This page was exported from Testking Free Dumps [ http://blog.testkingfree.com ] Export date:Thu Jan 16 18:50:59 2025 / +0000 GMT ___________________________________________________ Title: Sep-2024 California Department of Insurance CA-Life-Accident-and-Health Certification Real 2024 Mock Exam [Q47-Q69] --------------------------------------------------- Sep-2024 California Department of Insurance CA-Life-Accident-and-Health Certification Real 2024 Mock Exam CA-Life-Accident-and-Health Exam Questions and Valid PMP Dumps PDF Q47. All of the following describe examples of risk avoidance EXCEPT the insured  recognizing that his driving skills are deteriorating and therefore increasing the liability limits of his auto policy.  sensing the chance of a lawsuit and therefore giving his pet Bengal tiger to a local zoo.  never leaving his house after dark.  never flying in airplanes. Risk Avoidance: This involves taking steps to eliminate exposure to a risk entirely, such as not engaging in potentially hazardous activities.Examples: Avoiding risks can include not owning a dangerous pet or avoiding traveling by airplane.Not Risk Avoidance: Increasing liability limits on an auto policy is an example of risk management, not avoidance. It acknowledges the risk and seeks to mitigate potential financial impacts rather than eliminate the risk entirely.References: California Insurance Code Sections 675-679 discuss various aspects of risk management and avoidance within insurance contexts.Q48. As defined in the California Insurance Code, “insurance” is a  contract.  gamble.  peril.  risk. According to the California Insurance Code, “insurance” is defined as a contract whereby one undertakes to indemnify another or pay a specified amount upon determinable contingencies. This contractual agreement outlines the terms under which the insurer will compensate the insured or beneficiaries for covered losses or events.References: California Insurance Code, Section 22.Q49. Characteristics of Preferred Provider Organizations (PPOs) include all of the following EXCEPT  primary physicians serve as gatekeepers.  there are incentives to use network providers.  employees can see specialists without referrals.  benefits are paid for care received by non-network physicians. Preferred Provider Organizations (PPOs) offer flexible and broad access to healthcare providers.Characteristics of PPOs include incentives for using network providers (B), the ability for employees to see specialists without referrals (C), and coverage for care received from non-network physicians, although at a higher cost (D). Unlike Health Maintenance Organizations (HMOs), PPOs do not require primary care physicians to serve as gatekeepers, making option A incorrect.Q50. How many days does the California Insurance Code give an individual to return a life policy for cancellation?  Less than 10 days.  Not less than 30 nor more than 60 days.  Between 10 and 30 days.  Between 60 and 90 days. * Free Look Period:The California Insurance Code stipulates that an individual has a free look period to return a life insurance policy for cancellation and receive a full refund of the premium paid.* Duration:This period is defined as being between 10 and 30 days, depending on the specific policy and insurer.Q51. In insurance terminology, “indemnify” means  award.  advance.  make whole.  over compensate. Definition of Indemnify: In insurance terminology, to “indemnify” means to compensate an insured party for a loss, ensuring they are restored to the same financial position they were in prior to the loss.Purpose: The goal of indemnification is to make the insured “whole” again by covering the financial loss suffered.Application: This principle is fundamental to many types of insurance, including property,liability, and health insurance.References: California Insurance Code Section 22 defines indemnity and its application within the scope of insurance policies.Q52. A situation in which there is a possibility of a loss or a gain is a  pure risk.  particular risk.  speculative risk.  fundamental risk. Speculative risk refers to a situation where there is a possibility of either a loss or a gain. This type of risk is commonly associated with investments and business ventures, where the outcome can result in profit or loss.In contrast, pure risk involves only the possibility of loss or no loss, with no potential for gain.References:California Department of Insurance definitions of risk.Q53. All of the following qualify as “background information” as defined in Section 1729.2 of the California Insurance Code, EXCEPT  misdemeanor charges filed, not resulting in a conviction.  an administrative action regarding a professional or occupational license.  a misdemeanor or felony conviction or a filing of felony criminal charges in state or federal court.  any admission, or judicial finding or determination, of fraud, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty. According to Section 1729.2 of the California Insurance Code, “background information” includes various details about an insurance license applicant’s past conduct and professional history. This includes any administrative action regarding a professional or occupational license (B), any misdemeanor or felony conviction, or the filing of felony criminal charges in state or federal court (C), and any admission, or judicial finding or determination, of fraud, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty (D). However, misdemeanor charges that are filed but do not result in a conviction (A) do not qualify as “background information.”Q54. Life insurance policy illustrations must include all of the following EXCEPT  the name of the insured.  the page number of each page.  a statement that all benefits and values are guaranteed.  the relationship of each page to the total number of pages. Policy Illustration Requirements: The California Department of Insurance requires that life insurance policy illustrations include several key pieces of information to ensure clarity and understanding for the insured.Name of the Insured: Each policy illustration must clearly state the name of the insured, as it is crucial for identifying the specific policyholder.Page Number of Each Page: This requirement ensures that the policyholder can follow the document correctly and verify that all pages are present.Relationship of Each Page to the Total Number of Pages: This helps the insured understand the structure of the document and ensures that all parts of the illustration are accounted for.Benefits and Values Guarantee Statement: Not all benefits and values in a policy illustration are guaranteed; some are based on assumptions and projections. Therefore, a blanket statement guaranteeing all benefits and values would be misleading and is not a requirement.References: California Insurance Code Sections 10509.950-10509.970 outline the requirements for life insurance policy illustrations.Q55. What is the amount of the penalty tax imposed on premature payments under annuity contracts?  10%  20%  25%  50% The penalty tax for premature withdrawals from annuity contracts is 10%. This penalty applies to withdrawals made before the age of 59½, in addition to any ordinary income tax that may be due on the withdrawn amount.This rule is designed to discourage early withdrawals and to ensure the annuity serves its purpose as a long-term retirement savings vehicle.Q56. The spendthrift clause in a life insurance policy  prevents a beneficiary from assigning interest in policy proceeds.  allows the payment of part of the death benefit for terminally ill insureds.  assumes that the insured survived the beneficiary if both die in a common accident.  requires the insurer to waive all premiums due when an insured is totally disabled. The spendthrift clause in a life insurance policy is designed to protect the policy proceeds from the creditors of the beneficiary. It prevents the beneficiary from assigning or transferring their interest in the policy proceeds to someone else, thereby ensuring that the proceeds are used for the beneficiary’s benefit as intended by the policyholder. This clause provides financial protection and security to the beneficiary by restricting their ability to mismanage the funds.References: California Department of Insurance documentation on life insurance policy provisions.Q57. What policy is a savings instrument designed to first accumulate funds and then systematically to liquidate the funds?  Term life.  Deferred annuity.  Mortgage insurance.  Disability income insurance. * Definition: A deferred annuity is a type of insurance contract designed as a long-term savings instrument that allows the policyholder to accumulate funds on a tax-deferred basis.* Accumulation Phase: During the accumulation phase, the policyholder makes contributions to the annuity, which can grow based on the investment options selected (fixed or variable).* Liquidation Phase: Once the accumulation period ends, the annuity enters the distribution or liquidation phase, where the accumulated funds are systematically paid out to the annuitant, typically as a series of regular payments (e.g., monthly, quarterly).* Purpose: The primary goal of a deferred annuity is to provide a steady income stream during retirement, ensuring financial stability for the annuitant.* Regulations: Deferred annuities are regulated under the California Insurance Code and must comply with state-specific rules regarding disclosures, guarantees, and consumer protections.References:* California Department of Insurance guidelines on annuities.* Annuity policy provisions and state regulations.Q58. Which program is designed to provide medical assistance to people with low incomes?  Medical.  Medicare.  Social Security.  Workers’ Compensation. Medicaid is a state and federal program designed to provide medical assistance to people with low incomes. It offers coverage for a wide range of healthcare services, including hospital and doctor visits, long-term medical care, and other essential health benefits. Eligibility for Medicaid is based on income and other criteria such as age, disability, and family status. The program ensures that individuals with limited financial resources can access necessary medical care.Q59. People commonly purchase an annuity to protect against the risk of  dying too soon.  becoming uninsurable.  outliving their financial resources.  dying before their home mortgage is paid off. Purpose of Annuities: Annuities are financial products that provide a stream of payments to the purchaser, typically after retirement.Risk Protection: The primary risk addressed by annuities is longevity risk, or the risk of outliving one’s financial resources.Financial Security: By providing guaranteed income for life or a specified period, annuities help ensure that individuals do not run out of money in retirement.References: California Insurance Code Section 10170.3 defines annuities and the risks they are designed to mitigate.Q60. The insured is totally and permanently disabled. The insured’s policy continues in force without payment of further premiums because the policy contains a  guaranteed insurability provision.  waiver of premium provision.  reinstatement provision.  grace period provision. * Definition: The waiver of premium provision is a clause in insurance policies that allows the insured to stop paying premiums if they become totally and permanently disabled.* Function: This provision ensures that the policy remains in force, providing continuous coverage without the financial burden of paying premiums during the period of disability.* Eligibility: To qualify for this benefit, the insured must meet the policy’s definition of total and permanent disability and may need to provide medical proof of their condition.* Policy Types: This provision is commonly found in life insurance and disability income policies.* Regulations: California insurance regulations mandate that insurers include specific criteria and definitions in policies with a waiver of premium provision to protect consumers.References:* California Department of Insurance guidelines on waiver of premium.* Insurance policy provisions regarding disability.Q61. During the grace period, when may an insurer terminate medical coverage?  The insured requests termination in writing.  Policies cannot be terminated during the grace period.  The insured is hospitalized without giving the insurer prior notification.  The insured receives care from a physician who is not in the plan’s network. The grace period in health insurance is a set period after the due date of a premium payment during which the policy remains in force, even if the premium has not yet been paid. This period is typically 30 days. During this time, the insurer cannot terminate the policy except under specific circumstances, such as if the insured requests termination in writing. This allows the insured additional time to make the necessary payment to keep their coverage active.Q62. When a family policy covers children, all of the following are true EXCEPT  the coverage is term insurance for a fixed amount.  there is no additional charge for covering new additions to the family.  evidence of insurability is required to convert coverage for children to permanent insurance.  all children living with the family are covered even if adopted or born after the policy is issued. When a family policy covers children, the coverage is typically provided as term insurance for a fixed amount, and it often includes provisions that automatically cover new additions to the family without an additional charge. All children living with the family, including those adopted or born after the policy is issued, are generally covered. However, evidence of insurability is not typically required to convert the children’s term insurance coverage to permanent insurance. This conversion option allows for flexibility in ensuring continued coverage as children grow older.Q63. 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?  Uninsured.  Partially insured.  Currently insured.  Disability insured. Under the Social Security Disability Program, a worker who is credited with 6 quarters of coverageduring the last 13-quarter period is considered “currently insured.” This status indicates that the worker has earned enough credits within a recent period to qualify for certain Social Security benefits, including disability benefits, though they may not have the fully insured status required for retirement benefits.Q64. Regarding the Health Benefit Exchanges, as created by PPACA, all of the following statements are true EXCEPT  the name of California’s Exchange is Covered California.  an individual enrolling in a bronze level plan is not eligible for reduced cost-sharing.  an individual whose household income is 400% of the federal poverty level may receive a premium tax credit.  an individual may only receive a premium tax credit for a plan if purchased through the Exchange. Under the PPACA, individuals whose household income is between 100% and 400% of the federal poverty level (FPL) may be eligible for premium tax credits to help reduce the cost of health insurance purchased through the Exchange. However, individuals at exactly 400% of the FPL or higher do not qualify for these premium tax credits. Therefore, statement C is incorrect as it implies that individuals at exactly 400% FPL are eligible.Q65. The initial enrollment period for Medicare Part B ends how many months after the 65th birthday month?  One month.  Three months.  Five months.  Seven months. The initial enrollment period for Medicare Part B spans seven months. This period starts three months before the month of an individual’s 65th birthday, includes the birthday month, and extends three months after the birthday month. Enrolling during this period ensures that beneficiaries avoid late enrollment penalties and have coverage when they first become eligible.Q66. The total premium paid by a life policy owner for one policy year is  the same regardless of the frequency of payment.  less when paid quarterly than if paid semiannually.  greater if the premium is paid semiannually rather than annually.  based on the assumption that the insured will pay policy premiums at the end of the policy year in one payment; if paid earlier in the policy year, a discount will be allowed. The total premium paid by a life policy owner for one policy year is greater if the premium is paid semiannually rather than annually. This is because insurers typically add a service charge or interest to the premium when it is paid in installments (semiannually, quarterly, or monthly) instead of in a single annual payment. Paying premiums more frequently can result in higher total costs over the policy year.Q67. Under the Family and Medical Leave Act (FMLA), how many weeks of unpaid leave is allowed per year for the birth of a child?  2  4  8  12 Under the Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid leave per year for certain family and medical reasons, including the birth of a child. This federal law ensures that employees can take time off for significant family and health-related events without fear of losing their jobs.References: U.S. Department of Labor, Family and Medical Leave Act guidelines.Q68. Specified disease insurance covers all of the following EXCEPT  costs covered by medical expense insurance.  noncovered medical expenses.  out-of-pocket payments.  incidental costs. Specified disease insurance is designed to provide coverage for expenses related to specific diseases, such as cancer or heart disease. It typically covers noncovered medical expenses, out-of-pocket payments, and incidental costs that are not reimbursed by regular medical expense insurance. It does not cover costs that are already covered by medical expense insurance, as its purpose is to supplement and provide additional financial support for disease-specific expenses.References: California Department of Insurance guidelines on specified disease insurance policies.Q69. Why is having a large number of similar exposure units important to an insurer?  The greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums.  The greater the number insured, the more premium is collected to offset fixed costs.  The greater the number insured, the more premium is collected to help cover losses.  The insured increases its market share with every insured. Law of Large Numbers: This principle states that the larger the group of similar exposure units (insured individuals or properties), the more predictable the overall loss experience becomes.Risk Pooling: By insuring a large number of similar units, insurers can better estimate the probability of losses and set premiums that are appropriate to cover these losses while remaining competitive.Premium Calculation: Accurate loss predictions help insurers set premiums that are sufficient to cover claims while maintaining financial stability.Importance of Similar Exposure Units: Having a large pool of similar risks allows for better risk management and more stable financial outcomes for the insurer.References: California Insurance Code Section 922.3 and related regulations discuss the importance of the law of large numbers and risk pooling in the context of insurance. Loading … CA-Life-Accident-and-Health Question Bank: Free PDF Download Recently Updated Questions: https://www.testkingfree.com/California-Department-of-Insurance/CA-Life-Accident-and-Health-practice-exam-dumps.html --------------------------------------------------- Images: https://blog.testkingfree.com/wp-content/plugins/watu/loading.gif https://blog.testkingfree.com/wp-content/plugins/watu/loading.gif --------------------------------------------------- --------------------------------------------------- Post date: 2024-09-21 12:45:09 Post date GMT: 2024-09-21 12:45:09 Post modified date: 2024-09-21 12:45:09 Post modified date GMT: 2024-09-21 12:45:09