XCEL Solutions Life and Health License Exam (CA) Questions and Answers 100% Verified

A saving vehicle designed to first accumulate funds and then systematically liquidates the funds - ANSWER-Deferred annuity An annuity which is backed by a life insurer's separate account - ANSWER-Variable 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 An annuitant would like to determine the current value of her annuity. To do this, she multiplies the number of "accumulation units" she owns times the unit value of the "separate account". What kind of annuity BEST matches this description? - ANSWER-Variable Annuity 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 What is a common reason people purchase an annuity? - ANSWER-To protect against the risk of outliving their financial resources Which of the following is NOT a feature of equity annuities? - ANSWER-Offers a maximum interest rate that increases annually When a mutual insurer becomes a stock company, the process is called - ANSWER-Demutualization An insurer owned by its policyholder is called a - ANSWER-Mutual insurer