CALIFORNIA LIFE/ ACCIDENT / HEALTH COURSE FINAL EXAM
2025/2026 BANK ACTUAL 200 QUESTIONS WITH DETAILED
ANSWERS WITH STUDY GUIDE EXPERT /ALREADY GRADED A+
VERIFIED FOR GUARANTEED PASS!!!.
CALIFORNIA LIFE, ACCIDENT AND HEALTH
What distinguishes a deferred annuity from an immediate annuity? - - ANS - -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? - - ANS - -60 payments
What is a common reason people purchase an annuity? - - ANS - -To protect against
the risk of outliving their financial resources
What kind of annuity pays income to two annuitants until their deaths? - - ANS - -
Joint and survivor annuity
What is a joint and survivor annuity? - - ANS - -Provides payments the annuity to two
people. If either person dies, the same income payments continue to the survivor for
life. When the surviving annuitant dies, no further payments are made to anyone.
,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 - -
ANS - -for a minimum of 120 months and a maximum of the remainder of her life
Which of the following statements regarding a life insurance policy dividend is TRUE?
- - ANS - -It is the distribution of excess of funds accumulated by the insurer on
participating policies.
An insured owned by its policyholders is called a - - ANS - -mutual insurer
An insurer enters into a contract with a third party to insure itself against losses from
insurance policies it issues. What is the agreement called? - - ANS - -Reinsurance
What is reinsurance? - - ANS - -An arrangement by which an insurance company
transfers a portion of a risk it has assumed to another insurer
Which of the following is NOT a characteristic of reinsurance? - - ANS - -Increases
the unearned premium reserve
Which of the following is a contract that involves one party which indemnifies another
when a loss arises from an unknown event? - - ANS - -Insurance policy
What is an insurance policy? - - ANS - -A contract where one party promises to
indemnify another against loss that arises from an unknown event
,What is residual disability income insurance payments based on? - - ANS - -The
amount of the insured's income is reduced by the disability
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 - - ANS - -Driving
Which of the following is NOT a provision in a disability income policy? - - ANS - -
Deductible and coinsurance provision
Which of these statements is NOT true concerning recurrent disabilities? - - ANS - -
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 - - ANS - -totally disabled
What percentage of eligible employees must participate in a noncontributory group
health plan before it can be put in effect? - - ANS - -100%
Business Overhead Expense Insurance pays for - - ANS - -business expenses when a
business owner becomes disabled
Minimum participation standards exist for group health insurance plans in order to -
- ANS - -prevent adverse selection
, The problem of overinsurance is addressed in which health insurance provision? - -
ANS - -Coordination of benefits
What is the purpose of the coordination of benefits (COB) provision? - - ANS - -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? - - ANS - -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? - - ANS - -Optionally renewable
What is an optionally renewable policy? - - ANS - -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? - - ANS - -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? - - ANS - -Nothing
What type of health insurance policy cannot be canceled by the insurer nor increase
the premiums? - - ANS - -Noncancellable
2025/2026 BANK ACTUAL 200 QUESTIONS WITH DETAILED
ANSWERS WITH STUDY GUIDE EXPERT /ALREADY GRADED A+
VERIFIED FOR GUARANTEED PASS!!!.
CALIFORNIA LIFE, ACCIDENT AND HEALTH
What distinguishes a deferred annuity from an immediate annuity? - - ANS - -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? - - ANS - -60 payments
What is a common reason people purchase an annuity? - - ANS - -To protect against
the risk of outliving their financial resources
What kind of annuity pays income to two annuitants until their deaths? - - ANS - -
Joint and survivor annuity
What is a joint and survivor annuity? - - ANS - -Provides payments the annuity to two
people. If either person dies, the same income payments continue to the survivor for
life. When the surviving annuitant dies, no further payments are made to anyone.
,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 - -
ANS - -for a minimum of 120 months and a maximum of the remainder of her life
Which of the following statements regarding a life insurance policy dividend is TRUE?
- - ANS - -It is the distribution of excess of funds accumulated by the insurer on
participating policies.
An insured owned by its policyholders is called a - - ANS - -mutual insurer
An insurer enters into a contract with a third party to insure itself against losses from
insurance policies it issues. What is the agreement called? - - ANS - -Reinsurance
What is reinsurance? - - ANS - -An arrangement by which an insurance company
transfers a portion of a risk it has assumed to another insurer
Which of the following is NOT a characteristic of reinsurance? - - ANS - -Increases
the unearned premium reserve
Which of the following is a contract that involves one party which indemnifies another
when a loss arises from an unknown event? - - ANS - -Insurance policy
What is an insurance policy? - - ANS - -A contract where one party promises to
indemnify another against loss that arises from an unknown event
,What is residual disability income insurance payments based on? - - ANS - -The
amount of the insured's income is reduced by the disability
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 - - ANS - -Driving
Which of the following is NOT a provision in a disability income policy? - - ANS - -
Deductible and coinsurance provision
Which of these statements is NOT true concerning recurrent disabilities? - - ANS - -
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 - - ANS - -totally disabled
What percentage of eligible employees must participate in a noncontributory group
health plan before it can be put in effect? - - ANS - -100%
Business Overhead Expense Insurance pays for - - ANS - -business expenses when a
business owner becomes disabled
Minimum participation standards exist for group health insurance plans in order to -
- ANS - -prevent adverse selection
, The problem of overinsurance is addressed in which health insurance provision? - -
ANS - -Coordination of benefits
What is the purpose of the coordination of benefits (COB) provision? - - ANS - -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? - - ANS - -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? - - ANS - -Optionally renewable
What is an optionally renewable policy? - - ANS - -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? - - ANS - -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? - - ANS - -Nothing
What type of health insurance policy cannot be canceled by the insurer nor increase
the premiums? - - ANS - -Noncancellable
