1 | Page
Final Exam - California Life and Health
Questions and Correct Answers/ Latest
Update / Already Graded
Employer-provided group term life insurance is exempt from income
taxation up to
Ans: $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?
Ans: 3 months
Which statement is true regarding policy dividends?
Ans: A dividend option is selected by the insured at the time of policy
purchase
What does the insurance term "indemnity" refer to?
,2 | Page
Ans: Make whole
What is a common reason people purchase an annuity?
Ans: To protect against the risk of outliving their financial resources
The importance of a representation is demonstrated in what rule?
Ans: Materiality of concealment
Who does a life settlement broker represent?
Ans: 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?
Ans: Insurer
The Human Life Value concept is based on
,3 | Page
Ans: income
Business Overhead Expense Insurance pays for
Ans: business expenses when a business owner becomes disabled
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
What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect?
Ans: 100%
A life insurance policy where the insured can choose where the cash
value can be invested is called
Ans: variable life
, 4 | Page
Which of these statements correctly describes risk?
Ans: Pure and speculative risks are both insurable
The elimination period in a disability income policy serves the same
purpose as a(n) ______ in a medical expense policy.
Ans: deductible
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
Retirement plans are prevented from favoring highly compensated
employees under which government regulation?
Ans: Nondiscrimination
ESOPs are typically invested in
Final Exam - California Life and Health
Questions and Correct Answers/ Latest
Update / Already Graded
Employer-provided group term life insurance is exempt from income
taxation up to
Ans: $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?
Ans: 3 months
Which statement is true regarding policy dividends?
Ans: A dividend option is selected by the insured at the time of policy
purchase
What does the insurance term "indemnity" refer to?
,2 | Page
Ans: Make whole
What is a common reason people purchase an annuity?
Ans: To protect against the risk of outliving their financial resources
The importance of a representation is demonstrated in what rule?
Ans: Materiality of concealment
Who does a life settlement broker represent?
Ans: 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?
Ans: Insurer
The Human Life Value concept is based on
,3 | Page
Ans: income
Business Overhead Expense Insurance pays for
Ans: business expenses when a business owner becomes disabled
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
What percentage of eligible employees must participate in a
noncontributory group health plan before it can be put in effect?
Ans: 100%
A life insurance policy where the insured can choose where the cash
value can be invested is called
Ans: variable life
, 4 | Page
Which of these statements correctly describes risk?
Ans: Pure and speculative risks are both insurable
The elimination period in a disability income policy serves the same
purpose as a(n) ______ in a medical expense policy.
Ans: deductible
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
Retirement plans are prevented from favoring highly compensated
employees under which government regulation?
Ans: Nondiscrimination
ESOPs are typically invested in
