XCEL FINAL EXAM CALIFORNIA LIFE
INSURANCE 2025 COMPREHENSIVE EXAM
QUESTIONS WITH DETAILED VERIFIED AND
100% CORRECT ANSWERS ALREADY GRADED
A+!!
A savings vehicle designed to first accumulate funds and then systematically liquidates
the funds is called a(n) - CORRECT 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? - CORRECT ANSWER - 60 Payments
What distinguishes a deferred annuity from an immediate annuity? - CORRECT
ANSWER - The time at which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) - CORRECT
ANSWER - Annuity
What kind of annuity pays income to two annuitants until their deaths? - CORRECT
ANSWER - Joint And Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? - CORRECT
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? - CORRECT ANSWER -
Exclusion Ratio
An annuity which is backed by a life insurer's separate account is called a(n) -
CORRECT 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? - CORRECT ANSWER - Insurance Policy
Which of the following is NOT a benefit of insurance? - CORRECT ANSWER - Losses
due to fraud are eliminated
, What is a participating life insurance policy? - CORRECT 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? - CORRECT ANSWER - Captive Insurer
Which of the following is NOT a characteristic of reinsurance? - CORRECT 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? - CORRECT ANSWER - Reinsurance
An insurer owned by its policyholders is called a - CORRECT 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"? - CORRECT ANSWER - Indemnity
Contract
If a material warranty violation on the part of the insured is found, what recourse does
an insurer have? - CORRECT ANSWER - Rescind The Policy
Restoring an insured to the same condition as before a loss is an example of the
principle of - CORRECT ANSWER - Indemnity
Reasonably necessary acts that an agent must perform for carrying out his/her
expressly authorized duties are covered by an agent's - CORRECT 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"? - CORRECT ANSWER
- Indemnity
Which statement is CORRECT when describing a contract of adhesion? - CORRECT
ANSWER - Contract may be accepted or rejected by the insured
Express power given to an agent in an agency agreement is - CORRECT ANSWER -
The authority to represent the insurer
What is the price of insurance for each exposure unit? - CORRECT ANSWER - Rate
INSURANCE 2025 COMPREHENSIVE EXAM
QUESTIONS WITH DETAILED VERIFIED AND
100% CORRECT ANSWERS ALREADY GRADED
A+!!
A savings vehicle designed to first accumulate funds and then systematically liquidates
the funds is called a(n) - CORRECT 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? - CORRECT ANSWER - 60 Payments
What distinguishes a deferred annuity from an immediate annuity? - CORRECT
ANSWER - The time at which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) - CORRECT
ANSWER - Annuity
What kind of annuity pays income to two annuitants until their deaths? - CORRECT
ANSWER - Joint And Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? - CORRECT
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? - CORRECT ANSWER -
Exclusion Ratio
An annuity which is backed by a life insurer's separate account is called a(n) -
CORRECT 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? - CORRECT ANSWER - Insurance Policy
Which of the following is NOT a benefit of insurance? - CORRECT ANSWER - Losses
due to fraud are eliminated
, What is a participating life insurance policy? - CORRECT 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? - CORRECT ANSWER - Captive Insurer
Which of the following is NOT a characteristic of reinsurance? - CORRECT 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? - CORRECT ANSWER - Reinsurance
An insurer owned by its policyholders is called a - CORRECT 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"? - CORRECT ANSWER - Indemnity
Contract
If a material warranty violation on the part of the insured is found, what recourse does
an insurer have? - CORRECT ANSWER - Rescind The Policy
Restoring an insured to the same condition as before a loss is an example of the
principle of - CORRECT ANSWER - Indemnity
Reasonably necessary acts that an agent must perform for carrying out his/her
expressly authorized duties are covered by an agent's - CORRECT 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"? - CORRECT ANSWER
- Indemnity
Which statement is CORRECT when describing a contract of adhesion? - CORRECT
ANSWER - Contract may be accepted or rejected by the insured
Express power given to an agent in an agency agreement is - CORRECT ANSWER -
The authority to represent the insurer
What is the price of insurance for each exposure unit? - CORRECT ANSWER - Rate
