Final Exam: California Life, Accident, & Health Insurance Questions with highest ratings

Premiums are Best described as - ANSWER-the amount an insured pays per unit of coverage 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? - ANSWER-60 payments Who does a life settlement broker represent? - ANSWER-Individual wanting to sell their life policy to a third party How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes? - ANSWER-Taxable income to the employee Which of the following is NOT considered to be insurer expenses? - ANSWER-Policy premiums Which of the following healthcare providers provides both the healthcare services and healthcare coverage? - ANSWER-Health Maintenance Organization (HMO) Which of the following describes a contributory group insurance plan? - ANSWER-Part of the premium is paid by the employee. A contributory group insurance plan is one which employees share the cost of the premiums with the employer. Which of the following is NOT a valid reason to replace an existing long-term care policy? - ANSWER-New policy has higher premium with fewer benefits An insured is protected from the expense of a catastrophic illness by which of the following health insurance provisions? - ANSWER-Stop-loss The Stop-loss provision states that after the insured has paid a specific amount toward a covered expense, the insurer will pay 100% of the remaining expenses.