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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
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?
, Page | 2
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
, Page | 3
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
