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FInal Exam: California Life, Accident, and Health Insurance Exam Questions and Answers
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FInal Exam: California Life, Accident, and Health Insurance Exam Questions and Answers
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FInal Exam: California Life, Accident, andHealth Insurance Exam Questions and
Answers
What distinguishes a deferred annuity from an immediate annuity? - -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? - -60 payments
-What is a common reason people purchase an annuity? - -To protect
against the risk of outliving their financial resources
-What kind of annuity pays income to two annuitants until their deaths? - -
Joint and survivor annuity
-What is a joint and survivor annuity? - -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 - -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? - -It is the distribution of excess of funds accumulated by the
insurer on participating policies.
-An insured owned by its policyholders is called a - -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? - -
Reinsurance
-What is reinsurance? - -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? - -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? - -Insurance
policy
-What is an insurance policy? - -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? - -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 - -Driving
-Which of the following is NOT a provision in a disability income policy? - -
Deductible and coinsurance provision
-Which of these statements is NOT true concerning recurrent disabilities? - -
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 - -
totally disabled
-What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect? - -100%
-Business Overhead Expense Insurance pays for - -business expenses when
a business owner becomes disabled
-Minimum participation standards exist for group health insurance plans in
order to - -prevent adverse selection
-The problem of overinsurance is addressed in which health insurance
provision? - -Coordination of benefits
-What is the purpose of the coordination of benefits (COB) provision? - -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? - -Insurer
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