1
CALIFORNIA LIFE, ACCIDENT, AND HEALTH
INSURANCE FINAL EXAM QUESTIONS WITH
VERIFIED ANSWERS | NEWEST!!
What distinguishes a deferred annuity from an immediate annuity? - correct-
answer -The time at which benefit payments start
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
What is a common reason people purchase an annuity? - correct-answer -To
protect against the risk of outliving their financial resources
What kind of annuity pays income to two annuitants until their deaths? - correct-
answer -Joint and survivor annuity
, 2
What is a joint and survivor annuity? - correct-answer -Provides payments the
annuity to two people. If either person dies, the same income payments continue
to the survivor for life. When the surviving annuitant dies, no further payments
are made to anyone.
Victoria owns a life annuity and elects to receive annuity payments monthly for
the remainder of her life with "ten years certain". Her annuity will make payments
- correct-answer -for a minimum of 120 months and a maximum of the remainder
of her life
Which of the following statements regarding a life insurance policy dividend is
TRUE? - correct-answer -It is the distribution of excess of funds accumulated by
the insurer on participating policies.
An insured owned by its policyholders is called a - correct-answer -mutual insurer
An insurer enters into a contract with a third party to insure itself against losses
from insurance policies it issues. What is the agreement called? - correct-answer -
Reinsurance
, 3
What is reinsurance? - correct-answer -An arrangement by which an insurance
company transfers a portion of a risk it has assumed to another insurer
Which of the following is NOT a characteristic of reinsurance? - correct-answer -
Increases the unearned premium reserve
Which of the following is a contract that involves one party which indemnifies
another when a loss arises from an unknown event? - correct-answer -Insurance
policy
What is an insurance policy? - correct-answer -A contract where one party
promises to indemnify another against loss that arises from an unknown event
What is residual disability income insurance payments based on? - correct-answer
-The amount of the insured's income is reduced by the disability
Manuel is considered to be a disabled person as defined by the Americans with
Disabilities Act (ADA). As such, he is unable to perform any of the following life
activities EXCEPT - correct-answer -Driving
CALIFORNIA LIFE, ACCIDENT, AND HEALTH
INSURANCE FINAL EXAM QUESTIONS WITH
VERIFIED ANSWERS | NEWEST!!
What distinguishes a deferred annuity from an immediate annuity? - correct-
answer -The time at which benefit payments start
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
What is a common reason people purchase an annuity? - correct-answer -To
protect against the risk of outliving their financial resources
What kind of annuity pays income to two annuitants until their deaths? - correct-
answer -Joint and survivor annuity
, 2
What is a joint and survivor annuity? - correct-answer -Provides payments the
annuity to two people. If either person dies, the same income payments continue
to the survivor for life. When the surviving annuitant dies, no further payments
are made to anyone.
Victoria owns a life annuity and elects to receive annuity payments monthly for
the remainder of her life with "ten years certain". Her annuity will make payments
- correct-answer -for a minimum of 120 months and a maximum of the remainder
of her life
Which of the following statements regarding a life insurance policy dividend is
TRUE? - correct-answer -It is the distribution of excess of funds accumulated by
the insurer on participating policies.
An insured owned by its policyholders is called a - correct-answer -mutual insurer
An insurer enters into a contract with a third party to insure itself against losses
from insurance policies it issues. What is the agreement called? - correct-answer -
Reinsurance
, 3
What is reinsurance? - correct-answer -An arrangement by which an insurance
company transfers a portion of a risk it has assumed to another insurer
Which of the following is NOT a characteristic of reinsurance? - correct-answer -
Increases the unearned premium reserve
Which of the following is a contract that involves one party which indemnifies
another when a loss arises from an unknown event? - correct-answer -Insurance
policy
What is an insurance policy? - correct-answer -A contract where one party
promises to indemnify another against loss that arises from an unknown event
What is residual disability income insurance payments based on? - correct-answer
-The amount of the insured's income is reduced by the disability
Manuel is considered to be a disabled person as defined by the Americans with
Disabilities Act (ADA). As such, he is unable to perform any of the following life
activities EXCEPT - correct-answer -Driving
