100% Pass Quiz CA-Life-Accident-and-Health - Authoritative Online CA Life, Accident and Health or Sickness Examination Tests
100% Pass Quiz CA-Life-Accident-and-Health - Authoritative Online CA Life, Accident and Health or Sickness Examination Tests
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Free PDF 2025 California Department of Insurance - Online CA-Life-Accident-and-Health Tests
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California Department of Insurance CA Life, Accident and Health or Sickness Examination Sample Questions (Q34-Q39):
NEW QUESTION # 34
Under PPACA, what is a health benefits exchange?
- A. PPACA creates new entities called American Health Benefits Exchanges through which low-income individuals can access public health care programs.
- B. PPACA creates new entities called American Health Benefits Exchanges through which individuals, small businesses, and those who do not have access to affordable employer coverage, can purchase coverage.
- C. A health benefits exchange is created by health insurers to allow individuals to access benefits in other insurers' plans.
- D. A health benefits exchange is created by employers to relieve them of having to provide health benefits to employees.
Answer: A
Explanation:
The PPACA (also known as the Affordable Care Act) established health benefits exchanges, also referred to as American Health Benefits Exchanges or Health Insurance Marketplaces. These exchanges are designed to facilitate the purchase of health insurance by individuals and small businesses. The exchanges provide a platform where various insurance plans are listed and compared, making it easier for consumers to find affordable coverage. They are particularly aimed at individuals who do not have access to employer-sponsored insurance and small businesses seeking competitive insurance options for their employees.
NEW QUESTION # 35
The conversion privilege allows a terminated employee to convert
- A. an annuity into group life insurance.
- B. group life insurance into an annuity.
- C. term insurance into permanent insurance.
- D. permanent insurance into term insurance.
Answer: C
Explanation:
The conversion privilege in life insurance allows a terminated employee to convert their term insurance policy into a permanent insurance policy without needing to provide evidence of insurability. This option is beneficial for employees who want to continue their life insurance coverage after leaving their employer.
NEW QUESTION # 36
Unintentional concealment entitles the injured party to which course of action, if any?
- A. $250 fine to be paid to the injured party.
- B. Rescission of the contract.
- C. Possible imprisonment to the party who concealed the information.
- D. None, due to the fact that the concealment was unintentional.
Answer: B
Explanation:
Unintentional concealment refers to the failure to disclose information without fraudulent intent. According to the California Insurance Code, even unintentional concealment entitles the injured party to rescind the contract (A). This means the injured party can void the contract and be relieved of all obligations under it due to the lack of full disclosure, ensuring fairness in the agreement.
NEW QUESTION # 37
In financial planning, the human life value concept is based on an individual's
- A. education.
- B. health.
- C. income
- D. age.
Answer: C
Explanation:
The human life value concept in financial planning is centered around an individual's economic value, which is primarily derived from their income. This method assesses the present value of future income that an individual is expected to earn and contribute to their dependents. Key factors considered in this approach include the person's age, income, expenses, and the number of years they are expected to continue working.
This concept helps in determining the amount of life insurance needed to replace the individual's income in the event of their premature death.
NEW QUESTION # 38
Which report about an insurance applicant's creditworthiness and personal characteristics may influence eligibility for life and health insurance?
- A. Attending physician's statement.
- B. Consumer report.
- C. Medical Information Bureau disclosure.
- D. Agent's report.
Answer: B
Explanation:
A consumer report provides detailed information about an applicant's creditworthiness, personal characteristics, and lifestyle, which can influence their eligibility for life and health insurance. These reports are typically obtained from consumer reporting agencies and include credit history, public records, and other personal information. The insurer uses this data to assess the risk associated with insuring the applicant. The use of consumer reports is regulated by the Fair Credit Reporting Act (FCRA), which ensures that the information is accurate and used fairly.
NEW QUESTION # 39
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