Final Exam: California Life, Accident, and Health Insurance

Final Exam: California Life, Accident, and Health Insurance

What is considered the most common type of specified disease insurance policy? - Cancer

Minimum participation standards exist for a group health insurance plans in order to -

Prevent Adverse Selection

How does underwriting differ between group life and individual life insurance? - Medical

questions must be answered on individual life insurance

when handling premiums for an insured an agent is acting in which capacity? - Fiduciary

what is the term used to describe the frequency and severity of certain illnesses and

accidents? - Morbidity

Which of the following describes the statement "The more times an event is repeated, the

more predictable the outcome becomes"? - Law of large numbers

In order to be considered "currently insured" under Social Security, an individual must be

credited with? - 6 quarters of coverage during the last 13-quarter period

How long must a policy be in force before an insurer is prohibited from denying claims

based on misstatements made on the health policy application? - 2 Years

Which of the following does the California Insurance Code NOT require an insurance policy

to specify? - Insurer's financial rating

Which of the following is NOT required in the content of a policy? - Probability of loss

Which of the following pieces of information is NOT gathered during the personal financial

planning process? - An individual's civic organization memberships

Which of the following is not considered to be an unfair claims settlement practice? -

Advising a claimant to hire an attorney

When an applicant applies for insurance, the process by which the insurer determines

whether to issue a policy is called? - Underwriting

How is a Medicare claim submitted? - Expenses are submitted to Medicare by the health

provider

According to the PPACA, the medical enrollment tier that has 80?tuarial value is called:

- Gold

Employer contributions to qualified plans are - Tax-deductible by the employer

Employee participation in a noncontributory group life plan must be - 100%

What does the term "illustration" mean when used in the phrase "life insurance policy

illustration", according to the California Insurance Code? - Presentation of policy features

that includes non-guaranteed elements

Which of the following is NOT a characteristic of a preferred provider organization (PPO)? -

Primary physicians serve as gatekeepers

John owns an insurance policy that gives him the right to share in the insurer's surplus.

What kind of policy is this? - Participating

a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?

- Theft

If an insured dies because of an accident, which type of life insurance rider will provide

additional coverage? - Accidental death rider

Tom is shopping for a policy that covers two people and would pay the face amount ONLY

when the first person dies. The type of life policy he is looking for is called a - Joint life

policy

Which of these statements is NOT true concerning recurrent disabilities? - The insurer

continues coverage after a new elimination period

An insurer owned by its policyholders is called a? - Mutual Insurer

Medicare Part B Covers? - Physician Expenses

Which of these is NOT a relevant factor in the health insurance principle of morbidity? -

Intelligence

Which of these factors do not affect the rates of medical insurance? - Race

Which of the following types of life insurance is normally associated with a mortgage loan?

- Decreasing term

which of the following is not included in comprehensive major medical plans? - First-Dollar

Coverage

Moral hazard is described as the - Increased chance of a loss because of an insured's

dishonest tendencies

Which principle is accurately described