Final Exam - California Life and Health
with Accurate Solutions
Employer-provided group term life insurance is exempt from income taxation up to -
ANS-$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? - ANS-3 months
Which statement is true regarding policy dividends? - ANS-A dividend option is selected
by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to? - ANS-Make whole
What is a common reason people purchase an annuity? - ANS-To protect against the
risk of outliving their financial resources
The importance of a representation is demonstrated in what rule? - ANS-Materiality of
concealment
Who does a life settlement broker represent? - ANS-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? - ANS-Insurer
The Human Life Value concept is based on - ANS-income
Business Overhead Expense Insurance pays for - ANS-business expenses when a
business owner becomes disabled
At what point does a self-insured group qualify for stop-loss coverage? - ANS-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? - ANS-100%
A life insurance policy where the insured can choose where the cash value can be
invested is called - ANS-variable life
, Which of these statements correctly describes risk? - ANS-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. - ANS-deductible
Who is issued a certificate of insurance with a group insurance policy? - ANS-
Participant
John owns an insurance policy that gives him the right to share in the insurer's surplus.
What kind of policy is this? - ANS-Participating
Which of the following is NOT a benefit of insurance? - ANS-Losses due to fraud are
eliminated
Which statement regarding Medicare is true? - ANS-Benefits for diagnostic tests and X-
rays performed on an outpatient basis are provided by Part B
What is the price of insurance for each exposure unit? - ANS-Rate
Which of the following risk classifications charges the lowest premium? - ANS-Preferred
According to the California Insurance Code, what is the maximum penalty per violation
for anyone who unwillfully commits an unfair method of competition? - ANS-$5,000
Jim is applying to become an insurance agent and has a past misdemeanor conviction
that was later expunged due to California Penal Code 1203.4. Which of the following
statements is correct? - ANS-Jim must still disclose the conviction on his insurance
license application
Which of the following are two examples of activities of daily living (ADL's) used in
qualifying for long-term care benefits? - ANS-Eating and dressing
Which of the following is NOT typically covered under vision care insurance? - ANS-Eye
surgery
The "blackout period" affects whose benefits? - ANS-Surviving spouse
The insurer has the option of terminating a health insurance policy on a date stated in
the contract. What type of policy is this? - ANS-Optionally renewable
A spendthrift clause in a life insurance policy - ANS-restricts the ability of the beneficiary
to assign benefits
with Accurate Solutions
Employer-provided group term life insurance is exempt from income taxation up to -
ANS-$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? - ANS-3 months
Which statement is true regarding policy dividends? - ANS-A dividend option is selected
by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to? - ANS-Make whole
What is a common reason people purchase an annuity? - ANS-To protect against the
risk of outliving their financial resources
The importance of a representation is demonstrated in what rule? - ANS-Materiality of
concealment
Who does a life settlement broker represent? - ANS-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? - ANS-Insurer
The Human Life Value concept is based on - ANS-income
Business Overhead Expense Insurance pays for - ANS-business expenses when a
business owner becomes disabled
At what point does a self-insured group qualify for stop-loss coverage? - ANS-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? - ANS-100%
A life insurance policy where the insured can choose where the cash value can be
invested is called - ANS-variable life
, Which of these statements correctly describes risk? - ANS-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. - ANS-deductible
Who is issued a certificate of insurance with a group insurance policy? - ANS-
Participant
John owns an insurance policy that gives him the right to share in the insurer's surplus.
What kind of policy is this? - ANS-Participating
Which of the following is NOT a benefit of insurance? - ANS-Losses due to fraud are
eliminated
Which statement regarding Medicare is true? - ANS-Benefits for diagnostic tests and X-
rays performed on an outpatient basis are provided by Part B
What is the price of insurance for each exposure unit? - ANS-Rate
Which of the following risk classifications charges the lowest premium? - ANS-Preferred
According to the California Insurance Code, what is the maximum penalty per violation
for anyone who unwillfully commits an unfair method of competition? - ANS-$5,000
Jim is applying to become an insurance agent and has a past misdemeanor conviction
that was later expunged due to California Penal Code 1203.4. Which of the following
statements is correct? - ANS-Jim must still disclose the conviction on his insurance
license application
Which of the following are two examples of activities of daily living (ADL's) used in
qualifying for long-term care benefits? - ANS-Eating and dressing
Which of the following is NOT typically covered under vision care insurance? - ANS-Eye
surgery
The "blackout period" affects whose benefits? - ANS-Surviving spouse
The insurer has the option of terminating a health insurance policy on a date stated in
the contract. What type of policy is this? - ANS-Optionally renewable
A spendthrift clause in a life insurance policy - ANS-restricts the ability of the beneficiary
to assign benefits
