California Life, Accident, and Health
Insurance Final Exam: Questions With
Complete Solutions What is an insurance solicitor authorized to do? - Correct Answers ✅Help an agent or broker sell insurance According to the California Insurance Code, what is "insurance"? - Correct Answers ✅A contract What does a Hospital Confinement indemnity policy pay for? - Correct Answers ✅Pay a specified daily amount while the insured is confined to a hospital According to the California Insurance Code, how is the word "may" interpreted? - Correct Answers ✅Permissive Which statement is CORRECT when describing a contract of adhesion? - Correct Answers ✅Contract may be accepted or rejected by the insured.Retirement plans are prevented from favoring highly compensated employees under which government regulation
- Correct Answers ✅Nondiscrimination
When calculating life insurance premium rates, which component would an agent's commission fall under? - Correct Answers ✅Insurer's expenses 1 / 3
California Life, Accident, and Health
Insurance Final Exam: Questions With
Complete Solutions All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT - Correct Answers ✅Probability of loss is unknown An insurance policy written after 1988 that fails to pass the seven-pay test is known as - Correct Answers ✅a modified endowment contract All of these are reasons the Commissioner may disapprove a licensee's request to use a fictitious name EXCEPT - Correct Answers ✅The name is the licensee's actual name Which of the following services are health maintenance organizations (HMO's) NOT required to provide? - Correct Answers ✅Prescription drugs Which of the following is NOT true regarding a family policy that covers children? - Correct Answers ✅Conversion of child's coverage to permanent insurance requires evidence of insurability Which of the following types of life insurance combines a savings element along with a flexible premium option? - Correct Answers ✅Universal life 2 / 3
California Life, Accident, and Health
Insurance Final Exam: Questions With
Complete Solutions What determines the Social Security normal retirement age? - Correct Answers ✅Year in which worker was born When an insurance company requests an attending physician's report, the request must be accompanied by a - Correct Answers ✅copy of the signed authorization A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is called a - Correct Answers ✅deferred annuity what does ESOP stand for? - Correct Answers ✅Employee Stock Ownership Plan Which Social Security status does a worker with 6 quarters of coverage during the last 13-quarter period have? - Correct Answers ✅Currently insured When a claimant has coverage under more than one health plan, which group medical plan provision applies? - Correct Answers ✅Coordination of benefits How is an agent's first-year commission calculated for a replacement long-term policy? - Correct Answers ✅Based
- / 3