1|Page
California, Life, Health and Accident 2025 Latest
Practice Exam with 150 Questions and Correct
Answers/ CA Life, Health & Accident Practice Test
An annuitant would like to determine the amount of an
annuity distribution that is exempt from taxation. What is
used to calculate this? - ...ANSWER...✓✓ exclusion ratio
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
A savings vehicle designed to first accumulate funds and
then systematically liquidates the funds is called -
...ANSWER...✓✓ Deferred annuity
Which of the following is not a feature of equity-indexed
annuities? - ...ANSWER...✓✓ Offers maximum interest
rate that increased annually
,2|Page
An annuity which is backed by a life insurer's separate
account is called a(n) - ...ANSWER...✓✓ variable annuity
An annuitant would like to determine the current value of
her annuity. To do this, she multiplies the number of
"accumulation units" she owns times the unit value of the
"separate account". What kind of annuity BEST matches
this description? - ...ANSWER...✓✓ Variable annuity
The systematic liquidation of a sum of money is provided
by a(n) - ...ANSWER...✓✓ annuity
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 insurer enters into a contract with a third party to
insure itself against losses from insurance policies it
issues. What is this agreement called? - ...ANSWER...✓✓
Reinsurance
,3|Page
AAA insurance Company has transferred a portion of its
loss exposure to BBB Insurance company. In this
reinsurance transaction, what is AAA Insurance Company
called? - ...ANSWER...✓✓ Primary Insurer
When a mutual insurer becomes stock company, the
process is called? - ...ANSWER...✓✓ Demutualization
Which of the following is NOT a benefit of insurance? -
...ANSWER...✓✓ Losses due to fraud are eliminated
A participating company is also referred to as which type
of insurer? - ...ANSWER...✓✓ Mutual insurer
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
What are the residual disability income insurance
payments based on? - ...ANSWER...✓✓ The amount of the
insured's income is reduced by the disability
, 4|Page
Which of these statements is NOT true concerning
recurrent disabilities? - ...ANSWER...✓✓ The insurer
continues coverage after a new elimination period
Allen has a disability income policy with a $2,500 monthly
benefit and a 30-day elimination period. He is unable to
work 90 days following an automobile accident. What will
the policy pay? - ...ANSWER...✓✓ 5,000
Which of the following is NOT a provision in a disability
income policy? - ...ANSWER...✓✓ Deductible and
coinsurance provision
The elimination period in disability income policy serves
the same purpose as - ...ANSWER...✓✓ A deductible
Dyan is considered partially disabled by her insurance
company. Which of the following BEST describes her
situation? - ...ANSWER...✓✓ She is working part-time and
receiving lost income under her long-term disability
benefit
California, Life, Health and Accident 2025 Latest
Practice Exam with 150 Questions and Correct
Answers/ CA Life, Health & Accident Practice Test
An annuitant would like to determine the amount of an
annuity distribution that is exempt from taxation. What is
used to calculate this? - ...ANSWER...✓✓ exclusion ratio
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
A savings vehicle designed to first accumulate funds and
then systematically liquidates the funds is called -
...ANSWER...✓✓ Deferred annuity
Which of the following is not a feature of equity-indexed
annuities? - ...ANSWER...✓✓ Offers maximum interest
rate that increased annually
,2|Page
An annuity which is backed by a life insurer's separate
account is called a(n) - ...ANSWER...✓✓ variable annuity
An annuitant would like to determine the current value of
her annuity. To do this, she multiplies the number of
"accumulation units" she owns times the unit value of the
"separate account". What kind of annuity BEST matches
this description? - ...ANSWER...✓✓ Variable annuity
The systematic liquidation of a sum of money is provided
by a(n) - ...ANSWER...✓✓ annuity
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 insurer enters into a contract with a third party to
insure itself against losses from insurance policies it
issues. What is this agreement called? - ...ANSWER...✓✓
Reinsurance
,3|Page
AAA insurance Company has transferred a portion of its
loss exposure to BBB Insurance company. In this
reinsurance transaction, what is AAA Insurance Company
called? - ...ANSWER...✓✓ Primary Insurer
When a mutual insurer becomes stock company, the
process is called? - ...ANSWER...✓✓ Demutualization
Which of the following is NOT a benefit of insurance? -
...ANSWER...✓✓ Losses due to fraud are eliminated
A participating company is also referred to as which type
of insurer? - ...ANSWER...✓✓ Mutual insurer
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
What are the residual disability income insurance
payments based on? - ...ANSWER...✓✓ The amount of the
insured's income is reduced by the disability
, 4|Page
Which of these statements is NOT true concerning
recurrent disabilities? - ...ANSWER...✓✓ The insurer
continues coverage after a new elimination period
Allen has a disability income policy with a $2,500 monthly
benefit and a 30-day elimination period. He is unable to
work 90 days following an automobile accident. What will
the policy pay? - ...ANSWER...✓✓ 5,000
Which of the following is NOT a provision in a disability
income policy? - ...ANSWER...✓✓ Deductible and
coinsurance provision
The elimination period in disability income policy serves
the same purpose as - ...ANSWER...✓✓ A deductible
Dyan is considered partially disabled by her insurance
company. Which of the following BEST describes her
situation? - ...ANSWER...✓✓ She is working part-time and
receiving lost income under her long-term disability
benefit
