California Life & Health Final Exam –
Questions & 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
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 plANSWER are prevented from favoring highly compensated employees under which
government regulation? - ANSWER ✨✔---Nondiscrimination
ESOPs are typically invested in - ANSWER ✨✔---employer stock
Questions & 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
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 plANSWER are prevented from favoring highly compensated employees under which
government regulation? - ANSWER ✨✔---Nondiscrimination
ESOPs are typically invested in - ANSWER ✨✔---employer stock
