1 Exampromax - Stuvia US
FInal Exam: California Life, Accident, and
Health Insurance Questions and Answers 100%
Correct Answers Already Graded A+
Q: What distinguishes a deferred annuity from an immediate annuity?
Ans: The time at which benefit payments start
Q: 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?
Exampromax - Stuvia US
Ans: 60 payments
Q: What is a common reason people purchase an annuity?
Ans: To protect against the risk of outliving their financial resources
Q: What kind of annuity pays income to two annuitants until their deaths?
Ans: Joint and survivor annuity
Q: 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.
Q: 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
Q: Which of the following statements regarding a life insurance policy
dividend is TRUE?
, 2 Exampromax - Stuvia US
Ans: It is the distribution of excess of funds accumulated by the insurer on
participating policies.
Q: An insured owned by its policyholders is called a
Ans: mutual insurer
Q: 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
Q: What is reinsurance?
Ans: An arrangement by which an insurance company transfers a portion of a
Exampromax - Stuvia US
risk it has assumed to another insurer
Q: Which of the following is NOT a characteristic of reinsurance?
Ans: Increases the unearned premium reserve
Q: 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
Q: What is an insurance policy?
Ans: A contract where one party promises to indemnify another against loss that
arises from an unknown event
Q: What is residual disability income insurance payments based on?
Ans: The amount of the insured's income is reduced by the disability
Q: 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
, 3 Exampromax - Stuvia US
Q: Which of the following is NOT a provision in a disability income
policy?
Ans: Deductible and coinsurance provision
Q: Which of these statements is NOT true concerning recurrent disabilities?
Ans: The insurer continues coverage after a new elimination period
Q: 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
Q: What percentage of eligible employees must participate in a
Exampromax - Stuvia US
noncontributory group health plan before it can be put in effect?
Ans: 100%
Q: Business Overhead Expense Insurance pays for
Ans: business expenses when a business owner becomes disabled
Q: Minimum participation standards exist for group health insurance plans
in order to
Ans: prevent adverse selection
Q: The problem of overinsurance is addressed in which health insurance
provision?
Ans: Coordination of benefits
Q: 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
Q: Who is financially liable for the payment of covered claims in a fully
insured group health plan?
FInal Exam: California Life, Accident, and
Health Insurance Questions and Answers 100%
Correct Answers Already Graded A+
Q: What distinguishes a deferred annuity from an immediate annuity?
Ans: The time at which benefit payments start
Q: 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?
Exampromax - Stuvia US
Ans: 60 payments
Q: What is a common reason people purchase an annuity?
Ans: To protect against the risk of outliving their financial resources
Q: What kind of annuity pays income to two annuitants until their deaths?
Ans: Joint and survivor annuity
Q: 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.
Q: 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
Q: Which of the following statements regarding a life insurance policy
dividend is TRUE?
, 2 Exampromax - Stuvia US
Ans: It is the distribution of excess of funds accumulated by the insurer on
participating policies.
Q: An insured owned by its policyholders is called a
Ans: mutual insurer
Q: 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
Q: What is reinsurance?
Ans: An arrangement by which an insurance company transfers a portion of a
Exampromax - Stuvia US
risk it has assumed to another insurer
Q: Which of the following is NOT a characteristic of reinsurance?
Ans: Increases the unearned premium reserve
Q: 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
Q: What is an insurance policy?
Ans: A contract where one party promises to indemnify another against loss that
arises from an unknown event
Q: What is residual disability income insurance payments based on?
Ans: The amount of the insured's income is reduced by the disability
Q: 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
, 3 Exampromax - Stuvia US
Q: Which of the following is NOT a provision in a disability income
policy?
Ans: Deductible and coinsurance provision
Q: Which of these statements is NOT true concerning recurrent disabilities?
Ans: The insurer continues coverage after a new elimination period
Q: 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
Q: What percentage of eligible employees must participate in a
Exampromax - Stuvia US
noncontributory group health plan before it can be put in effect?
Ans: 100%
Q: Business Overhead Expense Insurance pays for
Ans: business expenses when a business owner becomes disabled
Q: Minimum participation standards exist for group health insurance plans
in order to
Ans: prevent adverse selection
Q: The problem of overinsurance is addressed in which health insurance
provision?
Ans: Coordination of benefits
Q: 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
Q: Who is financially liable for the payment of covered claims in a fully
insured group health plan?
