Free Life and Health California Life Insurance Questions and Answers

Question 1

In disability insurance, the period of time between when the disability started and the commencement of benefits is the:

Accepted Answer

Elimination Period

Answer

Cancellation Period

Answer

Probationary Period

Answer

Grace Period

Question 2

Which of the following characteristics would not stop an insurance company from accepting an insurance risk?

Accepted Answer

The item to be insured is part of a large group of homogeneous exposure units.

Answer

The item to be insured faces high catastrophic loss exposure.

Answer

The item to be insured has a market value that is difficult to determine.

Answer

The item to be insured holds no hardship to the owner should it be lost or damaged.

Question 3

All of the following statements about mutual insurance companies are correct, except:

Accepted Answer

Policy dividends issued by mutual companies are guaranteed and not taxable.

Answer

If a mutual company goes public, it demutualizes.

Answer

Mutual companies issue policies referred to as participating.

Answer

Dividends allow policyholders to share in a mutual company's divisible surplus.

Question 4

In a seven-year vesting schedule, what percentage of employer contributions is vested after seven years?

Accepted Answer

100%

Answer

0%

Answer

60%

Answer

80%

Question 5

Which is a false statement? The California Insurance Commissioner is:

Accepted Answer

Selected by the Governor as an appointee

Answer

Elected by the people of California every four years

Answer

Is a representative to the National Association of Insurance Commissioners (NAIC)

Answer

Is a representative to the National Association of Insurance Commissioners (NAIC)