CALIFORNIA LIFE,ACCIDENT AND HEALTH STATE REAL
EXAM AND STUDY GUIDE 200 QUESTIONS AND
CORRECT ANSWERS 2024-2025 LATEST
VERSION//ALREADY GRADED A+
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?
- No payments
- 30 payments
- 60 payments
- 120 payments - CORRECT ANSWER-60 Payments
An annuitant would like to determine the amount of an annuity distribution that is exempt from
taxation. What is used to calculate this?
- Mortality rate
- Exclusion ratio
- Morbidity rate
- Debt-to-Equity ratio - CORRECT ANSWER-Exclusion ratio
The systematic liquidation of a sum of money is provided by a(n)
- annuity
- endowment contract
- life insurance policy
- 1035 contract exchange - CORRECT ANSWER-annuity
Which of the following is NOT a feature of equity-indexed annuities?
- Offers long term inflation protection
- Offers a minimum guarantee rate
- Offers a maximum interest rate that increases annually
,- Offers protection during a decline in the stock market - CORRECT ANSWER-Offers a maximum interest
rate that increases annually
What kind of annuity pays income to two annuitants until their deaths?
- Period certain annuity
- Joint and survivor annuity
- Straight life annuity
- Installment refund - CORRECT ANSWER-Joint and survivor annuity
A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is
called a(n)
- immediate annuity
- deferred annuity
- endowment
- whole life policy - CORRECT ANSWER-deferred annuity
An annuity which is backed by a life insurer's separate account is called a(n)
- equity indexed annuity
- variable annuity
- immediate annuity
- 403(b) plan - 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?
- Insurance policy
- Warranty arrangement
- Indemnification arrangement
- Loss contract - CORRECT ANSWER-Insurance Policy
,Which of the following is an insurer established by a parent company for the purpose of insuring the
parent company's loss exposures?
- Participating insurer
- Captive insurer
- Mutual insurer
- Fraternal insurer - CORRECT ANSWER-Captive insurer
John owns an insurance policy that gives him the right to share in the insurer's surplus. What kind of
policy is this?
- Surplus
- Nonparticipating
- Participating
- Contributory - CORRECT ANSWER-Participating
One important function of an insurance company is to identify and sell to potential customers. Which of
these BEST describes this function?
- Reinsurance
- Underwriting
- Marketing
- Regulation - CORRECT ANSWER-Marketing
When a mutual insurer becomes a stock company, the process is called
- Reinsurance
- Mutualization
- Demutualization
- Reorganization - CORRECT ANSWER-Demutualization
What is a participating life insurance policy?
- Agreement that insurers two or more lives
- Agreement that allows two or more beneficiaries to share in the death benefit
, - Contract that gives beneficiaries the right to participate in any dividends
- Contract that allows the policyowner to receive a share of surplus in the form of policy dividends -
CORRECT ANSWER-Contract that allows the policyowner to receive a share of surplus in the form of
policy dividends
The elimination period is a disability income policy serves the same purpose as
- a deductible
- coinsurance
- an elective indemnity
- waiver of premium - CORRECT ANSWER-a deductible
Under a disability income insurance policy, which criteria must be met for "bodily injury" to be classified
as accidental?
- Only the result needed be of natural cause
- Only the cause need be accidental
- Both the injury and the cause need be accidental
- The cause may be intentional, but the result must be accidental - CORRECT ANSWER-The cause may be
intentional, but the result must be accidental
What are residual disability income insurance payments based on?
- A flat benefit amount stated in the policy
- 50% of the full disability amount
- The amount of the insured's income is reduced by the disability
- The insured must be totally disabled - CORRECT ANSWER-The amount of the insured's income is
reduced by the disability
Dyan is considered partially disabled by her insurance company. Which of the following BEST describes
her situation?
- She is working part-time and receiving lost income under her long-term disability benefit
- She has lost hearing in one ear because of an accident on the job
- She is unable to work and receiving worker's compensation
EXAM AND STUDY GUIDE 200 QUESTIONS AND
CORRECT ANSWERS 2024-2025 LATEST
VERSION//ALREADY GRADED A+
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?
- No payments
- 30 payments
- 60 payments
- 120 payments - CORRECT ANSWER-60 Payments
An annuitant would like to determine the amount of an annuity distribution that is exempt from
taxation. What is used to calculate this?
- Mortality rate
- Exclusion ratio
- Morbidity rate
- Debt-to-Equity ratio - CORRECT ANSWER-Exclusion ratio
The systematic liquidation of a sum of money is provided by a(n)
- annuity
- endowment contract
- life insurance policy
- 1035 contract exchange - CORRECT ANSWER-annuity
Which of the following is NOT a feature of equity-indexed annuities?
- Offers long term inflation protection
- Offers a minimum guarantee rate
- Offers a maximum interest rate that increases annually
,- Offers protection during a decline in the stock market - CORRECT ANSWER-Offers a maximum interest
rate that increases annually
What kind of annuity pays income to two annuitants until their deaths?
- Period certain annuity
- Joint and survivor annuity
- Straight life annuity
- Installment refund - CORRECT ANSWER-Joint and survivor annuity
A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is
called a(n)
- immediate annuity
- deferred annuity
- endowment
- whole life policy - CORRECT ANSWER-deferred annuity
An annuity which is backed by a life insurer's separate account is called a(n)
- equity indexed annuity
- variable annuity
- immediate annuity
- 403(b) plan - 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?
- Insurance policy
- Warranty arrangement
- Indemnification arrangement
- Loss contract - CORRECT ANSWER-Insurance Policy
,Which of the following is an insurer established by a parent company for the purpose of insuring the
parent company's loss exposures?
- Participating insurer
- Captive insurer
- Mutual insurer
- Fraternal insurer - CORRECT ANSWER-Captive insurer
John owns an insurance policy that gives him the right to share in the insurer's surplus. What kind of
policy is this?
- Surplus
- Nonparticipating
- Participating
- Contributory - CORRECT ANSWER-Participating
One important function of an insurance company is to identify and sell to potential customers. Which of
these BEST describes this function?
- Reinsurance
- Underwriting
- Marketing
- Regulation - CORRECT ANSWER-Marketing
When a mutual insurer becomes a stock company, the process is called
- Reinsurance
- Mutualization
- Demutualization
- Reorganization - CORRECT ANSWER-Demutualization
What is a participating life insurance policy?
- Agreement that insurers two or more lives
- Agreement that allows two or more beneficiaries to share in the death benefit
, - Contract that gives beneficiaries the right to participate in any dividends
- Contract that allows the policyowner to receive a share of surplus in the form of policy dividends -
CORRECT ANSWER-Contract that allows the policyowner to receive a share of surplus in the form of
policy dividends
The elimination period is a disability income policy serves the same purpose as
- a deductible
- coinsurance
- an elective indemnity
- waiver of premium - CORRECT ANSWER-a deductible
Under a disability income insurance policy, which criteria must be met for "bodily injury" to be classified
as accidental?
- Only the result needed be of natural cause
- Only the cause need be accidental
- Both the injury and the cause need be accidental
- The cause may be intentional, but the result must be accidental - CORRECT ANSWER-The cause may be
intentional, but the result must be accidental
What are residual disability income insurance payments based on?
- A flat benefit amount stated in the policy
- 50% of the full disability amount
- The amount of the insured's income is reduced by the disability
- The insured must be totally disabled - CORRECT ANSWER-The amount of the insured's income is
reduced by the disability
Dyan is considered partially disabled by her insurance company. Which of the following BEST describes
her situation?
- She is working part-time and receiving lost income under her long-term disability benefit
- She has lost hearing in one ear because of an accident on the job
- She is unable to work and receiving worker's compensation
