Final Exam: California Life, Accident, and Health Insurance Complete Guide

Final Exam: California Life, Accident, and Health Insurance Complete Guide The systematic liquidation of a sum of money is provided by a(n) annuity An annuitant would like to determine the current value of her annuity. To do this, she multiplies the number of "accumulation units" she owns times the unit value of the "separate account". What kind of annuity BEST matches this description? Variable annuity What kind of annuity pays income to two annuitants until their deaths? Joint and survivor annuity What distinguishes a deferred annuity from an immediate annuity? The time at which benefit payments start Victoria owns a life annuity and elects to receive annuity payments monthly for the remainder of her life with "ten years certain". Her annuity will make payments for a minimum of 120 months and a maximum of the remainder of her life When a mutual insurer becomes a stock company, the process is called Demutualization An insurer owned by its policyholders is called a mutual insurer Which of the following statements regarding a life insurance policy dividend is TRUE? It is the distribution of excess of funds accumulated by the insurer on participating policies A participating company is also referred to as which type of insurer? Mutual insurer Which of the following is NOT a benefit of insurance? Losses due to fraud are eliminated Which of the following is NOT a provision in a disability income policy? Deductible and coinsurance provision Which of these statements is NOT true concerning recurrent disabilities? The insurer continues coverage after a new elimination 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? $5,000 Manuel is considered to be a disabled person as defined by the Americans with Disabilities Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT Driving Under a disability income policy, which criteria must be met for "bodily injury" to be classified as accidental? The cause may be intentional, but the result must be accidental During the underwriting process for a group health policy, it was discovered that 15 out of 50 members of the group have major health issues. How would the insurer handle this? Accept or reject the whole group Coverage is limited for vision and dental insurance in all of the following ways, EXCEPT Specific dollar amount for examinations An eligible individual who would like to obtain group health insurance without providing evidence of insurability must enroll within a specified eligibility period In regards to a group health insurance plan, which statement is CORRECT? A non-contributory group health plan must cover all eligible members The problem of overinsurance is addressed in which health insurance provision? Coordination of benefits A health insurance policy paid on a quarterly basis has a grace period of 31 days Under a noncancellable health insurance policy, an insurer can cancel the policy for nonpayment of premium The conditions, times, and circumstances under which an insured is NOT covered by a health policy are called? exclusions In what situation does a waiver of premium provision keep a health insurance policy in force without premium payments? When an insured becomes totally disabled Christine has a health insurance policy that has been in force beyond the incontestable period. The insurer has discovered that a fraudulent statement was made on the application. What would the insurer have to pay on a claim, assuming this wasn't a guaranteed renewable policy? Nothing Under a health insurance policy, the provision that states the kind of benefits provided and the circumstances under which they will be paid is called the? insuring clause Which of the following factors is NOT used in underwriting health insurance policies? Intelligence What is the term used to describe the frequency and severity of certain illnesses and accidents? Morbidity Which of the following is NOT considered to be insurer expenses? Policy premiums Express power given to an agent in an agency agreement is the authority to represent the insurer Which of the following is NOT a requirement of a contract? Equal consideration is required between the involved parties Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? Indemnity Which statement is CORRECT when describing a contract of adhesion? Contract may be accepted or rejected by the insured The importance of a representation is demonstrated in what rule? Materiality of concealment What does the insurance term "indemnity" refer to? Make whole Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized