Final Exam – California Life and Health | 2025/2026 Updated
Study Guide & Exam Prep | 100% Pass Guarantee
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 answer3 months
Which statement is true regarding policy dividends? - correct answerA dividend option is
selected by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to? - correct answerMake whole
What is a common reason people purchase an annuity? - correct answerTo protect
against the risk of outliving their financial resources
The importance of a representation is demonstrated in what rule? - correct
answerMateriality of concealment
Who does a life settlement broker represent? - correct answerIndividual 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 answerInsurer
The Human Life Value concept is based on - correct answerincome
Business Overhead Expense Insurance pays for - correct answerbusiness expenses
when a business owner becomes disabled
At what point does a self-insured group qualify for stop-loss coverage? - correct
answerWhen 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 answer100%
A life insurance policy where the insured can choose where the cash value can be
invested is called - correct answervariable life
Which of these statements correctly describes risk? - correct answerPure 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 answerdeductible
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer? - correct answerNotice of appointment must be submitted to
the Commissioner
Retirement plans are prevented from favoring highly compensated employees under
which government regulation? - correct answerNondiscrimination
ESOPs are typically invested in - correct answeremployer stock
The reason for social insurance is to - correct answerprotect 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 answer60 payments
he free-look period for life insurance policyowners age 60 or older is - correct answer30
days
What is considered to be the definition of disability, according to Social Security? -
correct answerUnable to engage in any substantial gainful activity
"Life insurance creates an immediate estate". This phrase means: - correct answerwhen
the insured dies, a death benefit is paid
How are death benefits that are received by a beneficiary normally treated for tax
purposes? - correct answerExempt from federal income taxes
Exempt from federal income taxes - correct answerPayment 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 answercopy of the signed authorization
Which policy provision protects the policyowner from unintentional lapse of the
contract? - correct answerGrace period
What kind of annuity pays income to two annuitants until their deaths? - correct
answerJoint and survivor annuity
What type of changes can be made to a guaranteed renewable health insurance policy?
- correct answerThe premium rates of the policyowner
Study Guide & Exam Prep | 100% Pass Guarantee
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 answer3 months
Which statement is true regarding policy dividends? - correct answerA dividend option is
selected by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to? - correct answerMake whole
What is a common reason people purchase an annuity? - correct answerTo protect
against the risk of outliving their financial resources
The importance of a representation is demonstrated in what rule? - correct
answerMateriality of concealment
Who does a life settlement broker represent? - correct answerIndividual 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 answerInsurer
The Human Life Value concept is based on - correct answerincome
Business Overhead Expense Insurance pays for - correct answerbusiness expenses
when a business owner becomes disabled
At what point does a self-insured group qualify for stop-loss coverage? - correct
answerWhen 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 answer100%
A life insurance policy where the insured can choose where the cash value can be
invested is called - correct answervariable life
Which of these statements correctly describes risk? - correct answerPure 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 answerdeductible
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer? - correct answerNotice of appointment must be submitted to
the Commissioner
Retirement plans are prevented from favoring highly compensated employees under
which government regulation? - correct answerNondiscrimination
ESOPs are typically invested in - correct answeremployer stock
The reason for social insurance is to - correct answerprotect 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 answer60 payments
he free-look period for life insurance policyowners age 60 or older is - correct answer30
days
What is considered to be the definition of disability, according to Social Security? -
correct answerUnable to engage in any substantial gainful activity
"Life insurance creates an immediate estate". This phrase means: - correct answerwhen
the insured dies, a death benefit is paid
How are death benefits that are received by a beneficiary normally treated for tax
purposes? - correct answerExempt from federal income taxes
Exempt from federal income taxes - correct answerPayment 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 answercopy of the signed authorization
Which policy provision protects the policyowner from unintentional lapse of the
contract? - correct answerGrace period
What kind of annuity pays income to two annuitants until their deaths? - correct
answerJoint and survivor annuity
What type of changes can be made to a guaranteed renewable health insurance policy?
- correct answerThe premium rates of the policyowner
