California Life and Health Final Exam – Already Passed

California Life and Health Final Exam – Already Passed 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 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 "Life insurance creates an immediate estate". This phrase means: - 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? - Answer ️️ -Exempt from federal income taxes Exempt from federal income taxes - Answer ️️ -Payment for services goes