1 Exampromax - Stuvia US
Final Exam: California Life, Accident, and
Health Insurance Questions and Answers 100%
Correct Answers Already Graded A+
Q: The systematic liquidation of a sum of money is provided by a(n)
Ans: annuity
Q: An annuitant would like to determine the current value of her annuity.
To do this, she multiplies the number of "accumulation units" she owns
times the unit value of the "separate account". What kind of annuity BEST
Exampromax - Stuvia US
matches this description?
Ans: Variable annuity
Q: What kind of annuity pays income to two annuitants until their deaths?
Ans: Joint and survivor annuity
Q: What distinguishes a deferred annuity from an immediate annuity?
Ans: The time at which benefit payments start
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: When a mutual insurer becomes a stock company, the process is called
Ans: Demutualization
Q: An insurer owned by its policyholders is called a
Ans: mutual insurer
, 2 Exampromax - Stuvia US
Q: 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
Q: A participating company is also referred to as which type of insurer?
Ans: Mutual insurer
Q: Which of the following is NOT a benefit of insurance?
Ans: Losses due to fraud are eliminated
Q: Which of the following is NOT a provision in a disability income
policy?
Exampromax - Stuvia US
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: Allen has a disability income policy with a $2,500 monthly benefit and a
30-day elimination period. He is unable to work 90 days following an
automobile accident. What will the policy pay?
Ans: $5,000
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
Q: Under a disability income policy, which criteria must be met for "bodily
injury" to be classified as accidental?
Ans: The cause may be intentional, but the result must be accidental
, 3 Exampromax - Stuvia US
Q: During the underwriting process for a group health policy, it was
discovered that 15 out of 50 members of the group have major health issues.
How would the insurer handle this?
Ans: Accept or reject the whole group
Q: Coverage is limited for vision and dental insurance in all of the
following ways, EXCEPT
Ans: Specific dollar amount for examinations
Q: An eligible individual who would like to obtain group health insurance
without providing evidence of insurability must
Ans: enroll within a specified eligibility period
Exampromax - Stuvia US
Q: In regards to a group health insurance plan, which statement is
CORRECT?
Ans: A non-contributory group health plan must cover all eligible members
Q: The problem of overinsurance is addressed in which health insurance
provision?
Ans: Coordination of benefits
Q: A health insurance policy paid on a quarterly basis has a grace period of
Ans: 31 days
Q: Under a noncancellable health insurance policy, an insurer can
Ans: cancel the policy for nonpayment of premium
Q: The conditions, times, and circumstances under which an insured is
NOT covered by a health policy are called?
Ans: exclusions
Q: In what situation does a waiver of premium provision keep a health
insurance policy in force without premium payments?
Final Exam: California Life, Accident, and
Health Insurance Questions and Answers 100%
Correct Answers Already Graded A+
Q: The systematic liquidation of a sum of money is provided by a(n)
Ans: annuity
Q: An annuitant would like to determine the current value of her annuity.
To do this, she multiplies the number of "accumulation units" she owns
times the unit value of the "separate account". What kind of annuity BEST
Exampromax - Stuvia US
matches this description?
Ans: Variable annuity
Q: What kind of annuity pays income to two annuitants until their deaths?
Ans: Joint and survivor annuity
Q: What distinguishes a deferred annuity from an immediate annuity?
Ans: The time at which benefit payments start
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: When a mutual insurer becomes a stock company, the process is called
Ans: Demutualization
Q: An insurer owned by its policyholders is called a
Ans: mutual insurer
, 2 Exampromax - Stuvia US
Q: 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
Q: A participating company is also referred to as which type of insurer?
Ans: Mutual insurer
Q: Which of the following is NOT a benefit of insurance?
Ans: Losses due to fraud are eliminated
Q: Which of the following is NOT a provision in a disability income
policy?
Exampromax - Stuvia US
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: Allen has a disability income policy with a $2,500 monthly benefit and a
30-day elimination period. He is unable to work 90 days following an
automobile accident. What will the policy pay?
Ans: $5,000
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
Q: Under a disability income policy, which criteria must be met for "bodily
injury" to be classified as accidental?
Ans: The cause may be intentional, but the result must be accidental
, 3 Exampromax - Stuvia US
Q: During the underwriting process for a group health policy, it was
discovered that 15 out of 50 members of the group have major health issues.
How would the insurer handle this?
Ans: Accept or reject the whole group
Q: Coverage is limited for vision and dental insurance in all of the
following ways, EXCEPT
Ans: Specific dollar amount for examinations
Q: An eligible individual who would like to obtain group health insurance
without providing evidence of insurability must
Ans: enroll within a specified eligibility period
Exampromax - Stuvia US
Q: In regards to a group health insurance plan, which statement is
CORRECT?
Ans: A non-contributory group health plan must cover all eligible members
Q: The problem of overinsurance is addressed in which health insurance
provision?
Ans: Coordination of benefits
Q: A health insurance policy paid on a quarterly basis has a grace period of
Ans: 31 days
Q: Under a noncancellable health insurance policy, an insurer can
Ans: cancel the policy for nonpayment of premium
Q: The conditions, times, and circumstances under which an insured is
NOT covered by a health policy are called?
Ans: exclusions
Q: In what situation does a waiver of premium provision keep a health
insurance policy in force without premium payments?
