Exam (elaborations)
California Life, Accident, and Health Insurance Final Exam 2024/25
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California Life, Accident, and Health Insurance Final Exam 2024/25
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California Life, Accident, and HealthInsurance Final Exam 2024/25
The systematic liquidation of a sum of money is provided by a(n) - annuity
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An annuitant would like to determine the current value of her annuity. To do this, she
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multiplies the number of "accumulation units" she owns times the unit value of the
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"separate account". What kind of annuity BEST matches this description? - Variable
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annuity
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What kind of annuity pays income to two annuitants until their deaths? - Joint and survivor
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annuity
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What distinguishes a deferred annuity from an immediate annuity? - The time at which
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benefit payments start
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Victoria owns a life annuity and elects to receive annuity payments monthly for the
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remainder of her life with "ten years certain". Her annuity will make payments - for a
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minimum of 120 months and a maximum of the remainder of her life
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When a mutual insurer becomes a stock company, the process is called -
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Demutualization
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ii An insurer owned by its policyholders is called a - mutual insurer
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Which of the following statements regarding a life insurance policy dividend is TRUE? - It
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is the distribution of excess of funds accumulated by the insurer on participating policies
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ii A participating company is also referred to as which type of insurer? - Mutual insurer
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ii Which of the following is NOT a benefit of insurance? - Losses due to fraud are eliminated
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Which of the following is NOT a provision in a disability income policy? - Deductible and
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coinsurance provision
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Which of these statements is NOT true concerning recurrent disabilities? - The insurer
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continues coverage after a new elimination period
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Allen has a disability income policy with a $2,500 monthly benefit and a 30-day elimination
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period. He is unable to work 90 days following an automobile accident. What will the policy
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pay? - $5,000
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, Manuel is considered to be a disabled person as defined by the Americans with Disabilities
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Act (ADA). As such, he is unable to perform any of the following life activities EXCEPT -
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Driving
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Under a disability income policy, which criteria must be met for "bodily injury" to be
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classified as accidental? - The cause may be intentional, but the result must be accidental
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During the underwriting process for a group health policy, it was discovered that 15 out of
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50 members of the group have major health issues. How would the insurer handle this? -
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Accept or reject the whole group
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Coverage is limited for vision and dental insurance in all of the following ways, EXCEPT -
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Specific dollar amount for examinations
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An eligible individual who would like to obtain group health insurance without providing
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evidence of insurability must - enroll within a specified eligibility period
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In regards to a group health insurance plan, which statement is CORRECT? - A non-
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contributory group health plan must cover all eligible members ii ii ii ii ii ii ii ii
The problem of overinsurance is addressed in which health insurance provision? -
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Coordination of benefits
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ii A health insurance policy paid on a quarterly basis has a grace period of - 31 days
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Under a noncancellable health insurance policy, an insurer can - cancel the policy for
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nonpayment of premium
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The conditions, times, and circumstances under which an insured is NOT covered by a
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health policy are called? - exclusions
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In what situation does a waiver of premium provision keep a health insurance policy in
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force without premium payments? - When an insured becomes totally disabled
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Christine has a health insurance policy that has been in force beyond the incontestable
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period. The insurer has discovered that a fraudulent statement was made on the
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application. What would the insurer have to pay on a claim, assuming this wasn't a
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guaranteed renewable policy? - Nothing
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Under a health insurance policy, the provision that states the kind of benefits provided and
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the circumstances under which they will be paid is called the? - insuring clause
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Which of the following factors is NOT used in underwriting health insurance policies? -
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Intelligence
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