Life & Health Exam Q

  1. What is information that does NOT need to be communicated in a contract?
    Known information, information that should be known, information which the other party waives, information that is not material to the risk.
  2. A Representation in an insurance contract qualifies as an...
    implied warranty
  3. What is materiality of concealment?
    the rule used to determine the importance of a misrepresentation
  4. A representation is false when the facts fail to correspond with its...
    assertions or stipulations.
  5. The financial rating of the insurer is NOT required to be specified in the...
    insurance policy.
  6. Either intntional or unintentional concealment entitles an injured party to...
    recission of a contract.
  7. What is the rate?
    the price of insurance for each exposure unit
  8. MGA can be any ........that manages all or part of an insurer's business (including a separate division, department or underwriting office)
    person, firm, association, partnership, or corporation
  9. An MGA acts as an agent and produces and underwrites gross direct written premium equal to or more than 5 percent of teh policyholder surplus as reported in the insurer's last annual statement and either:
    • A. adjusts or pays claims in excess of an amount determined by the Commissioner
    • B. Negotiates and binds ceding reinsurance on behalf of the insurer
  10. interpretation of policy provisions is not a primary objective of ...
    insurance regulation.
  11. What is a primary insurer?
    is the insurance company who transfers its loss exposure to another insurer in a reinsurance transaction.
  12. Who may be an insurer?
    person, association, organization, partnership, business trust, limited liabilty company or corporation.
  13. What is demutualization?
    a process whereby a mutual insurer becomes a stock company
  14. It is a misdemeanor to refuse to deliver any books, records, or assets to the Commissioner once a .....
    a seizure order has been executed in an insolvency proceeding.
  15. If an insured signs a fraudulent claim form, the insured may be guilty of...
  16. It would be a discriminatory practice for an insurer to refuse to accept, charge higher premiums for, or provide different terms of insurance when a potential applicant for a disability insurance policy is shown to have ....
    a genetic chracteristic which could contribute to the person's disability.
  17. What does survivorship life insurance offer?
    A. offers premiums that are quite low compared with those that would be charged for separate policies B. Well situated to meet the need for cash to cover estate taxes C. face amounts are usually more than one million dollars.
  18. what is extended term insurance?
    the nonforfeiture option that uses cash surrender values to purchase paid-up term insurance for the full face amount of the policy.
  19. Viatical settlements are effected through the use of .....
    absolute assignment.
  20. A written binder is deemed....
    a valid insurance policy for the purpose of proving that the insured has insurance coverage. This EXCLUDES life insurance.
  21. In a contributory group insurance plan, employees pay...
    all or parts of the costs
  22. The indemnity plans claim forms are typically completed and submitted by....
    the participant.
  23. The following may opt for a self insured medical and disability plan:
    labor unions, fraternals, and co-ops.
  24. The probationary period in a group health policy is intended for people who join the group....
    after the policy effective date.
  25. The Employee Retirement Income Security Act of 1974 (ERISA) fiduciary standards benefit plan...
    participants and beneficiaries.
  26. What is the coverage provided by Medicare Part B?
    Medical Insurance (deductibles, coinsurance, physician services, second opinion before surgery, hospital outpatient, other covered services, mental illness, diagnostic tests and x-rays performed on outpatient basis, etc.)
  27. Medicare Part B is only for individuals....
    age 65 or older.
  28. Insurers MAY offer Medicare Supplement insurance plans that contain only...
    core benefits.
  29. What are standard levels of care in a Long Term Care policy?
    Skilled nursing care, intermediate nursing care, custodial care, home health care, home care and community based care.
  30. Social Security disability benefits are paid to persons whose disability is expected to last at least...
    12 months or lead to death.
  31. Travel Accident Insurance is generally sold using vending machines in airport lobbies, however it can also be purchased from credit card companies, or insurer representatives. It is NOT sold by...
    professional insurance agents.
  32. When will the first benefit check be issued for a disability income policy with a 90 day elimination period?
    121st Day of continued disability.
  33. all of the following would be considered a violation of federal law except:

    A. Providing False information on an insurance application
  34. The California Insurance Code requires a...minimum participation percentage for large group life insurance.
  35. Which of the following classes of insurance is exempt from the California Insurance Guarantee Association (CIGA)?

    D. Life and Annuity - they are specifically excluded from coverage - However, they are covered by the California Life and Health Insurance Guarantee Association which is a separate act altogether.
  36. The federal law COBRA applies to employees with a minimum of ....employees
  37. Termination due to gross misconduct is not a qualifying event under....
  38. Under the family and Medical Leave Act, how many weeks of leave must be provided per year for the birth of a child?
  39. Which of the following is not a typical benefit period in a disability income policy?

    B. Lifetime.
  40. What is the most common type of specified disease policy?
  41. Put the following in order from lowest premium to highest:
    Traditional life, Single Premium Life, Modified life
    Modified Life, Traditional Life, Single Premium Life
  42. A deferred compensation plan is a ...
    non-qualified plan.
  43. The money a participant contributes to a 401k plan is always....vested immediately.
  44. Which of the following health care providers do not come under the jurisdiction of the Department of Insurance?

    C. Acupuncture
  45. A married couple who would like to purchase a life insurance policy to cover estate taxed and pay when the last spouse dies would purchase:....
    Survivorship Life - which pays when the surviving insured dies and is commonly used to help pay estate taxes since estate taxes are due upon the death of the last spouse.
  46. A life insurance policy which will allow the insured to self direct the cash value into different sub-accounts is...
    variable life
  47. Life settlements are accomplished through the use of...
    Absolute assignment
  48. A flexible premium deferred annuity allows deferred interest accumulation, assuming the money is on deposit with the insurance company. There is....amount required to be contributed, and .... period of time contributions must be made.
    no further; no specific
  49. An annuity purchased for saving money to be used in the future, is an example of...
    non qualified plan
  50. Workers compensation is a comprehensive coverage including various levels of...
    Rehabilitation benefits, survivor benefits, disability benefits, and medical benefits.
  51. A seamless delivery of indemnity and medical benefits that cover both on and off the job injuries and sicknesses is covered by....
    24-hour care coverage
  52. If an individual receives insurance policy disability payments because of sickness and also receives disability benefits from Medicare - an increase in Social Security benefits would....
    cause the individuals policy benefits to decrease
  53. HMO's offer...
    health care services in addition to health care coverage.
  54. COBRA is only related NOT
    health; life
  55. How many days are allowed by law for an insurance firm to supply claim forms to the person submitting a claim?
    15 days
  56. Long Term Care Policies have a minimum of free look.
  57. An insurance agent A life agent sells ....They each are different licenses.
    property and casualty; life, health, and annuities.
Card Set
Life & Health Exam Q
key facts