California Life Accident and Health Insurance State Exam Questions
and Answers Latest Updated 2024/2025 (Verified Answers)
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
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
Kim is insured under a disability income insurance policy with an "own-
occupation" clause. She was recently injured in an automobile accident
and can no longer perform the tasks of her job. Kim is now considered to
be - ANSWER-totally disabled
What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect? -
ANSWER-100%
,Business Overhead Expense Insurance pays for - ANSWER-business
expenses when a business owner becomes disabled
Minimum participation standards exist for group health insurance plans in
order to - ANSWER-prevent adverse selection
The problem of overinsurance is addressed in which health insurance
provision? - ANSWER-Coordination of benefits
What is the purpose of the coordination of benefits (COB) provision? -
ANSWER-To avoid duplication of benefit payments and overinsurance when
an individual is covered under more than one group health plan
Who is financially liable for the payment of covered claims in a fully
insured group health plan? - ANSWER-Insurer
The insurer has the option of terminating a health insurance policy on a
date stated in the contract. What type of policy is this? - ANSWER-
Optionally renewable
, What is an optionally renewable policy? - ANSWER-A provision allowing an
insurer to terminate the policy on a date specified in the contract
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? -
ANSWER-Waiver of premium provision
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
What distinguishes a deferred annuity from an immediate annuity? -
ANSWER-The time at which benefit payments start
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
and Answers Latest Updated 2024/2025 (Verified Answers)
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
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
Kim is insured under a disability income insurance policy with an "own-
occupation" clause. She was recently injured in an automobile accident
and can no longer perform the tasks of her job. Kim is now considered to
be - ANSWER-totally disabled
What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect? -
ANSWER-100%
,Business Overhead Expense Insurance pays for - ANSWER-business
expenses when a business owner becomes disabled
Minimum participation standards exist for group health insurance plans in
order to - ANSWER-prevent adverse selection
The problem of overinsurance is addressed in which health insurance
provision? - ANSWER-Coordination of benefits
What is the purpose of the coordination of benefits (COB) provision? -
ANSWER-To avoid duplication of benefit payments and overinsurance when
an individual is covered under more than one group health plan
Who is financially liable for the payment of covered claims in a fully
insured group health plan? - ANSWER-Insurer
The insurer has the option of terminating a health insurance policy on a
date stated in the contract. What type of policy is this? - ANSWER-
Optionally renewable
, What is an optionally renewable policy? - ANSWER-A provision allowing an
insurer to terminate the policy on a date specified in the contract
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? -
ANSWER-Waiver of premium provision
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
What distinguishes a deferred annuity from an immediate annuity? -
ANSWER-The time at which benefit payments start
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
