California Life and Health Questions and
answers | Latest 2024/25 RATED A+
Employer-provided group term life insurance is exempt from income taxation up to - ii ii ii ii ii ii ii ii ii ii ii ii ii ii
$50,000
ii
Medicare Part B has an initial enrollment period. How many months after an individual's
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
65th birthday month does this enrollment period end? - 3 months
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which statement is true regarding policy dividends? - A dividend option is selected by the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
insured at the time of policy purchase
ii ii ii ii ii ii ii
ii What does the insurance term "indemnity" refer to? - Make whole
ii ii ii ii ii ii ii ii ii ii ii ii
What is a common reason people purchase an annuity? - To protect against the risk of
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
outliving their financial resources
ii ii ii ii
The importance of a representation is demonstrated in what rule? - Materiality of
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
concealment
ii
Who does a life settlement broker represent? - Individual wanting to sell their life policy to
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
a third party
ii ii ii
Who is financially liable for the payment of covered claims in a fully insured group health
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
plan? - Insurer
ii ii ii ii ii
ii The Human Life Value concept is based on - income
ii ii ii ii ii ii ii ii ii ii ii
Business Overhead Expense Insurance pays for - business expenses when a business
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
owner becomes disabled
ii ii ii
At what point does a self-insured group qualify for stop-loss coverage? - When claims
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
exceed a specified limit in a set period of time
ii ii ii ii ii ii ii ii ii ii
What percentage of eligible employees must participate in a noncontributory group health
ii ii ii ii ii ii ii ii ii ii ii ii
plan before it can be put in effect? - 100%
ii ii ii ii ii ii ii ii ii ii ii ii
A life insurance policy where the insured can choose where the cash value can be
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
invested is called - variable life
ii ii ii ii ii ii ii ii
Which of these statements correctly describes risk? - Pure and speculative risks are both
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
insurable
ii
, The elimination period in a disability income policy serves the same purpose as a(n)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
______ in a medical expense policy. - deductible
ii ii ii ii ii ii ii ii ii ii
What is required after a life agent sells an insurance policy to an applicant without being
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
appointed by the insurer? - Notice of appointment must be submitted to the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Commissioner
ii
Retirement plans are prevented from favoring highly compensated employees under
ii ii ii ii ii ii ii ii ii ii
which government regulation? - Nondiscrimination
ii ii ii ii ii ii ii
ii ESOPs are typically invested in - employer stock
ii ii ii ii ii ii ii ii ii
The reason for social insurance is to - protect certain vulnerable segments of the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
population
ii
Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly
ii ii ii ii ii ii ii ii ii ii ii ii ii
payments for 5 years, Cindy dies. How many remaining payments will the insurer make to
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
her beneficiary? - 60 payments
ii ii ii ii ii ii ii
ii he free-look period for life insurance policyowners age 60 or older is - 30 days
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
What is considered to be the definition of disability, according to Social Security? - Unable
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
to engage in any substantial gainful activity
ii ii ii ii ii ii ii
"Life insurance creates an immediate estate". This phrase means: - when the insured
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
dies, a death benefit is paid
ii ii ii ii ii ii
How are death benefits that are received by a beneficiary normally treated for tax
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
purposes? - Exempt from federal income taxes
ii ii ii ii ii ii ii ii ii
ii Exempt from federal income taxes - Payment for services goes directly to the provider
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
When an insurance company requests an attending physician's report, the request must
ii ii ii ii ii ii ii ii ii ii ii ii
be accompanied by a - copy of the signed authorization
ii ii ii ii ii ii ii ii ii ii ii ii
ii Which policy provision protects the policyowner from unintentional lapse of the contract? -
ii ii ii ii ii ii ii ii ii ii ii ii ii
ii iiGrace period ii
What kind of annuity pays income to two annuitants until their deaths? - Joint and survivor
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
annuity
ii
What type of changes can be made to a guaranteed renewable health insurance policy? -
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
The premium rates of the policyowner
ii ii ii ii ii ii
ii Which of the following is NOT considered to be insurer expenses? - Policy premiums
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
answers | Latest 2024/25 RATED A+
Employer-provided group term life insurance is exempt from income taxation up to - ii ii ii ii ii ii ii ii ii ii ii ii ii ii
$50,000
ii
Medicare Part B has an initial enrollment period. How many months after an individual's
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
65th birthday month does this enrollment period end? - 3 months
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which statement is true regarding policy dividends? - A dividend option is selected by the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
insured at the time of policy purchase
ii ii ii ii ii ii ii
ii What does the insurance term "indemnity" refer to? - Make whole
ii ii ii ii ii ii ii ii ii ii ii ii
What is a common reason people purchase an annuity? - To protect against the risk of
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
outliving their financial resources
ii ii ii ii
The importance of a representation is demonstrated in what rule? - Materiality of
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
concealment
ii
Who does a life settlement broker represent? - Individual wanting to sell their life policy to
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
a third party
ii ii ii
Who is financially liable for the payment of covered claims in a fully insured group health
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
plan? - Insurer
ii ii ii ii ii
ii The Human Life Value concept is based on - income
ii ii ii ii ii ii ii ii ii ii ii
Business Overhead Expense Insurance pays for - business expenses when a business
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
owner becomes disabled
ii ii ii
At what point does a self-insured group qualify for stop-loss coverage? - When claims
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
exceed a specified limit in a set period of time
ii ii ii ii ii ii ii ii ii ii
What percentage of eligible employees must participate in a noncontributory group health
ii ii ii ii ii ii ii ii ii ii ii ii
plan before it can be put in effect? - 100%
ii ii ii ii ii ii ii ii ii ii ii ii
A life insurance policy where the insured can choose where the cash value can be
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
invested is called - variable life
ii ii ii ii ii ii ii ii
Which of these statements correctly describes risk? - Pure and speculative risks are both
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
insurable
ii
, The elimination period in a disability income policy serves the same purpose as a(n)
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
______ in a medical expense policy. - deductible
ii ii ii ii ii ii ii ii ii ii
What is required after a life agent sells an insurance policy to an applicant without being
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
appointed by the insurer? - Notice of appointment must be submitted to the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Commissioner
ii
Retirement plans are prevented from favoring highly compensated employees under
ii ii ii ii ii ii ii ii ii ii
which government regulation? - Nondiscrimination
ii ii ii ii ii ii ii
ii ESOPs are typically invested in - employer stock
ii ii ii ii ii ii ii ii ii
The reason for social insurance is to - protect certain vulnerable segments of the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
population
ii
Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly
ii ii ii ii ii ii ii ii ii ii ii ii ii
payments for 5 years, Cindy dies. How many remaining payments will the insurer make to
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
her beneficiary? - 60 payments
ii ii ii ii ii ii ii
ii he free-look period for life insurance policyowners age 60 or older is - 30 days
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
What is considered to be the definition of disability, according to Social Security? - Unable
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
to engage in any substantial gainful activity
ii ii ii ii ii ii ii
"Life insurance creates an immediate estate". This phrase means: - when the insured
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
dies, a death benefit is paid
ii ii ii ii ii ii
How are death benefits that are received by a beneficiary normally treated for tax
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
purposes? - Exempt from federal income taxes
ii ii ii ii ii ii ii ii ii
ii Exempt from federal income taxes - Payment for services goes directly to the provider
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
When an insurance company requests an attending physician's report, the request must
ii ii ii ii ii ii ii ii ii ii ii ii
be accompanied by a - copy of the signed authorization
ii ii ii ii ii ii ii ii ii ii ii ii
ii Which policy provision protects the policyowner from unintentional lapse of the contract? -
ii ii ii ii ii ii ii ii ii ii ii ii ii
ii iiGrace period ii
What kind of annuity pays income to two annuitants until their deaths? - Joint and survivor
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
annuity
ii
What type of changes can be made to a guaranteed renewable health insurance policy? -
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
The premium rates of the policyowner
ii ii ii ii ii ii
ii Which of the following is NOT considered to be insurer expenses? - Policy premiums
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
