Final Exam: California Life, Accident, and health insurance Accurate 100%

According to the California Insurance Code, what term is used to describe a fact so important it could affect the policy premium? - ANSWERMateriality Which of the following is NOT a life insurance settlement option? - ANSWERExtended Term Option True answer- Life income option, Fixed amount option, Lump Sum option Major Medical expense plans typically use a cost containment measure for emergency care. This is refereed to as a - ANSWERDeductible Which type of risk is gambling? - ANSWERSpeculative risk Who is NOT eligible for Social Security survivor benefits? - ANSWERA deceased worker's dependent parents of any age. correct answer- only dependent parents age 62 or older can receive survivorship benefits if they were dependent upon the deceased worker for at least half of their support. What type of policy changes can be made to a guaranteed renewable health insurance policy? - ANSWERThe premium rates of the policy owner After the annual deductible is met, a Medicare Part B will pay ___%_ of the remaining covered expenses - ANSWER20% Insurer will paid %80 Who is eligible for retirement benefits under Social Security? - ANSWERFully insured workers An insurer enters a contract with a third party to insure itself against losses from insurance policies it issues. What is this agreement called? - ANSWERReinsurance Jerry is an insured who understated his age on his life insurance application, paying $12 per $1,000 of insurance instead of $15 per $1,000. If he dies, how will the adjusted death benefit be calculated? - ANSWER12/15th of the policies face amount Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? - ANSWER60 payments 5x12=60 The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund? - ANSWERBetween 10 and 30 days The California Insurance Code requires that an insurer must have enough assets to cover its liabilities and for reinsurance of all outstanding risks. To remain solvent, it must also possess additional assets equal to what amount. - ANSWERIts paid-in capital How is a Medicare claim submitted? - ANSWERExpenses are submitted to Medicare by the health provider What time period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date? - ANSWERGrace Period Allen has a disability income policy with a $2,500 monthly benefit and a 30-day elimination period. He is unable to work 90 days following an automobile accident. What will the policy pay? - ANSWER$5,000 90 days- 30 day elimination period is 60 days (2 months). 2 months x $2,500/month benefit = $5,000 total benefit paid. What prevents a life insurance policy from being rescinded by the insurer after being in force for two - ANSWERIncontestability clause According to PPACA, how long can an adult be covered as a dependent under their parents' insurance plan? - ANSWERUp to age 26 In a modified endowment contract, the penalty tax imposed on premature withdrawals is - ANSWER10% Individuals become eligible for Medicare Part A benefits at what age? - ANSWER65 Bruce is involved in an accident and becomes totally and permanently disabled. His insurance policy continues in force without payment of further premiums. Which policy provision is responsible for this? - ANSWERWaiver of Premium Provision What does the term "illustration" mean when used in the phrase "life insurance policy illustration", according to the California Insurance Code? - ANSWERPresentation of policy features that includes non-guaranteed elements.