1 California Life, Accident and Health State Exam/ Practice Questions with Correct Verified Answers.
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? - ANS - 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. - ANS - D. Applicants are
not required to answer medical questions on the application.
Bruce is involved in an accident and becomes totally and permanently disabled. His insurance policy continues in force without payment of further premiums. Which policy provision is responsible for this? - ANS - Waiver of premium provision
All of the following are elements of an insurance policy EXCEPT
- Definitions
- other insurance
- Claim forms
- Conditions - ANS - C. Claim forms
In what situation does a waiver of premium provision keep a health insurance policy in force without premium payments? - ANS - When an insured becomes totally disabled.
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2 What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day? - ANS - Claim will be paid if application is approved.
If an insured dies because of an accident, which type of life insurance rider will provide additional coverage? - ANS - Accidental death rider
Which of the following is NOT a provision in a disability income policy?
- Recurrent disability provision
- Elimination period provision
- Change of occupation provision
- Deductible and coinsurance provision. - ANS - D. Deductible and coinsurance provision.
The focus of major medical insurance is providing coverage for - ANS - Medical and hospitalization expenses
The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund?
- ANS - between 10 and 30 days
The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of - ANS - past due premiums that have not been paid by the end of the grace period.
Dana is an employee who deposits a percentage of her income into her individual annuity. Her company also contributes a percentage into a separate company pension plan. What kind of annuity is this considered? - ANS - Qualified retirement Annuity
Which of these statements is NOT true concerning recurrent disabilities?
- The recurrent disability must be caused from the original disability
- A recurrent disability is considered to be a continuation of the prior disability
- The recurrence of a disability must occur within a specified time period after the prior disability
- The insurer continues coverage after a new elimination period. - ANS - D. The insurer continues
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coverage after a new elimination period.
3 People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called - ANS - Adverse Selection
All of the following are characteristics of a Group Life Insurance Plan EXCEPT
- Probationary Period
- Master Contract
- Individual underwriting
- Group Underwriting - ANS - C. Individual underwriting
Which type of health insurance policy cannot be canceled by the insurer nor increase the premiums? - ANS - 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. - ANS
- 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? - ANS - Renewable term
An insurance policy written after 1988 that fails to pass the seven-pay test is known as - ANS - a modified endowment contract
Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? - ANS - 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? - ANS - Permissive
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