Final Exam: California Life, Accident, and Health
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Terms in this set (160)
What distinguishes a deferred The time at which benefit payments start
annuity from an immediate
annuity?
Cindy buys a 10-year certain 60 payments
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?
What is a common reason To protect against the risk of outliving their financial resources
people purchase an
annuity?
What kind of annuity pays Joint and survivor annuity
income to two annuitants
until their deaths?
Provides payments the annuity to two people. If either
What is a joint and survivor person dies, the same income payments continue to the
annuity? survivor for life. When the surviving annuitant dies, no
further payments are made to anyone.
,Victoria owns a life annuity for a minimum of 120 months and a maximum of the remainder of
and elects to receive annuity her life
payments monthly for the
remainder of her life with
"ten years certain". Her
annuity will make payments
Which of the following It is the distribution of excess of funds accumulated by the
statements regarding a life insurer on participating policies.
insurance policy dividend is
TRUE?
An insured owned by its mutual insurer
policyholders is called a
An insurer enters into a Reinsurance
contract with a third party to
insure itself against losses
from insurance policies it
issues. What is the
agreement called?
What is reinsurance? An arrangement by which an insurance company transfers a
portion of a risk it has assumed to another insurer
Which of the following is Increases the unearned premium reserve
NOT a characteristic of
reinsurance?
Which of the following is a Insurance policy
contract that involves one
party which indemnifies
another when a loss arises
from an unknown event?
A contract where one party promises to indemnify another
What is an insurance policy?
against loss that arises from an unknown event
, What is residual disability The amount of the insured's income is reduced by the disability
income insurance
payments based on?
Manuel is considered to be a Driving
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
Which of the following is Deductible and coinsurance provision
NOT a provision in a
disability income policy?
Which of these statements is The insurer continues coverage after a new elimination
NOT true concerning period
recurrent disabilities?
Kim is insured under a totally disabled
disability income insurance
policy with an "own-
occupation" clause. She was
recently injured in an
automobile accident and can
no longer perform the tasks
of her job. Kim is now
considered to be
100%
What percentage of eligible
employees must participate
in a noncontributory group
health plan before it can be
put in effect?
Insurance / Expert Strategies, Review of Key Quizzes,
and Practice Questions for Guaranteed Success /
Newest 2025/2026.
Terms in this set (160)
What distinguishes a deferred The time at which benefit payments start
annuity from an immediate
annuity?
Cindy buys a 10-year certain 60 payments
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?
What is a common reason To protect against the risk of outliving their financial resources
people purchase an
annuity?
What kind of annuity pays Joint and survivor annuity
income to two annuitants
until their deaths?
Provides payments the annuity to two people. If either
What is a joint and survivor person dies, the same income payments continue to the
annuity? survivor for life. When the surviving annuitant dies, no
further payments are made to anyone.
,Victoria owns a life annuity for a minimum of 120 months and a maximum of the remainder of
and elects to receive annuity her life
payments monthly for the
remainder of her life with
"ten years certain". Her
annuity will make payments
Which of the following It is the distribution of excess of funds accumulated by the
statements regarding a life insurer on participating policies.
insurance policy dividend is
TRUE?
An insured owned by its mutual insurer
policyholders is called a
An insurer enters into a Reinsurance
contract with a third party to
insure itself against losses
from insurance policies it
issues. What is the
agreement called?
What is reinsurance? An arrangement by which an insurance company transfers a
portion of a risk it has assumed to another insurer
Which of the following is Increases the unearned premium reserve
NOT a characteristic of
reinsurance?
Which of the following is a Insurance policy
contract that involves one
party which indemnifies
another when a loss arises
from an unknown event?
A contract where one party promises to indemnify another
What is an insurance policy?
against loss that arises from an unknown event
, What is residual disability The amount of the insured's income is reduced by the disability
income insurance
payments based on?
Manuel is considered to be a Driving
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
Which of the following is Deductible and coinsurance provision
NOT a provision in a
disability income policy?
Which of these statements is The insurer continues coverage after a new elimination
NOT true concerning period
recurrent disabilities?
Kim is insured under a totally disabled
disability income insurance
policy with an "own-
occupation" clause. She was
recently injured in an
automobile accident and can
no longer perform the tasks
of her job. Kim is now
considered to be
100%
What percentage of eligible
employees must participate
in a noncontributory group
health plan before it can be
put in effect?
