California Insurance Practice Test - Free 20 Questions

Question 1

An HSA account holder turns 65 and enrolls in Medicare. They withdraw HSA funds to pay for a new television. Which of the following describes the tax treatment of this withdrawal?

Accepted Answer

It is subject to income tax only with no additional penalty

Answer

It is tax-free because the account holder is over 65

Answer

It is subject to income tax plus a 20% penalty

Answer

It is not permitted under HSA rules

Question 2

Under the ACA, a Bronze plan has an actuarial value of approximately 60%. This means that on average the enrollee is expected to pay what percentage of covered medical costs through cost-sharing?

Accepted Answer

40%

Answer

10%

Answer

20%

Answer

30%

Question 3

Which of the following is considered a qualified medical expense for HSA withdrawals?

Accepted Answer

Prescription medications

Answer

Cosmetic surgery for aesthetic purposes

Answer

Gym membership fees

Answer

Health insurance premiums paid outside of COBRA or Medicare

Question 4

Who is eligible for Medi-Cal?

Accepted Answer

Low-income individuals, families, seniors, persons with disabilities, and others who meet eligibility requirements

Answer

Only individuals over age 65

Answer

Only pregnant women and children

Answer

Only individuals receiving Social Security benefits

Question 5

How is Medicare Part A primarily funded?

Accepted Answer

Through payroll taxes (FICA) paid by employees and employers

Answer

Through monthly premiums paid by all beneficiaries

Answer

Through general tax revenues

Answer

Through state government contributions

Question 6

In a group plan, experience rating is based on:

Accepted Answer

The claims history of the specific group.

Answer

The demographics of the geographic area.

Answer

The overall claims history of the insurance company.

Answer

The age and gender of the company's CEO.

Question 7

Medi-Cal is California's version of what federal program?

Accepted Answer

Medicaid

Answer

Medicare

Answer

Social Security

Answer

CHIP

Question 8

An employer has 15 employees. An employee is laid off. What are their continuation rights in California?

Accepted Answer

They are eligible for up to 36 months of Cal-COBRA coverage.

Answer

They are eligible for 18 months of federal COBRA.

Answer

They have no continuation rights.

Answer

They are only eligible to buy a plan on Covered California.

Question 9

A health insurance plan that provides coverage for dental care is known as:

Accepted Answer

A dental plan

Answer

A vision plan

Answer

A dread disease policy

Answer

An indemnity plan

Question 10

In California, a health plan's network is considered 'adequate' if it meets certain criteria for:

Accepted Answer

All of the above

Answer

Timely access to care

Answer

The number of providers in the network

Answer

The geographic proximity of providers to members

Question 1 of 244

An HSA account holder turns 65 and enrolls in Medicare. They withdraw HSA funds to pay for a new television. Which of the following describes the tax treatment of this withdrawal?