XCEL Final Exam California Life Insurance
Exam Questions & Answers | Latest
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STUDY GUIDE EXAM
A savings vehicle designed to first accumulate funds and then systematically liquidates
the funds is called a(n) -CORRECTANSWER Deferred Annuity
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? -CORRECTANSWER 60 Payments
What distinguishes a deferred annuity from an immediate annuity? -
CORRECTANSWER The time at which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) -CORRECTANSWER
Annuity
What kind of annuity pays income to two annuitants until their deaths? -
CORRECTANSWER Joint And Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? -
CORRECTANSWER Offers a maximum interest rate that increases annually
,An annuitant would like to determine the amount of an annuity distribution that is
exempt from taxation. What is used to calculate this? -CORRECTANSWER Exclusion
Ratio
An annuity which is backed by a life insurer's separate account is called a(n) -
CORRECTANSWER Variable Annuity
Which of the following is a contract that involves one party which indemnifies another
when a loss arises from an unknown event? -CORRECTANSWER Insurance Policy
Which of the following is NOT a benefit of insurance? -CORRECTANSWER Losses due
to fraud are eliminated
What is a participating life insurance policy? -CORRECTANSWER Contract that allows
the policyowner to receive a share of surplus in the form of policy dividends
Which of the following is an insurer established by a parent company for the purpose of
insuring the parent company's loss exposures? -CORRECTANSWER Captive Insurer
Which of the following is NOT a characteristic of reinsurance? -CORRECTANSWER
Increases the unearned premium reserve
, Which of the following is a type of insurance where an insurer transfers loss exposures
from policies written for its insureds? -CORRECTANSWER Reinsurance
An insurer owned by its policyholders is called a -CORRECTANSWER Mutual Insurer
Which of the following contracts is defined as "one that restores an injured party to the
condition that was present before the loss"? -CORRECTANSWER Indemnity Contract
If a material warranty violation on the part of the insured is found, what recourse does
an insurer have? -CORRECTANSWER Rescind The Policy
Restoring an insured to the same condition as before a loss is an example of the
principle of -CORRECTANSWER Indemnity
Reasonably necessary acts that an agent must perform for carrying out his/her
expressly authorized duties are covered by an agent's -CORRECTANSWER Implied
Authority
Which principle is accurately described with the statement "Insureds are entitled to
recover an amount NOT greater than the amount of their loss"? -CORRECTANSWER
Indemnity
Exam Questions & Answers | Latest
Already Graded A+ UPDATE 2026!!
STUDY GUIDE EXAM
A savings vehicle designed to first accumulate funds and then systematically liquidates
the funds is called a(n) -CORRECTANSWER Deferred Annuity
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? -CORRECTANSWER 60 Payments
What distinguishes a deferred annuity from an immediate annuity? -
CORRECTANSWER The time at which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) -CORRECTANSWER
Annuity
What kind of annuity pays income to two annuitants until their deaths? -
CORRECTANSWER Joint And Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? -
CORRECTANSWER Offers a maximum interest rate that increases annually
,An annuitant would like to determine the amount of an annuity distribution that is
exempt from taxation. What is used to calculate this? -CORRECTANSWER Exclusion
Ratio
An annuity which is backed by a life insurer's separate account is called a(n) -
CORRECTANSWER Variable Annuity
Which of the following is a contract that involves one party which indemnifies another
when a loss arises from an unknown event? -CORRECTANSWER Insurance Policy
Which of the following is NOT a benefit of insurance? -CORRECTANSWER Losses due
to fraud are eliminated
What is a participating life insurance policy? -CORRECTANSWER Contract that allows
the policyowner to receive a share of surplus in the form of policy dividends
Which of the following is an insurer established by a parent company for the purpose of
insuring the parent company's loss exposures? -CORRECTANSWER Captive Insurer
Which of the following is NOT a characteristic of reinsurance? -CORRECTANSWER
Increases the unearned premium reserve
, Which of the following is a type of insurance where an insurer transfers loss exposures
from policies written for its insureds? -CORRECTANSWER Reinsurance
An insurer owned by its policyholders is called a -CORRECTANSWER Mutual Insurer
Which of the following contracts is defined as "one that restores an injured party to the
condition that was present before the loss"? -CORRECTANSWER Indemnity Contract
If a material warranty violation on the part of the insured is found, what recourse does
an insurer have? -CORRECTANSWER Rescind The Policy
Restoring an insured to the same condition as before a loss is an example of the
principle of -CORRECTANSWER Indemnity
Reasonably necessary acts that an agent must perform for carrying out his/her
expressly authorized duties are covered by an agent's -CORRECTANSWER Implied
Authority
Which principle is accurately described with the statement "Insureds are entitled to
recover an amount NOT greater than the amount of their loss"? -CORRECTANSWER
Indemnity
