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PREP REVIEW EXAM: CALIFORNIA LIFE AND HEALTH LAWS
AND RULES QUIZ
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance
- manager
- solicitor
- assistant
- consultant
Answer:
solicitor:
An insurance solicitor is a person authorized to assist a broker or agent in transacting insurance.
Question 2: The California Insurance Code defines "policy" as a(n)
- written contract
- accepted offer
- written quotation
- promissory arrangement
Answer:
written contract:
A "policy" as described by the California Insurance Code is a written contract in which one party promises to indemnify another against loss that arises from an unknown event.Question 3: When selling a long term care insurance rider to an applicant, a life agent must take into consideration all of these factors, EXCEPT
- Goals of the client
- Attending physician's statement
- Needs of the client
- Ability to pay
Answer:
Attending physician's statement:
During the solicitation of a long term care insurance rider, a life agent must consider all of these EXCEPT an attending physician's statement.Question 4: Which of the following acts is NOT a Federal offense committed by an insurance agent?
- Insurance fraud
- Falsify records
- Misrepresentation on an insurance application
- Embezzlement
Answer:
Misrepresentation on an insurance application:
Misrepresenting facts on an insurance application is not considered a Federal offense.Question 5: Which word implies permissiveness according to the California Insurance Code?
- Admitted
- Shall
- Indemnity
- May
Answer:
May:
When found in California Insurance Code, the word "may" implies permissiveness.Question 6: Which of the following is NOT an eligible dependent on an Accident and Health policy?
- 27 year old married child
- 19 year old full time student
- 25 year old married child
- Unmarried disabled child
Answer:
27 year old married child:
Eligible dependents are covered up to age 26 on Accident and health policies under the Affordable Care Act (ACA).Question 7: According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan?
- 23-Mar-10
- 23-Mar-13
- 23-Mar-11
- 23-Mar-12
Answer:
23-Mar-10:
Grandfathered plans are plans that were purchased before March 23, 2010. These plans do not have to follow the ACA's rules and regulations or offer the same benefits, rights and protections as new plans.Question 8: What effect did the Pregnancy Discrimination Act have on the health industry?
- Pregnancy benefits can no longer be forced on employers
- Pregnancy must be treated as any other medical condition
- Pregnancy qualifies a woman for paid leave from work
- No effect on the health industry
Answer:
Pregnancy must be treated as any other medical condition:
Under the Pregnancy Discrimination Act, employers must treat pregnancy the same as any other medical condition.Question 9: According to the California Insurance Code, how is the word "may" interpreted?
- Mandatory
- Voluntary
- Irrevocable
- Permissive
Answer:
Permissive:
When used in the California Insurance Code, the word "may" is intended to be permissive.Question 10: Which of the following is NOT considered to be an act of insurance solicitation?
- Publishing a magazine where one of the advertisers is an insurer
- An agent giving a rate quotation
- Airing a television commercial recommending an insurance product
- An agency sending out direct mail for a promotion
Answer:
Publishing a magazine where one of the advertisers is an insurer:
Publishing a magazine where one of the advertisers is an insurer is not considered to be an act of solicitation.Question 11: 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)
- deferred annuity
- unnecessary replacement
- illegal transaction
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