Final Exam: California Life, Accident, and Health Insurance Correct 100%

The systematic liquidation of a sum of money is provided by a(n) - ANSWERannuity 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? - ANSWERVariable annuity What kind of annuity pays income to two annuitants until their deaths? - ANSWERJoint and survivor annuity What distinguishes a deferred annuity from an immediate annuity? - ANSWERThe 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 - ANSWERfor 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 - ANSWERDemutualization An insurer owned by its policyholders is called a - ANSWERmutual insurer Which of the following statements regarding a life insurance policy dividend is TRUE? - ANSWERIt 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? - ANSWERMutual insurer Which of the following is NOT a benefit of insurance? - ANSWERLosses due to fraud are eliminated Which of the following is NOT a provision in a disability income policy? - ANSWERDeductible and coinsurance provision Which of these statements is NOT true concerning recurrent disabilities? - ANSWERThe 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? - ANSWER$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 - ANSWERDriving Under a disability income policy, which criteria must be met for "bodily injury" to be classified as accidental? - ANSWERThe 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? - ANSWERAccept or reject the whole group Coverage is limited for vision and dental insurance in all of the following ways, EXCEPT - ANSWERSpecific dollar amount for examinations An eligible individual who would like to obtain group health insurance without providing evidence of insurability must - ANSWERenroll within a specified eligibility period In regards to a group health insurance plan, which statement is CORRECT? - ANSWERA non-contributory group health plan must cover all eligible members The problem of overinsurance is addressed in which health insurance provision? - ANSWERCoordination of benefits A health insurance policy paid on a quarterly basis has a grace period of - ANSWER31 days Under a noncancellable health insurance policy, an insurer can - ANSWERcancel the policy for nonpayment of premium