Life & Health - Practice Exam 5

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Life & Health - Practice Exam 5.?

  
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1.  A disability income policy social insurance supplement (SIS) benefit rider:
A.
B.
C.
D.
2.  A health maintenance organization (HMO) plan contains costs by promoting
A.
B.
C.
D.
3.  Renewable term insurance can be best described as :
A.
B.
C.
D.
4.  The basic feature of a managed care indemnity plan is that the participants
A.
B.
C.
D.
5.  How do rights of an irrevocable beneficiary differ from those of a revocable beneficiary ?
A.
B.
C.
D.
6.  What recourse does an insurer have if a violation of a material warranty on the part of the insured is discovered
A.
B.
C.
D.
7.  Which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risks ?
A.
B.
C.
D.
8.  All of the following statements about the election of a life insurance policy's settlement options are true, except
A.
B.
C.
D.
9.  What is the purpose of "key person" insurance ?
A.
B.
C.
D.
10.  What would be the Insurance Commissioner's most likely course of action if an applicant for an insurance license had a previous application for a professional license denied for cause by any licensing authority within five years of the date of the filing ?
A.
B.
C.
D.
11.  An insured bought a $150,000 non-participating whole life policy many years ago.  He is 100 years old today.  He has never borrowed from the policy's cash value and has faithfuly made all the payments when due. The policy's cash value is
A.
B.
C.
D.
12.  An intentional concealment entitles the injured party to which course of action ?
A.
B.
C.
D.
13.  Loss retention is an effective risk management technique when all of the following conditions exist except
A.
B.
C.
D.
14.  A disability policy, described as "guaranteed renewable" is one where the insurance company
A.
B.
C.
D.
15.  When are parties to a contract required to communicate information solely based on personal judgment for a matter in question
A.
B.
C.
D.
16.  Which statement is true regarding Medicare Supplement Insurance plans ?
A.
B.
C.
D.
17.  The guaranteed insurability option provides the ability to:
A.
B.
C.
D.
18.  Which type of insurance guarantees the right to renew thepolicy each year, regardless of health but at an increased premium
A.
B.
C.
D.
19.  The passage of worker's compensation legislation meant
A.
B.
C.
D.
20.  RW and Associates is an agency which represents BLG Insurance Corporation.  RW and Associates may leave the name BLG Insurance Corporation in its advertisements by clearly stating the relationship between the two businesses in any of the following ways, except:
A.
B.
C.
D.
21.  The probationary period in a group health policy is intended for people
A.
B.
C.
22.  Which provision will pay a portion of the death benefit prior to the insured's death due to a serious illness
A.
B.
C.
D.
23.  An individual with a low income and high insurance needs should buy
A.
B.
C.
D.
24.  An example of a third party administrator is:
A.
B.
C.
D.
25.  A form of rest or relief offered to family members who are caring for a person who requires continual care is
A.
B.
C.
D.
26.  All of the following statement about contingent beneficiaries are true, except
A.
B.
C.
D.
27.  The payor rider on a juvenile life policy provides that if the payor dies or becomes disabled before the insured juvenile reaches the age specified on the policy
A.
B.
C.
D.
1 comment
28.  The insured is totally and permanently disabled.  The insured's policy continues in force without the payment of a premium because the policy contains a
A.
B.
C.
D.
29.  All of the following statements about survivorship life insurance are true, except
A.
B.
C.
D.
30.  If an insurer is not able to meet financial obligations when due, the insurer would be considered
A.
B.
C.
D.
31.  What does the Insurance Commissioner have the right to do if an agent lacks authority from an insurer named on a binder for coverage
A.
B.
C.
D.
32.  Which definition of disability is the most difficult for an injured worker to satisfy?
A.
B.
C.
D.
33.  People commonly purchase an annuity to protect against the rist of
A.
B.
C.
D.
34.  In the event of an accidental death, the principal sum in a disability policy will be paid
A.
B.
C.
D.
35.  Which of the following statements about the HICAP program is false ?HICAP
A.
B.
C.
D.
36.  Why is having a large number of similar exposure units important to insurers ?
A.
B.
C.
D.
37.  The insured, aged 65, owns a $100,000 non-participating whole life policy.  The policy is paid-up as of today.  When would the cash value reach $100,000?
A.
B.
C.
D.
38.  A measure for rating an individual's need for LTC benefits is called:
A.
B.
C.
D.
39.  In order to receive the principal sum benefit for death from a disability policy, the death must occur
A.
B.
C.
D.
40.  Which of the following are commonly covered by medical expense policies ?
A.
B.
C.
D.
41.  A health insurance deductible is:
A.
B.
C.
D.
42.  According to the CA insurance code, an insured's policy must specify all the of the following, except:
A.
B.
C.
D.
43.  Which of the following expenses is never covered by a LTC insurance policy ?
A.
B.
C.
D.
44.  Which of the following is a hazard ?
A.
B.
C.
D.
45.  A hospital confinement indemnity insurance policy pays
A.
B.
C.
D.
46.  When a licensed agent submits a renewal applications with applicable fee on or before the expiration date
A.
B.
C.
D.
47.  A provision stating that health insured's and their insurers will share covered losses in an agreed proportion is called
A.
B.
C.
D.
48.  Common life insurance policy riders include all of the following, except:
A.
B.
C.
D.
49.  Term insurance is typically characterized by
A.
B.
C.
D.
50.  A $50,000 whole life policy with a cash value of $10,000 has been in force for 11 years.  The policy owner is unable to continue the premium payments.  Which of the following describes the reduced paid-up non-forfeiture option
A.
B.
C.
D.
51.  What would we call a representation which fails to correspond with its stipulations or assertions ?
A.
B.
C.
D.
52.  In the state of California
A.
B.
C.
D.
53.  The adjustments that an insurer makes in a cash value account in a universal life policy each time a payment is made includes all of the following, except
A.
B.
C.
D.
54.  The Employee Retirement Income Security Act of 1974 (ERISA) mandates requiring plan sponsor to provide participants with
A.
B.
C.
D.
55.  Which of the following requires a reporting company to respond to a consumer's complaint that his file contains inaccurate information about them
A.
B.
C.
D.
56.  Under an individual health guaranteed renewal contract, the insurer has the right to
A.
B.
C.
D.
57.  All of the following statements about social security disability benefits are true, except
A.
B.
C.
D.
58.  Under COBRA, a qualifying event ensures that an employee who loses coverage can
A.
B.
C.
D.
59.  Under social security, the definition of disability is the inability to engage in
A.
B.
C.
D.
60.  Which of the following statements about LTC is correct:
A.
B.
C.
D.
61.  Which of the following is a true staement regarding the social security (OASDHI) program ?
A.
B.
C.
D.
62.  The insured's policy has deductible that is applied between the exhaustion of basic plan limits and the commencement of excess coverage.  This is called a:
A.
B.
C.
D.
63.  What makes up the entire contract in a life insurance policy ?
A.
B.
C.
D.
64.  Each of the following terms is an important characteristic of a major medical policy, except
A.
B.
C.
D.
65.  In California, the minimum participation requirement for a contributory large group health insurance plan is
A.
B.
C.
D.
66.  Which of the following is a correct statement about life insurance policy types ?
A.
B.
C.
D.
67.  During the disability elimination period
A.
B.
C.
D.
68.  A provision stating that the insured and the insurer will share covered losses in an agreed proportion is called
A.
B.
C.
D.
69.  While an insurer is paying the premium for a life insurance policy under the waiver of premium rider
A.
B.
C.
D.
70.  Medicare Part A provides coverage for all of the following, except
A.
B.
C.
D.
71.  According to the CA Insurance Code, all insurers must maintain a department to investigate:
A.
B.
C.
D.
72.  Which of the following is a type of deductible that charges the insured after basic medical benefits have been paid and before other medical coverage begins?
A.
B.
C.
D.
73.  Which of these statements concerning Medicare is not true ?
A.
B.
C.
D.
74.  Concerning Part B of Medicare, which of the following is incorrect?
A.
B.
C.
D.
75.  From the list of descriptions below, select the one that is not eligible for Medicare
A.
B.
C.
D.
76.  Hospice care provides services to patients who are:
A.
B.
C.
D.
77.  In the Medicare system, the services provided by doctors and surgeons are covered by: 1. Part A2. Part B 3. There is no charge for coverage4. there is a charge for coverage
A.
B.
C.
D.
78.  A person reaches the age of 65 and is currently covered under her employer's health plan.  She elects to take Medicare coverage by rejecting her employer's plan.  This still keeps the company plan primary.
A.
B.
79.  Which of these statement is not true with regard to insurers and policies that provide that provide Medicare supplement coverage ?
A.
B.
C.
80.  Which of the following is not allowed by code in connection with the sale of Medicare supplement policies ?
A.
B.
C.
D.
81.  Medicare covers which of the following in order to provide long-term care for elderly:
A.
B.
C.
D.
82.  Choose the correct statement about long-term care (LTC) insurance
A.
B.
C.
D.
83.  There is a type of benefit that pays for the cost of relief given to the caregiver of a person who requires constant care and supervision.  What is this type of care called ?
A.
B.
C.
D.
84.  Long-term care policies can be sold in various ways.  Which of the following is one of these ways?
A.
B.
C.
85.  Pick from the following choices the features of a long-term care policy that would have the highest premium. 1. Long benefit period2. Short benefit period3. Long elimination period4. Short elimination period
A.
B.
C.
D.
86.  Which of the following categories of benefits are not covered in a long-term care policy ?
A.
B.
C.
D.
87.  Any long-term care policy sold in California must provide for certain benefits.  Select the most correct answer describing these benefits from the choices below.
A.
B.
C.
D.
88.  Long-term care policies that deliver benefits for community based or home care services must include which of the following: 1. Respite care2 Hospice Care3. Home health care services
A.
B.
C.
D.
89.  Which of the following is false about the marketing of long-term care insurance according to the code ?
A.
B.
C.
D.
90.  The Health Insurance Counseling Advocacy Program (HICAP) provides assistance to the public on a fee basis if the person requiring assistance is financially able to pay
A.
B.
91.  When Workers compensation laws became mandatory, it meant:
A.
B.
C.
D.
92.  Who pays the premiums for a Workers Compensation policy for a retail store ?
A.
B.
C.
D.
93.  Mike drives a truck for a delivery company.  In the course of making a delivery he is involved in a serious accident, and is taken to the hospital.  The hospital and doctors bills will be paid by:
A.
B.
C.
D.
94.  Benefits will be paid from a Worker's Compensation Subsequent Injury Fund only if both the first and second injury are the result of an on-the-job accident
A.
B.
95.  The Worker's compensation portion (Part I) of the Worker's Compensation policy covers payments the employer (insured) must pay:
A.
B.
C.
D.
96.  "The seamless delivery of medical and indemnity for both occupational and non-occupational injuries and illnesses" is the definition of:
A.
B.
C.
97.  In California after January 1, 2002, the definition of health insurance includes all of the following types of coverages, except:
A.
B.
C.
D.
98.  A group health plan third party administrator might do any of the following, except:
A.
B.
C.
D.
99.  Unintentional concealment entitles the injured party to which course of action ?
A.
B.
C.
D.
100.  When may a representation be withdrawn ?
A.
B.
C.
D.
101.  A significant benefit to the insured in group underwriting verses individual is
A.
B.
C.
D.
102.  What kind of insurance pays medical benefits only in the event the insured suffers from one stipulated disease ?
A.
B.
C.
D.
103.  How long must a life agent maintain records regarding policies sold in this state ?
A.
B.
C.
D.
104.  The purpose of laws regarding the replacement of life and annuity contracts includes all of the following, except:
A.
B.
C.
D.
105.  All of the following would fall under the category of an "adverse underwriting decision", except:
A.
B.
C.
D.
106.  What is the transplant donor benefit in a disability income policy ?
A.
B.
C.
D.
107.  In order to obtain group insurance without providing evidence of insurability, what do eligible individuals generally have to do ?
A.
B.
C.
D.
108.  What is the purpose of the rehabilitation provision in a disability income policy ?
A.
B.
C.
D.
109.  An agent who acts as an insurance agent, broker, solicitor, life agent, or bail agent, acts in which capacity when handling premiums or return premiums for an insured ?
A.
B.
C.
D.
110.  A measure of rating an individual's need for long term care benefits is called
A.
B.
C.
D.
111.  In order to determine the amount of premium an insured will pay, the insurer multiplies the rate by:
A.
B.
C.
D.
112.  Viatical settlements are accomplished through the use of
A.
B.
C.
D.
113.  What rights do individuals have if they disagree with the decision on the amount Medicare will pay ?
A.
B.
C.
D.
114.  What is the tax treatment for individual disability income policies
A.
B.
C.
D.
115.  The conversion privilege allows a person to change coverage from
A.
B.
C.
D.
116.  All of the following statements abut qualified pension plans are true, except:
A.
B.
C.
D.
117.  What provision prevents a family from receiving benefits from two separate group policies with the same medical expense ?
A.
B.
C.
D.
118.  Self-funding of employee benefit plans cannot be used for
A.
B.
C.
D.
119.  Which of the following coverages is NOT one of the three traditional benefits of a group basic medical expense plan ?
A.
B.
C.
D.
120.  The additional premium charged by an insurer for adding the accidental death benefit to a whole life policy
A.
B.
C.
D.
121.  What is the written instrument called in which the insurance contract is set forth ?
A.
B.
C.
D.
122.  Which non-forfeiture option uses cash surrender values to purchase paid-up term insurance for the full face amount of the policy ?
A.
B.
C.
D.
123.  What is the difference between a defined contribution plan and a defined benefit plan ?
A.
B.
C.
D.
124.  A life agent's records must include all of the following, except:
A.
B.
C.
D.
125.  A worker dies while he is credited with six quarters of the last 13 quarter period.  What status does the worker have under social security ?
A.
B.
C.
D.
126.  A return premium rider is a rider that
A.
B.
C.
D.
127.  An agent's appointment with an insurer will be discontinued if all of the following circumstances exist, except:
A.
B.
C.
D.
128.  Social Security provides protection against the financial consequences of all of the following, except:
A.
B.
C.
D.
129.  Which retirement plan utilizes non-deductible contributions?
A.
B.
C.
D.
130.  Wellness benefits under a Health Maintenance Organization (HMO) typically include all of the following, except:
A.
B.
C.
D.
131.  All of the occurrences listed below are examples of an insurable event as defined by the CA Insurance Code, except:
A.
B.
C.
D.
132.  The social security normal retirement age depends upon
A.
B.
C.
D.
133.  The complete ransfer by the existing owner of all rights in an insurance policy to another person is
A.
B.
C.
D.
134.  Which retirement plan was designed for employees of public school systems ?
A.
B.
C.
D.
135.  Which settlement option allows only the death benefit earnings to be paid to the beneficiary
A.
B.
C.
D.
136.  In the absence of a coordination of benefits clause, all of the following circumstances might result in recovery of more than 100% of actual health care expenses, except:
A.
B.
C.
D.
137.  All of the following apply to the life insurance cost-of-living rider, except:
A.
B.
C.
D.
138.  The social security blackout period ends when the surviving spouse reaches the age of
A.
B.
C.
D.
139.  Retirement benefits under social security are available only for workers who are
A.
B.
C.
D.
140.  In which plans do employers make specific contributions to an employee's retirement account?
A.
B.
C.
D.
141.  Traditional comprehensive major medical plans include all of the following, except:
A.
B.
C.
D.
142.  In a 7 year vesting schedule, what percentage of employer contributions must be vested after 7 years of service ?
A.
B.
C.
D.
143.  A representation in an insurance contract qualifies as which of the following ?
A.
B.
C.
D.
144.  A policy holder stops making payments on a 20-pay life policy and converts the cash surrender value to extended term insurance.  All of the following statements are true, except:
A.
B.
C.
D.
145.  Identify which of the following is not a principal factor used to determine group disability income rates
A.
B.
C.
D.
146.  Which non-forfeiture option uses an existing policy's cash value to purchase a paid-up policy with a lower face than the original policy?
A.
B.
C.
D.
147.  A husband and wife work for different companies.  The husband works for ABC Company. The wife works for XYZ company.  Each has group health insurance coverage from their employer that also insures their spouse.  Both plans have a coordination of benefits clause.  Which of the following statements is true regarding the coordination of benefits clause for medical services covered by the group policies?
A.
B.
C.
D.
148.  The commonly used 30, 60, 90, and 180 disability terminology refers to the
A.
B.
C.
D.
149.  Each of the following terms is an imortant characteristic of a major medical policy, except
A.
B.
C.
D.
150.  HMOs are involved in all of the following, except
A.
B.
C.
D.
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Quiz Comments (4)
Why is it saying fail, if I received 85%
Scratch comment on question 26! Lol. Overlooked wording!
Great test..... Tricky....
Not too sure the answer for question 26 is correct. Please check....
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