CALIFORNIA LIFE,ACCIDENT AND HEALTH STATE REAL
EXAM AND STUDY GUIDE 200 QUESTIONS AND
CORRECT ANSWERS 2025-2026 LATEST VERSION
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 2025-2026 LATEST VERSION
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
