CALIFORNIA LIFE, ACCIDENT AND

CALIFORNIA LIFE, ACCIDENT AND

HEALTH STATE EXAM 2024 LATEST

QUESTIONS AND DETAILED CORRECT

ANSWERS (VERIFIED ANSWERS)

What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)? Correct Answer Disclosure and Reporting

a Worker is entitled to Social Security Benefits if all of the

following are true, Except for:

• Worker is under age 65
• Worker cannot perform his or her current job, but is actively

seeking other employment

• Worker is insured for disability benefits
• Disability is expected to continue for 12 months or result in

death. Correct Answer B. Worker cannot perform his or her current job, but is actively seeking other employment

Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Correct Answer Life annuity certain

Which of the following is NOT a true description of non-medical life insurance?

• Quicker processing of life insurance application
• Demand on the medical Profession reduced.
• Less cost involved with underwriting the application
• Applicants are not required to answer medical questions on the

application. Correct Answer D. Applicants are not required to answer medical questions on the application. 1 / 3

People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called Correct Answer Adverse Selection

All of the following are characteristics of a Group Life Insurance Plan EXCEPT

• Probationary Period
• Master Contract
• Individual underwriting
• Group Underwriting Correct Answer C. Individual underwriting

Which type of health insurance policy cannot be canceled by the insurer nor increase the premiums? Correct Answer Noncancellable.....cannot be cancelled nor can its premium rates be increased under any circumstances.

The waiver of premium does NOT include which provision?

• The insured must be disabled for a set period of time before

benefits begin

• The waiver of premium generally does not extend past the

insured's age 60 or 65

• All future premiums are waived if the insured recovers from the

disability

• If the insured qualifies, the premiums are waived retroactively

to the beginning of the disability. Correct Answer C. All future premiums are waived if the insured recovers from the disability

Lynn owns a life policy that guarantees the right to renew the policy each year, regardless of health, but at an increased premium. What kind of policy is this? Correct Answer Renewable term

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An insurance policy written after 1988 that fails to pass the seven- pay test is known as Correct Answer a modified endowment contract

Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Correct Answer Rescinding the contract......Intentional concealment committed by the insured entitles the insurance company to void the policy.

According to the California Insurance Code, how is the word "may" interpreted? Correct Answer Permissive

How is an agent's first year commission calculated for a replacement long-term policy? Correct Answer Based on the difference between the new and original policy annual premiums.

Cindy buys a 10-year certain annuity with an installment refund.After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? Correct Answer 60 Payments.........The installment refund option guarantees that the total annuity fund will be paid to the annuitant or to the annuitant's beneficiary. In this situation, the annuitant dies 5 years into a 10 year certain annuity. This leaves the remaining 5 years (60 monthly payments) payable to her beneficiary.

A health insurance policy will typically cover Correct Answer preventative health services Preventative health services are normally covered under a health insurance policy.

A contract requires Correct Answer an offer and acceptance of the contract terms

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