1
CALIFORNIA LIFE AND HEALTH FINAL
EXAM QUESTIONS AND CORRECT
ANSWERS
Employer-provided group term life insurance is exempt from income taxation up
to - correct-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? - correct-
answer-3 months
Which statement is true regarding policy dividends? - correct-answer-A dividend
option is selected by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to? - correct-answer-Make whole
What is a common reason people purchase an annuity? - correct-answer-To
protect against the risk of outliving their financial resources
, 2
The importance of a representation is demonstrated in what rule? - correct-
answer-Materiality of concealment
Who does a life settlement broker represent? - correct-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? - correct-answer-Insurer
The Human Life Value concept is based on - correct-answer-income
Business Overhead Expense Insurance pays for - correct-answer-business
expenses when a business owner becomes disabled
At what point does a self-insured group qualify for stop-loss coverage? - correct-
answer-When claims exceed a specified limit in a set period of time
, 3
What percentage of eligible employees must participate in a noncontributory
group health plan before it can be put in effect? - correct-answer-100%
A life insurance policy where the insured can choose where the cash value can be
invested is called - correct-answer-variable life
Which of these statements correctly describes risk? - correct-answer-Pure and
speculative risks are both insurable
Which of the following is NOT included under long-term care insurance? - correct-
answer-Hospital acute care
Which of the following could lower the premium of a proposed disability income
policy? - correct-answer-Increase in the elimination period
The misstatement of age provision in a health policy states that if an insured gives
the wrong age at the time of application, what action can the insurance company
take? - correct-answer-Benefits can be adjusted
CALIFORNIA LIFE AND HEALTH FINAL
EXAM QUESTIONS AND CORRECT
ANSWERS
Employer-provided group term life insurance is exempt from income taxation up
to - correct-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? - correct-
answer-3 months
Which statement is true regarding policy dividends? - correct-answer-A dividend
option is selected by the insured at the time of policy purchase
What does the insurance term "indemnity" refer to? - correct-answer-Make whole
What is a common reason people purchase an annuity? - correct-answer-To
protect against the risk of outliving their financial resources
, 2
The importance of a representation is demonstrated in what rule? - correct-
answer-Materiality of concealment
Who does a life settlement broker represent? - correct-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? - correct-answer-Insurer
The Human Life Value concept is based on - correct-answer-income
Business Overhead Expense Insurance pays for - correct-answer-business
expenses when a business owner becomes disabled
At what point does a self-insured group qualify for stop-loss coverage? - correct-
answer-When claims exceed a specified limit in a set period of time
, 3
What percentage of eligible employees must participate in a noncontributory
group health plan before it can be put in effect? - correct-answer-100%
A life insurance policy where the insured can choose where the cash value can be
invested is called - correct-answer-variable life
Which of these statements correctly describes risk? - correct-answer-Pure and
speculative risks are both insurable
Which of the following is NOT included under long-term care insurance? - correct-
answer-Hospital acute care
Which of the following could lower the premium of a proposed disability income
policy? - correct-answer-Increase in the elimination period
The misstatement of age provision in a health policy states that if an insured gives
the wrong age at the time of application, what action can the insurance company
take? - correct-answer-Benefits can be adjusted
