FInal Exam: California Life, Accident, and Health Insurance
1. The time at which benefit payments start: What distinguishes a deferred an-
nuity from an immediate annuity?
2. 60 payments: 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?
3. To protect against the risk of outliving their financial resources: What is a
common reason people purchase an annuity?
4. Joint and survivor annuity: What kind of annuity pays income to two annuitants
until their deaths?
5. 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.: What is a joint and
survivor annuity?
6. for a minimum of 120 months and a maximum of the remainder of her
life: 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
7. It is the distribution of excess of funds accumulated by the insurer on
participating policies.: Which of the following statements regarding a life insurance
policy dividend is TRUE?
8. mutual insurer: An insured owned by its policyholders is called a
9. Reinsurance: 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?
10. An arrangement by which an insurance company transfers a portion of a
risk it has assumed to another insurer: What is reinsurance?
11. Increases the unearned premium reserve: Which of the following is NOT a
characteristic of reinsurance?
12. Insurance policy: Which of the following is a contract that involves one party
which indemnifies another when a loss arises from an unknown event?
13. A contract where one party promises to indemnify another against loss
that arises from an unknown event: What is an insurance policy?
14. The amount of the insured's income is reduced by the disability: What is
residual disability income insurance payments based on?
15. Driving: Manuel is considered to be a disabled person as defined by the Ameri-
cans with Disabilities Act (ADA). As such, he is unable to perform any of the following
life activities EXCEPT
16. Deductible and coinsurance provision: Which of the following is NOT a pro-
vision in a disability income policy?
17. The insurer continues coverage after a new elimination period: Which of
these statements is NOT true concerning recurrent disabilities?
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, FInal Exam: California Life, Accident, and Health Insurance
18. totally disabled: 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
19. 100%: What percentage of eligible employees must participate in a noncontrib-
utory group health plan before it can be put in effect?
20. business expenses when a business owner becomes disabled: Business
Overhead Expense Insurance pays for
21. prevent adverse selection: Minimum participation standards exist for group
health insurance plans in order to
22. Coordination of benefits: The problem of overinsurance is addressed in which
health insurance provision?
23. To avoid duplication of benefit payments and overinsurance when an
individual is covered under more than one group health plan: What is the
purpose of the coordination of benefits (COB) provision?
24. Insurer: Who is financially liable for the payment of covered claims in a fully
insured group health plan?
25. Optionally renewable: The insurer has the option of terminating a health insur-
ance policy on a date stated in the contract. What type of policy is this?
26. A provision allowing an insurer to terminate the policy on a date specified
in the contract: What is an optionally renewable policy?
27. Waiver of premium provision: 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?
28. Nothing: 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?
29. Noncancellable: What type of health insurance policy cannot be canceled by
the insurer nor increase the premiums?
30. exclusions: The conditions, times, and circumstances under which an insured
is NOT covered by a health policy are called?
31. Specified hazards listed in a policy for which benefits will not be paid: What
are exclusions in a health policy?
32. insuring clause: Under a health insurance policy, the provision that states the
kind of benefits provided and the circumstances under which they will be paid is
called the?
33. Under a health insurance policy, the provision that states the kind of
benefits provided and the circumstances under which they will be paid: What
does an insuring clause state?
2/9
1. The time at which benefit payments start: What distinguishes a deferred an-
nuity from an immediate annuity?
2. 60 payments: 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?
3. To protect against the risk of outliving their financial resources: What is a
common reason people purchase an annuity?
4. Joint and survivor annuity: What kind of annuity pays income to two annuitants
until their deaths?
5. 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.: What is a joint and
survivor annuity?
6. for a minimum of 120 months and a maximum of the remainder of her
life: 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
7. It is the distribution of excess of funds accumulated by the insurer on
participating policies.: Which of the following statements regarding a life insurance
policy dividend is TRUE?
8. mutual insurer: An insured owned by its policyholders is called a
9. Reinsurance: 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?
10. An arrangement by which an insurance company transfers a portion of a
risk it has assumed to another insurer: What is reinsurance?
11. Increases the unearned premium reserve: Which of the following is NOT a
characteristic of reinsurance?
12. Insurance policy: Which of the following is a contract that involves one party
which indemnifies another when a loss arises from an unknown event?
13. A contract where one party promises to indemnify another against loss
that arises from an unknown event: What is an insurance policy?
14. The amount of the insured's income is reduced by the disability: What is
residual disability income insurance payments based on?
15. Driving: Manuel is considered to be a disabled person as defined by the Ameri-
cans with Disabilities Act (ADA). As such, he is unable to perform any of the following
life activities EXCEPT
16. Deductible and coinsurance provision: Which of the following is NOT a pro-
vision in a disability income policy?
17. The insurer continues coverage after a new elimination period: Which of
these statements is NOT true concerning recurrent disabilities?
1/9
, FInal Exam: California Life, Accident, and Health Insurance
18. totally disabled: 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
19. 100%: What percentage of eligible employees must participate in a noncontrib-
utory group health plan before it can be put in effect?
20. business expenses when a business owner becomes disabled: Business
Overhead Expense Insurance pays for
21. prevent adverse selection: Minimum participation standards exist for group
health insurance plans in order to
22. Coordination of benefits: The problem of overinsurance is addressed in which
health insurance provision?
23. To avoid duplication of benefit payments and overinsurance when an
individual is covered under more than one group health plan: What is the
purpose of the coordination of benefits (COB) provision?
24. Insurer: Who is financially liable for the payment of covered claims in a fully
insured group health plan?
25. Optionally renewable: The insurer has the option of terminating a health insur-
ance policy on a date stated in the contract. What type of policy is this?
26. A provision allowing an insurer to terminate the policy on a date specified
in the contract: What is an optionally renewable policy?
27. Waiver of premium provision: 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?
28. Nothing: 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?
29. Noncancellable: What type of health insurance policy cannot be canceled by
the insurer nor increase the premiums?
30. exclusions: The conditions, times, and circumstances under which an insured
is NOT covered by a health policy are called?
31. Specified hazards listed in a policy for which benefits will not be paid: What
are exclusions in a health policy?
32. insuring clause: Under a health insurance policy, the provision that states the
kind of benefits provided and the circumstances under which they will be paid is
called the?
33. Under a health insurance policy, the provision that states the kind of
benefits provided and the circumstances under which they will be paid: What
does an insuring clause state?
2/9
