California Life and Health Final Exam – Already Passed

alifornia Life and Health Final Exam – Already Passed Employer-provided group term life insurance is exempt from income taxation up to $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? 3 months Which statement is true regarding policy dividends? A dividend option is selected by the insured at the time of policy purchase What does the insurance term "indemnity" refer to? Make whole What is a common reason people purchase an annuity? To protect against the risk of outliving their financial resources The importance of a representation is demonstrated in what rule? Materiality of concealment Who does a life settlement broker represent? 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? Insurer The Human Life Value concept is based on income Business Overhead Expense Insurance pays for business expenses when a business owner becomes disabled At what point does a self-insured group qualify for stop-loss coverage? 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? 100% A life insurance policy where the insured can choose where the cash value can be invested is called variable life Which of these statements correctly describes risk? 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. deductible What is required after a life agent sells an insurance policy to an applicant without being appointed by the insurer? Notice of appointment must be submitted to the Commissioner Retirement plans are prevented from favoring highly compensated employees under which government regulation? Nondiscrimination ESOPs are typically invested in employer stock The reason for social insurance is to 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? 60 payments he free-look period for life insurance policyowners age 60 or older is 30 days What is considered to be the definition of disability, according to Social Security? Unable to engage in any substantial gainful activity "Life insurance creates an immediate estate". This phrase means: when the insured dies, a death benefit is paid How are death benefits that are received by a beneficiary normally treated for tax purposes? Exempt from federal income taxes Exempt from federal income taxes Payment