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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
Which circumstances in a pretext interview determine if the uestions are permissible?
When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected
26
Which of the following provisions of free insurance offered as an incentive to purchase or rent is TRUE?
It requires a separate charge or fee
27
What does concealment, whether intentional or unintentional, entitle the injured party to?
The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured.
28
All of the following are requirements for an agent who advertises and transacts business on the Internet EXCEPT
his or her most recent license and appointment date
29
When should an insurer provide for the continuous operation of a unit or division to investigate possible fraudulent claims?
If admitted to do business in this state, except those otherwise exempted.
30
Which of the following is the method wherein a contract of insurance is finalized as relates to the sales process?
Execution of a contract of insurance.
31
Which is an INACCURATE statement regarding a life settlement contract?
The loan proceeds are used to solely pay premiums for the policy and any expenses incurred.
32
Whether admitted or nonadmitted, how does a "foreign" insurer differ from an "alien" or "domestic" insurer?
A "foreign" insurer is organized under the laws of another state within the United States.
33
Which are assets that are in excess of an insurer's liability for reported losses, expenses, taxes, and reinsurance of outstanding risks?
paid-in capital
34
Insurance is which type of contract?
One agrees to indemnify agains loss, damage or liability arising from a contingent or unknown risk.
35
All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT
maintaining any sales material, which had a material impact on the claims process
36
According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT
upon the termination of all contracts
37
All of the following are examples of representation EXCEPT
it may be altered after the insurance is effected.
38
When working on behalf of an insurer for which they are not specifically appointed, what may a licensed agent do?
present a proposal for insurance and transmit an application to the insurer.
39
How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance?
An "admitted" person has the right to transact insurance business within the state, while a "nonadmitted" person is not entitled to this action.
40
When is it allowable for a written application for any disability policy to be altered?
By the insurer, for administrative purposes only, when it is clear that the applicant has not made the insertions.
41
All of the following are covered under the Access for Infants and Mothers Program EXCEPT
any mother who resides in the State of California whether or not she has applied.
42
What happens under a misstatement of age clause on a disability policy?
All amounts payable under this policy shall be what the premium originally would have purchased and been paid at the correct age.
43
Which of the following is an INACCURATE statement regarding replacement for long-term care coverage?
Group long-term care policies have the same rules regarding replacement as individual long-term care policies.
44
In which situation is a person or other entity that provides coverage for medical expenses NOT subject to the jurisdiction of the insurance department?
When they are subject to the jurisdiction of another agency of this or another state or the federal government.
45
Which is an INACCURATE statement regarding inflation protection for long-term care insurance?
The protection covers a specified percentage of actual or reasonable charges, and includes a maximum specified indemnity amount.
46
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?
during a 30 day period in which to accept the terms of the new policy.
47
Which of the following may be described as an "administrator" of life or health coverage or annuities?
the Insurance Commissioner who has access to the records for examination, audit, and inspection purposes.
48
When does a license become inactive for a broker?
upon the termination of all appointments, or all endorsements.
49
Which is an ACCURATE statement regarding benefits of Medicare supplement and Medicare select plans?
There is no restriction for benefits after the coverage has been in effect for six months when involving a preexisting condition.
50
All of the following may be eligible to qualify for enrollment in the Healthy Families Program EXCEPT
children who fail to meet citizenship or immigration rules.
51
Who is the California Life and Health & guarantee Association is regulated by?
The California Insurance Commissioner
52
All of the following are permitted to have blanket insurance policies with specific restrictions EXCEPT
any union with dues-paying members.
53
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?
Insurers are permitted to schedule AIDS and HIV testing without the specific consent of the individual applying for insurance.
54
When shall an individual certificate be deemed to be "individualized" within the meaning of the CIC?
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
Can any life insurer issue group life insurance with premium rates less than the usual rates for such insurance?
Yes, they may do so on any group plan, with or without annuities.
56
Which is considered unnecessary replacement for long-term coverage unless as a means to consolidate policies with one insurer?
Issuing 3 or more policies within a 12 month period.
57
Under which situation would an individual enrolled in Medicare Part B be INELIGIBLE for open enrollment?
notice of end stage renal desease from the primary care physician
58
What do all long-term care insurers, agents, and brokers owe to the policyholder or prospective policyholder?
A duty of honesty, good faith, and fair dealing
59
When is the practice if 'post claims' underwriting allowable on disability insurance covering hospital, medical or surgical expenses?
At no time.
60
All of the following are types of licenses EXCEPT
accident and health solicitor
61
Life and Disability Insurance Analysts must provide an agreement with a statement that includes all of the following EXCEPT
that fees can be received for servicing a policy on which they were the selling agent.
62
Which of the following BEST defines the general concept of the 24-hour care plan?
It integrates workers? compensation medical care with the care provided by group health insurance.
63
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?
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
As long as employment continues, which is the ONLY reason the validity of a group life insurance policy can be contested?
Non-payment of premiums after the policy has been in force for two years.
65
Early withdrawal of benefits (before 59 1/2 years old) is subject to IRS penalty of?
10%
66
Agent's commission is paid from?
Insurer Expenses
67
The outline of coverage of a LTC (Long Term Care) is delivered when?
At solicitaion
68
Joint life pays out when?
When the first insured dies
69
Survivorship Life pays out when?
When the first insured dies
70
Insurance Commissioner is:
An ELECTED official
71
A Survivor's benefit payment from Social Security is NOT paid during this period
Black-out period
72
ESOP (Employee Stock Ownership Plan) invests primarily in
Stock of the employer
73
Chance of loss, potential for gain is?
Speculative risk
74
A rider that replaces your income or salary is?
Disability Income Rider
75
Variable insurance products are regulated by?
SEC (Securities and Exchange Commission)
76
Who should NOT get a Long Term Care insurance?
The very poor, and the very rich
77
State program for Pregnant Women is?
AIM (Access for Infants and Mothers)
78
Knowingly signing a fraudulent claim is a crime called?
Perjury
79
MRMIP (Major Risk Medical Insurance Program) is funded by?
Tobacco taxes
80
According to the California Insurance Code (CIC), all insurers must maintain a department to investigate this?
Possible fraudulent claims from insured
81
If there is no surviving beneficiary, who gets the death benefit?
Insured Estate
82
Intentional or even Unintentional concealment entitles the injured party to what course of action?
Rescission of the contract
83
An irrevocable beneficiary has what kind of right to the policy?
Vested right (ownership)
84
The premium on a Renewable term insurance will?
Increase
85
A peril is defined as
Cause of loss
86
The word level or level term refers to:
Face amount
87
Medicare will pay full benefits to a skilled nursing facility for how many maximum days?
20 days

WFG - License Practice Exam (5 decks)

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