Califomia Life, Accident, and Health Insurance Final Exam () 100% Correct

Califomia Life, Accident, and Health Insurance Final Exam () 100% Correct 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 ofthese 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. - ANSWER: deductible