California Life, Accident and Health State Exam 2024- 2025 test bank with 400+ questions and correct answers
According to the California Insurance Code, what is the maximum penalty per violation for anyone who unwillfully commits an unfair method of competition? -
ANSWER-$5,000
What does a life insurance policy's premium take effect? - ANSWER-Insured becomes totally disabled
Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance - ANSWER-solicitor
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?
- No payments
- 30 payments
- 60 payments
- 120 payments - ANSWER-60 Payments
Major medical expense plans typically use a cost containment measure for emergency hospital care. This is refer to as a (n)
- Exclusion
- Limitation 1 / 4
- Deductible
- Capitation - ANSWER-C) Deductible
All of the following are considered appropriate uses of life insurance for business purposes EXCEPT
- Protecting the business by covering entry level employees with life insurance
- Protecting the business by covering key employees with life insurance
- Attracting quality employees by offering a group life plan
- Funding an entity buy-sell agreement - ANSWER-A) Protecting the business by
covering entry level employees with life insurance
Under a long-term care insurance policy, adult day care coverage will provide for
- living arrangements in an assisted living center
- full time care at a facility for elderly individuals
- full time home health care
- part time care at a facility for elderly individuals who live at - ANSWER-D)
part time care at a facility for elderly individuals who live at
What is the elimination period of an individual disability policy?
- The point in time when benefits are no longer payable
- Time period after the policy issue date in which the provisions are still
- Time period a disabled person must walt before benefits are paid 2 / 4
contestable
- Time period an insured must wait before coverage begins - ANSWER-C) Time
period a disabled person must walt before benefits are paid
The period in which there are no Social Security benefits for the surviving spouse is called the
- blackout period
- ineligible period
- dependency period
- elimination period - ANSWER-A) blackout period
A hospital or medical expense policy will typically cover dental treatment expenses under which circumstance?
- If treatment is performed at a in-network provider
- Dental treatment is needed to repair an injury
- After the annual limit of a dental policy's coverage is reached
- Cosmetic dental treatment is performed - ANSWER-B) Dental treatment is
needed to repair an injury
Which of the following is NOT a common exclusion for a medical expense policy?
- On-the-job injury
- Physical therapy
- Act of war
- Self inflicted injury - ANSWER-B) Physical therapy
- / 4
Coverage for care received from a network provider pays more than care received from a non-network provider in what type of health plan?
- Health Maintenance Organization (HMO)
- Self-insured plan
- Preferred Provider Organization (PPO)
- Hospital indemnity - ANSWER-C) Preferred Provider Organization (PPO)
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)
- illegal transaction
- immediate annuity
- unnecessary replacement
- deferred annuity - ANSWER-C) unnecessary replacement
Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit?
- Increase the premiums on an individual basis
- Cancel policy if premiums are not paid
- Increase the premiums on the basis of an entire
- Stop renewing policy when the insured reaches a specified age - ANSWER-A)
- / 4
classification
Increase the premiums on an individual basis