Full Life insurance questions what could be on test

Question 1

Which type of jurisdiction requires an insurer to have its rates accepted by the Insurance Department prior to using them?

A. Prior approval
B. Prior acceptance
C. File and use
D. State approval

Answer 1

A. Prior approval

A prior approval state requires that an insurance company receives approval for a new insurance rate before it is sent to the public.

Question 2

Which of the following statements about aleatory contracts is NOT true?

A. The insured and the insurer have the potential for unequal contributions
B. Aleatory contracts are conditioned upon the occurrence of an event
C. Insurance contracts are considered aleatory
D. The insured and the insurer contribute equality to the contract

Answer 2

D. The insured and the insurer contribute equality to the contract

This statement is NOT true. An aleatory contract has the potential for the unequal exchange of value or consideration for both parties. For example, an individual who is covered under a disability insurance policy will collect benefits upon disability. However, if no disability occurs, benefits are not paid.

Question 3

One important function of an insurance company is to identify and sell to potential customers. Which of these BEST describes this function?

A. Underwriting
B. Regulation
C. Marketing
D. Reinsurance

Answer 3

C. Marketing

Marketing can be best defined as identifying and selling to potential customers.

Question 4

According to PPACA, what is a health benefits exchange?

A. An entity that provides tax credits to employers for providing health insurance to their employees
B. An entity where existing policies can be converted to newer policies
C. An entity to which individuals and small businesses can have access to affordable health coverage
D. An entity that offers affordable health coverage to only those with low incomes

Answer 4

C. An entity to which individuals and small businesses can have access to affordable health coverage

PPACA creates new entities called American Health Benefits Exchange through which individuals, small business, and those who do not have access to affordable employer coverage can purchase coverage.

Question 5

According to the PPACA, an adult can be covered by a parent’s health care plan until what age?

A. Age 25
B. Age 26
C. Age 18
D. Age 21

Answer 5

B. Age 26

Under PPACA, an adult child may be covered by a parent’s health insurance plan until age 26

Question 6

Which of the following does specified disease insurance NOT cover?

A. out-of-pocket expenses
B. costs covered by medical expense insurance
C. incidental costs
D. medical expenses that are noncovered

Answer 6

B. costs covered by medical expense insurance

Specified disease insurance covers all of these EXCEPT costs covered by medical expense insurance.

Question 7

Which of the following is NOT required in the content of a policy?

A. Probability of loss
B. Risk insured against
C. Parties involved in the contract
D. Period to which the coverage exists

Answer 7

A. Probability of loss

The probability of loss is not required in the content of a policy.

Question 8

The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund?

A. Up to 10 days
B. Between 10 and 30 days
C. Between 30 and 45 days
D. Between 15 and 20 days

Answer 8

B. Between 10 and 30 days

Every policy of individual life insurance shall have a notice stating that after receipt of the policy by the owner, the policy may be returned by the owner for the cancellation by delivering it or mailing it to the insurer or to the agent through whom it was purchased. This period shall not be less that 10 days nor more than 30 days.

Question 9

Which of the following is NOT a primary objective of insurance regulation?

A. Insurance Code enforcement
B. Interpret policy provisions
C. Protect policyowners
D. Licensing agents

Answer 9

B. Interpret policy provisions

All of these are considered objectives of insurance regulation EXCEPT “ Interpret policy provisions”

Question 10

All of these statements concerning Medicare are true EXCEPT

A. Medicare is primarily funded by Federal payroll and self-employment taxes
B. Doctors’ services are covered by Medicare Part B
C. Long-term care is covered by Medicare Part C
D. Hospice is covered by Medicare Part A

Answer 10

C. Long-term care is covered by Medicare Part C

Medicare Part C does NOT cover long-term care

Question 11

What prevents a life insurance policy from being rescinded by the insurer after being in force for two years?

A. Free-look provision
B. Incontestability clause
C. Grace period provision
D. Subrogation

Answer 11

B. Incontestability clause

Insurers are prohibited from denying claims or rescinding a policy based on misstatements in a life, accident, or disability policy application after the policy has been in force for two years. The is called the incontestability clause.

Question 12

Failure to report background changes withing 30 days as required under section 1729.2 of the California insurance code could subject a license or applicant to

A. Denial
B. Suspension
C. All of these
D. Fine

Answer 12

C. All of these

Failure to report background changes within 30 days as required under Section 1729.2 of the California Insurance Code could subject a licensee or applicant to formal disciplinary action, including a fine, suspension, denial, restriction, or revocation of the license.

Question 13

Which of the following is NOT a requirement of a contract?

A. Equal consideration is required between the involved parties
B. Offer and acceptance must be involved
C. Parties involved must be competent
D. Contract must have a legal purpose

Answer 13

A. Equal consideration is required between the involved parties

Equal consideration between parties is NOT a requirement of a contract

Question 14

The Human Life Value concept is based on

A. education level
B. income
C. age
D. occupation

Answer 14

B. income

The Human Life Value approach calculated the amount of money a person is expected to earn over his lifetime to determine the face amount of life insurance needed

Question 15

The California Insurance Code defines “policy” as a(n)

A. accepted offer
B. promissory arrangement
C. written quotation
D. written contract

Answer 15

D. written contract

A “policy” as described by the California Insurance Code is a written contract in which one party promises to indemnify another against loss that arises from an unknown event.

Question 16

The systematic liquidation of a sum of money is provide by a(n)

A. 1035 contract exchange
B. endowment contract
C. life insurance policy
D. annuity

Answer 16

D. annuity

An annuity contract provides for the systematic liquidation of a fund.

Question 17

The problem of over insurance is addressed in which health insurance provision?

A. Reinstatement
B. Entire contract
C. Coordination of benefits
D. Suitability

Answer 17

C. Coordination of benefits

The purpose of the coordination of benefits (COB) provision is to avoid duplication of benefit payments and over insurance when an individual is covered under more than one group health plan.

Question 18

An insurer having a large number of similar exposure units is considered important because

A. the greater the number insured, the more premiums it collects
B. its financial rating will improve
C. the insurer can decrease its reserves
D. the greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums.

Answer 18

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

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

Question 19

What distinguishes a deferred annuity from an immediate annuity?

A. The time at which benefit payments start
B. The taxation of benefit payments
C. The benefit payment amount
D. The age at which the annuity can be purchased

Answer 19

A. The time at which benefit payments start

The difference between deferred and immediate annuities is when annuity benefit payments begin

Question 20

The misstatement of age provision in a health policy states that is an insured gives the wrong age at the time of application, what action can the insurance company take?

A. Benefits can be adjusted
B. Reissue the policy
C. Premiums can be adjusted
D. Policy cancellation

Answer 20

A. Benefits can be adjusted

If the insured’s age or sex is misstated in an application for insurance, the benefit payable is adjusted to reflect the actual age or sex of the insured.

Question 21

Which of the following is NOT considered a definition of risk?

A. Uncertainty
B. The cause of a loss
C. The potential for loss
D. Exposure to danger

Answer 21

B. The cause of a loss

Something that cause a loss, such as an earthquake or tornado, is referred to as a peril, not a risk.

Question 22

Which of the following is a situation where there is a possibility of either a loss or a gain?

A. Peril
B. Pure risk
C. Speculative risk
D. Hazard

Answer 22

C. Speculative risk

A situation in which there is a possibility of a loss or a gain is a speculative risk.

Question 23

What must an applicant do in order to authorize the release of an attending physician report?

A. Give verbal consent
B. Sign a consent form
C. Agree to a physical examination
D. Write a letter to the MIB

Answer 23

B. Sign a consent form

To authorize the release of an attending physician’s report, the applicant must sign a consent form.

Question 24

According to the California Insurance Code, what term is used to describe a fact so important it could affect the policy premium?

A. Absolute
B. Warranty
C. Materiality
D. Guarantee

Answer 24

C. Materiality

Materiality is relevant information that would probably influence an insurer’s assessment of a proposed contract.

Question 25

Which of the following is NOT typically covered under vision care insurance? A. Contacts B. Examinations C. Eye surgery D. Eyeglasses

Answer 25

C. Eye surgery Vision care insurance usually covers all of these except for eye surgery.

Question 26

What does ESOP stand for? A. Employee Saving Opportunity Plan B. Employee Stock Ownership Plan C. Employer Stock Offering Program D. Employee Savings Optional Plan

Answer 26

B. Employee Stock Ownership Plan ESOP stands for " Employee Stock Ownership Plan".

Question 27

Under a disability income insurance policy, which criteria must be met for "bodily injury" to be classified as accidental? A. Both the injury and the cause need be accidental B. The cause may be intentional, but the result must be accidental C. Only the cause need be accidental D. Only the result need be of natural cause

Answer 27

B. The cause may be intentional, but the result must be accidental The term "accidental bodily injury" is defined as an unforeseen and unintended event that happens at a known place at a known time. While the cause may be intentional, the result must be accidental.

Question 28

Which of the following is NOT a characteristic of the conversion privilege? A. Ex-employee pays the premium for the converted policy B. Proof of insurability is nor required C. Employer pays the premium for the converted policy D. Conversion must take place within 31 days of employment termination

Answer 28

C. Employer pays the premium for the converted policy All of these statements about the conversion privilege are true EXCEPT " Employer pays the premium for the converted policy".

Question 29

Lynn owns a life policy that guarantees the right to renew the policy each year, regardless of health, but at an increased premium. What kind of policy is this? A. Renewable whole B. Endowment C. Renewable term D. Universal life

Answer 29

C. Renewable term A renewable term life insurance policy guarantees a policyowner the right to renew the policy, without evidence of insurability, but at an increased premium.

Question 30

Under a health insurance policy, the provision that states the kind of benefits provided and the circumstances under which they will be paid is called the? A. benefit clause B. payment of claims provision C. entire contract provision D. insuring clause

Answer 30

D. insuring clause Under a health insurance policy, the provision that states the kind of benefits provided and the circumstances under which they will be paid is called the insuring clause

Question 31

The elimination period in a disability income policy serves the same purpose as A. waiver of premium B. an elective indemnity C. coinsurance D. a deductible

Answer 31

D. a deductible The elimination period is the time immediately following the start of a disability when benefits are not payable. The elimination period in a disability income policy served the same purpose as a deductible.

Question 32

Which Social Security status does a worker with 6 quarters of coverage during the last 13-quarter period have? A. Partially insured B. Currently insured C. Not insured D. Fully insured

Answer 32

B. Currently insured To be considered "currently insured" you must have 6 quarters of coverage during the last 13-quarter period.

Question 33

Major medical expense plans typically use a cost containment measure for emergency hospital care. This is referred to as a(n) A. Limitation B. Exclusion C. Deductible D. Capitation

Answer 33

C. Deductible Deductibles are used primarily to help control the cost of premiums and reduce overutilization of medical services.

Question 34

Which of the following is NOT a characteristic of a preferred provider organization (PPO)? A. Provides a wide choice of physicians B. Patient fees are discounted C. Usually operate on a fee-for-service basis D. Primary physicians serve as gatekeepers

Answer 34

D. Primary physicians serve as gatekeepers Primary physicians do NOT serve as gatekeepers under a PPO plan

Question 35

Which type of health insurance policy cannot be canceled by the insurer nor increase the premiums? A. Noncancellable B. Guaranteed renewable C. Conditionally renewable D. Renewable

Answer 35

A. Noncancellable A noncancellable policy cannot be cancelled nor can its premium rates be increased under any circumstances.

Question 36

Life insurance creates an immediate estate. This phrase means: A. the insured's estate received the death benefit B. premiums are payable by the insured's estate C. cash value has accumulated in the policy D. when the insured dies, a death benefit is paid

Answer 36

D. when the insured dies, a death benefit is paid Life insurance creates an immediate estate by paying a death benefit whenever the insured dies.

Question 37

Tom is shopping for a policy that covers two people and would pay the face amount ONLY when the first person dies. The type of life policy he is looking for is called a A. Joint life policy B. Survivorship life policy C. Family income policy D. Modified endowment contract

Answer 37

A. Joint life policy A joint life policy covers two or more people and pays the face amount at the first insured's death.

Question 38

According to Social Security, an individual with 6 credits of coverage during the previous 13-quarter period is considered to be: A. currently insured B. not insured C. fully insured D. partially insured

Answer 38

A. currently insured To be considered "currently insured" and eligible for limited survivor benefits, you must have 6 credits of coverage during the last 13-quarter period.

Question 39

Coverage for care received from a network provider pays more than care received from a non-network provider in what type of health plan? A. Self-insured plan B. Hospital indemnity C. Health Maintenance Organization (HMO) D. Preferred Provider Organization (PPO)

Answer 39

D. Preferred Provider Organization (PPO) A preferred Provider Organization (PPO) pays more for care received from a network provider than it pays for care from ma non-network provider.

Question 40

An insurer can be protected from adverse selection with which policy provision? A. Reinstatement B. Suicide clause C. Grace period D. Insuring clause

Answer 40

B. Suicide clause The suicide clause protects the insurer against possible adverse selection

Question 41

An insurer owned by its policyholders is called a A. reinsurer B. mutual insurer C. multi-line insurer D. stock insurer

Answer 41

B. mutual insurer A mutual insurer is the property of his insured.

Question 42

How are Roth IRA's treated for tax purposes? A. Distributions taxable as capital gains B. Non-deductible contributions and tax-free distributions C. Deductible contributions and taxable distributions D. Distributions taxable as income tax

Answer 42

B. Non-deductible contributions and tax-free distributions The tax characteristics of a Roth IRA are non-deductible contributions and tax-free distributions.

Question 43

The risk selection process is primarily given to which insurance company department? A. Administration B. Legal C. Marketing D. Underwriting

Answer 43

D. Underwriting An insurance company's underwriting department is primarily responsible for the risk selection process (which applications are accepted or rejected).

Question 44

Which of the following plans will cover medical costs that Medicare doesn't cover? A. Indemnity B. Medical C. Medicare supplement D. Major medical

Answer 44

C. Medicare supplement Medicare supplement insurance policies are sold by private insurance companies to cover medical costs not covered by the government in Medicare Parts A and B.

Question 45

Who is NOT eligible for Social Security survivor benefits? A. A widow at full retirement age B. A deceased worker's dependent parents of any age C. A window at any age who is caring for children younger than 16 D. Full- time students under the age of 19

Answer 45

B. A deceased worker's dependent parents of any age Only dependent parents age 62 or older can receive survivorship benefits if they were dependent upon the deceased worker for at least half of their support.

Question 46

Which statement is TRUE regarding Workers' Compensation coverage A. Negligence is a factor in determining the employer's liability B. Workers' Compensation benefits are usually received in a lump sum C. Employer pays the entire premium for Workers' Compensation coverage D. The amount received from workers' compensation is usually greater than the employee might receive if he or she sued a negligent employer

Answer 46

C. Employer pays the entire premium for Workers' Compensation coverage Employers pay the entire premium for Workers' Compensation coverage

Question 47

Which of the following does the California Insurance Code NOT require an insurance policy to specify? A. Premium B. What or who is being insured C. Policy period D. Insurer's financial rating

Answer 47

D. Insurer's financial rating According to the California Insurance Code, an insurance policy must specify all of these EXCPET the financial rating of the insurer.

Question 48

Which word implies permissiveness according to the California Insurance Code? A. Admitted B. Shall C. Indemnity D. May

Answer 48

D. May When found in California Insurance Code, the work "may" implies permissiveness.

Question 49

Which of these statements is NOT true concerning recurrent disabilities? A. The insurer continues coverage after a new elimination period B. A recurrent disability is considered to be a continuation of the prior disability C. The recurrent disability must be caused from the original disability D. The recurrence of a disability must occur within a specified time period after the prior disability

Answer 49

A. The insurer continues coverage after a new elimination period The recurrent disability insurance provision is designed to make sure that a person does not have to go through more than one elimination period within a certain period of time.

Question 50

What is the purpose of the Pre-Existing Condition Insurance Plan (PCIP)? A. PCIP was created by the State of California for low income individuals hoping to obtain health insurance. B. PCIP was created by the PPACA for people rejected by private health insurers due to pre-existing conditions C. PCIP was created by the State of California for people rejected by private health insurers due to pre-existing conditions D. PCIP was created by the PPACA for low income individuals hoping to obtain health insurance.

Answer 50

B. PCIP was created by the PPACA for people rejected by private health insurers due to pre-existing conditions The Pre-existing Condition Insurance Plan (PCIP) is a form of health insurance coverage offered to uninsured Americans who have been unable to obtain coverage because of a pre-existing health condition.

Question 51

All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT A. Highly predictable losses B. Loss must be measurable C. Probability of loss is unknown D. Loss cannot be catastrophic

Answer 51

C. Probability of loss is unknown Loss retention is an effective risk management technique with all of these conditions exist EXCEPT when the probability of loss is unknown. The loss MUST be predictable.

Question 52

Which of the following is NOT a life insurance settlement option? A. Extended term option B. Life income option C. Lump sum option D. Fixed amount option

Answer 52

A. Extended term option All of these are life insurance settlement options EXCEPT "Extended term option".

Question 53

How does rising morbidity rates affect health insurance? A. Decreased premiums B. Fewer claims C. Increased premiums D. Lower deductibles

Answer 53

C. Increased premiums Morbidity rates show the expected incidence of sickness or disability within a given group during a given period of time. A rise in morbidity rates can cause in increase in health insurance premiums.

Question 54

Which of the following healthcare providers provides both the healthcare services the healthcare coverage? A. Preferred Provider Organization (PPO) B. Multiple Employer Welfare Arrangements (MEWA) C. Health Maintenance Organization (HMO) D. Tri-Care

Answer 54

C. Health Maintenance Organization (HMO) HMO's are distinguished by the fact that they not only finance health care services for their subscribers on a prepayment basis, but they also organize and deliver the health services as well

Question 55

The importance of a representation is demonstrated in what rule? A. Consideration clause B. Materiality of concealment C. Law of adhesion D. Insurable interest

Answer 55

B. Materiality of concealment The materiality of concealment is used to determine the importance of a representation.

Question 56

Which of the following best describes the statement "The more times an event is repeated, the more predictable the outcome becomes"? A. Law of large numbers B. Average variance C. Speculative retention D. Adverse Selection

Answer 56

A. Law of large numbers "The more times an event is repeated, the more predictable the outcome becomes" is an example of the law of large numbers.

Question 57

What is an "insurance broker" according to California Insurance Code? A. A person who requires a license and charges a fee to review an insured's existing life or disability policy B. A person who offers or attempts to negotiate life settlement contracts between an owner and providers C. A person compensated for transacting insurance on behalf of another person with an insurer D. A person authorized to assist a broker or agent in transacting insurance

Answer 57

C. A person compensated for transacting insurance on behalf of another person with an insurer An insurance broker is a person compensated for transacting insurance on behalf of another person with an insurer.

Question 58

Which of these factors do NOT affect the rates of medical insurance? A. Occupation B. Health C. Race D. Gender

Answer 58

C. Race All of these affect the tares of medical insurance, EXCEPT race.

Question 59

Which policy provision protects the policyowner from unintentional lapse of the contract? A. Free look period B. Grace period C. Settlement options D. Incontestability

Answer 59

B. Grace period The grace period provision protects the policyowner from an unintentional lapse of the contract.

Question 60

A creditor would be allowed rights to life insurance policy proceeds if which of the following beneficiaries is chosen? A. The insured's children B. The insured's mother C. The insured's spouse D. The insured's estate

Answer 60

D. The insured's estate Creditors have rights to life insurance policy proceeds when the beneficiary is the insured's estate.

Question 61

Manuel is considered to be a disabled person as defined by the Americans with Disabilities Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT A. Communicating B. Breathing C. Driving D. Hearing

Answer 61

C. Driving Major life activities include, but are not limited to, caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working.

Question 62

Individual health insurance coverage typically excludes injuries at an employee's workplace because A. it's covered by Medicaid B. it's covered by Medicare C. it's self-funded by the employer D. it's covered by the state Workers' Compensation program

Answer 62

D. it's covered by the state Workers' Compensation program Individual health insurance coverage typically excludes injuries at an employee's workplace because it's covered by the state Workers' Compensation program.

Question 63

Premiums are best described as A. commissions payable to the writing agent B. the amount an insured pays per unit of coverage C. money paid by the insurer for settling a claim D. money paid by the insured to acquire a policy's benefits

Answer 63

B. the amount an insured pays per unit of coverage Premiums can be best defined as the amount an insured pays per unit of coverage.

Question 64

The free-look period for life insurance policyowners age 60 or older is A. 30 days B. 60 days C. 10 days D. 15 days

Answer 64

A. 30 days The free-look period for life insurance policies on individuals age 60 and older is 30 days in California.

Question 65

Scott has just purchased a new house. He is now shopping for a life insurance policy that provides a death benefit that matches the projected outstanding debt of his mortgage. Which life policy would best suit his needs? A. Adjustable B. Universal C. Variable D. Mortgage redemption

Answer 65

D. Mortgage redemption Mortgage redemption insurance is a decreasing term life policy taken by a debtor to repay the balance on a mortgage loan if he or she dies before repayment.

Question 66

Jim is the insured on a health insurance policy and holds two jobs. If "occupation" is used to classify the risk, the insurer will most likely classify Jim according to the occupation that A. pays the lowest wage B. pays the highest wage C. is most hazardous D. he has worked at the longest

Answer 66

C. is most hazardous Where a person has more than one occupation, they should be rated for the occupation that represents the higher risk.

Question 67

If a healthcare provider is considered to be a "service provider", what does this mean? A. Payment for services goes directly to the provider B. Insured may utilize the services of any provider C. Payment for services are always paid on a reimbursement basis D. Better service is given as compared to a "fee for service" provider

Answer 67

A. Payment for services goes directly to the provider Service providers require that the subscriber pay a fee directly to the provider in exchange for medical services

Question 68

The insurer has the option of terminating a health insurance policy on a date stated in the contract. What type of policy is this? A. Optionally renewable B. Conditionally renewable C. Cancellable D. Renewable

Answer 68

A. Optionally renewable The renewability provision in an optionally renewable policy gives the insurer the option to terminate the policy on a date specified in the contract. Furthermore, this provision allows the insurer to increase the premium for any class of optionally renewable insureds.

Question 69

A unilateral contract is one in which A. only one party (the insurer) makes any kind of legally enforceable promise B. there is an element of a chance and potential for unequal exchange of value or consideration for both parties C. both the policyowner and the insurer must know all material facts and relevant information D. the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and insurer

Answer 69

A. only one party (the insurer) makes any kind of legally enforceable promise Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of enforceable promise.

Question 70

Which of the following are two examples of activities of daily living (ADL's) used in qualifying for long-term care benefits? A. Talking and sleeping B. Working and sleeping C. Driving and working D. Eating and dressing

Answer 70

D. Eating and dressing Most long-term care policies require an insured to be unable to perform a minimum of two activities of daily living (ADL's) to qualify for benefits. ADL's are considered the basic tasks of everyday life such as dressing, eating, bathing, and mobility.

Question 71

A report which is based on creditworthiness and personal characteristics that influences an insurance applicant's eligibility for life and health insurance is called a(n) A. medical report B. consumer report C. agent's report D. MIB report

Answer 71

B. consumer report A consumer report influences an insurance applicant's eligibility for life and health insurance and is based on creditworthiness and personal characteristics.

Question 72

John and Mary have a handicapped child that is financially dependent upon them. The death of one of the parents would not be financially disastrous, however the death of both likely would be. Which policy would be best suited for them? A. First-to-die policy B. Family income policy C. Second-to-die policy D. Payor protection policy

Answer 72

C. Second-to-die policy A second-to-die policy covers two lives, but the benefit is paid upon the death of the last surviving insured.

Question 73

Bob and Tom are partners in a business. If one of them were to die, which of the following would guarantee a market for each of their share of the business? A. Split Dollar plan B. Deferred compensation plan C. Key person insurance D. But-Sell agreement

Answer 73

D. But-Sell agreement Buy-Sell agreements (also known as Business Continuation agreements) are used to assure the ownership of a business is properly transferred upon the death of an owner or partner.

Question 74

An applicant has revealed conditions that require more information. Which of the following is needed next? A. Credit Report B. Agent's report C. Physical examination D. Attending physician's statement

Answer 74

D. Attending physician's statement An attending physician's statement (APS)is needed in cases in which the individual application and/or medical reports reveal conditions of which more info is required. The applicant must sign a written release to enable a release of the APS.

Question 75

How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes? A. Partially taxable to the employer B. Taxable income to the employee C. Tax deductible to the employee D. Fully taxable to the employer

Answer 75

B. Taxable income to the employee The IRS requires the cost of employer-provided group life insurance above $50,000 to be taxable as income to the employee.

Question 76

A life insurance policy's limit of liability would be A. the policy's face amount B. determined by the Department of Insurance C. determined by insurance company's reinsurer D. the total premiums paid

Answer 76

A. the policy's face amount The face amount of the policy is the limit of liability in a life insurance policy.

Question 77

Which of the following statements correctly describes a contract of indemnity? A. The unequal exchange of value or consideration for both parties B. Only one party (the insurer) makes any kind of enforceable promise C. One party is restored to the same financial position the party was in before the loss occurred D. One party (the insurance company) prepares the contract with no negotiation

Answer 77

C. One party is restored to the same financial position the party was in before the loss occurred A contract of indemnity is a contract in which one party is restored to the same financial position the party was in before the loss occurred.

Question 78

A terminated employee that has exercised the conversion privilege is able to convert A. without paying for the premiums B. term insurance into permanent insurance C. permanent insurance into term insurance D. only after providing evidence of insurability

Answer 78

B. term insurance into permanent insurance The conversion privilege allows a terminated employee to convert term insurance into permanent insurance.

Question 79

Which of the following is NOT included in comprehensive major medical plans? A. First-dollar coverage B. Coinsurance C. Deductibles D. Maximum coverage limits

Answer 79

A. First-dollar coverage First-dollar coverage is not normally associated with comprehensive major medical plans.

Question 80

What is the insurance term the State of California uses for an insurer that is eligible to transact business in this state? A. Admitted B. Authorized C. Valid D. Eligible

Answer 80

A. Admitted The insurance term for an insurer which has bet the conditions required to transact business in the State of California is "admitted".

Question 81

According to the California Insurance Code, which of the following is NOT an example of an insurable event? A. A guest is injured by a fall from the insured's driveway B. An insured is admitted to the hospital for delivery of a newborn C. An insured suffers a financial loss in the state lottery D. An insured is sued for unintentional slander of another person

Answer 81

C. An insured suffers a financial loss in the state lottery An insurable event can be defines as any event which may cause a loss to a person with insurable interest. A lottery or its outcome cannot be insured against.

Question 82

Which of the following is NOT a true description of non-medical life insurance? A. Applicants are not required to answer medical questions on the application B. Quicker processing of life insurance application C. Less cost involved with underwriting the application D. Demand on the medical profession reduced

Answer 82

A. Applicants are not required to answer medical questions on the application Medical questions can still be asked on an application of non-medical life insurance

Question 83

What is participating life insurance policy? A. Contract that gives beneficiaries the right to participate in any dividends B. Agreement that allows two or more beneficiaries to share in the death benefit C. Contract that allows the policy owner to receive a share of surplus in the form of policy dividends D. Agreement that insures two or more lives

Answer 83

C. Contract that allows the policy owner to receive a share of surplus in the form of policy dividends A participating life insurance policy is defined as a contract that allows the policyowner to receive a share of surplus in the form of a policy dividends.

Question 84

Health insurance policies typically contain a provision stating that insureds and their insurer will share covered losses in an agreed proportion. Which provision does this refer to? A. Stop-loss B. Coinsurance C. Internal limit D. Deductible

Answer 84

B. Coinsurance Coinsurance is a sharing of expenses by the insured and the insurer. Once the insured satisfies the deductible, the insurance company pays a high percentage of the additional expenses (usually 75% or 80%) and the insured pays the remainder.

Question 85

In regards to a group health insurance plan, which statement is CORRECT? A. A contributory group health plan must cover at least 50% of all eligible members B. A non-contributory group health plan must cover all eligible members C. A minimum of 75% of eligible members is required for a non-contributory group health plan D. A contributory group health plan only requires participation of key employees

Answer 85

B. A non-contributory group health plan must cover all eligible members A non-contributory group health insurance plan requires 100% participation of all eligible members.

Question 86

What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code? A. Presentation of policy features that includes non-guaranteed elements B. A copy of the sales materials used in an insurance transaction C. A copy of the terms given for the free-look period D. Publication designed to help an applicant reach an informed decision about which coverage is appropriate

Answer 86

A. Presentation of policy features that includes non-guaranteed elements The California Insurance Code defines "illustration" as a presentation of policy features that includes non-guaranteed elements.

Question 87

What time period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date? A. Entire contract period B. Free-look period C. Grace period D. Reinstatement period

Answer 87

C. Grace period The grace period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date.

Question 88

How are acts of war and aviation treated under a group life insurance policy? A. Optional rider B. Policy exclusion C. Mandatory provision D. Covered hazard

Answer 88

B. Policy exclusion Under a group life insurance policy, acts of war are considered a policy exclusion.

Question 89

During the under writing process for a group health policy, it was discovered that 15 out of 50 members of the group have major health issues. How would the insurer handle this? A. Accept or reject the whole group B. Charge a higher premium to the 15 unhealthy individuals C. Assign the group to a re-insurer D. Accept the 35 insurable individuals while rejecting the remaining 15

Answer 89

A. Accept or reject the whole group The approach in underwriting group health plans evaluates the group as a whole, rather than individuals withing the group. Based on the group's risk profile, the group is either accepted or rejected.

Question 90

Coverage is limited for vision and dental insurance in all of the following ways, EXCEPT A. Specific dollar amount for examinations B. Number of X-rays performed per year C. Number of teeth cleanings per year D. Dollar amount for eyeglass frames

Answer 90

A. Specific dollar amount for examinations Vision and dental insurance usually limits coverage in all of these areas, EXCEPT "Specified dollar amount for examinations".

Question 91

Bruce is involved in an accident and becomes totally and permanently disabled. His insurance policy continues in force without payment of further premiums. Which policy provision is responsible for this? A. Automatic premium loan provision B. Waiver or premium provision C. Return of premium provision D. Insuring provision

Answer 91

B. Waiver or premium provision A waiver of premium provision relieves a policyowner of paying premiums in the event of a total and permanent disability.

Question 92

A worker is entitled to Social Security disability benefits if all of the following are true, EXCEPT for: A. worker is insured for disability benefits B. worker cannot perform his or her current job, but is actively seeking other employment C. disability is expected to continue for 12 months or result in death D. worker is under age 65

Answer 92

B. worker cannot perform his or her current job, but is actively seeking other employment A worker is entitled to Social Security disability benefits is all of these are true EXCEPT for "worker cannot perform his or her current job, but is actively seeking other employment".

Question 93

Jim is applying to become an insurance agent and has a past misdemeanor conviction that was later expunged due to California Penal Code 1203.4. Which of the following statements is correct? A. Only expunged felonies are required to be reported on an insurance license application B. Only convictions that have been expunged within the last 3 years need to be reported on an insurance license application C. Jim is not required to disclose the conviction on his insurance license application D. Jim must still disclose the conviction on his insurance license application

Answer 93

D. Jim must still disclose the conviction on his insurance license application Pursuant to California Penal Code Section 1203.4, you are required to report a conviction that was later expunged

Question 94

Which statement is true regarding policy dividends? A. Nonparticipating policies issue dividends B. Dividends are always taxable C. A dividend option is selected by the insured at the time of policy purchase D. Dividends are always guaranteed

Answer 94

C. A dividend option is selected by the insured at the time of policy purchase Insureds elect a dividend option at the time of policy purchase.

Question 95

Who is issued a certificate of insurance with a group insurance policy? A. Insurance company B. Third-party administrator C. Policy holder D. Participant

Answer 95

D. Participant The participant is issued a certificate of insurance with a group insurance policy.

Question 96

John owns an insurance policy that gives him the right to share in the insurer's surplus. What kind of policy is this? A. Participating B. Surplus C. Nonparticipating D. Contributory

Answer 96

A. Participating Participating policies give the policyowner the right to share in the insurer's surplus.

Question 97

Restoring an insured to the same condition as before a loss is known as A. Lar of large numbers B. Adverse selection C. Fiduciary retention D. Principle of indemnity

Answer 97

D. Principle of indemnity The principle of indemnity involves making an insured whole by restoring them to the same condition as before a loss.

Question 98

Individuals become eligible for Medicare Part A benefits at what age? A. 50 B. 62 C. 65 D. 59.5

Answer 98

C. 65 Eligibility for Medicare Part A benefits begin at age 65.

Question 99

An agent's attempt to stop the replacement of an existing life insurance policy is known as A. prevention B. concealment C. conservation D. preservation

Answer 99

C. conservation An agent's attempt to stop the replacement of an existing life insurance policy is known as conservation.

Question 100

Which of the following does a policyowner NOT have a right to change? A. Dividend schedule B. Dividend option C. Beneficiary D. Payment mode

Answer 100

A. Dividend schedule All of these are considered rights of a policyowner EXCEPT the right to change the dividend schedule.

Question 101

What does the guaranteed insurability option allow an insured to do? A. Provides for the early payment of some portion of the policy face amount should the insurer suffer from a terminal illness. B. Transfer ownership of the policy C. Purchase additional coverage with no evidence of insurability required D. Allows the insured to convert a term life policy to whole life with no evidence of insurability required

Answer 101

C. Purchase additional coverage with no evidence of insurability required The guaranteed insurability option allows an insured to purchase additional coverage with no evidence of insurability required.

Question 102

A life insurance policy where the insured can choose where the cash value can be invested is called A. variable life B. whole life C. universal life D. modified life

Answer 102

A. variable life Variable life allows the insured to choose where the assets backing the cash value are invested.

Question 103

An insurance policy issued in California may be called a comprehensive long-term care insurance policy if benefits are provided for A. Loss of life B. Home care only C. Institutional (nurse facilities) and home care D. Respite care only

Answer 103

C. Institutional (nurse facilities) and home care The California Insurance Code states that policies or certificates may be called comprehensive long term care insurance if they provide benefits for institutional (nursing facilities) and home care.

Question 104

After a policy has lapsed, which provision allows the insured to continue coverage? A. Nonforfeiture provision B. Reinstatement provision C. Entire contract provision D. Grace period provision

Answer 104

B. Reinstatement provision The reinstatement provision allows an insured to continue coverage under a previously lapsed policy.

Question 105

What does the term coinsurance refer to? A. The amount the Federal government pays after the deductible is met B. The stated initial dollar amount that the individual insured is required to pay before insurance benefits are paid C. A situation where two insurance policies cover the same claim D. After deductible is satisfied, the percentage paid by the insured for the remaining covered expenses.

Answer 105

A. The amount the Federal government pays after the deductible is met After the insured satisfies the deductible, the insurance company pays a high percentage of the additional expenses (usually 75% or 80%) and the insured pays the remainder.

Question 106

The probability of death, listed by year, is demonstrated in A. morbidity tables B. mortality tables C. frequency tables D. risk tables

Answer 106

B. mortality tables Morality tables give a measure of the number of deaths in a given population over a certain period of time.

Question 107

An employee for XYZ Corp is injured on the job. Where does coverage for the employee's injuries come from? A. Employer's group health plan B. Employer's self-insured fund C. Employee's individual health policy D. Workers' Compensation

Answer 107

D. Workers' Compensation In this situation, coverage for the employee's injuries comes from XTZ's Workers' Compensation.

Question 108

According to the PPACA, the medical enrollment tier that has 80% actuarial value is called A. platinum B. bronze C. silver D. gold

Answer 108

D. gold Under the PPACA, gold plans have a medical enrollment tier of 80% actuarial value.

Question 109

In what situation does a waiver of premium provision keep a health insurance policy in force without premium payments? A. When an insured becomes unemployed B. When an insured becomes totally disabled C. When an insured is involved in an accident at work D. When an insured is confined in a hospital

Answer 109

B. When an insured becomes totally disabled The waiver of premium provision keeps the coverage in force without premium payments is the insured has become totally disabled as defined in the policy.

Question 110

ABC Insurance Company paid an insured $30,000 in lost wages, $35,000 for hospital costs, and $20,000 for physical therapy treatments. ABC later discovers this was a fraudulent claim. How much may the insured be fined? A. $150,000 B. $170,000 C. $85,000 D. $65,000

Answer 110

B. $170,000 In a felony prosecution of insurance fraud for worker's compensation benefits, the fine might increase up to $170,000 or an amount that is double the value of the defrauded amount, depending on which penalty is greater.

Question 111

When calculating life insurance premium rates, which component is affected by an insured's age and gender? A. Morbidity B. Insurer's expense C. Investments D. Mortality

Answer 111

D. Mortality Mortality is the component of an life insurance premium the age and gender affects.

Question 112

What does the term "indemnity" mean as it pertains to insurance? A. To award punitive damages B. To assume risk C. To over-insure D. To make whole

Answer 112

D. To make whole "Indemnity" means to make whole again, as it pertains to insurance.

Question 113

When a mutual insurer becomes a stock company, the process is called A. Demutualization B. Reorganization C. Reinsurance D. Mutualization

Answer 113

A. Demutualization The process whereby a mutual insurer becomes a stock company is called demutualization.

Question 114

How is a life insurance policy dividend legally defined? A. A return of excess premium and partially taxable B. A return of excess of premium and fully taxable C. A return of excess premium subject to capital gains tax D. A return of excess premium and not taxable

Answer 114

D. A return of excess premium and not taxable Life insurance policy dividends are a return of part of the premiums paid. As such, policy dividends are generally not taxable income.

Question 115

According to PPACA, how long an adult be covered as a dependent under their parents' insurance plan? A. Up to age 18 B. Up to age 21 C. Up to age 30 D. Up to age 26

Answer 115

D. Up to age 26 Under the PPACA, an adult child be covered by their parent' insurance coverage as a dependent until age 26.

Question 116

In a modified endowment contact, the penalty tax imposed on premature withdrawals is A. 30% B. 40% C. 10% D. 20%

Answer 116

C. 10% The penalty tax imposed on amounts received from a modified endowment contract is 10%

Question 117

What determines the Social Security normal retirement age? A. Number of dependents B. Number of quarters employed C. Worker's average lifetime income D. Year in which worker is born

Answer 117

D. Year in which worker is born The Social Security normal retirement age depends upon the worker's year of birth.

Question 118

Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him than the existing contract. This is considered a(n) A. unnecessary replacement B. deferred annuity C. immediate annuity D. illegal transaction

Answer 118

A. unnecessary replacement This is an example of unnecessary replacement.

Question 119

The objective of underwriting is to A. avoid selecting a disproportionate number of bad risks B. assign the highest premium possible C. decline as many applications as possible D. avoid selecting a disproportionate number of good risks

Answer 119

A. avoid selecting a disproportionate number of bad risks The goal of underwriting is to avoid selecting a disproportionate number of bad risks.

Question 120

Which of the following is NOT considered to be a definition of the term "loss"? A. An insurable event that takes place which results which results in a payment made by the insurance company B. Unintentional decrease in the value of an asset due to a peril C. Probability that an event will occur D. The amount an insurance company must pay because of an insurable event

Answer 120

C. Probability that an event will occur The term "loss" can be defined as all of these EXCEPT "Probability that an event will occur".

Question 121

Which statement regarding Medicare is true? A. Medicare is available only to individuals age 60 and older B. Benefits for diagnostic tests and X-rays performed on an outpatient basis are provided by Part B C. Benefits for prescription drugs are covered exclusively by Part A D. Nursing home coverage is covered by Part B

Answer 121

B. Benefits for diagnostic tests and X-rays performed on an outpatient basis are provided by Part B Medicare Part B provides benefits for diagnostic tests and X-rays performed on an outpatient basis.

Question 122

Which of the following is NOT a feature of equity-indexed annuities? A. Offers a maximum interest rate that increases annually B. Offers long term inflation protection C. Offers a minimum guaranteed rate D. Offers protection during a decline in the stock market

Answer 122

A. Offers a maximum interest rate that increases annually Equity-indexed annuities offer all of these features EXCEPT "an annually increasing maximum rate of interest".

Question 123

Allen has a disability income policy with a $2,500 monthly benefit and 30-day elimination period. He is unable to work 90 days following an automobile accident. What will the policy pay? A. $2,500 B. $0 C. $5,000 D. $7,500

Answer 123

C. $5,000 90 days - 30 day elimination period is 60 days (2 months). 2 months X $2,500/month benefit = $5,000 total benefit paid.

Question 124

How is Medicare claim submitted? A. Expenses are submitted to Medicare by an arbitrator B. Expenses are submitted to Medicare by the health provider C. Expenses are submitted to Medicare by the patient D. Expenses are submitted to Medicare by the Commissioner

Answer 124

B. Expenses are submitted to Medicare by the health provider The first step in submitting a Medicare claim is the health provider must submit the covered expenses.

Question 125

What is the price of insurance for each exposure unit? A. Expense B. Rating C. Premium D. Rate

Answer 125

D. Rate The price of insurance for each exposure unit is called the rate.

Question 126

Life insurance surplus must be distributed to policyowners at what frequency? A. Semi-annually B. Monthly C. Quarterly D. Annually

Answer 126

D. Annually Life insurance surplus must be distributed to policyowners annually in a participating policy.

Question 127

An annuitant would like to determine the current value of her annuity. To do this, she multiplies the number of " accumulation units" she owns times the unit value of the "separate account". What kind of annuity BEST matches this description? A. Variable annuity B. Life annuity C. Immediate annuity D. Fixed

Answer 127

A. Variable annuity A variable annuity holds its investments in an insurer's separate account, as opposed to the insurer's general account. These separate accounts usually hold non-guaranteed equity investments such as stocks and mutual funds. Variable annuities shift the investment risk from the insurer to the annuity owner.

Question 128

How many "activities of daily living" must an insured be UNABLE to perform in order to meet the chronically ill requirement of a Long-Term Care policy? A. Minimum of one activity of daily living B. Minimum of four activities of daily living C. Minimum of two activities of daily living D. Minimum of three activities of daily living

Answer 128

C. Minimum of two activities of daily living To meet the chronically ill requirement of a Long-Term Care policy, an individual must be UNABLE to perform a minimum of two activities of daily living.

Question 129

Retirement plans cannot favor highly compensated employs. The government regulation that prevents this from happening is called A. Defamation B. IRC Section 457 C. HR-10 D. Nondiscrimination

Answer 129

D. Nondiscrimination Retirement plans cannot favor highly compensated employees. The government regulation that prevents this from happening is called nondiscrimination.

Question 130

MRMIP stands for A. Major Risk Medical Insurance Program B. Minor Rehabilitation Medical Insurance Plan C. Major Rehabilitation Medical Indemnity Plan D. Minor Risk Medical Insurance Program

Answer 130

A. Major Risk Medical Insurance Program MRMIP stands for Major Risk Medical Insurance Program and is a program designed to provide health insurance for individuals who cannot obtain health coverage on the open market because of their medical conditions.

Question 131

Mike and Ike are 30 year old identical twins. Both are in excellent health. Each brother purchases a life policy that has a $750 annual premium. Mike buys a 10-year renewable term policy. Ike purchases a whole life policy. All of the following statements are true EXCEPT A. Ike may eventually take out a policy loan B. Mike's policy will develop no cash value over the policy's term C. Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance D. Ike will have a level premium

Answer 131

C. Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance Since a term policy provides for no cash value, there are no nonforfeiture benefit options available to Mike.

Question 132

The reason for social insurance is to A. provide more products for agents to sell B. grow the U.S. economy C. protect certain vulnerable segments of the population D. create dependents of government

Answer 132

C. protect certain vulnerable segments of the population The reason for social insurance is to protect certain vulnerable segments of the population.

Question 133

Which of the following refers to a condition that may increase the chance of a loss? A. Adverse selection B. Hazard C. Peril D. Risk

Answer 133

B. Hazard A hazard is a condition or situation that creates or increases a chance of loss.

Question 134

Which statement is CORRECT when describing a contract of adhesion? A. Contract may be accepted or rejected by the insured B. Contract cannot be modified by the insurer C. Contract involves negotiation between insurer and insured D. Any confusing language in the contract would be interpreted in favor of the insurer

Answer 134

A. Contract may be accepted or rejected by the insured With a contract of adhesion, a contract may be accepted or rejected by the insured.

Question 135

The California Life and Health Insurance Guarantee Association covers all of these types of policies, EXCEPT A. Disability B. Immediate annuities C. Whole life D. Self-funded plans

Answer 135

D. Self-funded plans Self-insured plans are not covered under the California Life and Health Insurance Guarantee Association.

Question 136

An annuity which is backed by a life insurer's separate account is called a(n) A. variable annuity B. 403(b) plan C. equity indexed annuity D. immediate annuity

Answer 136

A. variable annuity An annuity which is backed by a life insurer's separate account is called a variable annuity.

Question 137

What are members of the Medical Information Bureau (MIB) required to report? A. The premium of the policy applied for B. Medical ailments discovered during the underwriting process C. The face amount of the policy applied for D. The underwriting methods used to acquire personal information

Answer 137

B. Medical ailments discovered during the underwriting process Members of the Medical Information Bureau are required to report medical impairments found during the underwriting process.

Question 138

When an insurer has met the qualifications necessary to transact business in California, it is said to be A. authorized B. admitted C. valid D. qualified

Answer 138

B. admitted An admitted carrier has bet the conditions required to transact business in the State of California.

Question 139

A person who asserts a right of recovery under an insurance policy is called A. insured B. tertiary C. claimant D. agent

Answer 139

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

Question 140

Which of the following is NOT included under long-term care insurance? A. Respite care B. Hospital acute care C. Custodial care D. Adult day care

Answer 140

B. Hospital acute care An acute illness is a serious condition (such as pneumonia or influenza) from which the body can fully recover with proper medical attention. A long-term care policy will typically NOT cover expenses associated with acute care provided in a hospital.

Question 141

Any changed in background information that occur after a producer application has been submitted or a license has been issued MUST be reported to the Insurance Commissioner within A. 30 days B. 20 days C. 10 days D. 40 days

Answer 141

A. 30 days Section 1729.2 of the California Insurance Code requires insurances producer application and licensees to notify the insurance commissioner in writing, within 30 days of changes in background information after an application has been submitted or a license has been issued.

Question 142

Which entity has jurisdiction over health care coverage providers? A. MRMIP B. California Life and Health Guarantee Association C. HiCap D. Department of Insurance

Answer 142

D. Department of Insurance Overseeing the insurance industry and protecting the state's insurance consumers is the responsibility of the California Department of Insurance (CDI)

Question 143

Which of the following terms is NOT associated with a Major Medical policy? A. Capitation B. Comprehensive C. Stop-loss D. Deductible

Answer 143

A. Capitation Capitation is the method in which HMO providers are paid.

Question 144

Who are the parties to the master contract in a group life insurance policy? A. Employer and beneficiary B. Insurer and employer C. Employer and employee D. Insurer and employee

Answer 144

B. Insurer and employer The actual policy for group life insurance, which is called the master policy, is issued by the insurer to the employer.

Question 145

Which of the following types of policies pays a stated amount for each day an individual is hospitalized? A. Hospital endowment B. Hospital confinement indemnity C. Surgical expense D. Short-term major medical

Answer 145

B. Hospital confinement indemnity A hospital indemnity policy pays a specified amount on a daily, weekly, or monthly basis to the insured while the insured is confined to a hospital.

Question 146

Employer contributions to qualified plans are A. taxable to the employee B. only available for key employees C. only found in 403(b) plans D. tax-deductible by the employer

Answer 146

D. tax-deductible by the employer Employer contributions to qualified plans are tax-deductible by the employer.

Question 147

When an insurance company requests an attending physician's report, the request must be accompanied by a A. buyer's guide B. conditional receipt C. copy of the signed authorization D. policy illustration

Answer 147

C. copy of the signed authorization An insurer's request for an attending physician's report must be accompanied by a copy of the signed authorization.

Question 148

According to the California Insurance Code, what is the maximum penalty per violation for anyone who unwilfully commits an unfair method of competition? A. $10,000 B. $7,000 C. $1,000 D. $5,000

Answer 148

D. $5,000 Any person who unwilfully engages in an unfair method of competition is liable to the state for a fine of up to $5,000 per violation. If the act is determined to be willful, the fine will not exceed $$10,000 per act.

Question 149

Who does a life settlement broker represent? A. Private firm B. Life agent C. Individual wanting to sell their life policy to a third party D. Insurance company

Answer 149

C. Individual wanting to sell their life policy to a third party A life settlement broker represents the individual wanting to sell their life policy to a third party.

Question 150

Medicare Part B has an initial enrollment period. How many months after an individual's 65th birthday month does this enrollment period end? A. 3 months B. 1 months C. 8 months D. 6 months

Answer 150

A. 3 months The initial enrollment period for Medicare Part B ends three months after the 65th birthday month.