California Life And Health Final Exam
With 100% Correct Answers 2023
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
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
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 Answer-Notice of appointment must be submitted to
the Commissioner
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
he free-look period for life insurance policyowners age 60 or older is - Correct Answer-
30 days
What is considered to be the definition of disability, according to Social Security? -
Correct Answer-Unable to engage in any substantial gainful activity
"Life insurance creates an immediate estate". This phrase means: - Correct Answer-
when the insured dies, a death benefit is paid
How are death benefits that are received by a beneficiary normally treated for tax
purposes? - Correct Answer-Exempt from federal income taxes
Exempt from federal income taxes - Correct Answer-Payment for services goes directly
to the provider
When an insurance company requests an attending physician's report, the request must
be accompanied by a - Correct Answer-copy of the signed authorization
Which policy provision protects the policyowner from unintentional lapse of the
contract? - Correct Answer-Grace period
What kind of annuity pays income to two annuitants until their deaths? - Correct
Answer-Joint and survivor annuity
What type of changes can be made to a guaranteed renewable health insurance policy?
- Correct Answer-The premium rates of the policyowner
With 100% Correct Answers 2023
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
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
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 Answer-Notice of appointment must be submitted to
the Commissioner
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
he free-look period for life insurance policyowners age 60 or older is - Correct Answer-
30 days
What is considered to be the definition of disability, according to Social Security? -
Correct Answer-Unable to engage in any substantial gainful activity
"Life insurance creates an immediate estate". This phrase means: - Correct Answer-
when the insured dies, a death benefit is paid
How are death benefits that are received by a beneficiary normally treated for tax
purposes? - Correct Answer-Exempt from federal income taxes
Exempt from federal income taxes - Correct Answer-Payment for services goes directly
to the provider
When an insurance company requests an attending physician's report, the request must
be accompanied by a - Correct Answer-copy of the signed authorization
Which policy provision protects the policyowner from unintentional lapse of the
contract? - Correct Answer-Grace period
What kind of annuity pays income to two annuitants until their deaths? - Correct
Answer-Joint and survivor annuity
What type of changes can be made to a guaranteed renewable health insurance policy?
- Correct Answer-The premium rates of the policyowner
