CA-Life-Accident-and-Health Exam Training Practice Tests (California Department of Insurance CA Life, Accident and Health or Sickness Examination)]

Question 1

A condition that may increase the chance of a loss arising from a given cause of loss is a

A. peril. B. risk. C. deviation. D. hazard.

Correct Answer: D

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Question 2

When is the automatic loan provision activated?

A. On the premium due date.
OB. At the end of the grace period. B. At the end of the incontestability period. C. At the end of the free-look period.

Correct Answer: C

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Question 3

After the deductible is satisfied, what percentage of a reasonable charge does Medicare Part B pay?

A. 100% B. 40% C. 20% D. 80%

Correct Answer: D

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Question 4

A worker is entitled to Social Security disability benefits if all of the following are true EXCEPT the

A. worker is insured for disability benefits. B. disability is expected to continue for 12 months or result in death. C. worker is under age 65. D. worker cannot perform his or her current job, but is actively seeking other employment.

Correct Answer: D

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Question 5

The term "loss" can be defined as all of the following EXCEPT

A. a happening that causes the company to pay. B. the amount suffered by a person regardless of insurance. C. the probability that an event will occur. D. the amount an insurer is required to pay because of an event that it insured.

Correct Answer: C

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Question 6

Which life insurance feature allows an insured to exchange a term policy for a cash value policy?

A. Incontestability B. Convertibility C. Renewability D. Reentry

Correct Answer: B

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Question 7

A worker who is credited with 6 quarters of coverage during the last 13-quarter period becomes disabled.
What status does the worker have under the Social Security Disability Program?

A. Disability insured. B. Uninsured. C. Currently insured. D. Partially insured.

Correct Answer: C

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Question 8

People commonly purchase an annuity to protect against the risk of

A. outliving their financial resources. B. becoming uninsurable. C. dying too soon. D. dying before their home mortgage is paid off.

Correct Answer: A

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Question 9

Which type of life insurance coverage has both a savings element and a flexible premium option?

A. There is currently no insurance product available in the standard market which has both of these features. B. Whole life. C. Term life. D. Universal life.

Correct Answer: D

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Question 10

For income tax purposes, premiums for personal life insurance are

A. not deductible. B. excluded from the adjusted gross income. C. deductible to the extent that they exceed 7.5% of the adjusted gross income. D. tax deferred.

Correct Answer: A

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Question 11

The purchase of an insurance policy may accomplish all of the following for the insured EXCEPT

A. a replacement of a large possible loss by a "smaller certain loss". B. a reduction of uncertainty. C. the elimination of the risk. D. a reduction in worry/greater peace of mind.

Correct Answer: C

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Question 12

What would we call a representation which fails to correspond with its stipulations or assertions?

A. Frivolous B. Fatal C. False D. Fraud

Correct Answer: C

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Question 13

All of the following statements apply to the child coverage in a family policy EXCEPT

A. child coverage is convertible to whole life coverage. B. coverage applies only to children born before the policy is issued. C. child coverage is term insurance. D. children are covered until reaching a specified age.

Correct Answer: B

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Question 14

The California Insurance Code requirements regarding the return of life or annuity contracts issued to seniors

A. gives a senior at least 30 days to return specified life and/or annuity contracts for a full refund. B. applies to group policies. C. defines seniors as someone 55 years of age or older on the date of purchase of the policy. D. mandates a 30 day free look for all applicants.

Correct Answer: A

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California Department of Insurance CA Life, Accident and Health or Sickness Examination - CA-Life-Accident-and-Health Exam Practice Test