Final Exam - California Life and
Health Questions and Answers
100% PASS
Employer-provided group term life insurance is exempt from income taxation up to—
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?—ANSWER-3 months
Which statement is true regarding policy dividends?—ANSWER-A dividend option is selected
by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to?—ANSWER-Make whole
What is a common reason people purchase an annuity?—ANSWER-To protect against the
risk of outliving their financial resources
The importance of a representation is demonstrated in what rule?—ANSWER-Materiality of
concealment
Who does a life settlement broker represent?—ANSWER-Individual wanting to sell their life
policy to a third party
, Who is financially liable for the payment of covered claims in a fully insured group health
plan?—ANSWER-Insurer
The Human Life Value concept is based on—ANSWER-income
Business Overhead Expense Insurance pays for—ANSWER-business expenses when a
business owner becomes disabled
At what point does a self-insured group qualify for stop-loss coverage?—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?—ANSWER-100%
A life insurance policy where the insured can choose where the cash value can be invested is
called—ANSWER-variable life
Which of these statements correctly describes risk?—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.—ANSWER-deductible
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer?—ANSWER-Notice of appointment must be submitted to the
Commissioner
Retirement plans are prevented from favoring highly compensated employees under which
government regulation?—ANSWER-Nondiscrimination
ESOPs are typically invested in—ANSWER-employer stock
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Health Questions and Answers
100% PASS
Employer-provided group term life insurance is exempt from income taxation up to—
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?—ANSWER-3 months
Which statement is true regarding policy dividends?—ANSWER-A dividend option is selected
by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to?—ANSWER-Make whole
What is a common reason people purchase an annuity?—ANSWER-To protect against the
risk of outliving their financial resources
The importance of a representation is demonstrated in what rule?—ANSWER-Materiality of
concealment
Who does a life settlement broker represent?—ANSWER-Individual wanting to sell their life
policy to a third party
, Who is financially liable for the payment of covered claims in a fully insured group health
plan?—ANSWER-Insurer
The Human Life Value concept is based on—ANSWER-income
Business Overhead Expense Insurance pays for—ANSWER-business expenses when a
business owner becomes disabled
At what point does a self-insured group qualify for stop-loss coverage?—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?—ANSWER-100%
A life insurance policy where the insured can choose where the cash value can be invested is
called—ANSWER-variable life
Which of these statements correctly describes risk?—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.—ANSWER-deductible
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer?—ANSWER-Notice of appointment must be submitted to the
Commissioner
Retirement plans are prevented from favoring highly compensated employees under which
government regulation?—ANSWER-Nondiscrimination
ESOPs are typically invested in—ANSWER-employer stock
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
