California Life, Accident And Health Insurance Course Exam 1 – 3 (100 Correct)-21

Question #90504 Life settlements are accomplished through the use of: ACollateral assignment BSettIement options CNon-forfeiture options DAbsoIute assignment - CORRECT ANSWER: d Explanation: A policy owner can enter into a life settlement agreement by making an absolute assignment oftheir policy to a life settlement provider. Question #90489 The federal law COBRA applies to employers with a minimum of employees: AIOO B50 C20 DIO - CORRECT ANSWER; c Explanation: COBRA requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end. Question #90452 Which of the following is correct regarding the tax implications of Disability Income insurance: AOn group coverage, premiums are deductible and benefits are taxed BOn group coverage, premiums are deductible and benefits are tax free con individual coverage, premiums are deductible and benefits are tax free DOn individual coverage, premiums are deductible and benefits are taxed - CORRECT ANSWER: a Explanation: On Group Disability income insurance, the employer can tax deduct the premiums paid as a business expense, but benefits paid to disabled employees are taxable, so employees need to insure their gross income. On Individual Disability income insurance, the individual insured cannot deduct the premiums paid, but benefits are not taxable, so individuals need only insure their net (after tax) income. Question #90461 An application for Health insurance may be altered by all of the following EXCEPT: