XCEL Final Exam California Life Insurance Questions & Answers 100% correct

A savings vehicle designed to first accumulate funds and then systematically liquidates the funds is called a(n) - ANSWER-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? - ANSWER-60 Payments What distinguishes a deferred annuity from an immediate annuity? - ANSWER-The time at which benefit payments start The systematic liquidation of a sum of money is provided by a(n) - ANSWER-Annuity What kind of annuity pays income to two annuitants until their deaths? - ANSWER-Joint And Survivor Annuity Which of the following is NOT a feature of equity-indexed annuities? - ANSWER-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? - ANSWER-Exclusion Ratio An annuity which is backed by a life insurer's separate account is called a(n) - ANSWER-Variable Annuity Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event? - ANSWER-Insurance Policy Which of the following is NOT a benefit of insurance? - ANSWER-Losses due to fraud are eliminated