FINAL EXAM: CALIFORNIA LIFE, ACCIDENT, AND HEALTH INSURANCE QUESTIONS AND
ANSWERS 2025
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
, FINAL EXAM: CALIFORNIA LIFE, ACCIDENT, AND HEALTH INSURANCE QUESTIONS AND
ANSWERS 2025
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
The reason for social insurance is to - (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? -
(ANSWER)60 payments
he free-look period for life insurance policyowners age 60 or older is - (ANSWER)30 days
What is considered to be the definition of disability, according to Social Security? - (ANSWER)Unable to
engage in any substantial gainful activity
ANSWERS 2025
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
, FINAL EXAM: CALIFORNIA LIFE, ACCIDENT, AND HEALTH INSURANCE QUESTIONS AND
ANSWERS 2025
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
The reason for social insurance is to - (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? -
(ANSWER)60 payments
he free-look period for life insurance policyowners age 60 or older is - (ANSWER)30 days
What is considered to be the definition of disability, according to Social Security? - (ANSWER)Unable to
engage in any substantial gainful activity
