Exam 8 Flashcards
E8Q1. The rules regarding life insurance policy illustrations are intended to ensure all of the following, EXCEPT:
Ensure that the illustration specifies that both guaranteed and non-guaranteed elements will continue unchanged for all years shown.
E8Q2. If an insurer inadvertently is found guilty of unfair trade practices while issuing, renewing, and servicing a policy, the insurer could be prosecuted for how many violations?
3
E8Q3. An insurer owned by a parent company that provides insurance to cover the parent company’s loss exposures is a:
Captive insurer
E8Q4. Which of the following is NOT excluded by group life?
Accidental injury
E8Q5. The MINIMUM number of employees for group life insurance in California is:
2
E8Q6. Which of the following could be used to pay off the mortgage on a home, providing a death benefit that equals the amount of outstanding debt on the home, no more and no less?
Decreasing term insurance
E8Q7. What does the phrase “life insurance creates an immediate estate” mean?
The total death benefit will be paid to a beneficiary on the death of the insured
E8Q8. Every insurer offering individual life insurance policies or annuities to senior citizens that use non-guaranteed elements in illustrations must provide a statement to that effect. Which of the following is correct regarding this statement?
Non-guaranteed elements must be in bold print
E8Q9. The usual amount of death benefit in an industrial life insurance policy is:
Less than $2,000
E8Q10. In which of the following qualified pension plans are benefits linked to the employee’s years of service and/or amount of compensation?
Defined benefit plan
E8Q11. Which of the following allows employees to share in the financial success of the company?
Profit-sharing plan
E8Q12. The Social Security age of retirement is dependent upon:
The individual’s date of birth
E8Q13. Life insurance illustrations showing premiums, values, credits or charges that are not determined at issue demonstrate:
Non-guaranteed elements
E8Q14. An ESOP invests in:
Employer stock
E8Q15. When an insurer presents an illustration for life insurance, all of the following are prohibited, EXCEPT:
Using the insurer’s “disciplined current scale” in the illustrations
E8Q16. In a group life plan, unmarried children may be covered as dependents until the age:
21
E8Q17. An insurance company which is owned by individuals who purchase shares of stock in the company, share in profits in proportion to shares owned, and vote for a board of directors is known as what type of insurer?
Stock insurer
E8Q18. Eligibility for Social Security retirement benefits is based on:
The number of quarters earned
E8Q19. All of the following apply to an insurance broker (not an insurance agent), EXCEPT:
A broker is appointed by an insurer to transact insurance
E8Q20. In order to qualify for Social Security retirement benefits the worker must be:
Fully insured
E8Q21. All of the following are covered by the CLHIGA, EXCEPT:
Employer self-funded plans
E8Q22. Which of the following is NOT covered by the CLHIGA?
Group stop loss plans
E8Q23. In a group life policy with a death benefit of more than $50,000:
Premium cost for insurance above $50,000 is taxable as income to the insured
E8Q25. If an insurer knowingly allows one of its agents to mislead a member of the public in order to induce the person to change their existing insurance, the Commissioner may:
Suspend the insurer’s certificate of authority for the class of business involved
E8Q24. When a corporation ceases to exist entirely, their issurance license:
Terminates
E8Q26. All of the following are required to be included in life insurance illustrations, EXCEPT:
A statement that the benefits in the illustration are guaranteed
E8Q27. If an insurer indicates that an illustration will be used, they must do which of the following?
Send a summary status report to the policyowner annually
E8Q28. If a dependent child covered by a group life plan is incapable of self-support, coverage under the plan may continue up to age:
Any age
E8Q29. In a group life plan, a dependent child attending an educational institution may be covered until age:
24
E8Q30. Any insurer that provides claim forms must include which of the following statements?
“For your protection California law requires the following to appear on this form: Any person who knowingly presents false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.”
E8Q31. A disability income policy covers injuries suffered by an insured on or off the job is called?
An occupational policy
E8Q32. Which two are Activities of Daily Living?
Eating and dressing
E8Q33. Medicare Part A, begins automatically at age:
65
E8Q34. The insured’s policy has a deductible that is applied between the exhaustion of basic plan limits and the commencement of excess coverage. This is called a:
Stop-loss limit
E8Q35. A waiting period between the onset of disability and the time when benefits begin is the:
Elimination Period
E8Q36. A parent who lives at home is being cared for by an adult daughter on a full time basis. Which of the following would provide care if the daughter needs a period of separation?
Respite care
E8Q37. The Federal law known as COBRA does which of the following?
Allowing for, and providing protection of ex-employees, as well as their dependents by providing them the same conversions and extension benefits for group health insurance benefits as those given to existing employees
E8Q38. Which of the following conditions would NOT be included among the chronic illness triggers of a LTC policy?
Deafness
E8Q39. What does a stop-loss provision in a medical expense insurance plan set a maximum for?
The limit of out-of-pocket expense payments covered each year under a policy
E8Q40. Medicare PART B does/is not:
Cover the expense of virtually all drugs prescribed by a doctor
E8Q41. If a physician is paid through a Preferred Provider Organization (PPO), the normal way of paying him/her is:
By payment directly for each service
E8Q42. In a Workers’ Compensation contract, Part One provides payments for which of the following?
Sums the employer is legally required to pay under State Workers’ Compensation Laws
E8Q43. Which of the following is the definition of morbidity?
The likelihood of illness or injury
E8Q44. Which of the following is NOT true regarding Managing General Agents?
They do not collect premium money from producing broker-agents
