LIFE, ACCIDENT AND HEALTH EXAM

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LIFE, ACCIDENT AND HEALTH EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -95 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: COBRA

Answer:

-Consolidated Omnibus Budget Reconciliation Act -A law that allows people who leave employment to continue their health insurance under the company plan for a limited period of time Question 2: What is not required to be included in a life insurance policy illustration:

Answer:

A statement that all the benefits shown in the illustration are guaranteed Question 3: What will cause COBRA eligibility to terminate:

Answer:

Job termination for gross misconduct

Question 4: Gatekeeper

Answer:

-Primary Care Physician -Cannot be a specialist, must be a general practice doctor.

Question 5: Patient Protection & Affordable Care Act (PPACA)

Answer:

This is the health care reform law. Focuses on reform of the private health insurance market; providing better coverage for those with pre-existing conditions; improving prescription drug coverage in Medicare.Question 6: Which policy pays a death benefit when the second insure person dies?

Answer:

Survivorship Life Question 7: What does a deferred annuity have that an immediate annuity does not?

Answer:

An accumulation period -an immediate annuity is purchased with a lump sum and has no accumulation period

Question 8: At what point in time may a representation be altered or withdrawn?

Answer:

Prior to the insurance going into effect only Question 9: The penalty tax on distributions take from a MEC (Modified Endowment Act)

Answer:

10% Question 10: CLHIGA covers all of the following except:

Answer:

Self funded employer plans Question 11: A representation in an insurance contract is a:

Answer:

Implied Warranty -Only false when the facts fail to correspond with its assertions or stipulations Question 12: What policy provides coverage for expenses related to one illness only:

Answer:

Dread disease

• a dread (specified) disease policy, such as cancer insurance, provides coverage for one condition

only.

Question 13: Coordination of Benefits

Answer:

-Provision that applies in group insurance when an insured has coverage under multiple plans at one time.-Coordination of benefits is included in all group health insurance policies in order to reinforce the principle of indemnity and determine which coverage is primary, which is the coverage the insured has where they work.Question 14: 3 types of Insurance: (WET)

Answer:

Whole Life Endowments Term

Question 15: Exclusion Ratio

Answer:

The formula that is used to determine how much is taxable during the payout

Question 16: Domestic Insurer

Answer:

An insurer organized and selling in CA

Question 17: What is an example of speculative risk?

Answer:

Gambling Question 18: Under the Family and Medical Leave Act (FMLA) how many weeks of leave must be provided per year for a qualifying event?

Answer:

*12 Question 19: The Accidental Death Benefit rider is also known as:

Answer:

A Double Indemnity

Question 20: Admitted Insurer

Answer:

An authorized, or admitted insurer, is one which is under compliance with the CIC and can operate legally in California.Question 21: Types of Life Policy Riders:

Answer:

-Waiver of Premium- Waives the insured's premium if the insured becomes disabled -Disability Income- Pays a replacement of the insured's lost income if the become disabled.-Accidental Death Benefit- Pays double the face amount if the insured dies in an accident, and is also known as double indemnity.-Guaranteed Insurability- Allows the insured to purchase additional amounts of life insurance w/o having to prove insurability.-Cost of Living- increases the policy death benefit based upon the rate of inflation

Question 22: Hospital Confinement Policy

Answer:

-Pays a set amount per day if the insured in confined in the hospital.Question 23: What will the insurer require when an applicant reveals conditions that require

more information:

Answer:

A physical exam Question 24: In Group Health insurance, the period of time that starts when a new employee is hired and ends on the date they become eligible for the employer's Group Health plan is the:

Answer:

*Probationary Period -The probationary period in a group Health policy applies to people who enroll in the group after the policy's effective date, such as newly hired employees. In other words, the employer may be concerned that a new employee took the job just to obtain insurance, so they are on 'probation' for a period of time before they can enroll in the Group plan.Question 25: Which of the following terms used in the California Insurance Code is permissive?

Answer:

*May -Shall is mandatory, and May is permissive(optional)