California Life & Health Insurance Exam Crash Course

Flashcards covering key concepts from the California Life & Health Insurance Exam Crash Course.

Proposition 103

A voter-approved law in California requiring prior approval for rate increases by insurers.

Insurable Interest

A financial stake in the insured, required at application for life insurance.

Utmost Good Faith

Both parties involved in an insurance contract must be honest and disclose material facts.

Indemnity

The principle of restoring the insured to their financial position before the loss, not allowing profit.

HMO

Health Maintenance Organization that requires using a network and has lower premiums.

Free-Look Period

A specified time during which a policyholder can review and return a policy for a refund.

Grace Period

30-31 days to pay premium; coverage continues during this period.

California Consumer Privacy Act (CCPA)

A law aimed at protecting consumer data in California.

Guaranteed Issue

A requirement that insurers cannot deny coverage due to pre-existing conditions.

Cal-COBRA

Extension of COBRA in California for employers with 2-19 employees, providing continuation coverage.

Medical Insurance

Coverage for doctors and outpatient services as part of Medicare Part B.

Tax-Deferred

Describes cash value growth in life insurance policies which is not taxed until withdrawn.

Accidental Death Benefit

A rider providing double the death benefit for deaths caused by accidents.

California Department of Insurance (CDI)

Regulatory body governing insurance in California, headed by the Insurance Commissioner.

Community Rating

A system where health insurance premiums are the same for all enrollees regardless of health status.