California Life, Accident, and Health State Exam

California Life, Accident, and Health State Exam 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? - No payments - 30 payments - 60 payments - 120 payments - Answer ️️ -60 Payments An annuitant would like to determine the amount of an annuity distribution that is exempt from taxation. What is used to calculate this? - Mortality rate - Exclusion ratio - Morbidity rate - Debt-to-Equity ratio - Answer ️️ -Exclusion ratio The systematic liquidation of a sum of money is provided by a(n) - annuity - endowment contract - life insurance policy - 1035 contract exchange - Answer ️️ -annuity Which of the following is NOT a feature of equity-indexed annuities? - Offers long term inflation protection - Offers a minimum guarantee rate - Offers a maximum interest rate that increases annually - Offers protection during a decline in the stock market - Answer ️️ -Offers a maximum interest rate that increases annually What kind of annuity pays income to two annuitants until their deaths? - Period certain annuity - Joint and survivor annuity - Straight life annuity - Installment refund - Answer ️️ -Joint and survivor annuity A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is called a(n) - immediate annuity - deferred annuity - endowment - whole life policy - Answer ️️ -deferred annuity An annuity which is backed by a life insurer's separate account is called a(n) - equity indexed annuity - variable annuity - immediate annuity - 403(b) plan - Answer ️️ -variable annuity Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown