FInal Exam: California Life, Accident, and Health Insurance
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1. What distinguishes a deferred annuity from an imme- The time at which benefit
diate annuity? payments start
2. Cindy buys a 10-year certain annuity with an install- 60 payments
ment refund. After receiving monthly payments for 5
years, Cindy dies. How many remaining payments will
the insurer make to her beneficiary?
3. What is a common reason people purchase an annu- To protect against the risk
ity? of outliving their financial
resources
4. What kind of annuity pays income to two annuitants Joint and survivor annuity
until their deaths?
5. What is a joint and survivor annuity? Provides payments the
annuity to two people. If
either person dies, the
same income payments
continue to the survivor
for life. When the surviv-
ing annuitant dies, no fur-
ther payments are made
to anyone.
6. Victoria owns a life annuity and elects to receive an- for a minimum of 120
nuity payments monthly for the remainder of her life months and a maximum
with "ten years certain". Her annuity will make pay- of the remainder of her life
ments
7. Which of the following statements regarding a life It is the distribution of ex-
insurance policy dividend is TRUE? cess of funds accumulated
, FInal Exam: California Life, Accident, and Health Insurance
Study online at https://quizlet.com/_7pf93u
by the insurer on partici-
pating policies.
8. An insured owned by its policyholders is called a mutual insurer
9. An insurer enters into a contract with a third party to Reinsurance
insure itself against losses from insurance policies it
issues. What is the agreement called?
10. What is reinsurance? An arrangement by which
an insurance company
transfers a portion of a risk
it has assumed to another
insurer
11. Which of the following is NOT a characteristic of rein- Increases the unearned
surance? premium reserve
12. Which of the following is a contract that involves one Insurance policy
party which indemnifies another when a loss arises
from an unknown event?
13. What is an insurance policy? A contract where one par-
ty promises to indemnify
another against loss that
arises from an unknown
event
14. What is residual disability income insurance payments The amount of the in-
based on? sured's income is reduced
by the disability
15. Manuel is considered to be a disabled person as de- Driving
fined by the Americans with Disabilities Act (ADA). As
, FInal Exam: California Life, Accident, and Health Insurance
Study online at https://quizlet.com/_7pf93u
such, he is unable to perform any of the following life
activities EXCEPT
16. Which of the following is NOT a provision in a disability Deductible and coinsur-
income policy? ance provision
17. Which of these statements is NOT true concerning The insurer continues cov-
recurrent disabilities? erage after a new elimina-
tion period
18. Kim is insured under a disability income insurance pol- totally disabled
icy 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
19. What percentage of eligible employees must partici- 100%
pate in a noncontributory group health plan before it
can be put in effect?
20. Business Overhead Expense Insurance pays for business expenses when a
business owner becomes
disabled
21. Minimum participation standards exist for group prevent adverse selection
health insurance plans in order to
22. The problem of overinsurance is addressed in which Coordination of benefits
health insurance provision?
23. What is the purpose of the coordination of benefits To avoid duplication of
(COB) provision? benefit payments and
overinsurance when an
individual is covered un-
Study online at https://quizlet.com/_7pf93u
1. What distinguishes a deferred annuity from an imme- The time at which benefit
diate annuity? payments start
2. Cindy buys a 10-year certain annuity with an install- 60 payments
ment refund. After receiving monthly payments for 5
years, Cindy dies. How many remaining payments will
the insurer make to her beneficiary?
3. What is a common reason people purchase an annu- To protect against the risk
ity? of outliving their financial
resources
4. What kind of annuity pays income to two annuitants Joint and survivor annuity
until their deaths?
5. What is a joint and survivor annuity? Provides payments the
annuity to two people. If
either person dies, the
same income payments
continue to the survivor
for life. When the surviv-
ing annuitant dies, no fur-
ther payments are made
to anyone.
6. Victoria owns a life annuity and elects to receive an- for a minimum of 120
nuity payments monthly for the remainder of her life months and a maximum
with "ten years certain". Her annuity will make pay- of the remainder of her life
ments
7. Which of the following statements regarding a life It is the distribution of ex-
insurance policy dividend is TRUE? cess of funds accumulated
, FInal Exam: California Life, Accident, and Health Insurance
Study online at https://quizlet.com/_7pf93u
by the insurer on partici-
pating policies.
8. An insured owned by its policyholders is called a mutual insurer
9. An insurer enters into a contract with a third party to Reinsurance
insure itself against losses from insurance policies it
issues. What is the agreement called?
10. What is reinsurance? An arrangement by which
an insurance company
transfers a portion of a risk
it has assumed to another
insurer
11. Which of the following is NOT a characteristic of rein- Increases the unearned
surance? premium reserve
12. Which of the following is a contract that involves one Insurance policy
party which indemnifies another when a loss arises
from an unknown event?
13. What is an insurance policy? A contract where one par-
ty promises to indemnify
another against loss that
arises from an unknown
event
14. What is residual disability income insurance payments The amount of the in-
based on? sured's income is reduced
by the disability
15. Manuel is considered to be a disabled person as de- Driving
fined by the Americans with Disabilities Act (ADA). As
, FInal Exam: California Life, Accident, and Health Insurance
Study online at https://quizlet.com/_7pf93u
such, he is unable to perform any of the following life
activities EXCEPT
16. Which of the following is NOT a provision in a disability Deductible and coinsur-
income policy? ance provision
17. Which of these statements is NOT true concerning The insurer continues cov-
recurrent disabilities? erage after a new elimina-
tion period
18. Kim is insured under a disability income insurance pol- totally disabled
icy 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
19. What percentage of eligible employees must partici- 100%
pate in a noncontributory group health plan before it
can be put in effect?
20. Business Overhead Expense Insurance pays for business expenses when a
business owner becomes
disabled
21. Minimum participation standards exist for group prevent adverse selection
health insurance plans in order to
22. The problem of overinsurance is addressed in which Coordination of benefits
health insurance provision?
23. What is the purpose of the coordination of benefits To avoid duplication of
(COB) provision? benefit payments and
overinsurance when an
individual is covered un-
