CALIFORNIA LIFE AND HEALTH COMPLETE
FINAL EXAM QUESTIONS WITH ANSWERS
2026/2027 LATEST UPDATE
At what point does a self-insured group qualify for stop-loss
coverage? - CORRECT
ANSWER>>>>When claims exceed a specified limit in a set period
of time
What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect? -
CORRECT ANSWER>>>>100%
A life insurance policy where the insured can choose where the cash
value can be invested is called - CORRECT ANSWER>>>>variable
life
Which of these statements correctly describes risk? - CORRECT
ANSWER>>>>Pure and speculative risks are both insurable
The elimination period in a disability income policy serves the same
purpose as a(n) in a medical expense policy. - CORRECT
ANSWER>>>>deductible
What is required after a life agent sells an insurance policy to an
applicant without being appointed by the insurer? - CORRECT
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,ANSWER>>>>Notice of appointment must be submitted to the
Commissioner
Employer-provided group term life insurance is exempt from income
taxation up to - CORRECT
ANSWER>>>>$50,000
Medicare Part B has an initial enrollment period. How many months
after an individual's 65th birthday month does this enrollment period
end? - CORRECT ANSWER>>>>3 months
Which statement is true regarding policy dividends? - CORRECT
ANSWER>>>>A dividend option is selected by the insured at the
time of policy purchase
What does the insurance term "indemnity" refer to? - CORRECT
ANSWER>>>>Make whole
What is a common reason people purchase an annuity? - CORRECT
ANSWER>>>>To protect against the risk of outliving their financial
resources
The importance of a representation is demonstrated in what rule? -
CORRECT ANSWER>>>>Materiality of concealment
Who does a life settlement broker represent? - CORRECT
ANSWER>>>>Individual wanting to sell their life policy to a third
party
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, Who is financially liable for the payment of covered claims in a fully
insured group health plan?
- CORRECT ANSWER>>>>Insurer
The Human Life Value concept is based on - CORRECT
ANSWER>>>>income
Business Overhead Expense Insurance pays for - CORRECT
ANSWER>>>>business expenses when a business owner becomes
disabled
Retirement plans are prevented from favoring highly compensated
employees under which government regulation? - CORRECT
ANSWER>>>>Nondiscrimination
ESOPs are typically invested in - CORRECT
ANSWER>>>>employer stock
The reason for social insurance is to - CORRECT
ANSWER>>>>protect certain vulnerable segments of the population
Cindy buys a 10-year certain annuity with an installment refund. After
receiving monthly
payments for 5 years, Cindy dies. How many remaining payments
will the insurer make to her beneficiary? - CORRECT
ANSWER>>>>60 payments
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FINAL EXAM QUESTIONS WITH ANSWERS
2026/2027 LATEST UPDATE
At what point does a self-insured group qualify for stop-loss
coverage? - CORRECT
ANSWER>>>>When claims exceed a specified limit in a set period
of time
What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect? -
CORRECT ANSWER>>>>100%
A life insurance policy where the insured can choose where the cash
value can be invested is called - CORRECT ANSWER>>>>variable
life
Which of these statements correctly describes risk? - CORRECT
ANSWER>>>>Pure and speculative risks are both insurable
The elimination period in a disability income policy serves the same
purpose as a(n) in a medical expense policy. - CORRECT
ANSWER>>>>deductible
What is required after a life agent sells an insurance policy to an
applicant without being appointed by the insurer? - CORRECT
Page | 1
,ANSWER>>>>Notice of appointment must be submitted to the
Commissioner
Employer-provided group term life insurance is exempt from income
taxation up to - CORRECT
ANSWER>>>>$50,000
Medicare Part B has an initial enrollment period. How many months
after an individual's 65th birthday month does this enrollment period
end? - CORRECT ANSWER>>>>3 months
Which statement is true regarding policy dividends? - CORRECT
ANSWER>>>>A dividend option is selected by the insured at the
time of policy purchase
What does the insurance term "indemnity" refer to? - CORRECT
ANSWER>>>>Make whole
What is a common reason people purchase an annuity? - CORRECT
ANSWER>>>>To protect against the risk of outliving their financial
resources
The importance of a representation is demonstrated in what rule? -
CORRECT ANSWER>>>>Materiality of concealment
Who does a life settlement broker represent? - CORRECT
ANSWER>>>>Individual wanting to sell their life policy to a third
party
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, Who is financially liable for the payment of covered claims in a fully
insured group health plan?
- CORRECT ANSWER>>>>Insurer
The Human Life Value concept is based on - CORRECT
ANSWER>>>>income
Business Overhead Expense Insurance pays for - CORRECT
ANSWER>>>>business expenses when a business owner becomes
disabled
Retirement plans are prevented from favoring highly compensated
employees under which government regulation? - CORRECT
ANSWER>>>>Nondiscrimination
ESOPs are typically invested in - CORRECT
ANSWER>>>>employer stock
The reason for social insurance is to - CORRECT
ANSWER>>>>protect certain vulnerable segments of the population
Cindy buys a 10-year certain annuity with an installment refund. After
receiving monthly
payments for 5 years, Cindy dies. How many remaining payments
will the insurer make to her beneficiary? - CORRECT
ANSWER>>>>60 payments
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