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Insurance Code And Policy Quiz

Question 1 of 3

Q1 . Which are two activities of Daily Living?

Q2 . Terminally ill persons would need which of the following?

Q3 . Any transaction that involves purchasing a life insurance policy and terminating an exsiting policy is known as:

Q4 . An insurer organized under the laws of the State of California is a:

Q5 . A policy is returned to the insurer within 10 days of the date th epolicy is delivered. How much of the premium is returned to the applicant?

Q6 . An individual license is considered terminated

Q7 . According to the code, all insurers must maintain a department to investigate

Q8 . What does the Insurance Commissioner have the right to do if an agent lacks authority from an insurer named on a binder for coverage?

Q9 . A failure to communicate information which a party to an insurance contract knows and should communicate, is called an act of:

Q10 . Which party has rights in a life insurance policy only after the death of the insured?

Q11 . Under a disability insurance policy, an insured is eligible for a waiver of premium benefit:

Q12 . FYI Company's employee is injured while driving in the employ of the company. Coverage for te employee comes from:

Q13 . Deductibles, coinsurance, and co-payments in a health insurance policy are cost-effective choices that have the effect of:

Q14 . An insured bought $150,000 non-participating whole life policy many years ago. She is 100 years old today. She has never borrowed from the policy, has made all premiums when due. The cash value is:

Q15 . The department responsible for evaluation, selection and distribution of risks is:

Q16 . What does it mean if an agents license is inactive?

Q17 . Regarding life insurance coverage for a company, the one responsible for obtaining the coverage maintaining the policy, and paying the premium is:

Q18 . If the commissioner issues a Notice of Seizure for documents and the individual fails to send those documents what is the penalty?

Q19 . Which of the following is NOT provided by Hospice Care?

Q20 . An insure, owned by policyholders is:

Q21 . In order to deal with financial consequences of the death of a senior sales manager, a corporation could purchase:

Q22 . In accidental death and dismemberment insurance, which of the following would not be considered accidental?

Q23 . An insured bought an annuity ten years ago. He will retire in five years. To determine the value of the annuity, the number of accumulation units is mutiplied by the value of the seperate account. What type of annuity was purchased?

Q24 . The class beneficiary designation which means that the beneficiaries will recieve equal shares of the death benefit divided among surviving members of the class is

Q25 . The mathematical rule that says that as the number of individual but similar exposure units increases the easier it is to predict losses is which of the following?

Q26 . The main master policy owner of a group health insurance contract is the:

Q27 . Hospice care is for:

Q28 . Relevant to health insurance, morbidity includes all of the following EXCEPT:

Q29 . According to the Ca Insurance code, in which of the following classes of insurance can a binder NOT be issued?

Q30 . What happens to a license after the death of a natural person who holds a valid insurance license?

Q31 . Why should a contingent beneficiary be named in a life insurance policy?

Q32 . An organization will cease to exist as an enity eligible to hold a license for all of the following reasons, EXCEPT:

Q33 . A person has paid $50,000 into a fixed annuity over 20 years.When he decides to begin income payments the insurer calculates that he will recieve $4,000 per year for life, which means that he will recieve a total of $100,000. In the first 10 years of payments how much is taxable each year?

Q34 . Twelve months ago, a man slipped and fell down a flight of stairs at his workplace. As a result he has a paralysis for which he is not expected to recover. This 46 year old person will probably be able to collect disability income benefits from

Q35 . The policy provision which prevents an insurer from voiding a policy for misstatements after 2 years is:

Q36 . A disability income policy covers injuries suffered by an insured on or off the job is called?

Q37 . An insured and beneficiary wants to recieve $2,000 per month until the principal and interest are exhausted. Which settlement option should be chosen?

Q38 . After a life insurance policy has been in effect for two years, what keeps it from being rescinded by the insurer?

Q39 . Insurer and the insured share covered losses. This is called:

Q40 . Which of the following must any person engaged in the business of acting as an insurance agent or broker who recieves compensation for arranging or directing sales in connection with a premium financing agreement do?

Q41 . Tony Brown has a CLU certification. which of the following names would be automatically approved for his agency's use?

Q42 . The likelihood of incurring disease or disability at any given time is;

Q43 . Which of the folowing is a description of a Life and Disability Analyst?

Q44 . Which of the following gives individuals the right to purchase additional life insurance regardless of their insurability?

Q45 . Which is NOT part of transacting insurance?

Q46 . Physicians and surgeons services, whether provided in a hospital, or elsewhere:

Q47 . Which type of life insurance policy gives the policy owner the right to share in the insuer's surplus?

Q48 . A single deductible amount for all memebers of the same family and a right to single family memeber deductible is known as:

Q49 . An insured an benificiary die in a car accident and it is impossible to determine who died first. Who will recieve the life proceeds?

Q50 . As an employer, the sudden death of an employee is considered a:

Q51 . Harold, a variable annuity applicant, does not request the premium be invested in a stock or bond portfolio during the cancellation period. The policy is returned to the company within the cancellation period. What is Harold entitled to recieve?

Q52 . An association of industry specific employers who are joined together in order to qualify for, or gain premium advantages, in group insurance is:

Q53 . When claimant is covered by more than one plan the situation is resolved through:

Q54 . Usually, in order to join a group insurance plan without providing insurability, an employee must:

Q55 . Which of the following are common insurance policy provisions?

Q56 . Supplemental insurance used to pay for hospital confinment to treat cancer is also known as

Q57 . which of the following would be considered a morale risk?

Q58 . Medicare Part A, begins automatically at age:

Q59 . What must an insurer do who accepts an application from an agent who is not specifically appointed by the insurer and then issues a policy from that application?

Q60 . The policy owner, age 50 has been paying the premiums on his whole life policy for 15 years. He needs the equivalent of 1/3 of the cash value of his polcy over the next two years. He wants to continue to have the policy protection, and can afford to pay the premiums. Which would appear to be his best course of action?

Q61 . Joe recieves a large bonus at work and decides to purchase an annuity with it. His monthly income payments from the annuity will begin the following month. Which of the following has Joe purchased?

Q62 . The clause that rotects the proceeds of a life insurance policy from attachment by creditors after the death of the insured is:

Q63 . COBRA applies to employers with at least:

Q64 . Who has the right to change life insurance beneficiaries?

Q65 . Which of the following is not an option for the use of the policy dividends?

Q66 . According to California Insurance code, a judgement agaginst an applicant who enterd a plea of "nolo contendere" is considered to be:

Q67 . Which of the following is not one of the common personal uses of life insurance?

Q68 . A person who spends $10,000 in a single premium annuity, and another $10,000 in a Certificate of Deposit (CD). Both pay %10 interest annually. The person is in a 31% income tax bracket. For 40 years, this person does not touch his annuity, and reinvest all income from the CD at 10%. Which of the following statements is true?

Q69 . Listed below are descriptions of four types of policies. Which is term policy?

Q70 . In group insurance the Certificates of Insurance are issued to:

Q71 . Which of the following requires a reporting company to respond to a consumer's complaint that his file contains inaccurate information?

Q72 . The type of healthcare provider that provides both the healthcare services and healthcare coverage is called:

Q73 . What information can a party to a contract of insurance be allowed NOT to communicate according to California law?

Q74 . How is the Insurance Commissioner selected?

Q75 . Which is the most expensive LTC policy?

Q76 . Under the Consolidated Omnibus Budget Reconsolidation Act (COBRA), which of the following is a qualifying event?

Q77 . All of the following would be considered unfair claim practices, EXCEPT:

Q78 . Certain healthcare providers are called "service type providers." this mean

Q79 . Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a qualifying event ensures that an employee who is covered can:

Q80 . If one were to recieve the principal sum benefit of death in a disability policy, the death must occur:

Q81 . In life insurance, the loss of a key family memeber is considered a:

Q82 . Each of the following terms is an important characteristic of a major medical policy, except:

Q83 . If a person gives erroneous statement on an application unintentionally, this is:

Q84 . Unless it is merely a statement of an expectation or a belief, a representation as to the future is considered which of the following?

Q85 . Which of the following may be offered by insurers providing Medicare supplement policies?

Q86 . If the financial loss on a certain group of people occuring over a certain period of time defines the pricing of a disability policy, it is the pricing principle known as:

Q87 . All of the following are valid reasons for the Insurance Commissioner to deny the applicant for an insurance license, EXCEPT:

Q88 . The Federal Act that is designed to protect group plan participants, establish pension equality, and mandates strict reporting and disclosure requirement is:

Q89 . The person whose life is the object of a life insurance policy is;

Q90 . HMO's are involved in all of the following, EXCEPT:

Q91 . If an insurance agent or broker recieves a commission for arranging a premium finance agreement they must do which of the following?

Q92 . Renewable term insurance can best be described as:

Q93 . Which of the following is true about life insurance beneficiary designations?

Q94 . An insurance company pays claims after a self-insured, specified limit has been reached. This is:

Q95 . With the cost of living rider, the life insurance policy holder

Q96 . All of the following is required on a life insurance application, EXECPT:

Q97 . Which statement best descibes a life insurance policy dividend?

Q98 . Which of the following is not an example of cost sharing in a health insurance policy?

Q99 . Which of the following is a true statement regarding the social security (OASDHI) program?

Q100 . Identify the penalty for each violation for a person engaging in any unfair method of competition'

Q101 . Which of the following is a correct statement about life insurance policy types?

Q102 . The policy provision which comes into effect when the insured and primary beneficiary die in a simultaneous (common) accident with no evidence as to who died first is:

Q103 . What would a person be guilty of who refuses to submit books and records to the Commissioner?

Q104 . Any person who diverts or misappropriates fiduciary funds is guilty of:

Q105 . A probationary period in a group health policy is intended for people:

Q106 . A person who acts in a capacity that requires an active license without having a valid license, is guilty of a:

Q107 . The purchase of an insurance policy may not provide one of the following for the insured. Select the most complete answer;

Q108 . Insurers make adjusment to the cash value of an account of a universal life policy each time a payment is made. They add the premium paid and:

Q109 . All of the following would be considered one of the three major types of loss exposures, EXCEPT;

Q110 . Which of the following statements concerning the usual coordination-of-benefits provision are correct?

Q111 . In order to be quilified to sell LTC insurance in the state of CA, agents must comply with all of the following: EXECPT

Q112 . The purpose of laws regarding the replacement of life and annuity contracts inccludes all of the following, EXCEPT:

Q113 . Any attempt by an exsiting insurer or their agent to dissuade a ploicy owner from replacing an existing life insurance or annunity contract is known as:

Q114 . Which of the following is not oridinary life insurance?

Q115 . Which of the following applies to the social insurance program know as social security?

Q116 . All of the following would be considered unfair trade practies, EXCEPT:

Q117 . Which of the following is not a standard level of care for a LTC policy?

Q118 . All of the following statements regarding survivorship life insurance are true, EXCEPT:

Q119 . When a family policy covers children, all of the following are true, EXCEPT:

Q120 . A movie company concerned about their financial losses in case of the illness of one their actors would purchase:

Q121 . In insurance terms a representation can be considered:

Q122 . Along with having enough assests to provide for its liabilities and for reinsurance for all outstanding risks, in order to remain solvent, the insurer must also meet minimum requirements equal to what amount required by the California Code?

Q123 . The purpose of the California Life and Health Guarantee Association is:

Q124 . In managed care the members' choice of providers is most restrictive in which of the following type of plan?

Q125 . In order for an enity to be eligible to hold a license, a co-partnership whose membership has changed must do all of the following, EXCEPT:

Q126 . In which of the following plans are claim forms typically completed and submitted by the participant?

Q127 . To be classified as accidental under a disability income insuranc epolicy, the following criteria must be used:

Q128 . The SEC is involved in the regulation of:

Q129 . The guarantee insurability rider provides that the policy holder can purchase more insurance.

Q130 . Subject to the restrictions of the CA Insurance Code, any person capable of making a contract may be considered:

Q131 . Which of the following is true regarding participation is a group health plan

Q132 . Unless the applicant indicates otherwise during the right-to-return period in an individual annuity, the premium for a variable annuity would be invested only in:

Q133 . A distinct feature of the alternative funding method known as self-funding is:

Q134 . The Common Disaster provision is designed to protect the interests of which of the following?

Q135 . An agent who replaces an exsiting life insurance contract, must do all of the following, EXCEPT:

Q136 . An individual might purchase LTC protection out of concern for all of the following, EXCEPT:

Q137 . All of the following are true statements concerning the treatment of federal income tax on life insurance, EXCEPT:

Q138 . Senior citizens are given a 30 day right to retun a life insurance policy:

Q139 . Under the 10 day right to return , the policy will pay proceeds:

Q140 . Which of the following (recall) provisions of a disability contract is likely to change the contract least and cost the most?

Q141 . Which of the following statements about policy dividends is true?

Q142 . How much continuing education is a new agent who is both life and fire 8 casualty licensed is required to complete?

Q143 . A disability income policy social insurance supplement (SIS) benefit rider:

Q144 . A health insurance co-payment is:

Q145 . The home care coverage of a LTC policy provides for:

Q146 . A variable annuity applicant request that the premium be immediately invested in a stock portfolio. The policy is returned to the insurer within the cancellation period. What was the applicant entitled to recieve?

Q147 . Which of the following is considered ordinary life insurance?

Q148 . In the absence of a coordination of benefits clause, all of the following circumstances might result in the recovery of some health care expenses, EXCEPT:

Q149 . Regarding an organizational license, what happens when a corporation is dissolved?

Q150 . A person has a disability policy with the following definition of disability: "the inability to perform any occupation for which the insured is suited through education, training, experience or prior economic status." This is an: