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WFG - License Practice Exam > Practice Exam > Flashcards

Practice Exam Flashcards

1
Q

Which is considered nonpublic personal information as defined by the California Financial Code?

A

Tax Return

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2
Q

All of the following are included as definitions of “transact” as applied to insurance EXCEPT:

A

Underwriting

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3
Q

Which of the following health care providers is not a physician?

A. Dermatologist
B. Neurologist
C. Optometrist
D. Urologist

A

C - Optometrist

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4
Q

Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?

A

Survivors of the holocaust

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5
Q

Which of the following terms refers to any evidence or documentation in the possession of the insurer that provides any evidence of a claim and that reasonably supports the magnitude or the amount of the claimant loss?

A

Proof of claim

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6
Q

An “insurance agent” means a person authorized, by and on behalf of an insurer, to transact which of the following class of insurance?

A

Annuities

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7
Q

When can a person act as an agent of the insurer?

A

When the insurer has filed with the commissioner a notice of appointment

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8
Q

All of the following are true regarding the process to change the California Code of Regulations EXCEPT

A

The office of Administrative Law (OAL) may substitute its own judgement for that of the rulemaking agency

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9
Q

A policy shall specify all of the following EXCEPT

A

The method in which the coverage amount was calculated

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10
Q

All of the following define insolvency EXCEPT

A

Revocation of certificate of authority by the commissioner

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11
Q

What is the maximum fine for a person who transacts insurance without a valid license?

A

$50,000 and/or imprisonment for a period not exceeding one year

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12
Q

Which of the following is a party to a contract of insurance bound to communicate EXCEPT

A

Those which the other would know by retaining a consultant with specialized knowledge in insurance matters

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13
Q

Which of the following actions is considered part of the insurance sales process?

A

Transaction of matters subsequent to execution of the contract and arising out of it

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14
Q

If fiduciary funds are received by any license, the funds shall be maintained in any of the following EXCEPT

A

Bonds issued in all 50 states of the United States

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15
Q

How is an insurance policy defined?

A

The written instrument, in which a contract of insurance is set forth

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16
Q

According to the Administrative Procedures Act, what is required to make changes to the California Insurance Code?

A

The Department of Insurance is required to publish proposed changes at least 45 days prior to the hearing or decision to adopt the change

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17
Q

Where shall an express warranty be made?

A

In the policy itself

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18
Q

Which of the following is TRUE regarding advertisements or printed matter used by an agent or broker?

A

The printed material must accurately show the relationship between the agent or broker and the agency

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19
Q

When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted insurer?

A

If the same insurance coverage cannot be procured from an admitted insurer

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20
Q

When should an agent provide an applicant the effective date of coverage, if known, or the circumstances under which coverage will be effective?

A

At the time of application or receipt of premium

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21
Q

As used in the insurance code, the word “shall” is mandatory and the word “may” is permissive EXCEPT

A

Unless otherwise apparent from the context

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22
Q

A claimant can be any of the following EXCEPT

A

A person who is conducting an investigation of a claim on behalf of an insurer

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23
Q

Which is TRUE regarding a life and health agent who has not been specifically appointed by the insurer?

A

If a policy is issued, the insurer is considered to have authorized the agent to act on its behalf

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24
Q

An agent or representative who issues long term care insurance must do all of the following EXCEPT

A

Complete a total of 10 hours of continuing education of licensed before January 1st, 2002

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25
Q

Which circumstances in a pretext interview determine if the uestions are permissible?

A

When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected

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26
Q

Which of the following provisions of free insurance offered as an incentive to purchase or rent is TRUE?

A

It requires a separate charge or fee

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27
Q

What does concealment, whether intentional or unintentional, entitle the injured party to?

A

The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured.

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28
Q

All of the following are requirements for an agent who advertises and transacts business on the Internet EXCEPT

A

his or her most recent license and appointment date

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29
Q

When should an insurer provide for the continuous operation of a unit or division to investigate possible fraudulent claims?

A

If admitted to do business in this state, except those otherwise exempted.

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30
Q

Which of the following is the method wherein a contract of insurance is finalized as relates to the sales process?

A

Execution of a contract of insurance.

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31
Q

Which is an INACCURATE statement regarding a life settlement contract?

A

The loan proceeds are used to solely pay premiums for the policy and any expenses incurred.

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32
Q

Whether admitted or nonadmitted, how does a “foreign” insurer differ from an “alien” or “domestic” insurer?

A

A “foreign” insurer is organized under the laws of another state within the United States.

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33
Q

Which are assets that are in excess of an insurer’s liability for reported losses, expenses, taxes, and reinsurance of outstanding risks?

A

paid-in capital

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34
Q

Insurance is which type of contract?

A

One agrees to indemnify agains loss, damage or liability arising from a contingent or unknown risk.

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35
Q

All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT

A

maintaining any sales material, which had a material impact on the claims process

36
Q

According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT

A

upon the termination of all contracts

37
Q

All of the following are examples of representation EXCEPT

A

it may be altered after the insurance is effected.

38
Q

When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do?

A

present a proposal for insurance and transmit an application to the insurer.

39
Q

How does an “admitted” person differ from an “nonadmitted” person, as it pertains to insurance?

A

An “admitted” person has the right to transact insurance business within the state, while a “nonadmitted” person is not entitled to this action.

40
Q

When is it allowable for a written application for any disability policy to be altered?

A

By the insurer, for administrative purposes only, when it is clear that the applicant has not made the insertions.

41
Q

All of the following are covered under the Access for Infants and Mothers Program EXCEPT

A

any mother who resides in the State of California whether or not she has applied.

42
Q

What happens under a misstatement of age clause on a disability policy?

A

All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age.

43
Q

Which of the following is an INACCURATE statement regarding replacement for long-term care coverage?

A

Group long-term care policies have the same rules regarding replacement as individual long-term care policies.

44
Q

In which situation is a person or other entity that provides coverage for medical expenses NOT subject to the jurisdiction of the insurance department?

A

When they are subject to the jurisdiction of another agency of this or another state or the federal government.

45
Q

Which is an INACCURATE statement regarding inflation protection for long-term care insurance?

A

The protection covers a specified percentage of actual or reasonable charges, and includes a maximum specified indemnity amount.

46
Q

A policy with a life insurance benefit for a disabled employee includes an extension of benefits upon its discontinuance when all of the following are met EXCEPT?

A

during a 30 day period in which to accept the terms of the new policy.

47
Q

Which of the following may be described as an “administrator” of life or health coverage or annuities?

A

the Insurance Commissioner who has access to the records for examination, audit, and inspection purposes.

48
Q

When does a license become inactive for a broker?

A

upon the termination of all appointments, or all endorsements.

49
Q

Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select plans?

A

There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition.

50
Q

All of the following may be eligible to qualify for enrollment in the Healthy Families Program EXCEPT

A

children who fail to meet citizenship or immigration rules.

51
Q

Who is the California Life and Health & guarantee Association is regulated by?

A

The California Insurance Commissioner

52
Q

All of the following are permitted to have blanket insurance policies with specific restrictions EXCEPT

A

any union with dues-paying members.

53
Q

Which is an INACCURATE statement regarding standards to avoid unfair underwriting for applicants at risk for auto immune deficiency, human immunodeficiency virus, or AIDS related conditions?

A

Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance.

54
Q

When shall an individual certificate be deemed to be “individualized” within the meaning of the CIC?

A

If it contains either the name of the person covered or some other means of identifying to the individual covered that it is his individual certificate.

55
Q

Can any life insurer issue group life insurance with premium rates less than the usual rates for such insurance?

A

Yes, they may do so on any group plan, with or without annuities.

56
Q

Which is considered unnecessary replacement for long-term coverage unless as a means to consolidate policies with one insurer?

A

Issuing 3 or more policies within a 12 month period.

57
Q

Under which situation would an individual enrolled in Medicare Part B be INELIGIBLE for open enrollment?

A

notice of end stage renal desease from the primary care physician

58
Q

What do all long-term care insurers, agents, and brokers owe to the policyholder or prospective policyholder?

A

A duty of honesty, good faith, and fair dealing

59
Q

When is the practice if ‘post claims’ underwriting allowable on disability insurance covering hospital, medical or surgical expenses?

A

At no time.

60
Q

All of the following are types of licenses EXCEPT

A

accident and health solicitor

61
Q

Life and Disability Insurance Analysts must provide an agreement with a statement that includes all of the following EXCEPT

A

that fees can be received for servicing a policy on which they were the selling agent.

62
Q

Which of the following BEST defines the general concept of the 24-hour care plan?

A

It integrates workers? compensation medical care with the care provided by group health insurance.

63
Q

When an insured under age 60 purchases a new policy, how much time do they have to cancel and receive a full refund of premiums?

A

The insured has a period of not less than 10, and not more than 30 days, during which they may cancel and receive a full refund for the premiums paid.

64
Q

As long as employment continues, which is the ONLY reason the validity of a group life insurance policy can be contested?

A

Non-payment of premiums after the policy has been in force for two years.

65
Q

Early withdrawal of benefits (before 59 1/2 years old) is subject to IRS penalty of?

A

10%

66
Q

Agent’s commission is paid from?

A

Insurer Expenses

67
Q

The outline of coverage of a LTC (Long Term Care) is delivered when?

A

At solicitaion

68
Q

Joint life pays out when?

A

When the first insured dies

69
Q

Survivorship Life pays out when?

A

When the first insured dies

70
Q

Insurance Commissioner is:

A

An ELECTED official

71
Q

A Survivor’s benefit payment from Social Security is NOT paid during this period

A

Black-out period

72
Q

ESOP (Employee Stock Ownership Plan) invests primarily in

A

Stock of the employer

73
Q

Chance of loss, potential for gain is?

A

Speculative risk

74
Q

A rider that replaces your income or salary is?

A

Disability Income Rider

75
Q

Variable insurance products are regulated by?

A

SEC (Securities and Exchange Commission)

76
Q

Who should NOT get a Long Term Care insurance?

A

The very poor, and the very rich

77
Q

State program for Pregnant Women is?

A

AIM (Access for Infants and Mothers)

78
Q

Knowingly signing a fraudulent claim is a crime called?

A

Perjury

79
Q

MRMIP (Major Risk Medical Insurance Program) is funded by?

A

Tobacco taxes

80
Q

According to the California Insurance Code (CIC), all insurers must maintain a department to investigate this?

A

Possible fraudulent claims from insured

81
Q

If there is no surviving beneficiary, who gets the death benefit?

A

Insured Estate

82
Q

Intentional or even Unintentional concealment entitles the injured party to what course of action?

A

Rescission of the contract

83
Q

An irrevocable beneficiary has what kind of right to the policy?

A

Vested right (ownership)

84
Q

The premium on a Renewable term insurance will?

A

Increase

85
Q

A peril is defined as

A

Cause of loss

86
Q

The word level or level term refers to:

A

Face amount

87
Q

Medicare will pay full benefits to a skilled nursing facility for how many maximum days?

A

20 days

WFG - License Practice Exam (5 decks)

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