Winter Special Discount 60% Offer - Ends in 0d 00h 00m 00s - Coupon code: brite60

ExamsBrite Dumps

CA Life, Accident and Health or Sickness Examination Question and Answers

CA Life, Accident and Health or Sickness Examination

Last Update Feb 7, 2025
Total Questions : 155

We are offering FREE CA-Life-Accident-and-Health California Department of Insurance exam questions. All you do is to just go and sign up. Give your details, prepare CA-Life-Accident-and-Health free exam questions and then go for complete pool of CA Life, Accident and Health or Sickness Examination test questions that will help you more.

CA-Life-Accident-and-Health pdf

CA-Life-Accident-and-Health PDF

$42  $104.99
CA-Life-Accident-and-Health Engine

CA-Life-Accident-and-Health Testing Engine

$50  $124.99
CA-Life-Accident-and-Health PDF + Engine

CA-Life-Accident-and-Health PDF + Testing Engine

$66  $164.99
Questions 1

A worker who is credited with 6 quarters of coverage during the last 13-quarter period becomes disabled. What status does the worker have under the Social Security Disability Program?

Options:

A.  

Uninsured.

B.  

Partially insured.

C.  

Currently insured.

D.  

Disability insured.

Discussion 0
Questions 2

How does the cost recovery rule apply when a life insurance policy is surrendered for its cashvalue?

Options:

A.  

The insurer retains the cost basis.

B.  

The entire surrender value is taxable.

C.  

The insured receives only the cost basis.

D.  

The cost basis of the policy is exempt from taxation.

Discussion 0
Questions 3

According to the California Insurance Code, governing insurance appointments, who is responsible for filing a life agent's appointment?

Options:

A.  

The Commissioner.

B.  

The employer.

C.  

The insurer.

D.  

The licensee.

Discussion 0
Questions 4

Why is having a large number of similar exposure units important to an insurer?

Options:

A.  

The greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums.

B.  

The greater the number insured, the more premium is collected to offset fixed costs.

C.  

The greater the number insured, the more premium is collected to help cover losses.

D.  

The insured increases its market share with every insured.

Discussion 0
Questions 5

An insured is receiving benefits from a group health plan for a total disability. Which of the following happens if the existing plan is terminated?

Options:

A.  

The insured ceases to receive benefits.

B.  

The insured must apply for Social Security benefits.

C.  

The insured must apply for individual health coverage.

D.  

The insured receives benefits from the terminated plan.

Discussion 0
Questions 6

For income tax purposes, premiums for personal life insurance are

Options:

A.  

tax deferred.

B.  

not deductible.

C.  

excluded from the adjusted gross income.

D.  

deductible to the extent that they exceed 7.5% of the adjusted gross income.

Discussion 0
Questions 7

All of the following are features of a Preferred Provider Organization (PPO) EXCEPT

Options:

A.  

employees have a choice of practitioners.

B.  

primary care physicians act as gatekeepers.

C.  

providers are paid on a fee-for-service basis.

D.  

dependents do not need referrals to see a specialist.

Discussion 0
Questions 8

Your client has just bought a new home which he has financed with a $150,000, 7.5% interest, 30-year bank loan. He would like to be sure that if he dies prematurely, the unpaid balance of the mortgage would be paid. He wants a policy that will cover the mortgage balance - no more, no less - anytime during the life of the mortgage. Which policy is designed to meet this need?

Options:

A.  

Level term policy.

B.  

Home service policy.

C.  

Increasing term policy.

D.  

Decreasing term policy.

Discussion 0
Questions 9

In insurance terminology, "indemnify" means

Options:

A.  

award.

B.  

advance.

C.  

make whole.

D.  

over compensate.

Discussion 0
Questions 10

When is the automatic loan provision activated?

Options:

A.  

On the premium due date.

OB. At the end of the grace period.

B.  

At the end of the free-look period.

C.  

At the end of the incontestability period.

Discussion 0
Questions 11

During the solicitation of a long term care insurance rider, a life agent must consider all of the following EXCEPT the applicant's

Options:

A.  

goals and needs.

B.  

attending physician statement.

C.  

ability to pay for the coverage.

D.  

existing long term care coverage.

Discussion 0
Questions 12

In the California Insurance Code, a fact that is so important it could determine the policy premium is cited for its

Options:

A.  

expressness.

B.  

materiality.

C.  

representation.

D.  

valuation.

Discussion 0
Questions 13

Which health insurance contract provision addresses the problem of over insurance?

Options:

A.  

Reinstatement.

B.  

Incontestability.

C.  

Assignment of benefits.

D.  

Coordination of benefits.

Discussion 0
Questions 14

Which report about an insurance applicant's creditworthiness and personal characteristics may influence eligibility for life and health insurance?

Options:

A.  

Agent's report.

B.  

Consumer report.

C.  

Attending physician's statement.

D.  

Medical Information Bureau disclosure.

Discussion 0
Questions 15

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

Options:

A.  

a person working for two employers has insurance through both.

B.  

spouses are both employed and eligible for group medical benefits.

C.  

an executive has additional coverage through an association policy.

D.  

a worker's group medical plan includes a carryover deductible provision.

Discussion 0
Questions 16

As defined by the California Code of Regulations, a person who asserts a right of recovery under an insurance policy is called the

Options:

A.  

beneficiary.

B.  

claimant.

C.  

injured.

D.  

underinsured.

Discussion 0
Questions 17

Life insurance policy illustrations must include all of the following EXCEPT

Options:

A.  

the name of the insured.

B.  

the page number of each page.

C.  

a statement that all benefits and values are guaranteed.

D.  

the relationship of each page to the total number of pages.

Discussion 0
Questions 18

The conversion privilege allows a terminated employee to convert

Options:

A.  

an annuity into group life insurance.

B.  

group life insurance into an annuity.

C.  

permanent insurance into term insurance.

D.  

term insurance into permanent insurance.

Discussion 0
Questions 19

The spendthrift clause in a life insurance policy

Options:

A.  

prevents a beneficiary from assigning interest in policy proceeds.

B.  

allows the payment of part of the death benefit for terminally ill insureds.

C.  

assumes that the insured survived the beneficiary if both die in a common accident.

D.  

requires the insurer to waive all premiums due when an insured is totally disabled.

Discussion 0
Questions 20

Who submits Medicare Part A claims?

Options:

A.  

Patients

B.  

Hospitals

C.  

Pharmacies

D.  

Physicians

Discussion 0
Questions 21

Which type of life insurance coverage has both a savings element and a flexible premium option?

Options:

A.  

Term life.

B.  

Whole life.

C.  

Universal life.

D.  

There is currently no insurance product available in the standard market which has both of these features.

Discussion 0
Questions 22

Which policy provision protects the insurer against possible adverse selection?

Options:

A.  

Nonforfeiture.

B.  

Reinstatement.

C.  

Suicide clause.

D.  

Entire contract.

Discussion 0
Questions 23

A method of selling insurance by using mass media advertising is known as

Options:

A.  

direct response.

B.  

direct writer.

C.  

telemarketing.

D.  

syndication.

Discussion 0
Questions 24

The theory of probability is applied to life insurance through the use of

Options:

A.  

morbidity tables.

B.  

mortality tables.

C.  

the needs approach.

D.  

the human life value approach.

Discussion 0
Questions 25

In medical expense insurance, what serves the same purpose as the elimination period in disability income insurance?

Options:

A.  

Coinsurance.

B.  

Co-payment.

C.  

Deductible.

D.  

Maximum benefit.

Discussion 0
Questions 26

People commonly purchase an annuity to protect against the risk of

Options:

A.  

dying too soon.

B.  

becoming uninsurable.

C.  

outliving their financial resources.

D.  

dying before their home mortgage is paid off.

Discussion 0
Questions 27

Which policy allows the insured to choose where the assets backing the cash value are invested?

Options:

A.  

Term life.

B.  

Variable life.

C.  

Universal life.

D.  

Endowment life.

Discussion 0
Questions 28

Insurer policy expenses include all of the following EXCEPT

Options:

A.  

taxes.

B.  

premiums.

C.  

agent commissions.

D.  

home office operations.

Discussion 0
Questions 29

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a qualifying event ensures that an employee who loses coverage can

Options:

A.  

elect to continue coverage.

B.  

request a waiver of premium.

C.  

convert to an individual policy.

D.  

transfer coverage to another group.

Discussion 0
Questions 30

A contract of indemnity is one in which

Options:

A.  

one party is restored to the same financial position the party was in before the loss occurred.

B.  

one party is obligated to assume the legal liability of another party.

C.  

one party must adhere to the agreements written by the other party.

D.  

both parties are expected to act in complete honesty.

Discussion 0
Questions 31

Loss retention is an effective risk management technique when all of the following conditions exist EXCEPT the

Options:

A.  

losses are highly predictable.

B.  

probability of loss is unknown.

C.  

worst possible loss is not serious.

D.  

insured chooses to assume the losses involved.

Discussion 0
Questions 32

Which policy pays the face amount if the insured survives to the end of a certain period?

Options:

A.  

Term insurance.

B.  

Endowment insurance.

C.  

Whole life insurance.

D.  

Universal life insurance.

Discussion 0
Questions 33

What policy is a savings instrument designed to first accumulate funds and then systematically to liquidate the funds?

Options:

A.  

Term life.

B.  

Deferred annuity.

C.  

Mortgage insurance.

D.  

Disability income insurance.

Discussion 0
Questions 34

According to the California Insurance Code, all of the following Long-Term Care (LTC) insurance sales are considered unnecessary EXCEPT

Options:

A.  

a replacement LTC policy with equal benefits for a lower premium.

B.  

a replacement LTC policy with fewer benefits and a higher premium.

C.  

an additional LTC policy to an insured who already has two LTC policies.

D.  

two additional LTC policies that equal the combined benefits on an existing one.

Discussion 0
Questions 35

The additional premium charged by an insurer for adding the accidental death benefit to a whole life policy

Options:

A.  

increases the policy's cash value.

B.  

increases the yearly dividend amount.

C.  

does not affect the policy's cash value.

D.  

decreases the length of time that premiums are payable.

Discussion 0
Questions 36

Indexed annuities offer all of the following features EXCEPT

Options:

A.  

a minimum guarantee of interest rate.

B.  

protection during stock market declines.

C.  

an annually increasing maximum rate of interest.

D.  

an opportunity to participate in gains associated with the stock market.

Discussion 0
Questions 37

Which of the following is a common business use for life insurance?

Options:

A.  

Key person policy.

B.  

Creating an immediate estate.

C.  

Helping to fund a person's retirement.

D.  

Creating emergency funds to avoid the need to liquidate assets.

Discussion 0
Questions 38

Under the PPACA, which medical enrollment tier is 80% actuarial value?

Options:

A.  

bronze

B.  

gold

C.  

platinum

D.  

silver

Discussion 0
Questions 39

All of the following are requirements of a contract EXCEPT

Options:

A.  

the contract must have a legal purpose.

B.  

there must be equal consideration between the parties.

C.  

the parties to the contract must be legally competent.

D.  

there must be an offer and acceptance of the contract terms.

Discussion 0
Questions 40

After the deductible, what portion does a patient pay for covered expenses under Medicare Part B?

Options:

A.  

20%

B.  

50%

C.  

80%

D.  

100%

Discussion 0
Questions 41

In long-term care policies, which of the following is an activity of daily living?

Options:

A.  

Bathing

B.  

Breathing

C.  

Driving

D.  

Working

Discussion 0
Questions 42

According to the California Insurance Code, an insurance policy must specify all of the following EXCEPT the

Options:

A.  

financial rating of the insurer.

B.  

property or life being insured.

C.  

risks insured against.

D.  

policy period.

Discussion 0
Questions 43

It representation in an insurance contract qualifies as which of the following?

Options:

A.  

An amendment.

B.  

A policy provision.

C.  

An implied warranty.

D.  

An express warranty.

Discussion 0
Questions 44

The total premium paid by a life policy owner for one policy year is

Options:

A.  

the same regardless of the frequency of payment.

B.  

less when paid quarterly than if paid semiannually.

C.  

greater if the premium is paid semiannually rather than annually.

D.  

based on the assumption that the insured will pay policy premiums at the end of the policy year in one payment; if paid earlier in the policy year, a discount will be allowed.

Discussion 0
Questions 45

The term "loss" can be defined as all of the following EXCEPT

Options:

A.  

the probability that an event will occur.

B.  

a happening that causes the company to pay.

C.  

the amount suffered by a person regardless of insurance.

D.  

the amount an insurer is required to pay because of an event that it insured.

Discussion 0
Questions 46

The group medical plan provision that applies when a claimant has coverage under more than one plan is known as

Options:

A.  

coinsurance.

B.  

integration.

C.  

maximum benefits.

D.  

coordination of benefits.

Discussion 0