Life & Health - Practice Exam 5

150 Questions  I  By Pchinna on January 29, 2010
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.