FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers, Exams of Nursing

Download FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers and more Exams Nursing in PDF only on Docsity! FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ What distinguishes a deferred annuity from an immediate annuity? - correct answers The time at which benefit payments start 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 the insurer make to her beneficiary? - correct answers 60 payments What is a common reason people purchase an annuity? - correct answers To protect against the risk of outliving their financial resources What kind of annuity pays income to two annuitants until their deaths? - correct answers Joint and survivor annuity What is a joint and survivor annuity? - correct answers Provides payments the annuity to two people. If either person dies, the same income payments continue to the survivor for life. When the surviving annuitant dies, no further payments are made to anyone. Victoria owns a life annuity and elects to receive annuity payments monthly for the remainder of her life with "ten years certain". Her annuity will make payments - correct answers for a minimum of 120 months and a maximum of the remainder of her life Which of the following statements regarding a life insurance policy dividend is TRUE? - correct answers It is the distribution of excess of funds accumulated by the insurer on participating policies. FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ An insured owned by its policyholders is called a - correct answers mutual insurer 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? - correct answers Reinsurance What is reinsurance? - correct answers An arrangement by which an insurance company transfers a portion of a risk it has assumed to another insurer Which of the following is NOT a characteristic of reinsurance? - correct answers Increases the unearned premium reserve Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event? - correct answers Insurance policy What is an insurance policy? - correct answers A contract where one party promises to indemnify another against loss that arises from an unknown event What is residual disability income insurance payments based on? - correct answers The amount of the insured's income is reduced by the disability Manuel is considered to be a disabled person as defined by the Americans with Disabilities Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT - correct answers Driving FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ What are exclusions in a health policy? - correct answers Specified hazards listed in a policy for which benefits will not be paid Under a health insurance policy, the provision that states the kind of benefits provided and the circumstances under which they will be paid is called the? - correct answers insuring clause What does an insuring clause state? - correct answers Under a health insurance policy, the provision that states the kind of benefits provided and the circumstances under which they will be paid Which of these is NOT a relevant factor in the health insurance principle of morbidity? - correct answers Intelligence How does rising morbidity rates affect health insurance? - correct answers Increased premiums In health insurance, morbidity rates show - correct answers the expected incidence of sickness or disability within a given group during a given period of time Which of the following factors is NOT used in underwriting health insurance policies? - correct answers Intelligence Which of the following is NOT a requirement of a contract? - correct answers Equal consideration is required between the involved parties FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ Which of the following statements correctly describes a contract of indemnity? - correct answers One party is restored to the same financial position the party was in before the loss occurred Which of the following is NOT required in the content of a policy? - correct answers Probability of loss Which statement is CORRECT when describing a contract of adhesion? - correct answers Contract may be accepted or rejected by the insured Restoring an insured to the same condition as before a loss is an example of the principle of - correct answers Indemnity Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? - correct answers Rescinding the contract The importance of representation is demonstrated in what rule? - correct answers Materiality of concealment What is the price of insurance for each exposure unit? - correct answers Rate Which of the following is NOT an insurer policy expense? - correct answers Premiums FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ A beneficiary receives only the death benefit earnings in which settlement option? - correct answers Interest option Which of these is the automatic mode of settlement for life insurance policy proceeds? - correct answers Lump-sum A spendthrift clause in a life insurance policy - correct answers restricts the ability of the beneficiary to sign benefits Premiums are best described as - correct answers the amount an insured pays per unit of coverage What does the grace period allow a life insurance policy owner to do? - correct answers Make a premium payment after the due date without any loss of coverage Which of the following does a policyowner NOT have a right to change? - correct answers Dividend schedule When does a life insurance policy's waiver of premium take effect? - correct answers Insured becomes totally disabled What are collateral assignments normally associated with? - correct answers Bank loans FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ When an applicant applies for insurance, the process by which he insurer determines whether to issue a policy is called - correct answers underwriting 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) - correct answers consumer report Which of the following types of information is NOT required for a life insurance application? - correct answers Ethnicity The Medical Information Bureau consists of - correct answers life and health insurance companies What must an applicant do in order to authorize the release of an attending physician report? - correct answers Sign a consent form What are members of the Medical Information Bureau (MIB) required to report? - correct answers Medical ailments discovered during the underwriting process Which of the following does specified disease insurance NOT cover? - correct answers costs covered by medical expense insurance Major medical expense plans typically use a cost containment measure for emergency hospital care. This is referred to as a(n) - correct answers deductible FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ At what point does a self-insured group qualify for stop-loss coverage? - correct answers When claims exceed a specified limit in a set period of time What does a Hospital Confinement indemnity policy pay for? - correct answers Pays a specified daily amount while the insured is confined to a hospital Medical expense policies will typically cover which of the following? - correct answers Injuries caused by accidents All of these are examples of cost sharing in a health insurance policy EXCEPT - correct answers Coordination Wat is considered the most common type of specified disease insurance policy? - correct answers Cancer Moral hazard is described as - correct answers increased chance of a loss because of an insured's dishonest tendencies Which of the following is any situation that presents the possibility of a loss? - correct answers Loss exposure Which of the following is a situation where there is a possibility of either a loss or a gain? - correct answers Speculative risk Which of these statements correctly describes risk? - correct answers Pure risk is the only insurable risk FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT - correct answers Probability of loss is unknown A situation in which there is ONLY a chance of loss or no loss is a - correct answers pure risk Which of the following refers to a condition that may increase the chance of a loss? - correct answers Hazard A hazard can be best described as - correct answers a condition that may increase the likelihood of a loss occurring How are Roth IRA's treated for tax purposes? - correct answers Non-deductible contributions and tax-free distributions Retirement plans are prevented from favoring highly compensated employees under which government regulation? - correct answers Nondiscrimination What doe ESOP stand for? - correct answers Employee Stock Ownership Plan ESOPs are typically invested in - correct answers employer stock What type of coverage pays a benefit for part-time nursing care that can be provided in a patient's home? - correct answers Home health care FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ When selling a long term care insurance rider to an applicant, a life agent must take into consideration all of these factors, EXCEPT - correct answers Attending physician's statement In what order are people on the MRMIP waiting list allowed to enroll? - correct answers Based on the date an individuals's application is received Which of the following is NOT an accurate description of Access for infants and Mothers Program (AIM)? - correct answers Only women who have private insurance plans with a maternity-only deductible or copayment greater than $1,500 are eligible Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy Program (HICAP) counselors? - correct answers Charge a fee What is the purpose of the Pre-Existing Condition Insurance Plan (PCIP)? - correct answers PCIP was created by the PPACA for people rejected by private health insurers due to pre-existing conditions What effect did the Pregnancy Discrimination Act have on the health industry? - correct answers Pregnancy must be treated as any other medical condition The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund? - correct answers Between 10 and 30 days FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ What prevents a life insurance policy from being rescinded by the insurer after being in force for two years? - correct answers Incontestability clause What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code? - correct answers Presentation of policy features that includes non-guaranteed elements The free-look period for life insurance policyowners age 60 or older is - correct answers 30 days An agent's attempt to stop the replacement of an existing life insurance policy is known as - correct answers conservation Who does a life settlement broker represent? - correct answers Individual wanting to sell their life policy to a third party Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him than the existing contract. This is considered a(n) - correct answers unnecessary replacement Which of the following does NOT have to be included on life insurance policy illustrations? - correct answers Statement that all values and benefits are guaranteed Which of the following describes a contributory group insurance plan? - correct answers Part of the premium is paid by the employee FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ A terminated employee that has exercised the conversion privilege is able to convert - correct answers term insurance into permanent insurance How does underwriting differ between group life and individual life insurance? - correct answers Medical questions must be answered on individual life insurance Tim was recently terminated from his employment and opted to change his existing group term life insurance to individual permanent life insurance. What is this process called? - correct answers Conversion Who are the parties to the master contract in a group life insurance policy? - correct answers Insurer and employer Which of the following does Medicare Part A NOT provide coverage for? - correct answers Doctor's services Which of the following healthcare providers provides both the healthcare services and healthcare coverage? - correct answers Health Maintenance Organization (HMO) Individuals become eligible for Medicare Part A benefits at what age? - correct answers 65 After the annual deductible is met, a Medicare Part B patient will pay ____ of the remaining covered expenses. - correct answers 20% FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ 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 - correct answers 30 days Failure to report background changes within 30 days as required under section 1729.2 of the California insurance code could subject a license or applicant to - correct answers fine, suspension, and denial The California Insurance Code defines "policy" as a(n) - correct answers written contract Before an insurer is allowed to test an individual for HIV, what must be completed? - correct answers Consent form Which type of jurisdiction requires an insurer to have its rates accepted by the Insurance Department prior to using them? - correct answers Prior approval Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of? - correct answers Theft Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance - correct answers solicitor According to the California Insurance Code, what is "insurance"? - correct answers A contract FInal Exam: California Life, Accident, and Health Insurance with 160questions and answers latest update 2024/2025 GRADED A+ What does the term "indemnity" mean as it pertains to insurance? - correct answers To make whole According to the California Insurance Code, what term is used to describe a fact so important it could affect the policy premium? - correct answers Materiality