CA-Life-Accident-and-Health Exam Dumps - CA Life, Accident and Health or Sickness Examination

The conversion privilege allows a terminating employee to convert their group insurance policy to an individual policy without providing evidence of insurability, which means no medical examination or health questions are required. To exercise this privilege, the employee must pay the premium, fill out the necessary forms, and apply within the specified period, usually 31 days after termination of employment. This provision ensures that individuals can maintain coverage even if their health status has changed, preventing them from being denied insurance based on new health conditions.

ï‚· Definition of Indemnify: In insurance terminology, to "indemnify" means to compensate an insured party for a loss, ensuring they are restored to the same financial position they were in prior to the loss.

ï‚· Purpose: The goal of indemnification is to make the insured "whole" again by covering the financial loss suffered.

ï‚· Application: This principle is fundamental to many types of insurance, including property,liability, and health insurance.References: California Insurance Code Section 22 defines indemnity and its application within the scope of insurance policies.

Variable life insurance allows the insured to choose where the assets backing the cash value are invested. Policyholders can allocate their premiums among various investment options, such as stocks, bonds, or mutual funds, which can influence the cash value and death benefit of the policy based on the performance of these investments. This type of policy combines life insurance protection with investment flexibility, appealing to those who want more control over how their policy's cash value grows.

ï‚· Loss Retention:This risk management technique is effective when losses are predictable (A), the worst possible loss is not serious (C), and the insured chooses to assume the losses involved (D).

ï‚· Condition for Ineffectiveness:Loss retention is not effective when the probability of loss is unknown because it is difficult to manage or budget for unknown risks.

ï‚· Reference:These principles are commonly outlined in risk management and insurance texts approved by the California Department of Insurance.

When a family policy covers children, the coverage is typically provided as term insurance for a fixed amount, and it often includes provisions that automatically cover new additions to the family without an additional charge. All children living with the family, including those adopted or born after the policy is issued, are generally covered. However, evidence of insurability is not typically required to convert the children's term insurance coverage to permanent insurance. This conversion option allows for flexibility in ensuring continued coverage as children grow older.