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California Department of Insurance CA Life, Accident and Health or Sickness Examination Sample Questions:
1. What would we call a representation which fails to correspond with its stipulations or assertions?
A) Fatal
B) Frivolous
C) False
D) Fraud
2. The additional premium charged by an insurer for adding the accidental death benefit to a whole life policy
A) does not affect the policy's cash value.
B) increases the policy's cash value.
C) decreases the length of time that premiums are payable.
D) increases the yearly dividend amount.
3. The total premium paid by a life policy owner for one policy year is
A) greater if the premium is paid semiannually rather than annually.
B) 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.
C) less when paid quarterly than if paid semiannually.
D) the same regardless of the frequency of payment.
4. Your client has just bought a new home which he has financed with a $150,000, 7.5% interest, 30-year bank loan. He would like to be sure that if he dies prematurely, the unpaid balance of the mortgage would be paid.
He wants a policy that will cover the mortgage balance - no more, no less - anytime during the life of the mortgage. Which policy is designed to meet this need?
A) Level term policy.
B) Home service policy.
C) Increasing term policy.
D) Decreasing term policy.
5. California long-term care policies may be identified as any of the following EXCEPT
A) Comprehensive Long-Term Care.
B) Acute Hospital Care only.
C) Home Care only.
D) Nursing Facility and Residential Care Facility only.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: B |


