State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
An accelerated death benefit payable for chronic illness may be paid in which manner?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Accelerated death benefits for chronic illness may be structured as a single lump sum or as periodic payments, depending on the policy design. CIC Section 10295.1 permits lump-sum payment and Section 10295.12 addresses periodic payment of accelerated benefits, giving the insured flexibility in funding long-term care. LIFE-I.C.2.21 anchors this ADB payment-form point.
Why the other options are wrong
- A) Lump sum is one option, but periodic payment is also expressly available.
- C) The benefit is paid from the life death benefit, not as an annuity income stream.
- D) ADBs are living benefits paid while the insured is chronically ill, not death proceeds.
Memory hook
ADB for chronic illness: one check or a stream — the insured chooses how care gets funded.