Final Exam - California Life and Health Questions with Detailed Verified Answers

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Final Exam - California Life and Health
Questions with Detailed Verified
Answers

Question: Employer-provided group term life insurance is exempt from
income taxation up to


Ans: $50,000


Question: Medicare Part B has an initial enrollment period. How many
months after an individual's 65th birthday month does this enrollment period
end?


Ans: 3 months


Question: Which statement is true regarding policy dividends?


Ans: A dividend option is selected by the insured at the time of policy
purchase


Question: What does the insurance term "indemnity" refer to?


Ans: Make whole


Question: What is a common reason people purchase an annuity?

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Ans: To protect against the risk of outliving their financial resources


Question: The importance of a representation is demonstrated in what rule?


Ans: Materiality of concealment


Question: Who does a life settlement broker represent?


Ans: Individual wanting to sell their life policy to a third party


Question: Who is financially liable for the payment of covered claims in a fully
insured group health plan?


Ans: Insurer


Question: The Human Life Value concept is based on


Ans: income


Question: Business Overhead Expense Insurance pays for


Ans: business expenses when a business owner becomes disabled


Question: At what point does a self-insured group qualify for stop-loss
coverage?


Ans: When claims exceed a specified limit in a set period of time

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Question: What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect?


Ans: 100%


Question: A life insurance policy where the insured can choose where the
cash value can be invested is called


Ans: variable life


Question: Which of these statements correctly describes risk?


Ans: Pure and speculative risks are both insurable


Question: The elimination period in a disability income policy serves the
same purpose as a(n) ______ in a medical expense policy.


Ans: deductible


Question: What is required after a life agent sells an insurance policy to an
applicant without being appointed by the insurer?


Ans: Notice of appointment must be submitted to the Commissioner


Question: Retirement plans are prevented from favoring highly compensated
employees under which government regulation?


Ans: Nondiscrimination