Final Exam: California Life, Accident, and Health
Insurance Questions and Answers 100% Solved
Updated
The systematic liquidation of a sum of money is provided by a(n) - ANSWER-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? - ANSWER-
Variable annuity
What kind of annuity pays income to two annuitants until their deaths? - ANSWER-Joint
and survivor annuity
What distinguishes a deferred annuity from an immediate annuity? - ANSWER-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 -
ANSWER-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 - ANSWER-
Demutualization
An insurer owned by its policyholders is called a - ANSWER-mutual insurer
Which of the following statements regarding a life insurance policy dividend is TRUE? -
ANSWER-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? - ANSWER-Mutual
insurer
Which of the following is NOT a benefit of insurance? - ANSWER-Losses due to fraud
are eliminated
Which of the following is NOT a provision in a disability income policy? - ANSWER-
Deductible and coinsurance provision
Which of these statements is NOT true concerning recurrent disabilities? - ANSWER-
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? - 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 - ANSWER-Driving
Under a disability income policy, which criteria must be met for "bodily injury" to be
classified as accidental? - ANSWER-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? - ANSWER-Accept or reject the whole group
Coverage is limited for vision and dental insurance in all of the following ways, EXCEPT
- ANSWER-Specific dollar amount for examinations
An eligible individual who would like to obtain group health insurance without providing
evidence of insurability must - ANSWER-enroll within a specified eligibility period
In regards to a group health insurance plan, which statement is CORRECT? -
ANSWER-A non-contributory group health plan must cover all eligible members
The problem of overinsurance is addressed in which health insurance provision? -
ANSWER-Coordination of benefits
A health insurance policy paid on a quarterly basis has a grace period of - ANSWER-31
days
Under a noncancellable health insurance policy, an insurer can - ANSWER-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? - ANSWER-exclusions
In what situation does a waiver of premium provision keep a health insurance policy in
force without premium payments? - ANSWER-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? - ANSWER-Nothing
Insurance Questions and Answers 100% Solved
Updated
The systematic liquidation of a sum of money is provided by a(n) - ANSWER-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? - ANSWER-
Variable annuity
What kind of annuity pays income to two annuitants until their deaths? - ANSWER-Joint
and survivor annuity
What distinguishes a deferred annuity from an immediate annuity? - ANSWER-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 -
ANSWER-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 - ANSWER-
Demutualization
An insurer owned by its policyholders is called a - ANSWER-mutual insurer
Which of the following statements regarding a life insurance policy dividend is TRUE? -
ANSWER-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? - ANSWER-Mutual
insurer
Which of the following is NOT a benefit of insurance? - ANSWER-Losses due to fraud
are eliminated
Which of the following is NOT a provision in a disability income policy? - ANSWER-
Deductible and coinsurance provision
Which of these statements is NOT true concerning recurrent disabilities? - ANSWER-
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? - 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 - ANSWER-Driving
Under a disability income policy, which criteria must be met for "bodily injury" to be
classified as accidental? - ANSWER-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? - ANSWER-Accept or reject the whole group
Coverage is limited for vision and dental insurance in all of the following ways, EXCEPT
- ANSWER-Specific dollar amount for examinations
An eligible individual who would like to obtain group health insurance without providing
evidence of insurability must - ANSWER-enroll within a specified eligibility period
In regards to a group health insurance plan, which statement is CORRECT? -
ANSWER-A non-contributory group health plan must cover all eligible members
The problem of overinsurance is addressed in which health insurance provision? -
ANSWER-Coordination of benefits
A health insurance policy paid on a quarterly basis has a grace period of - ANSWER-31
days
Under a noncancellable health insurance policy, an insurer can - ANSWER-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? - ANSWER-exclusions
In what situation does a waiver of premium provision keep a health insurance policy in
force without premium payments? - ANSWER-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? - ANSWER-Nothing
