CALIFORNIA LIFE ACCIDENT AND
HEALTH STATE EXAMINATION STUDY
GUIDE 2026 COMPLETE QUESTIONS WITH
GUARANTEED CORRECT ANSWERS
GRADED A+
⩥ 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? Answer:
60 payments
⩥ A savings vehicle designed to first accumulate funds and then
systematically liquidates the funds is called Answer: Deferred annuity
⩥ Which of the following is not a feature of equity-indexed annuities?
Answer: Offers maximum interest rate that increased annually
⩥ An annuity which is backed by a life insurer's separate account is
called a(n) Answer: variable annuity
⩥ 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 matches this description? Answer: Variable annuity
,⩥ The systematic liquidation of a sum of money is provided by a(n)
Answer: annuity
⩥ Which of the following statements regarding a life insurance policy
dividend is TRUE? Answer: It is the distribution of excess of funds
accumulated by the insurer on participating policies
⩥ An insurer enters into a contract with a third party to insure itself
against losses from insurance policies it issues. What is this agreement
called? Answer: Reinsurance
⩥ AAA insurance Company has transferred a portion of its loss exposure
to BBB Insurance company. In this reinsurance transaction, what is AAA
Insurance Company called? Answer: Primary Insurer
⩥ When a mutual insurer becomes stock company, the process is called?
Answer: Demutualization
⩥ Which of the following is NOT a benefit of insurance? Answer:
Losses due to fraud are eliminated
⩥ A participating company is also referred to as which type of insurer?
Answer: Mutual insurer
,⩥ 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 Answer: Driving
⩥ What are the residual disability income insurance payments based on?
Answer: The amount of the insured's income is reduced by the disability
⩥ Which of these statements is NOT true concerning recurrent
disabilities? Answer: The insurer continues coverage after a new
elimination period
⩥ 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? Answer: 5,000
⩥ Which of the following is NOT a provision in a disability income
policy? Answer: Deductible and coinsurance provision
⩥ The elimination period in disability income policy serves the same
purpose as Answer: A deductible
⩥ Dyan is considered partially disabled by her insurance company.
Which of the following BEST describes her situation? Answer: She is
working part-time and receiving lost income under her long-term
disability benefit
, ⩥ Who is financially liable for the payment of covered claims in a fully
insured group health plan? Answer: Insurer
⩥ In regards to a group health insurance plan, which statement is
CORRECT? Answer: A non-contributory group health plan must cover
all eligible memebers
⩥ When a claimant has coverage under more than one health plan,
which group medical plan provision applies? Answer: Coordination of
benefits
⩥ Coverage is limited for vision and dental insurance in all of the
following ways EXCEPT Answer: Specific dollar amount for
examinations
⩥ An eligible individual who would like to obtain group health
insurance without providing evidence of insurability must Answer:
Enroll within a specified eligibility period
⩥ Buy-sell plans are typically funded by which two types of insurance?
Answer: Life insurance and disability insurance
⩥ Which of the following is NOT typically covered under vision care
insurance? Answer: Eye Surgery
HEALTH STATE EXAMINATION STUDY
GUIDE 2026 COMPLETE QUESTIONS WITH
GUARANTEED CORRECT ANSWERS
GRADED A+
⩥ 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? Answer:
60 payments
⩥ A savings vehicle designed to first accumulate funds and then
systematically liquidates the funds is called Answer: Deferred annuity
⩥ Which of the following is not a feature of equity-indexed annuities?
Answer: Offers maximum interest rate that increased annually
⩥ An annuity which is backed by a life insurer's separate account is
called a(n) Answer: variable annuity
⩥ 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 matches this description? Answer: Variable annuity
,⩥ The systematic liquidation of a sum of money is provided by a(n)
Answer: annuity
⩥ Which of the following statements regarding a life insurance policy
dividend is TRUE? Answer: It is the distribution of excess of funds
accumulated by the insurer on participating policies
⩥ An insurer enters into a contract with a third party to insure itself
against losses from insurance policies it issues. What is this agreement
called? Answer: Reinsurance
⩥ AAA insurance Company has transferred a portion of its loss exposure
to BBB Insurance company. In this reinsurance transaction, what is AAA
Insurance Company called? Answer: Primary Insurer
⩥ When a mutual insurer becomes stock company, the process is called?
Answer: Demutualization
⩥ Which of the following is NOT a benefit of insurance? Answer:
Losses due to fraud are eliminated
⩥ A participating company is also referred to as which type of insurer?
Answer: Mutual insurer
,⩥ 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 Answer: Driving
⩥ What are the residual disability income insurance payments based on?
Answer: The amount of the insured's income is reduced by the disability
⩥ Which of these statements is NOT true concerning recurrent
disabilities? Answer: The insurer continues coverage after a new
elimination period
⩥ 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? Answer: 5,000
⩥ Which of the following is NOT a provision in a disability income
policy? Answer: Deductible and coinsurance provision
⩥ The elimination period in disability income policy serves the same
purpose as Answer: A deductible
⩥ Dyan is considered partially disabled by her insurance company.
Which of the following BEST describes her situation? Answer: She is
working part-time and receiving lost income under her long-term
disability benefit
, ⩥ Who is financially liable for the payment of covered claims in a fully
insured group health plan? Answer: Insurer
⩥ In regards to a group health insurance plan, which statement is
CORRECT? Answer: A non-contributory group health plan must cover
all eligible memebers
⩥ When a claimant has coverage under more than one health plan,
which group medical plan provision applies? Answer: Coordination of
benefits
⩥ Coverage is limited for vision and dental insurance in all of the
following ways EXCEPT Answer: Specific dollar amount for
examinations
⩥ An eligible individual who would like to obtain group health
insurance without providing evidence of insurability must Answer:
Enroll within a specified eligibility period
⩥ Buy-sell plans are typically funded by which two types of insurance?
Answer: Life insurance and disability insurance
⩥ Which of the following is NOT typically covered under vision care
insurance? Answer: Eye Surgery
