California Life and Health Comprehensive Exam with Questions and Answers

California Life and Health Comprehensive Exam with Questions and Answers Health insurance involves two perils, accident and ____. A. disability B. death C. liability D. sickness ANSWER D. sickness Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity? A. Payment amounts can be unpredictable from month to month B. During periods of inflation, annuitants will experience an increase in purchasing power of their payments C. Payments cease 5 years after the annuitant's death D. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments ANSWER D. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments Which of these will have the highest monthly payout upon annuitization? A. Straight life B. Life with period certain C. Joint and survivor life D. Joint life ANSWER A. Straight life