CA-Life-Accident-and-Health by California Department of Insurance Actual Free Exam Questions And Answers

Question 1

Insureds are entitled to recover an amount NOT greater than the amount of their loss under the principle of

A. utmost good faith.

B. adhesion.

C. indemnity.

D. warranty.

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Correct Answer: C Vote an answer

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Question 2

What factor supports the principle of indemnity?

A. Insurable interest.

B. Reasonable expectations.

C. Contract of adhesion.

D. Utmost good faith.

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Correct Answer: A Vote an answer

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Question 3

Which of the following is NOT a characteristic of a contributory group insurance plan?

A. The member pays all of the cost.

B. The member pays a portion of the cost.

C. The policy owner pays all of the cost.

D. The employer pays a portion of the cost.

Discussion 0

Correct Answer: A Vote an answer

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Question 4

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

A. Mortgage insurance.

B. Deferred annuity.

C. Term life.

D. Disability income insurance.

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Correct Answer: B Vote an answer

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Question 5

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which of the following is a qualifying event?

A. Marriage

B. Promotion

C. Divorce

D. Relocation

Discussion 0

Correct Answer: C Vote an answer

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Question 6

What is the definition of premium?

A. Bonus paid by an agent to convince an insured to buy a policy.

B. Amount the insured pays per unit of coverage (e.g., $10 per $1,000 of coverage).

C. Money an insurer pays to an insured to obtain the benefits provided in the policy.

D. Money an insured pays an insurer to obtain benefits provided in the policy.

Discussion 0

Correct Answer: D Vote an answer

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Question 7

A commonly used cost containment measure for emergency hospital care under a major medical expense plan is the

A. inpatient fee.

B. premium tax.

C. pre-admission test.

D. deductible.

Discussion 0

Correct Answer: C Vote an answer

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Question 8

What is the limit of liability in a term life insurance policy?

A. The total cash value.

B. The face amount plus the premiums paid.

C. The total amount of premiums paid.

D. The face amount of the policy.

Discussion 0

Correct Answer: D Vote an answer

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Question 9

What is the cost of service from the Health Insurance Counseling Advocacy Program (HICAP)?

A. $25 per appointment.

B. $50 per appointment.

C. No charge.

D. $10 per appointment.

Discussion 0

Correct Answer: C Vote an answer

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Question 10

The use of non-medical life insurance accomplishes all of the following EXCEPT

A. there is less demand on the medical profession.

B. insurer expenses are reduced by the cost of paying for medical examinations.

C. insureds can avoid answering medical questions on the application.

D. the processing of life insurance applications is expedited.

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Correct Answer: C Vote an answer

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Question 11

When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner?

A. Annually and submitted with the proper paperwork.

B. After the policy is issued.

C. At all times.

D. Within 30 days of written request by the Commissioner.

Discussion 0

Correct Answer: C Vote an answer

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Question 12

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

A. Universal life.

B. Whole life.

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

D. Term life.

Discussion 0

Correct Answer: A Vote an answer

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Question 13

To help keep premiums more affordable, which provision is included in a disability income policy?

A. Automatic increase provision.

B. Elimination period.

C. Residual benefits.

D. Cost of living rider.

Discussion 0

Correct Answer: B Vote an answer

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Question 14

During the grace period, when may an insurer terminate medical coverage?

A. The insured requests termination in writing.

B. The insured is hospitalized without giving the insurer prior notification.

C. Policies cannot be terminated during the grace period.

D. The insured receives care from a physician who is not in the plan's network.

Discussion 0

Correct Answer: A Vote an answer

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California Department of Insurance CA Life, Accident and Health or Sickness Examination - CA-Life-Accident-and-Health Exam Practice Test

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