Insurance Code And Policy Quiz

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  • 1/150 Questions

    Which are two activities of Daily Living?

    • EATING AND DRESSING
    • SPEAKING AND INCONTINENCE
    • SLEEPING AND WALKING
    • BATHING AND HEARING
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  • 2. 

    Terminally ill persons would need which of the following?

    • Skilled nursing care

    • Intermediate care

    • Hospice care

    • Acute care

    Correct Answer
    A. Hospice care
    Explanation
    Hospice care is the correct answer because terminally ill persons require specialized care that focuses on providing comfort and support rather than curative treatment. Hospice care provides a multidisciplinary approach to address the physical, emotional, and spiritual needs of the patient, as well as support for their family. This type of care aims to improve the quality of life for individuals with a limited life expectancy and to ensure a peaceful and dignified end-of-life experience. Skilled nursing care, intermediate care, and acute care may not be suitable for terminally ill persons as they prioritize different aspects of healthcare.

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  • 3. 

    Any transaction that involves purchasing a life insurance policy and terminating an exsiting policy is known as:

    • REPLACEMENT

    • REINSURANCE

    • REINSTATEMENT

    • ASSIGNMENT

    Correct Answer
    A. REPLACEMENT
    Explanation
    A replacement refers to the process of purchasing a new life insurance policy while terminating an existing policy. It involves replacing an old policy with a new one. This can occur when a policyholder decides to switch to a different insurance company or when they want to change the terms or coverage of their current policy. It is important to carefully consider the implications of a replacement since it may involve surrender charges, potential loss of benefits, and changes in premium costs.

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  • 4. 

    An insurer organized under the laws of the State of California is a:

    • Domestic insurer

    • Foriegn Insurer

    • Non-alien insurer

    • Non-admitted insurer

    Correct Answer
    A. Domestic insurer
    Explanation
    A domestic insurer refers to an insurance company that is organized and operates under the laws of a specific state. In this case, since the insurer is organized under the laws of the State of California, it is considered a domestic insurer.

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  • 5. 

    A policy is returned to the insurer within 10 days of the date th epolicy is delivered. How much of the premium is returned to the applicant?

    • None

    • 50%

    • 80%

    • 100%

    Correct Answer
    A. 100%
    Explanation
    If a policy is returned to the insurer within 10 days of the date it is delivered, the applicant is entitled to a full refund of the premium. This means that 100% of the premium will be returned to the applicant.

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  • 6. 

    An individual license is considered terminated

    • When transfered to another person

    • When transfered to another licensee

    • On the death of the licensee

    • When transfered to a beneficary

    Correct Answer
    A. On the death of the licensee
    Explanation
    An individual license is considered terminated when the licensee dies. This means that the license is no longer valid and cannot be transferred to another person or beneficiary. The death of the licensee effectively ends their ownership and control over the license.

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  • 7. 

    According to the code, all insurers must maintain a department to investigate

    • POSSIBLE ABUSES OF RATING LAWS

    • POSSIBLE ARSON

    • POSSIBLE FRADULANT CLAIMS FROM INSURED

    • POSSIBLE FRAUD BY INSURERS

    Correct Answer
    A. POSSIBLE FRADULANT CLAIMS FROM INSURED
    Explanation
    The code states that all insurers must maintain a department to investigate possible fraudulent claims from insured individuals. This means that insurance companies are required to have a specific department dedicated to looking into claims that may be fraudulent or deceitful. This is important in order to prevent individuals from making false claims and receiving undeserved payouts from insurance companies. By having this department in place, insurers can thoroughly investigate any suspicious claims and take appropriate action if fraud is detected.

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  • 8. 

    What does the Insurance Commissioner have the right to do if an agent lacks authority from an insurer named on a binder for coverage?

    • REQUEST HIS CERTIFICATE OF AUTHORITY

    • AUTHORIZE AGENT WITH A CERTIFICATE OF CONVENIENCE

    • SUSPEND OR REVOKE THE LICENSE OF THE AGENT

    • FINE THE INSURANCE COMPANY

    Correct Answer
    A. SUSPEND OR REVOKE THE LICENSE OF THE AGENT
    Explanation
    The Insurance Commissioner has the right to suspend or revoke the license of the agent if they lack authority from an insurer named on a binder for coverage. This means that if the agent does not have the proper authorization from the insurer to provide coverage, the Insurance Commissioner has the power to take disciplinary action against the agent by suspending or revoking their license. This is to ensure that agents are acting in accordance with the regulations and guidelines set by the insurance industry.

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  • 9. 

    A failure to communicate information which a party to an insurance contract knows and should communicate, is called an act of:

    • Concealment

    • Intimidation

    • Warranty

    • Coercion

    Correct Answer
    A. Concealment
    Explanation
    Concealment is the act of intentionally withholding or not disclosing information that one party to an insurance contract knows and should communicate to the other party. In this case, the correct answer is concealment because it refers to the failure to communicate information that should be disclosed in an insurance contract.

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  • 10. 

    Which party has rights in a life insurance policy only after the death of the insured?

    • The policy owner

    • The beneficiary

    • The applicant

    • The insured

    Correct Answer
    A. The beneficiary
    Explanation
    The beneficiary is the party who has rights in a life insurance policy only after the death of the insured. The beneficiary is the person or entity designated by the policy owner to receive the death benefit when the insured passes away. They are the ones who will receive the financial payout from the life insurance policy. The policy owner, applicant, and insured may have certain rights and responsibilities during the lifetime of the policy, but the beneficiary's rights only come into effect upon the death of the insured.

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  • 11. 

    Under a disability insurance policy, an insured is eligible for a waiver of premium benefit:

    • Under the age 65

    • After the first six months of disability

    • During maternity leave

    • During delayed retirement

    Correct Answer
    A. After the first six months of disability
    Explanation
    After the first six months of disability, an insured is eligible for a waiver of premium benefit under a disability insurance policy. This means that the insured does not have to pay the premiums for the policy during the period of disability after the initial six months. This benefit helps to alleviate the financial burden on the insured during a time when they are unable to work due to their disability.

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  • 12. 

    FYI Company's employee is injured while driving in the employ of the company. Coverage for te employee comes from:

    • Employees's auto medical payments

    • FYI's General Liability

    • FYI's Workers Compensation

    • The employee's health policy

    Correct Answer
    A. FYI's Workers Compensation
    Explanation
    When an employee is injured while driving in the employ of the company, the coverage for the employee comes from FYI's Workers Compensation. Workers Compensation insurance provides benefits to employees who are injured or become ill as a result of their job. In this case, since the employee was driving for work purposes, the injury would be considered work-related and therefore covered under Workers Compensation. The other options, such as the employee's health policy or FYI's General Liability, would not typically cover work-related injuries.

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  • 13. 

    Deductibles, coinsurance, and co-payments in a health insurance policy are cost-effective choices that have the effect of:

    • Cost sharing

    • Cost avoidance

    • Cost containment

    • Cost evasion

    Correct Answer
    A. Cost sharing
    Explanation
    Deductibles, coinsurance, and co-payments in a health insurance policy are cost-effective choices that promote cost sharing. These mechanisms require individuals to pay a portion of their healthcare expenses out-of-pocket, which helps distribute the financial burden between the insurance company and the insured. By sharing the costs, it prevents the insurance company from bearing the full cost of healthcare services and encourages individuals to be more conscious of their healthcare utilization. This ultimately helps control healthcare costs and ensures that resources are used efficiently.

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  • 14. 

    An insured bought $150,000 non-participating whole life policy many years ago. She is 100 years old today. She has never borrowed from the policy, has made all premiums when due. The cash value is:

    • $0

    • $75,000

    • $100,000

    • $150,000

    Correct Answer
    A. $150,000
    Explanation
    The insured bought a non-participating whole life policy, which means that it does not accumulate any cash value over time. Since the insured has never borrowed from the policy and has made all premiums when due, the cash value remains at $0. Therefore, the correct answer is $0.

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  • 15. 

    The department responsible for evaluation, selection and distribution of risks is:

    • The marketing and sale department

    • The underwriting department

    • The claims department

    • The actuarial department

    Correct Answer
    A. The underwriting department
    Explanation
    The underwriting department is responsible for evaluating, selecting, and distributing risks. This department assesses the potential risks associated with insuring individuals or entities and determines whether to provide coverage and at what cost. They analyze various factors such as the applicant's health, age, occupation, and claims history to make informed decisions. The underwriting department plays a crucial role in ensuring that the insurance company takes on risks that are financially viable and align with their risk appetite.

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  • 16. 

    What does it mean if an agents license is inactive?

    • The agent can still transact insurance business in CA, but not in any other states until the license is reacivated

    • The agent can transact any insurance business with another agent's approval

    • The agent can transact any insurance business for which the agent is licensed

    • The agent cannot transact any insurance business fro which a licednse is requried

    Correct Answer
    A. The agent cannot transact any insurance business fro which a licednse is requried
    Explanation
    If an agent's license is inactive, it means that the agent cannot transact any insurance business for which a license is required. This means that the agent is not legally allowed to engage in any insurance transactions until their license is reactivated.

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  • 17. 

    Regarding life insurance coverage for a company, the one responsible for obtaining the coverage maintaining the policy, and paying the premium is:

    • The master policy holder

    • The individuals who make up the group

    • The insurer who provided the group coverage

    • The agent who obtained the group coverage

    Correct Answer
    A. The master policy holder
    Explanation
    The master policy holder is responsible for obtaining and maintaining the life insurance coverage for a company. They are also responsible for paying the premium. This means that they have control over the policy and are the ones who entered into the agreement with the insurer. The individuals who make up the group may be covered under the policy, but they are not responsible for obtaining or maintaining it. The insurer provides the coverage, but they are not responsible for obtaining or maintaining it. The agent may have helped in obtaining the coverage, but they are not ultimately responsible for maintaining it.

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  • 18. 

    If the commissioner issues a Notice of Seizure for documents and the individual fails to send those documents what is the penalty?

    • 1 year in jail

    • 1,000 fine

    • 1 year in jail/ or 1,000 fine

    • Each state handles discipline in its own way

    Correct Answer
    A. 1 year in jail/ or 1,000 fine
    Explanation
    If an individual fails to send the documents requested after receiving a Notice of Seizure from the commissioner, the penalty is either 1 year in jail or a $1,000 fine.

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  • 19. 

    Which of the following is NOT provided by Hospice Care?

    • PAIN RELIEF

    • SYMPTOM MANAGEMENT

    • COUNSELING

    • REHABILITATION

    Correct Answer
    A. REHABILITATION
    Explanation
    Hospice care focuses on providing comfort and support to individuals who are terminally ill and their families. It aims to improve the quality of life through pain relief, symptom management, and counseling. Rehabilitation, on the other hand, is not typically provided by hospice care. Rehabilitation focuses on restoring function and improving physical abilities, which may not be the primary goal for individuals in hospice care who are nearing the end of their lives.

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  • 20. 

    An insure, owned by policyholders is:

    • Fraternal insurer

    • Capitol stock insurer

    • Mutal insurer

    • Reciprocal insurer

    Correct Answer
    A. Mutal insurer
    Explanation
    A mutual insurer is owned by its policyholders, who are also the beneficiaries of the company's profits. Policyholders contribute premiums and share in the company's financial success through dividends or reduced premiums. This ownership structure allows mutual insurers to prioritize the interests of their policyholders rather than external shareholders. Mutual insurers often have a long-term perspective and focus on providing stable and affordable coverage to their policyholders.

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  • 21. 

    In order to deal with financial consequences of the death of a senior sales manager, a corporation could purchase:

    • Group life insurance

    • Key person insurance

    • Business overhead expense insurance

    • Ordinary life insurance

    Correct Answer
    A. Key person insurance
    Explanation
    Key person insurance is a type of life insurance policy that a corporation can purchase to protect itself from the financial consequences of the death of a key employee, such as a senior sales manager. This insurance policy provides a death benefit to the corporation, which can be used to cover the costs of finding and training a replacement, as well as any potential loss of revenue or business opportunities that may result from the employee's death. It is specifically designed to mitigate the financial impact that the loss of a key employee can have on a company's operations and profitability.

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  • 22. 

    In accidental death and dismemberment insurance, which of the following would not be considered accidental?

    • Employee losses sight in one eye from falling object in the shop

    • Employee severs hand while installing sheet rock at a building site

    • Employee requires adbominal surgery after food poisoning in the lunch room

    • Employee dies while falling from a ceiling hoist

    Correct Answer
    A. Employee requires adbominal surgery after food poisoning in the lunch room
    Explanation
    The employee requiring abdominal surgery after food poisoning in the lunch room would not be considered accidental in accidental death and dismemberment insurance. Accidental death and dismemberment insurance typically covers injuries or deaths resulting from accidents, which are defined as sudden, unexpected, and unintentional events. In this case, the food poisoning and subsequent surgery would not be considered an accident as it is a result of consuming contaminated food, rather than an unforeseen event.

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  • 23. 

    An insured bought an annuity ten years ago. He will retire in five years. To determine the value of the annuity, the number of accumulation units is mutiplied by the value of the seperate account. What type of annuity was purchased?

    • VARIABLE ANNUITY

    • FIXED PREMIUM ANNUNITY

    • TAX SHELTERED ANNUITY

    • SINGLE PAYMENT ANNUITY

    Correct Answer
    A. VARIABLE ANNUITY
    Explanation
    The insured purchased a variable annuity. In a variable annuity, the value of the annuity is determined by the number of accumulation units multiplied by the value of the separate account. This means that the value of the annuity can fluctuate based on the performance of the investments in the separate account. This type of annuity provides the potential for higher returns but also carries more risk compared to other types of annuities.

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  • 24. 

    The class beneficiary designation which means that the beneficiaries will recieve equal shares of the death benefit divided among surviving members of the class is

    • CLASS BENEFICIRIES, EQUAL SHARES

    • PER CAPITA

    • PER STRIPES

    • PER DIEM

    Correct Answer
    A. PER CAPITA
    Explanation
    Per capita means that each member of the class will receive an equal share of the death benefit. This means that regardless of the number of surviving members, each individual will receive an equal portion of the total benefit.

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  • 25. 

    The mathematical rule that says that as the number of individual but similar exposure units increases the easier it is to predict losses is which of the following?

    • INSURABLE INTEREST STANDARD

    • CONTRACT LAW

    • LAW OF LARGE NUMBERS

    • MATERIALITY

    Correct Answer
    A. LAW OF LARGE NUMBERS
    Explanation
    The Law of Large Numbers is a mathematical principle that states that as the number of individual but similar exposure units (such as insurance policies) increases, the easier it becomes to predict losses. This principle is important in insurance because it allows insurers to make more accurate predictions about the frequency and severity of future losses based on historical data and actuarial calculations. By having a large pool of similar risks, insurers can spread the potential losses more evenly and reduce the overall risk. This helps insurers to set appropriate premiums and manage their business effectively.

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  • 26. 

    The main master policy owner of a group health insurance contract is the:

    • Employer

    • Employee memebers

    • Plan adminstrator

    • Agent

    Correct Answer
    A. Employer
    Explanation
    The main master policy owner of a group health insurance contract is the employer. The employer is responsible for purchasing the insurance policy and providing coverage to their employees. They are also responsible for paying the premiums and managing the policy. The employees are the beneficiaries of the policy, but the employer holds the policy and has control over its terms and conditions. The plan administrator and agent may assist the employer in managing the policy, but they do not own it.

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  • 27. 

    Hospice care is for:

    • Persons needing acute care

    • Family caregivers

    • Persons needing custodial care

    • Terminally ill persons

    Correct Answer
    A. Terminally ill persons
    Explanation
    Hospice care is a type of care provided to individuals who are terminally ill. It focuses on providing comfort and support to patients who have a life-limiting illness and are no longer seeking curative treatment. Hospice care aims to improve the quality of life for these individuals by managing their pain and symptoms, providing emotional and spiritual support, and assisting with end-of-life decision-making. It also offers support to family caregivers who are caring for their terminally ill loved ones. Therefore, the correct answer is terminally ill persons.

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  • 28. 

    Relevant to health insurance, morbidity includes all of the following EXCEPT:

    • Intelligence

    • Income

    • Sex

    • Age

    Correct Answer
    A. Intelligence
    Explanation
    Morbidity refers to the occurrence of illness or disease in a population. In the context of health insurance, factors such as income, sex, and age are commonly considered when assessing the risk and determining the premiums. However, intelligence is not typically considered as a factor in determining morbidity rates or health insurance premiums. Intelligence is not directly linked to the occurrence of illness or disease, and therefore it is not included in the factors considered for morbidity in health insurance.

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  • 29. 

    According to the Ca Insurance code, in which of the following classes of insurance can a binder NOT be issued?

    • MARINE

    • AUTO

    • FIRE

    • LIFE

    Correct Answer
    A. LIFE
    Explanation
    According to the California Insurance Code, a binder cannot be issued in the class of insurance for LIFE. This means that temporary insurance coverage cannot be provided for life insurance policies through binders. Binders are commonly used to provide temporary coverage until a formal insurance policy is issued, but in the case of life insurance, binders are not allowed.

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  • 30. 

    What happens to a license after the death of a natural person who holds a valid insurance license?

    • IT ALWAYS TERMINATES

    • IT MAY BE TRANSFERED TO ANOTHER PERSON

    • THE LICENSE BECOMES INACTIVE UNTIL THE EXPIRATION DATE

    • THE LICENSE MUST BE RETURNED TO THE COMMISSIONER TO CANCEL THE LICENSE

    Correct Answer
    A. IT ALWAYS TERMINATES
    Explanation
    After the death of a natural person who holds a valid insurance license, the license always terminates. This means that the license is no longer valid and cannot be transferred to another person. The license becomes null and void upon the death of the license holder.

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  • 31. 

    Why should a contingent beneficiary be named in a life insurance policy?

    • To determine who recieves the policy benefits if the primary beneficiary is deceased

    • To become the policy owner if the primary beneficiary is deceased

    • To allow creditors to recieve policy proceeds

    • To share the proceeds with the primary beneficiary

    Correct Answer
    A. To determine who recieves the policy benefits if the primary beneficiary is deceased
    Explanation
    A contingent beneficiary should be named in a life insurance policy to determine who receives the policy benefits if the primary beneficiary is deceased. This ensures that there is a backup plan in place in case the primary beneficiary is unable to receive the benefits. By naming a contingent beneficiary, the policyholder can ensure that their loved ones or chosen individuals will still receive the policy benefits even if the primary beneficiary is no longer alive.

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  • 32. 

    An organization will cease to exist as an enity eligible to hold a license for all of the following reasons, EXCEPT:

    • Termination of an association

    • Termination of a key employee

    • Dissolution of a corporation

    • Dissolution of a co-partnership

    Correct Answer
    A. Termination of a key employee
    Explanation
    An organization will cease to exist as an entity eligible to hold a license if there is a termination of an association, dissolution of a corporation, or dissolution of a co-partnership. However, the termination of a key employee alone would not result in the organization ceasing to exist as an eligible entity.

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  • 33. 

    A person has paid $50,000 into a fixed annuity over 20 years.When he decides to begin income payments the insurer calculates that he will recieve $4,000 per year for life, which means that he will recieve a total of $100,000. In the first 10 years of payments how much is taxable each year?

    • $0

    • $800

    • $2,000

    • $4,000

    Correct Answer
    A. $2,000
    Explanation
    The taxable amount each year for the first 10 years is $2,000. This is because the person paid $50,000 into the annuity over 20 years, resulting in a total of $100,000 to be received. Since the person will receive $4,000 per year for life, the remaining $2,000 each year is considered taxable income.

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  • 34. 

    Twelve months ago, a man slipped and fell down a flight of stairs at his workplace. As a result he has a paralysis for which he is not expected to recover. This 46 year old person will probably be able to collect disability income benefits from

    • MEDICARE

    • WORKERS COMPENSATION

    • MEDICAID

    • SOCIAL SECURITY

    Correct Answer
    A. WORKERS COMPENSATION
    Explanation
    Workers compensation is a type of insurance that provides benefits to employees who are injured or disabled as a result of their job. In this case, the man slipped and fell at his workplace, resulting in paralysis. Since he is not expected to recover, he would likely be eligible to collect disability income benefits from workers compensation. Medicare, Medicaid, and Social Security are not typically associated with workplace injuries and disabilities, making workers compensation the most appropriate option.

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  • 35. 

    The policy provision which prevents an insurer from voiding a policy for misstatements after 2 years is:

    • Incontestabilty

    • Indemnity

    • Misrepresentation

    • There is no such provision

    Correct Answer
    A. Incontestabilty
    Explanation
    The correct answer is Incontestability. This policy provision prevents an insurer from voiding a policy for misstatements made by the insured after a specific period of time, usually 2 years. It provides a level of protection to the insured, ensuring that their policy cannot be cancelled or voided based on innocent or unintentional misstatements made during the application process. After the incontestability period has passed, the insurer cannot use misrepresentations as grounds for policy cancellation or denial of claims.

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  • 36. 

    A disability income policy covers injuries suffered by an insured on or off the job is called?

    • An occupational policy

    • A non-occupational policy

    • A wraparound policy

    • Twenty-four-hour policy

    Correct Answer
    A. An occupational policy
    Explanation
    An occupational policy is the correct answer because it specifically covers injuries suffered by an insured individual while they are on the job. This type of policy provides disability income benefits for work-related injuries or illnesses, ensuring that the insured is financially protected in the event of a disability caused by their occupation. It does not cover injuries or disabilities that occur outside of work.

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  • 37. 

    An insured and beneficiary wants to recieve $2,000 per month until the principal and interest are exhausted. Which settlement option should be chosen?

    • Fixed amount option

    • Cash option

    • Fixed period option

    • Interest option

    Correct Answer
    A. Fixed amount option
    Explanation
    The insured and beneficiary should choose the fixed amount option. This option allows them to receive a specific amount of $2,000 per month until the principal and interest are exhausted. This ensures a steady and predictable income stream for the insured and beneficiary, meeting their desired monthly payment requirement.

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  • 38. 

    After a life insurance policy has been in effect for two years, what keeps it from being rescinded by the insurer?

    • The grace period provision

    • The right to return provision

    • The incontestability clause

    • The reinstatement

    Correct Answer
    A. The incontestability clause
    Explanation
    The incontestability clause prevents the insurer from rescinding a life insurance policy after it has been in effect for two years. This clause ensures that the policy cannot be challenged or invalidated by the insurer based on any misrepresentations or omissions made by the policyholder during the application process. Once the two-year period has passed, the policy becomes binding and the insurer is no longer able to rescind it based on any grounds except for non-payment of premiums.

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  • 39. 

    Insurer and the insured share covered losses. This is called:

    • Coinsurance

    • Sharing

    • Stop-loss provision

    • Co-payment

    Correct Answer
    A. Coinsurance
    Explanation
    Coinsurance is a term used in insurance to describe the sharing of covered losses between the insurer and the insured. It means that both parties are responsible for a portion of the losses, typically in a predetermined ratio. This arrangement helps to distribute the financial risk and ensure that both the insurer and the insured have a vested interest in preventing losses. By sharing the costs, it encourages the insured to take measures to mitigate risks and also helps to keep insurance premiums affordable.

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  • 40. 

    Which of the following must any person engaged in the business of acting as an insurance agent or broker who recieves compensation for arranging or directing sales in connection with a premium financing agreement do?

    • Provide a list of the potential complaints lodged aganist the broker or agent through past customers

    • Provide records of interest payments to the broker agent with respect to interest paid by the insurer

    • Maintain a list of accounts in connection with compensation exempted in premium financing payments for three years

    • Provide a list of current accounts for any client who wishes to see the records

    Correct Answer
    A. Maintain a list of accounts in connection with compensation exempted in premium financing payments for three years
  • 41. 

    Tony Brown has a CLU certification. which of the following names would be automatically approved for his agency's use?

    • Tony Brown CLU and Company

    • Browinies Insurance Company

    • Brown Insurance

    • None of these name will be automatically approved

    Correct Answer
    A. None of these name will be automatically approved
    Explanation
    The CLU certification is a professional designation for insurance professionals specializing in life insurance and estate planning. However, having this certification does not automatically approve any specific names for an agency's use. The approval of agency names typically depends on various factors such as legal requirements, availability, and compliance with industry regulations. Therefore, none of the given names would be automatically approved solely based on Tony Brown's CLU certification.

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  • 42. 

    The likelihood of incurring disease or disability at any given time is;

    • RISK

    • MORBIDITY

    • MORTALITY

    • HAZARD

    Correct Answer
    A. MORBIDITY
    Explanation
    Morbidity refers to the state of being diseased or the incidence of disease within a population. It measures the likelihood of incurring disease or disability at any given time. Therefore, the correct answer is MORBIDITY.

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  • 43. 

    Which of the folowing is a description of a Life and Disability Analyst?

    • A BROKER PAID FEES FOE SERVICE

    • A PERSON LICENSED TO ASSIST AN AGENT IN SOLICITING LIFE INSURANCE

    • A PERSON LICENSED TO ADVISE CLIENTS ABOUT LIFE AND DISABILITY INSURANCE FOR A FEE

    • ANY AGENT

    Correct Answer
    A. A PERSON LICENSED TO ADVISE CLIENTS ABOUT LIFE AND DISABILITY INSURANCE FOR A FEE
    Explanation
    The correct answer is "A person licensed to advise clients about life and disability insurance for a fee." This answer accurately describes the role of a Life and Disability Analyst, who is licensed to provide advice and guidance to clients regarding life and disability insurance. They are authorized to charge a fee for their services, indicating that they provide professional expertise in this field.

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  • 44. 

    Which of the following gives individuals the right to purchase additional life insurance regardless of their insurability?

    • Incontestabilty

    • Accelerated death benefit

    • Guaranteed insurability

    • Waiver of premium

    Correct Answer
    A. Guaranteed insurability
    Explanation
    Guaranteed insurability gives individuals the right to purchase additional life insurance regardless of their insurability. This means that even if the individual's health or other factors change, they can still obtain more life insurance coverage without having to go through the underwriting process again. It provides flexibility and ensures that individuals can increase their coverage as their needs change over time.

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  • 45. 

    Which is NOT part of transacting insurance?

    • Solicitation

    • Establishing a list of clients

    • Negotiation

    • Execution of a contract

    Correct Answer
    A. Establishing a list of clients
    Explanation
    Establishing a list of clients is not part of transacting insurance. Transacting insurance involves various activities such as solicitation, which refers to the act of seeking potential clients for insurance policies. Negotiation is also a crucial part of transacting insurance, as it involves discussing and finalizing the terms and conditions of the insurance contract. Lastly, the execution of a contract is essential to complete the insurance transaction. However, establishing a list of clients is not directly related to the process of transacting insurance, as it focuses more on marketing and building a customer base.

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  • 46. 

    Physicians and surgeons services, whether provided in a hospital, or elsewhere:

    • Are covered by Medicare Part B. There is a charge for the coverage

    • Are covered by Medicare part A. There is no charge for the coverage

    • Are covered by Medicare Part A. There is a charge for the coverage

    • Are covered by Medicare Part 6. There is no charge for the coverage

    Correct Answer
    A. Are covered by Medicare Part B. There is a charge for the coverage
    Explanation
    Physicians and surgeons services are covered by Medicare Part B, which is a specific part of Medicare that covers outpatient medical services. Unlike Medicare Part A, which covers hospital stays and has no charge for coverage, Medicare Part B requires individuals to pay a premium for the coverage. Therefore, the correct answer is that physicians and surgeons services are covered by Medicare Part B with a charge for the coverage.

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  • 47. 

    Which type of life insurance policy gives the policy owner the right to share in the insuer's surplus?

    • Participating

    • Non-participating

    • Level term

    • Decreasing term

    Correct Answer
    A. Participating
    Explanation
    A participating life insurance policy gives the policy owner the right to share in the insurer's surplus. This means that the policy owner will receive dividends or additional benefits based on the performance of the insurance company. These dividends can be used to reduce premiums, increase the policy's cash value, or purchase additional coverage. Non-participating policies, on the other hand, do not offer these benefits and have fixed premiums and benefits. Level term and decreasing term policies refer to the structure of the policy and do not involve sharing in the insurer's surplus.

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  • 48. 

    A single deductible amount for all memebers of the same family and a right to single family memeber deductible is known as:

    • Corridor deductible

    • Flat deductible

    • Family deductible

    • Stop-loss deductible

    Correct Answer
    A. Family deductible
    Explanation
    A family deductible refers to a single deductible amount that applies to all members of the same family. This means that once the total medical expenses of the family members reach the deductible amount, the insurance coverage will start. It is different from individual deductibles where each family member has to meet their own deductible before the insurance coverage begins. The family deductible provides a more cost-effective option for families as the total deductible amount is shared among all family members.

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  • 49. 

    An insured an benificiary die in a car accident and it is impossible to determine who died first. Who will recieve the life proceeds?

    • The insured's estate

    • The insuranc ecompany retains the proceeds

    • The beneficiary's estate

    • Both the insured's and beneficiary's estate will share

    Correct Answer
    A. The insured's estate
    Explanation
    In this scenario, if it is impossible to determine who died first, the general rule is that the insured is presumed to have outlived the beneficiary. Therefore, the insured's estate would receive the life proceeds.

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Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Nov 19, 2011
    Quiz Created by
    Anansalee

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