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Final Exam: California Life, Accident, and Health Insurance 2024/2025 already graded A+
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Final Exam: California Life, Accident, and Health Insurance 2024/2025 already graded A+
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FInal Exam: California Life, Accident, andHealth Insurance
What distinguishes a deferred annuity from an immediate annuity? - ANSThe 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? - ANS60 payments
What is a common reason people purchase an annuity? - ANSTo protect against the risk of
outliving their financial resources
What kind of annuity pays income to two annuitants until their deaths? - ANSJoint and survivor
annuity
What is a joint and survivor annuity? - ANSProvides 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 - ANSfor 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? - ANSIt is
the distribution of excess of funds accumulated by the insurer on participating policies.
An insured owned by its policyholders is called a - ANSmutual 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? - ANSReinsurance
What is reinsurance? - ANSAn 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? - ANSIncreases 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? - ANSInsurance policy
, What is an insurance policy? - ANSA 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? - ANSThe 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 - ANSDriving
Which of the following is NOT a provision in a disability income policy? - ANSDeductible and
coinsurance provision
Which of these statements is NOT true concerning recurrent disabilities? - ANSThe 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 - ANStotally disabled
What percentage of eligible employees must participate in a noncontributory group health plan
before it can be put in effect? - ANS100%
Business Overhead Expense Insurance pays for - ANSbusiness expenses when a business
owner becomes disabled
Minimum participation standards exist for group health insurance plans in order to - ANSprevent
adverse selection
The problem of overinsurance is addressed in which health insurance provision? -
ANSCoordination of benefits
What is the purpose of the coordination of benefits (COB) provision? - ANSTo 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? -
ANSInsurer
The insurer has the option of terminating a health insurance policy on a date stated in the
contract. What type of policy is this? - ANSOptionally renewable
What is an optionally renewable policy? - ANSA provision allowing an insurer to terminate the
policy on a date specified in the contract
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