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California Life, Accident, & Health Insurance Questions and answers | Updated 2024/25
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California Life, Accident, & Health Insurance Questions and answers | Updated 2024/25
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California Life, Accident, & HealthInsurance Questions and answers |
Updated 2024/25
Premiums are Best described as - the amount an insured pays per unit of coverage
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Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly
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payments for 5 years, Cindy dies. How many remaining payments will the insurer make to
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her beneficiary? - 60 payments
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Who does a life settlement broker represent? - Individual wanting to sell their life policy to
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a third party
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How is the cost of employer-provided group life insurance with coverage amounts above
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$50,000 treated for tax purposes? - Taxable income to the employee
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II Which of the following is NOT considered to be insurer expenses? - Policy premiums
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Which of the following healthcare providers provides both the healthcare services and
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healthcare coverage? - Health Maintenance Organization (HMO)
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Which of the following describes a contributory group insurance plan? - Part of the
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premium is paid by the employee. A contributory group insurance plan is one which
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employees share the cost of the premiums with the employer.
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Which of the following is NOT a valid reason to replace an existing long-term care policy?
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- New policy has higher premium with fewer benefits
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An insured is protected from the expense of a catastrophic illness by which of the
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following health insurance provisions? - Stop-loss The Stop-loss provision states that
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after the insured has paid a specific amount toward a covered expense, the insurer will
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pay 100% of the remaining expenses.
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Which of the following does Medicare Part A NOT provide coverage for? - Doctor's
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services. Doctor's services are covered in Medicare Part B.
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If a material warranty violation on the part of the insured is found, what recourse does an
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insurer have? - Rescind the policy
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An annuitant would like to determine the amount of an annuity distribution that is exempt
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from taxation. What is used to calculate this? - Exclusion ratio. Annuity benefit payments
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are a combination of principle and interest. A formula called the exclusion ratio is used to
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determine the amount of annual annuity income that is exempt from federal income taxes.
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, People with low income can be provided with medical assistance through which
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program? - Medi-Cal
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A spendthrift clause in a life insurance policy - Restricts the ability of the beneficiary to
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assign benefits.
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A spendthrift clause prevent a beneficiary from recklessly spending benefits.
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A life insurance policy can be surrendered for its cash value under which policy provision?
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- Nonforfeiture options
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II ESOPs (employee stock ownership plan) are typically invested in - employer stock
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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. If the annuitant dies,
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the designated beneficiary would receive any monthly payments for the remainder of the
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certain period-in this case 10 years.
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Kim is insured under a disability income insurance policy with an "own-occupation"
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clause. She was recently injured in an automobile accident and can no longer perform the
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tasks of her job. Kim is now considered to be - Totally disabled
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The own occupation definition of total disability requires that the insured be unable to
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perform the insured's current occupation as a result of an accident or sickness.
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What portion does an insured pay for covered expenses under Medicare Part B after the
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deductible? - 20% After the deductible, a patient pays 20% of covered expenses under
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Medicare Part B
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The misstatement of age provision in a health policy states that is an insured gives the
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wrong age at the time of application, what action can the insurance company take? -
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Benefits can be adjusted
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Who would be most likely to submit a Medicare Part A claim? - Hospital A health care
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provider would be responsible for filing the claim
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Which of the following is NOT a characteristic of reinsurance? - Increases the unearned
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premium reserve
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Pete is a life agent who has misappropriated fiduciary funds to his own use. What is Pete
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guilty of? - Theft
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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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