states that businesses will be penalized for not providing insurance when they have at least how many employees >>>> 50 31.What plan would likely meet the needs of 2 partners who want to create a buy/sell agreement and an inexpensive and simple funding plan >>>> A joint life plan, which will provide the survivor money to buy out the deceased partner's heirs. 32.During the accumulation phase of the annuity, the interest for a fixed annuity >>>> Is the current interest rate, plus a guaranteed
39.Insurance producer responsibilities and duties for replacement include all the following, EXCEPT >>>> Notify insurers of policies to be replaced, and if requested, provide insurers with the policy comparison statement 40.Any of the following should be considered in a needs approach calcula- tion, EXCEPT >>>> Amount needed to retire comfortably 41.What price has the PPACA set for a plan to provide the rationale behind an adverse claim determination >>>> $
42. Which of the following does not fall in the private insurer category >>>> - Self-insurers 43.Medical expense plans are what type of contracts >>>> Reimbursement 44.What is the major difference between Partnership policies and non- Part- nership policies >>>> Partnership policies provide lifetime asset protection and Medi-Cal services. 45.What type of interviews are illegal to conduct with seniors >>>> Pretext 46.Which of the following best describes a Medicare supplement policy that contains restricted network provisions >>>> Medicare Select 47.If a replacement is involved, the agent must do all of the following, EXCEPT >>>> Notify the insurer of the policy being replaced - of any policies to be replaced.
48.A person that is disabled under Social Security is eligible for Medicare benefits after >>>> 29 months (870 days) 49.Under the PPACA, what is every state required to create to help small employers access affordable insurance for their employees >>>> Small Business Health Options Program 50.For a new hire signing up during the open enrollment period, the longest pre-existing period for conditions that occurred prior to employment under HIPPA is >>>> 12 months 51.All the following can cover long-term care, EXCEPT >>>> A benefit under Part A of Medicare after someone reaches age 65 52.Mr. Hanks sold a policy to Mr. Brown, collected the initial premium and gave Mr. Brown a conditional receipt. Before Mr. Hanks delivered the policy to the insurance company for approval, Mr. Brown was injured in an accident. What is the responsibility of the insurance company >>>> The insurer is respon- sible for claims if they would have issued the policy normally.
61.Any of the following are limited benefit plans, EXCEPT >>>> Basic Medical
62. All of the following are characteristics of variable annuities, EXCEPT >>>> - The insurer chooses where to invest the funds 63.The PPACA provides guaranteed issue to children under what age >>>> 19 64.Under the PPACA, actuarial values (AVs) are called >>>> Metal levels 65.Which of the following statements is not true about a retirement income annuity >>>> It is an ordinary immediate annuity. 66.Under the PPACA, health care plans do not have to cover preventive services if they were issued before September 23 of what year >>>> 2010 67.What approach calculates the amount of money a person is expected to earn over their lifetime >>>> Human life value 68.Under the PPACA, there are how many essential health benefits >>>> 10 69.Which of the following premiums consists of the net premium with load- ing >>>> Gross single premium
70.All of the following are true regarding life insurance policy illustrations, EXCEPT >>>> Illustrations are part of the insurance contract. 71.What legislation is responsible for requiring insurers to maintain stan- dards for reporting and disclosure requirements of group health plans >>>> - ERISA 72.The amount of income for a disability income rider on Jack's policy is based on >>>> The face amount of the policy
