1 / California Life, Accident and Health Insurance Course Exam 1-3 (Verified)
1.Question #90476
Carol is injured driving a company car at work. Her Health insurance cover- age:
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
: D Explanation:
Most Health insurance provides 'non-occupational' (off the job) coverage for sick- ness 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. 2 / 2.Question #90486
The minimum participation percentage for large group insurance under the California code is:
A50% B40% C75% D25%
: C
Explanation:
The California Insurance Code requires a 75% minimum participation percentage for large group Life insurance.
3.Question #90409
All of the following are classified as Life insurance EXCEPT:
AWhole life BTerm CEndowment
DAccidental Death & Dismemberment (AD&D) 3 / : D 4 / Explanation:
AD&D is a type of Disability (Health) insurance, not Life.
4.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
: 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.
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