XCEL Final Exam California Life
Insurance Questions and Answers13
A savings vehicle designed to first accumulate funds and then systematically liquidates the funds
is called a(n) - ANSWERS-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? - ANSWERS-60 Payments
What distinguishes a deferred annuity from an immediate annuity? - ANSWERS-The time at
which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) - ANSWERS-Annuity
What kind of annuity pays income to two annuitants until their deaths? - ANSWERS-Joint And
Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? - ANSWERS-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? - ANSWERS-Exclusion Ratio
An annuity which is backed by a life insurer's separate account is called a(n) - ANSWERS-Variable
Annuity
, Which of the following is a contract that involves one party which indemnifies another when a
loss arises from an unknown event? - ANSWERS-Insurance Policy
Which of the following is NOT a benefit of insurance? - ANSWERS-Losses due to fraud are
eliminated
What is a participating life insurance policy? - ANSWERS-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? - ANSWERS-Captive Insurer
Which of the following is NOT a characteristic of reinsurance? - ANSWERS-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? - ANSWERS-Reinsurance
An insurer owned by its policyholders is called a - ANSWERS-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"? - ANSWERS-Indemnity Contract
If a material warranty violation on the part of the insured is found, what recourse does an
insurer have? - ANSWERS-Rescind The Policy
Restoring an insured to the same condition as before a loss is an example of the principle of -
ANSWERS-Indemnity
Insurance Questions and Answers13
A savings vehicle designed to first accumulate funds and then systematically liquidates the funds
is called a(n) - ANSWERS-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? - ANSWERS-60 Payments
What distinguishes a deferred annuity from an immediate annuity? - ANSWERS-The time at
which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) - ANSWERS-Annuity
What kind of annuity pays income to two annuitants until their deaths? - ANSWERS-Joint And
Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? - ANSWERS-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? - ANSWERS-Exclusion Ratio
An annuity which is backed by a life insurer's separate account is called a(n) - ANSWERS-Variable
Annuity
, Which of the following is a contract that involves one party which indemnifies another when a
loss arises from an unknown event? - ANSWERS-Insurance Policy
Which of the following is NOT a benefit of insurance? - ANSWERS-Losses due to fraud are
eliminated
What is a participating life insurance policy? - ANSWERS-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? - ANSWERS-Captive Insurer
Which of the following is NOT a characteristic of reinsurance? - ANSWERS-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? - ANSWERS-Reinsurance
An insurer owned by its policyholders is called a - ANSWERS-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"? - ANSWERS-Indemnity Contract
If a material warranty violation on the part of the insured is found, what recourse does an
insurer have? - ANSWERS-Rescind The Policy
Restoring an insured to the same condition as before a loss is an example of the principle of -
ANSWERS-Indemnity
