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Home > California Department of Insurance > Life, Accident, and Health > CA-Life-Accident-and-Health

CA-Life-Accident-and-Health CA Life, Accident and Health or Sickness Examination Question and Answers

Question # 4

Which life insurance feature allows an insured to exchange a term policy for a cash value policy?

A.

Convertibility

B.

Incontestability

C.

Reentry

D.

Renewability

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Question # 5

According to the California Insurance Code, an "insurance broker” is

A.

authorized by an insurer to transact insurance.

B.

employed to assist an insurance agent in transacting insurance.

C.

hired by an insured to give advice about insurance transactions.

D.

compensated for transacting insurance on behalf of another person with an insurer.

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Question # 6

All of the following statements apply to the child coverage in a family policy EXCEPT

A.

child coverage is term insurance.

B.

children are covered until reaching a specified age.

C.

child coverage is convertible to whole life coverage.

D.

coverage applies only to children born before the policy is issued.

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Question # 7

How does the cost recovery rule apply when a life insurance policy is surrendered for its cashvalue?

A.

The insurer retains the cost basis.

B.

The entire surrender value is taxable.

C.

The insured receives only the cost basis.

D.

The cost basis of the policy is exempt from taxation.

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Question # 8

According to the California Insurance Code, governing insurance appointments, who is responsible for filing a life agent's appointment?

A.

The Commissioner.

B.

The employer.

C.

The insurer.

D.

The licensee.

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Question # 9

Which program is designed to provide medical assistance to people with low incomes?

A.

Medical.

B.

Medicare.

C.

Social Security.

D.

Workers' Compensation.

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Question # 10

The theory of probability is applied to life insurance through the use of

A.

morbidity tables.

B.

mortality tables.

C.

the needs approach.

D.

the human life value approach.

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Question # 11

Which of the following is NOT a characteristic of a contributory group insurance plan?

A.

The employer pays a portion of the cost.

B.

The member pays a portion of the cost.

C.

The policy owner pays all of the cost.

D.

The member pays all of the cost.

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Question # 12

Under the PPACA, which medical enrollment tier is 80% actuarial value?

A.

bronze

B.

gold

C.

platinum

D.

silver

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Question # 13

Each of the following terms is an important characteristic of a Major Medical policy EXCEPT

A.

deductible.

B.

copayments.

C.

coinsurance.

D.

capitation fee.

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Question # 14

Insurance solicitation includes all of the following activities EXCEPT

A.

coverage and rate quotations.

B.

bulk mailings introducing an agency.

C.

recommending other insurance products.

D.

publishing a newspaper in which one of the advertisers is an insurance agent.

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Question # 15

A worker is entitled to Social Security disability benefits if all of the following are true EXCEPT the

A.

worker is under age 65.

B.

worker is insured for disability benefits.

C.

disability is expected to continue for 12 months or result in death.

D.

worker cannot perform his or her current job, but is actively seeking other employment.

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Question # 16

Which group provides information about health-related issues to the elderly in California?

A.

Medicare supplement insurers.

B.

Long-term care insurance providers.

C.

The National Health Care Anti-Fraud Association.

D.

The Health Insurance Counseling and Advocacy Program (HICAP).

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Question # 17

According to the Employee Retirement Income Security Act of 1974 (ERISA) fiduciary standards, benefit plans are operated for

A.

plan employees.

B.

plan sponsors and employees.

C.

plan sponsors and beneficiaries.

D.

plan participants and beneficiaries.

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Question # 18

California long-term care policies may be identified as any of the following EXCEPT

A.

Home Care only.

B.

Acute Hospital Care only.

C.

Comprehensive Long-Term Care.

D.

Nursing Facility and Residential Care Facility only.

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Question # 19

The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT

A.

a reduction of uncertainty.

B.

the elimination of the risk.

C.

a replacement of a large possible loss by a "smaller certain loss".

D.

a reduction in worry/greater peace of mind.

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Question # 20

The most common type of specified disease insurance policy is

A.

cancer.

B.

cataract.

C.

diabetes.

D.

heart disease.

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Question # 21

All of the following types of insurance pay benefits in addition to those paid by other insurance policies held by the insured EXCEPT

A.

medical expense.

B.

critical illness.

C.

specified disease.

D.

hospital indemnity.

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Question # 22

In insurance terminology, "indemnify" means

A.

award.

B.

advance.

C.

make whole.

D.

over compensate.

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Question # 23

To help keep premiums more affordable, which provision is included in a disability income policy?

A.

Residual benefits.

B.

Elimination period.

C.

Cost of living rider.

D.

Automatic increase provision.

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Question # 24

Which policy allows the insured to choose where the assets backing the cash value are invested?

A.

Term life.

B.

Variable life.

C.

Universal life.

D.

Endowment life.

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Question # 25

All of the following are features of a Preferred Provider Organization (PPO) EXCEPT

A.

employees have a choice of practitioners.

B.

primary care physicians act as gatekeepers.

C.

providers are paid on a fee-for-service basis.

D.

dependents do not need referrals to see a specialist.

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Question # 26

A commonly used cost containment measure for emergency hospital care under a major medical expense plan is the

A.

deductible.

B.

premium tax.

C.

inpatient fee.

D.

pre-admission test.

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Question # 27

What does the statement "Life insurance creates an immediate estate" mean?

A.

Premiums are due and payable immediately.

B.

The total cash value is available immediately.

C.

The total death benefit is paid whenever the insured dies.

D.

Policy proceeds are automatically paid to the insured's estate.

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Question # 28

It representation in an insurance contract qualifies as which of the following?

A.

An amendment.

B.

A policy provision.

C.

An implied warranty.

D.

An express warranty.

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Question # 29

A life insurance policy written after 1988 that fails to meet the seven-pay test is known as

A.

an endowment policy.

B.

a modified life policy.

C.

a single premium contract.

D.

a modified endowment contract.

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Question # 30

If a term life insurance policy is renewable, the renewal provision usually states that

A.

a higher premium is payable at each renewal.

B.

the policy cash value increases at each renewal.

C.

evidence of insurability is required at the time renewal is requested.

D.

the policy can be renewed at any time, regardless of the insured's age.

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Question # 31

Specified disease insurance covers all of the following EXCEPT

A.

costs covered by medical expense insurance.

B.

noncovered medical expenses.

C.

out-of-pocket payments.

D.

incidental costs.

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Question # 32

Which of the following coverages is NOT one of the three traditional benefits of a group basic medical expense plan?

A.

Hospital expense.

B.

Surgical expense.

C.

Private nursing expense.

D.

Physician's visit expense.

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Question # 33

Which statement about Medicare is NOT correct?

A.

Medicare Part A covers hospital care.

B.

Medicare Part C covers long-term care.

C.

Medicare Part B covers physician services.

D.

Medicare is a federal health insurance program.

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Question # 34

Vision care insurance usually covers all of the following EXCEPT

A.

eye surgery.

B.

contact lenses.

C.

eyeglass frames.

D.

eye examinations.

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Question # 35

Health Insurance Counseling and Advocacy Program (HICAP) counselors can do all of the following EXCEPT

A.

help evaluate policies.

B.

charge for their services.

C.

assist in medical record keeping.

D.

explain Medicare supplement coverages.

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Question # 36

Life insurance policy illustrations must include all of the following EXCEPT

A.

the name of the insured.

B.

the page number of each page.

C.

a statement that all benefits and values are guaranteed.

D.

the relationship of each page to the total number of pages.

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Question # 37

The initial enrollment period for Medicare Part B ends how many months after the 65th birthday month?

A.

One month.

B.

Three months.

C.

Five months.

D.

Seven months.

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Question # 38

Who submits Medicare Part A claims?

A.

Patients

B.

Hospitals

C.

Pharmacies

D.

Physicians

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Question # 39

The additional premium charged by an insurer for adding the accidental death benefit to a whole life policy

A.

increases the policy's cash value.

B.

increases the yearly dividend amount.

C.

does not affect the policy's cash value.

D.

decreases the length of time that premiums are payable.

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Question # 40

The conversion privilege allows a terminated employee to convert

A.

an annuity into group life insurance.

B.

group life insurance into an annuity.

C.

permanent insurance into term insurance.

D.

term insurance into permanent insurance.

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Question # 41

When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner?

A.

Within 30 days of written request by the Commissioner.

B.

After the policy is issued.

C.

Annually and submitted with the proper paperwork.

D.

At all times.

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Question # 42

The guaranteed insurability option provides the ability to

A.

waive premium payments in the event of disability.

B.

purchase additional insurance regardless of insurability.

C.

access a portion of the death benefit in the event of serious illness.

D.

double the amount of the death benefit in the event of accidental death.

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Question # 43

The insured is totally and permanently disabled. The insured's policy continues in force without payment of further premiums because the policy contains a

A.

guaranteed insurability provision.

B.

waiver of premium provision.

C.

reinstatement provision.

D.

grace period provision.

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Question # 44

What policy is a savings instrument designed to first accumulate funds and then systematically to liquidate the funds?

A.

Term life.

B.

Deferred annuity.

C.

Mortgage insurance.

D.

Disability income insurance.

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Question # 45

Which policy pays the face amount if the insured survives to the end of a certain period?

A.

Term insurance.

B.

Endowment insurance.

C.

Whole life insurance.

D.

Universal life insurance.

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Question # 46

An emergency medical technician can return to gainful employment as a telephone solicitor and continue to collect disability under which clause of a disability policy?

A.

Work indemnity.

B.

Own occupation.

C.

Partial payment.

D.

Recovery period.

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