California Life, Accident, and Health Insurance Final Exam with Q and A

California Life, Accident, and Health Insurance Final Exam with Q and A Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him than the existing contract. This is considered a(n) a. deferred annuity b. immediate annuity c. unnecessary replacement d. illegal transaction ANSWER c. unnecessary replacement 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 a. partially disabled b. temporarily disabled c. totally disabled d. short-term disabled ANSWER c. totally disabled What is participating life insurance policy? a. agreement that insures two or more lives b. agreement that allows two or more beneficiaries to share in the death benefit c. contract that allows the policyowner to receive a share of surplus in the form of policy dividends