CALIFORNIA LIFE, ACCIDENT AND HEALTH CRAM
COURSE FINAL EXAM 2025/2026 BANK ACTUAL
QUESTIONS WITH DETAILED ANSWERS WITH STUDY
GUIDE EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
What distinguishes a deferred annuity from an immediate
annuity? - . . ANSWER ✓✓ The time at which benefit
payments start
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 is a common reason people purchase an annuity? - .
. ANSWER ✓✓ To protect against the risk of outliving
their financial resources
,What kind of annuity pays income to two annuitants until
their deaths? - . . ANSWER ✓✓ Joint and survivor annuity
What is a joint and survivor annuity? - . . ANSWER ✓✓
Provides payments the annuity to two people. If either
person dies, the same income payments continue to the
survivor for life. When the surviving annuitant dies, no
further payments are made to anyone.
Victoria owns a life annuity and elects to receive annuity
payments monthly for the remainder of her life with "ten
years certain". Her annuity will make payments - . .
ANSWER ✓✓ for a minimum of 120 months and a
maximum of the remainder of her life
Which of the following statements regarding a life
insurance policy dividend is TRUE? - . . ANSWER ✓✓ It is
the distribution of excess of funds accumulated by the
insurer on participating policies.
An insured owned by its policyholders is called a - . .
ANSWER ✓✓ mutual insurer
,An insurer enters into a contract with a third party to
insure itself against losses from insurance policies it
issues. What is the agreement called? - . . ANSWER ✓✓
Reinsurance
What is reinsurance? - . . ANSWER ✓✓ An arrangement
by which an insurance company transfers a portion of a
risk it has assumed to another insurer
Which of the following is NOT a characteristic of
reinsurance? - . . ANSWER ✓✓ Increases the unearned
premium reserve
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
What is an insurance policy? - . . ANSWER ✓✓ A contract
where one party promises to indemnify another against
loss that arises from an unknown event
, What is residual disability income insurance payments
based on? - . . ANSWER ✓✓ The amount of the insured's
income is reduced by the disability
Manuel is considered to be a 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 - . . ANSWER ✓✓ Driving
Which of the following is NOT a provision in a disability
income policy? - . . ANSWER ✓✓ Deductible and
coinsurance provision
Which of these statements is NOT true concerning
recurrent disabilities? - . . ANSWER ✓✓ The insurer
continues coverage after a new elimination period
Kim is insured under a 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
- . . ANSWER ✓✓ totally disabled
COURSE FINAL EXAM 2025/2026 BANK ACTUAL
QUESTIONS WITH DETAILED ANSWERS WITH STUDY
GUIDE EXPERT VERIFIED FOR GUARANTEED
PASS/ALREADY GRADED A+
What distinguishes a deferred annuity from an immediate
annuity? - . . ANSWER ✓✓ The time at which benefit
payments start
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 is a common reason people purchase an annuity? - .
. ANSWER ✓✓ To protect against the risk of outliving
their financial resources
,What kind of annuity pays income to two annuitants until
their deaths? - . . ANSWER ✓✓ Joint and survivor annuity
What is a joint and survivor annuity? - . . ANSWER ✓✓
Provides payments the annuity to two people. If either
person dies, the same income payments continue to the
survivor for life. When the surviving annuitant dies, no
further payments are made to anyone.
Victoria owns a life annuity and elects to receive annuity
payments monthly for the remainder of her life with "ten
years certain". Her annuity will make payments - . .
ANSWER ✓✓ for a minimum of 120 months and a
maximum of the remainder of her life
Which of the following statements regarding a life
insurance policy dividend is TRUE? - . . ANSWER ✓✓ It is
the distribution of excess of funds accumulated by the
insurer on participating policies.
An insured owned by its policyholders is called a - . .
ANSWER ✓✓ mutual insurer
,An insurer enters into a contract with a third party to
insure itself against losses from insurance policies it
issues. What is the agreement called? - . . ANSWER ✓✓
Reinsurance
What is reinsurance? - . . ANSWER ✓✓ An arrangement
by which an insurance company transfers a portion of a
risk it has assumed to another insurer
Which of the following is NOT a characteristic of
reinsurance? - . . ANSWER ✓✓ Increases the unearned
premium reserve
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
What is an insurance policy? - . . ANSWER ✓✓ A contract
where one party promises to indemnify another against
loss that arises from an unknown event
, What is residual disability income insurance payments
based on? - . . ANSWER ✓✓ The amount of the insured's
income is reduced by the disability
Manuel is considered to be a 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 - . . ANSWER ✓✓ Driving
Which of the following is NOT a provision in a disability
income policy? - . . ANSWER ✓✓ Deductible and
coinsurance provision
Which of these statements is NOT true concerning
recurrent disabilities? - . . ANSWER ✓✓ The insurer
continues coverage after a new elimination period
Kim is insured under a 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
- . . ANSWER ✓✓ totally disabled
