Life & Health - Practice Exam 6

70 Questions | Total Attempts: 58

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Health Care Quizzes & Trivia

Life & Health - Practice Exam 6


Questions and Answers
  • 1. 
    What is required when an applicant reveals conditions that require more information?
    • A. 

      Physical examination

    • B. 

      Attending physician's statement

    • C. 

      Investigative consumer report

    • D. 

      Agent's report

  • 2. 
    Which risk classification carries the lowest premium ?
    • A. 

      Endowed

    • B. 

      Substandard

    • C. 

      Standard

    • D. 

      Preferred

  • 3. 
    During the disability elimination period
    • A. 

      Occupational claims are payable

    • B. 

      Small claims are payable

    • C. 

      No benefits are payable

    • D. 

      Residual benefits are payable

  • 4. 
    Which of the following statements defines partial disability ?
    • A. 

      A disabled employee while he is working part-time and receiving lost income under their long-term disability benefit

    • B. 

      An employee who loses sight in one eye because of an accident on the job

    • C. 

      An employer contributing half of the disability benefit to an employee out on long-term disability

    • D. 

      The prorated income an employer pays an injured employee out on short-term disability

  • 5. 
    Which statement best describes a life insurance policy dividend?
    • A. 

      It is somewhat larger in a non-participating whole life policy than in a comparable participating policy

    • B. 

      It is the interest paid to the policy owner on the cash value of a permanent insurance policy

    • C. 

      It is distribution of excess of funds accumulated by the insurer on participating policies

    • D. 

      It is a stockholders return on his investment in the company

  • 6. 
    If a person was in violation of Section 770 of the CA Insurance Code, what action would the insurance Commissioner most likely take if the violation dealt with loans on the security of real or personal property ?
    • A. 

      Require the violator to complete an approved ethics course before soliciting in the statement of California again

    • B. 

      Issue a cease and desist order for a violation of more than one transaction

    • C. 

      Charge the violator with a felony with a six month maximum jai sentence per violation

    • D. 

      Issue a fine or $205,000 per violation

  • 7. 
    If no other method of payment is selected, which of the following is the automatic mode of settlement for life insurance proceeds?
    • A. 

      Extended term insurance

    • B. 

      Lump-sum settlement in cash

    • C. 

      Life income

    • D. 

      Paid-up policy

  • 8. 
    The process whereby a mutual insurer becomes a stock company is called:
    • A. 

      Reorganization

    • B. 

      Stock split

    • C. 

      Stock buyout

    • D. 

      Demutualization

  • 9. 
    A supplemental insurance policy that pays a set amount for each day that an individual is hospitalized is known as:
    • A. 

      Long term care supplement

    • B. 

      Temporary major medical

    • C. 

      Hospital confinement indemnity

    • D. 

      Hospital surgical expense

  • 10. 
    Any situation that presents the possibility of a loss is known as:
    • A. 

      A covered loss

    • B. 

      A loss exposure

    • C. 

      Risk potential

    • D. 

      Consideration

  • 11. 
    A commonly used cost containment measure for emergency hospital care under a major medical expense plan is:
    • A. 

      Premium tax

    • B. 

      Deductible

    • C. 

      In-patient fee

    • D. 

      Pre-admission test

  • 12. 
    Which settlement option allows only the death benefit earnings to be paid to the beneficiary ?
    • A. 

      Cash option

    • B. 

      Fixed amount option

    • C. 

      Interest option

    • D. 

      Fixed period option

  • 13. 
    An agent acting 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. 

      Legal representative

    • B. 

      Fiduciary

    • C. 

      Managing general agent

    • D. 

      Natural person

  • 14. 
    Which statement is true regarding participating in a group health insurance plan?
    • A. 

      A minimum of 75% of eligible members is required for a non-contributory group health plan

    • B. 

      A non-contributory group health plan must cover all eligible members

    • C. 

      A contributory group health plan must cover all eligible members

    • D. 

      A minimum participation of 50% of eligible members is required for a contributory group health plan

  • 15. 
    According to state law, what size print must be used for the licensee's license number on all price quotes, business cards, and printed material?
    • A. 

      There are no requirements for the license no. to be printed on any printed material

    • B. 

      Larger print than any other printed information on the material

    • C. 

      The same size print as the licensee's phone number, fax number or address

    • D. 

      Small print a the bottom of the material

  • 16. 
    Social Security disability benefits are paid to persons expected to die or be disabled at least:
    • A. 

      3 months

    • B. 

      6 months

    • C. 

      12 months

    • D. 

      24 months

  • 17. 
    Which non-forfeiture option uses cash surrender values to purchase paid-up term insurance for the full face amount of the policy?
    • A. 

      Extended paid-up insurance

    • B. 

      Reduced term insurance

    • C. 

      Extended term insurance

    • D. 

      Reduced paid-up insurance

  • 18. 
    The group medical plan provision that applies when a claimant has coverage under more than one plan is knows as?
    • A. 

      Integration

    • B. 

      Co-insurance

    • C. 

      Coordination of benefits

    • D. 

      Maximum benefits

  • 19. 
    All of the following statements about the gatekeeper system are true, except:
    • A. 

      Specialists can choose to be gatekeepers for their patients

    • B. 

      The insured must utilize their primary physicians who authorize all care for the insured

    • C. 

      Referrals to specialists must be authorized by the gatekeeper

    • D. 

      Gatekeepers are a common feature of HMO plans

  • 20. 
    Which coverage is available at no cost to persons at age 65?
    • A. 

      Medicare Part A

    • B. 

      Medicare Part B

    • C. 

      Social Security retirement benefits

    • D. 

      Long term care insurance

  • 21. 
    Which optional program is only for individuals age 65 or older ?
    • A. 

      Long term care insurance

    • B. 

      Medicare Part A

    • C. 

      Social Security survivor benefits

    • D. 

      Medicare Part B

  • 22. 
    Traditional comprehensive major medical plans include all of the following, except:
    • A. 

      Deductibles

    • B. 

      Co-insurance

    • C. 

      Out-of-pocket maximums

    • D. 

      First-dollar coverage

  • 23. 
    According to Employee Retirement Income Security Act of 1974 (ERISA) fiduciary standards, benefit plans are operated for:
    • A. 

      Plan sponsors and beneficiaries

    • B. 

      Plan participants and employees

    • C. 

      Plan sponsors and employees

    • D. 

      Plan participants and beneficiaries

  • 24. 
    After the deductible is paid, what percentage of the balance of approved charges does Medicare Part B pay ?
    • A. 

      20%

    • B. 

      50%

    • C. 

      80%

    • D. 

      100%

  • 25. 
    With Medicare coverage:
    • A. 

      Benefits are available only to persons age 65 or older

    • B. 

      Both Part a and Part B provide benefits for care and skilled nursing facilities

    • C. 

      Part B provides benefits for diagnostic tests and x-rays performed on an out-patient basis

    • D. 

      Part A has no deductibles nor co-insurance for the first 60 days of hospitalization