CALIFORNIA LIFE AND HEALTH FINAL EXAM –
2025 QUESTIONS WITH CORRECT ANSWERS
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
2025 QUESTIONS WITH CORRECT ANSWERS
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
