REAL 2025 Accident and Health Final Exam

Accident and Health Final Exam
Questions & Answers
Question #87528

All of the following are factors used to develop a morbidity table EXCEPT
 A Gender
 B Age
 C Occupation
 D Intelligence – ANSWER
 Explanation:
 Intelligence is not a factor used by actuaries in the development of morbidity
tables.

Question #87535

Which of the following is true regarding "qualified" long-term care policies:
 A They may have state and federal tax advantages
 B Benefit triggers are less restrictive than which may be allowed in non-qualified
policies
 C Benefits are taxable
 D Premiums are always tax deductible –
 ANSWERS
Explanation:
The premiums paid for tax "qualified" LTC insurance may be tax deductible if the
policyholder elects to itemize their deductions. The amount of a policyholder's
deductible medical expenses, including their LTC premiums, that exceeds 7.5% of their
adjusted gross income for the year is tax deductible.

Question #87473
Under the California Insurance Code (CIC), neither party to a contract of insurance is
bound to communicate any of the following EXCEPT:
 AInformation known to be material
 BInformation the other party knows
 CInformation that the other party should know
 DInformation the other party waives – ANSWERS

Explanation:
Each party of a contract of insurance shall communicate to the other, in good
faith, all facts within their knowledge which are or which they believe to be
material to the contract.

Question #87495