FINAL EXAM - CALIFORNIA LIFE AND HEALTH

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FINAL EXAM - CALIFORNIA LIFE AND HEALTH

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Who is NOT eligible for Social Security survivor benefits?

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A deceased worker's dependent parents of any age Question 2: What is required after a life agent sells an insurance policy to an applicant without being appointed by the insurer?

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Notice of appointment must be submitted to the Commissioner Question 3: Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event?

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Insurance policy Question 4: An agent's attempt to stop the replacement of an existing life insurance policy is known as

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conservation

Question 5: 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?

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insuring clause Question 6: What type of changes can be made to a guaranteed renewable health insurance policy?

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The premium rates of the policyowner Question 7: The elimination period in a disability income policy serves the same purpose as

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a deductible Question 8: John owns an insurance policy that gives him the right to share in the insurer's surplus. What kind of policy is this?

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Participating Question 9: Jim is the insured on a health insurance policy and holds two jobs. If "occupation" is used to classify the risk, the insurer will most likely classify Jim according to the occupation that

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is most hazardous

Question 10: What distinguishes a deferred annuity from an immediate annuity?

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The time at which benefit payments start Question 11: An eligible individual who would like to obtain group health insurance without providing evidence of insurability must

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enroll within a specified eligibility period

Question 12: When a life insurance policy is surrendered, how does the cost recovery rule apply?

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The policy's cost basis is exempt from taxation Question 13: Which of the following is NOT an important reason for a life insurance application?

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The beneficiary must sign the application before the insurer will issue the policy Question 14: A life insurance policy that pays the face amount if the insured survives to a specified period of time is called

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endowment insurance Question 15: Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty of?

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Theft Question 16: 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

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Joint life policy Question 17: The problem of overinsurance is addressed in which health insurance provision?

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Coordination of benefits

Question 18: Business Overhead Expense Insurance pays for

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business expenses when a business owner becomes disabled Question 19: An insurer that has been found using higher rates based on race, religion, or ethnicity is said to be engaging in

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unfair discrimination

Question 20: Who is issued a certificate of insurance with a group insurance policy?

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Participant

Question 21: he California Insurance Code defines "policy" as a(n)

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written contract

Question 22: What is a common reason people purchase an annuity?

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To protect against the risk of outliving their financial resources Question 23: What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code?

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Presentation of policy features that includes non-guaranteed elements Question 24: At what point does a self-insured group qualify for stop-loss coverage?

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When claims exceed a specified limit in a set period of time Question 25: he free-look period for life insurance policyowners age 60 or older is

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30 days Question 26: All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious name EXCEPT

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The name is the licensee's actual name Question 27: A life insurance policy where the insured can choose where the cash value can be invested is called

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variable life