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