California Health Insurance Law — California Insurance Law — Life & Health Practice Test
27 questions in this topic · 27 drawn at random this round
Before or at the time an LTC application is taken in California, what must the producer provide to the applicant?
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This California Insurance Law — Life & Health California Health Insurance Law practice set has 27 practice questions based on the official exam materials, each with an instant explanation.
Sample questions
Three questions from the California Health Insurance Law bank with the correct answer and an explanation. The practice quiz above draws 27 questions at random from the same bank.
Under California long-term care (LTC) insurance law, what must an insurer do regarding inflation protection when a policy is sold?
- Offer the applicant inflation protection at the time of sale, though the applicant may decline it — Correct answer
- Automatically build 5% compound inflation protection into every policy with no ability to decline
- Provide inflation protection only if the applicant is over age 75
- Offer inflation protection only after the first claim has been paid
Explanation: California LTC law requires that every LTC policy include an OFFER of inflation protection at the time of application/sale. The applicant may accept or reject it, but the offer itself is mandatory — it cannot simply be omitted.
Handbook: California Health Insurance Law — LTC Mandatory Offer of Inflation Protection
California LTC insurance law requires that an insurer do which of the following regarding a nonforfeiture benefit?
- Offer the applicant a nonforfeiture benefit option, which the applicant may accept or reject — Correct answer
- Include a nonforfeiture benefit in every policy at no additional premium
- Provide a nonforfeiture benefit only to policyholders who paid premiums for at least 20 years
- Deny any nonforfeiture benefit if the policy has ever been rated substandard
Explanation: As with inflation protection, California law requires that a nonforfeiture benefit be OFFERED to every LTC applicant (typically as a reduced paid-up or shortened benefit-period option if the policy later lapses). The applicant can decline it, but the insurer must make the offer.
Handbook: California Health Insurance Law — LTC Mandatory Offer of Nonforfeiture Benefit
How long is the free-look period required on a California long-term care insurance policy?
- 30 days — Correct answer
- 10 days
- 60 days
- 90 days
Explanation: California requires a 30-day free-look period on LTC policies, during which the policyholder may return the policy for any reason and receive a full premium refund.
Handbook: California Health Insurance Law — LTC Free-Look Period