1 | Page
FInal Exam: California Life, Accident,
and Health Insurance Questions and
Correct Answers/ Latest Update /
Already Graded
What distinguishes a deferred annuity from an immediate annuity?
Ans: The time at which benefit payments start
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?
Ans: 60 payments
What is a common reason people purchase an annuity?
Ans: To protect against the risk of outliving their financial resources
What kind of annuity pays income to two annuitants until their
deaths?
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Ans: Joint and survivor annuity
What is a joint and survivor annuity?
Ans: Provides payments the annuity to two people. If either person dies,
the same income payments continue to the survivor for life. When the
surviving annuitant dies, no further payments are made to anyone.
Victoria owns a life annuity and elects to receive annuity payments
monthly for the remainder of her life with "ten years certain". Her
annuity will make payments
Ans: for a minimum of 120 months and a maximum of the remainder of
her life
Which of the following statements regarding a life insurance policy
dividend is TRUE?
Ans: It is the distribution of excess of funds accumulated by the insurer on
participating policies.
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An insured owned by its policyholders is called a
Ans: mutual insurer
An insurer enters into a contract with a third party to insure itself
against losses from insurance policies it issues. What is the agreement
called?
Ans: Reinsurance
What is reinsurance?
Ans: An arrangement by which an insurance company transfers a portion
of a risk it has assumed to another insurer
Which of the following is NOT a characteristic of reinsurance?
Ans: Increases the unearned premium reserve
Which of the following is a contract that involves one party which
indemnifies another when a loss arises from an unknown event?
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Ans: Insurance policy
What is an insurance policy?
Ans: A contract where one party promises to indemnify another against
loss that arises from an unknown event
What is residual disability income insurance payments based on?
Ans: The amount of the insured's income is reduced by the disability
Manuel is considered to be a disabled person as defined by the
Americans with Disabilities Act (ADA). As such, he is unable to
perform any of the following life activities EXCEPT
Ans: Driving
Which of the following is NOT a provision in a disability income
policy?
FInal Exam: California Life, Accident,
and Health Insurance Questions and
Correct Answers/ Latest Update /
Already Graded
What distinguishes a deferred annuity from an immediate annuity?
Ans: The time at which benefit payments start
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?
Ans: 60 payments
What is a common reason people purchase an annuity?
Ans: To protect against the risk of outliving their financial resources
What kind of annuity pays income to two annuitants until their
deaths?
,2 | Page
Ans: Joint and survivor annuity
What is a joint and survivor annuity?
Ans: Provides payments the annuity to two people. If either person dies,
the same income payments continue to the survivor for life. When the
surviving annuitant dies, no further payments are made to anyone.
Victoria owns a life annuity and elects to receive annuity payments
monthly for the remainder of her life with "ten years certain". Her
annuity will make payments
Ans: for a minimum of 120 months and a maximum of the remainder of
her life
Which of the following statements regarding a life insurance policy
dividend is TRUE?
Ans: It is the distribution of excess of funds accumulated by the insurer on
participating policies.
,3 | Page
An insured owned by its policyholders is called a
Ans: mutual insurer
An insurer enters into a contract with a third party to insure itself
against losses from insurance policies it issues. What is the agreement
called?
Ans: Reinsurance
What is reinsurance?
Ans: An arrangement by which an insurance company transfers a portion
of a risk it has assumed to another insurer
Which of the following is NOT a characteristic of reinsurance?
Ans: Increases the unearned premium reserve
Which of the following is a contract that involves one party which
indemnifies another when a loss arises from an unknown event?
, 4 | Page
Ans: Insurance policy
What is an insurance policy?
Ans: A contract where one party promises to indemnify another against
loss that arises from an unknown event
What is residual disability income insurance payments based on?
Ans: The amount of the insured's income is reduced by the disability
Manuel is considered to be a disabled person as defined by the
Americans with Disabilities Act (ADA). As such, he is unable to
perform any of the following life activities EXCEPT
Ans: Driving
Which of the following is NOT a provision in a disability income
policy?
