California Life, Accident and Health Cram Course Exam 1-3 Already Passed

California Life, Accident and Health Cram Course Exam 1-3 Already Passed Question #90476 Carol is injured driving a company car at work. Her Health insurance coverage: AProvides excess or supplementary coverage BWill provide coverage on a pro-rata basis with Workers Compensation CWill cover her injuries DWill not cover her since this is an occupational injury - Answer ️️ -D Explanation: Most Health insurance provides 'non-occupational' (off the job) coverage for sickness or injury, meaning that occupational coverage is excluded. However, if a person is not required to be covered by Workers Compensation, some Health policies will cover both on and off the job, which is known as 'occupational' coverage. Question #90486 The minimum participation percentage for large group insurance under the California code is: A50% B40% C75% D25% - Answer ️️ -C Explanation: The California Insurance Code requires a 75% minimum participation percentage for large group Life insurance. Question #90409 All of the following are classified as Life insurance EXCEPT: AWhole life BTerm CEndowment DAccidental Death & Dismemberment (AD&D) - Answer ️️ -D Explanation: AD&D is a type of Disability (Health) insurance, not Life. Question #90464 A client invests $50,000 in after-tax dollars into a deferred annuity over a period of time. When he annuitizes, he will receive $4,000 a year over his projected life span. If his total return is expected to be $100,000, how much of the client's $4,000 annual annuity pay-out will be taxable each year for the first 10 years: A$800 BNone C$4,000 D$2,000 - Answer ️️ -D Explanation: The client has $100,000 in his account, of which $50,000 is his own money, which was contributed with after-tax dollars. Since his contributions will be returned tax free and since they make up half of his account value, only half of his annual pay-out (the earnings portion) will be taxable as ordinary income. Further, you can find his projected life span by dividing the $100,000 total by his $4,000 annual pay-out, which would be 25 years. After 25 years, he will have recovered all of his own contributions, so the entire $4,000 would be taxable. Remember, annuity payouts are for life. Question #90470 Which of the following is true regarding 'speculative' risk: AThere is no chance for gain BIt has a chance for gain or loss CIt is insurable DIt has a chance for loss only - Answer ️️ -B Explanation: Speculative risk has the chan