FINAL EXAM -CALIFORNIA LIFE AND HEALTH INSURANCE (CA)
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Course
CA LIFE AND HEALTH INSURANCE
Institution
CA LIFE AND HEALTH INSURANCE
FINAL EXAM -CALIFORNIA LIFE AND
HEALTH INSURANCE (CA)
Employer-provided group term life insurance is exempt from income taxation up to -
CORRECT ANSWER-$50,000
Medicare Part B has an initial enrollment period. How many months after an individual's
65th birthday month does this enrollment per...
FINAL EXAM -CALIFORNIA LIFE AND HEALTH INSURANCE (CA) Employer -provided group term life insurance is exempt from income taxation up to - CORRECT ANSWER -$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? - CORRECT ANSWER -3 months Which statement is true regarding policy dividends? - CORRECT ANSWER -A dividend option is selected by the insured at the time of policy purchase What does the insurance term "indemnity" refer to? - CORRECT ANSWER -Make whole What is a common reason people purchase an annuity? - CORRECT ANSWER -To protect against the risk of outliving their financial resources The importance of a representation is demonstrated in what rule? - CORRECT ANSWER -Materiality of concealment Who does a life settlement broker represent? - CORRECT ANSWER -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? - CORRECT ANSWER -Insurer The Human Life Value concept is based on - CORRECT ANSWER -income Business Overhead Expense Insurance pays for - CORRECT ANSWER -business expenses when a business owner becomes disabled At what point does a self -insured group qualify for stop -loss coverage? - CORRECT ANSWER -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? - CORRECT ANSWER -100% A life insurance policy where the insured can choose where the cash value can be invested is called - CORRECT ANSWER -variable life Which of these statements correctly describes risk? - CORRECT ANSWER -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. - CORRECT ANSWER -deductible What is required after a life agent sells an insurance policy to an applicant without being appointed by the insurer? - CORRECT ANSWER -Notice of appointment must be submitted to the Commissioner Retirement plans are prevented from favoring highly compensated employees under which government regulation? - CORRECT ANSWER -Nondiscrimination ESOPs are typically invested in - CORRECT ANSWER -employer stock The reason for social insurance is to - CORRECT ANSWER -protect certain vulnerable segments of the population Cindy buys a 10 -year certain annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? - CORRECT ANSWER -60 payments he free -look period for life insurance policyowners age 60 or older is - CORRECT ANSWER -30 days What is considered to be the definition of disability, according to Social Security? - CORRECT ANSWER -Unable to engage in any substantial gainful activity "Life insurance creates an immediate estate". This phrase means: - CORRECT ANSWER -when the insured dies, a death benefit is paid How are death benefits that are received by a beneficiary normally treated for tax purposes? - CORRECT ANSWER -Exempt from federal income taxes Exempt from federal income taxes - CORRECT ANSWER -Payment for services goes directly to the provider When an insurance company requests an attending physician's report, the request must be accompanied by a - CORRECT ANSWER -copy of the signed authorization Which policy provision protects the policyowner from unintentional lapse of the contract? - CORRECT ANSWER -Grace period What kind of annuity pays income to two annuitants until their deaths? - CORRECT ANSWER -Joint and survivor annuity
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