State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 3/5
Under California law, an accelerated death benefit provided under a life insurance policy may be paid:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
California recognizes that accelerated death benefits, including chronic illness benefits, may be paid as a lump sum under CIC Section 10295.1 or as periodic payments under Section 10295.12. The payment form can be structured to meet the insured's needs while the insured is alive. The amounts paid reduce the death benefit otherwise payable to beneficiaries, and the insured is the party who receives the accelerated proceeds during life.
Why the other options are wrong
- A) The lump sum is permitted but is not exclusive; California also allows periodic installment payments under Section 10295.12.
- B) The law does not require the benefit to be routed through the purchase of an annuity at any point.
- C) Accelerated benefits are paid to the insured during life; the beneficiary receives only the remaining death benefit.
Memory hook
California ADB: take it in one lump or as periodic checks — the insured gets to choose the schedule.