Final Exam - California Life and Health Exam
Questions With Correct Answers
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
| | | | | | | |
Questions With Correct Answers
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
| | | | | | | |
