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| Section | Objectives |
|---|---|
| Topic 1: California Insurance Laws and Regulations | - State Regulatory Framework
|
| Topic 2: Ethics and Professional Conduct | - Agent Responsibilities
|
| Topic 3: Basic Insurance Concepts and Principles | - Insurance Fundamentals
|
| Topic 4: Life Insurance | - Policy Provisions and Riders
|
| Topic 5: Accident and Health Insurance | - Health Insurance Policies
|
1. What is the first step in submitting Medicare claims?
A) The medical provider submits expenses to Medicare.
B) The patient submits expenses to Medicare.
C) Medicare submits expenses to the Medicare supplement provider.
D) The medical provider submits expenses to the patient.
2. All of the following are requirements of a contract EXCEPT
A) there must be an offer and acceptance of the contract terms.
B) there must be equal consideration between the parties.
C) the parties to the contract must be legally competent.
D) the contract must have a legal purpose.
3. In health insurance the coinsurance is
A) a percentage paid for covered expenses by the insured and insurer after the deductible is satisfied.
B) a percentage of the cost for covered expenses paid by more than one insurer.
C) a payment shared by the insured and provider of covered service minus the deductible.
D) a portion of the premium paid by the insured and insurer for each covered service.
4. Indexed annuities offer all of the following features EXCEPT
A) an opportunity to participate in gains associated with the stock market.
B) a minimum guarantee of interest rate.
C) an annually increasing maximum rate of interest.
D) protection during stock market declines.
5. Which tax advantage is available for individual nonqualified annuities?
A) Tax-deferred accumulation of earnings.
B) Fully taxable distributions.
C) Penalty-free early withdrawals.
D) Deductibility of contributions.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: A |
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