XCEL Final Exam California Life
Insurance
A savings vehicle designed to first accumulate funds and then systematically
liquidates the funds is called a(n) - Answer-Deferred Annuity
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? - Answer-60 Payments
What distinguishes a deferred annuity from an immediate annuity? - Answer-The
time at which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) - Answer-Annuity
What kind of annuity pays income to two annuitants until their deaths? - Answer-
Joint And Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? - Answer-Offers
a maximum interest rate that increases annually
An annuitant would like to determine the amount of an annuity distribution that is
exempt from taxation. What is used to calculate this? - Answer-Exclusion Ratio
An annuity which is backed by a life insurer's separate account is called a(n) -
Answer-Variable Annuity
Which of the following is a contract that involves one party which indemnifies another
when a loss arises from an unknown event? - Answer-Insurance Policy
Which of the following is NOT a benefit of insurance? - Answer-Losses due to fraud
are eliminated
What is a participating life insurance policy? - Answer-Contract that allows the
policyowner to receive a share of surplus in the form of policy dividends
Which of the following is an insurer established by a parent company for the purpose
of insuring the parent company's loss exposures? - Answer-Captive Insurer
Which of the following is NOT a characteristic of reinsurance? - Answer-Increases
the unearned premium reserve
Which of the following is a type of insurance where an insurer transfers loss
exposures from policies written for its insureds? - Answer-Reinsurance
An insurer owned by its policyholders is called a - Answer-Mutual Insurer
, Which of the following contracts is defined as "one that restores an injured party to
the condition that was present before the loss"? - Answer-Indemnity Contract
If a material warranty violation on the part of the insured is found, what recourse
does an insurer have? - Answer-Rescind The Policy
Restoring an insured to the same condition as before a loss is an example of the
principle of - Answer-Indemnity
Reasonably necessary acts that an agent must perform for carrying out his/her
expressly authorized duties are covered by an agent's - Answer-Implied Authority
Which principle is accurately described with the statement "Insureds are entitled to
recover an amount NOT greater than the amount of their loss"? - Answer-Indemnity
Which statement is CORRECT when describing a contract of adhesion? - Answer-
Contract may be accepted or rejected by the insured
Express power given to an agent in an agency agreement is - Answer-The authority
to represent the insurer
What is the price of insurance for each exposure unit? - Answer-Rate
A creditor would be allowed rights to life insurance policy proceeds if which of the
following beneficiaries is chosen? - Answer-The Insured's Estate
A spendthrift clause in a life insurance policy - Answer-Restricts the ability of the
beneficiary to assign benefits
Which of the following is NOT an insurer policy expense? - Answer-Premiums
Pam is the primary beneficiary of a life insurance policy and wants to let the death
benefit accumulate and receive only the monthly investment proceeds. Which
settlement option should she choose? - Answer-Interest Option
Premiums are best described as - Answer-The amount an insured pays per unit of
coverage
How are death benefits that are received by a beneficiary normally treated for tax
purposes? - Answer-Exempt from federal income taxes
When calculating life insurance premium rates, which component is affected by an
insured's age and gender? - Answer-Mortality
Which of the following is NOT a component of determining policy premiums? -
Answer-Dividends
What does the guaranteed insurability option allow an insured to do? - Answer-
Purchase additional coverage with no evidence of insurability required
Insurance
A savings vehicle designed to first accumulate funds and then systematically
liquidates the funds is called a(n) - Answer-Deferred Annuity
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? - Answer-60 Payments
What distinguishes a deferred annuity from an immediate annuity? - Answer-The
time at which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) - Answer-Annuity
What kind of annuity pays income to two annuitants until their deaths? - Answer-
Joint And Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? - Answer-Offers
a maximum interest rate that increases annually
An annuitant would like to determine the amount of an annuity distribution that is
exempt from taxation. What is used to calculate this? - Answer-Exclusion Ratio
An annuity which is backed by a life insurer's separate account is called a(n) -
Answer-Variable Annuity
Which of the following is a contract that involves one party which indemnifies another
when a loss arises from an unknown event? - Answer-Insurance Policy
Which of the following is NOT a benefit of insurance? - Answer-Losses due to fraud
are eliminated
What is a participating life insurance policy? - Answer-Contract that allows the
policyowner to receive a share of surplus in the form of policy dividends
Which of the following is an insurer established by a parent company for the purpose
of insuring the parent company's loss exposures? - Answer-Captive Insurer
Which of the following is NOT a characteristic of reinsurance? - Answer-Increases
the unearned premium reserve
Which of the following is a type of insurance where an insurer transfers loss
exposures from policies written for its insureds? - Answer-Reinsurance
An insurer owned by its policyholders is called a - Answer-Mutual Insurer
, Which of the following contracts is defined as "one that restores an injured party to
the condition that was present before the loss"? - Answer-Indemnity Contract
If a material warranty violation on the part of the insured is found, what recourse
does an insurer have? - Answer-Rescind The Policy
Restoring an insured to the same condition as before a loss is an example of the
principle of - Answer-Indemnity
Reasonably necessary acts that an agent must perform for carrying out his/her
expressly authorized duties are covered by an agent's - Answer-Implied Authority
Which principle is accurately described with the statement "Insureds are entitled to
recover an amount NOT greater than the amount of their loss"? - Answer-Indemnity
Which statement is CORRECT when describing a contract of adhesion? - Answer-
Contract may be accepted or rejected by the insured
Express power given to an agent in an agency agreement is - Answer-The authority
to represent the insurer
What is the price of insurance for each exposure unit? - Answer-Rate
A creditor would be allowed rights to life insurance policy proceeds if which of the
following beneficiaries is chosen? - Answer-The Insured's Estate
A spendthrift clause in a life insurance policy - Answer-Restricts the ability of the
beneficiary to assign benefits
Which of the following is NOT an insurer policy expense? - Answer-Premiums
Pam is the primary beneficiary of a life insurance policy and wants to let the death
benefit accumulate and receive only the monthly investment proceeds. Which
settlement option should she choose? - Answer-Interest Option
Premiums are best described as - Answer-The amount an insured pays per unit of
coverage
How are death benefits that are received by a beneficiary normally treated for tax
purposes? - Answer-Exempt from federal income taxes
When calculating life insurance premium rates, which component is affected by an
insured's age and gender? - Answer-Mortality
Which of the following is NOT a component of determining policy premiums? -
Answer-Dividends
What does the guaranteed insurability option allow an insured to do? - Answer-
Purchase additional coverage with no evidence of insurability required
