FINAL EXAM: CALIFORNIA LIFE, ACCIDENT, AND HEALTH

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FINAL EXAM: CALIFORNIA LIFE, ACCIDENT, AND HEALTH

INSURANCE

Qs and Ans - Expert- Explanation - ing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: What percentage of eligible employees must participate in a noncontributory group health plan before it can be put in effect?

Answer:

Question 2: Which of the following is a situation where there is a possibility of either a loss or a gain?

Answer:

Speculative risk Question 3: Which of these statements is NOT true concerning recurrent disabilities?

Answer:

The insurer continues coverage after a new elimination period Question 4: Scott has just purchased a new house. He is now shopping for a life insurance policy that provides a death benefit that matches the projected outstanding debt of his mortgage. Which life policy would best suit his needs?

Answer:

Mortgage redemption

Question 5: A life insurance policy that pays the face amount if the insured survives to a specified period of time is called

Answer:

endowment insurance

Question 6: What distinguishes a deferred annuity from an immediate annuity?

Answer:

The time at which benefit payments start

Question 7: Which statement is CORRECT when describing a contract of adhesion?

Answer:

Contract may be accepted or rejected by the insured Question 8: Which of the following types of information is NOT required for a life insurance application?

Answer:

Ethnicity Question 9: Which of the following is NOT a provision in a disability income policy?

Answer:

Deductible and coinsurance provision Question 10: Wat is considered the most common type of specified disease insurance policy?

Answer:

Cancer Question 11: When an applicant applies for insurance, the process by which he insurer determines whether to issue a policy is called

Answer:

underwriting

Question 12: A spendthrift clause in a life insurance policy

Answer:

restricts the ability of the beneficiary to sign benefits

Question 13: Which of the following refers to a condition that may increase the chance of a loss?

Answer:

Hazard Question 14: Which of the following does a policyowner NOT have a right to change?

Answer:

Dividend schedule Question 15: What is the purpose of the coordination of benefits (COB) provision?

Answer:

To avoid duplication of benefit payments and overinsurance when an individual is covered under more than one group health plan Question 16: What must an applicant do in order to authorize the release of an attending physician report?

Answer:

Sign a consent form Question 17: What type of coverage pays a benefit for part-time nursing care that can be provided in a patient's home?

Answer:

Home health care Question 18: Medical expense policies will typically cover which of the following?

Answer:

Injuries caused by accidents Question 19: What kind of annuity pays income to two annuitants until their deaths?

Answer:

Joint and survivor annuity

Question 20: How does rising morbidity rates affect health insurance?

Answer:

Increased premiums

Question 21: Which of the following is NOT an insurer policy expense?

Answer:

Premiums

Question 22: Which of these statements correctly describes risk?

Answer:

Pure risk is the only insurable risk

Question 23: What is a joint life policy?

Answer:

It covers two or more people and pays the face amount at the first insured's death Question 24: What does the grace period allow a life insurance policy owner to do?

Answer:

Make a premium payment after the due date without any loss of coverage Question 25: Which of the following types of life insurance combines a savings element along with a flexible premium option?

Answer:

Universal life

Question 26: Which of the following is NOT a requirement of a contract?

Answer:

Equal consideration is required between the involved parties

Question 27: What is residual disability income insurance payments based on?

Answer:

The amount of the insured's income is reduced by the disability Question 28: Which of the following statements correctly describes a contract of indemnity?

Answer:

One party is restored to the same financial position the party was in before the loss occurred