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California Life Insurance State Exam
Simulator Questions with Detailed
Verified Answers
Question: Exclusion ratio
Ans: An annuitant would life 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 ration
Question: Offers a maximum interest rate that increases annually
Ans: Which of the following is NOT a feature of equity-indexed annuities?
Offers long term inflation protection, Offers a minimum guaranteed rate,
Offers a maximum interest rate that increases annually, Offers protection
during a decline in the stock market
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Question: Joint and survivor annuity
Ans: What kind of annuity pays income to two annuitants until their deaths?
Period certain annuity
Joint and survivor annuity
Straight life annuity
Installment refund
Question: For a minimum of 120 months and a maximum of the remainder of
his life
Ans: 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
For a period of time dependent on the performance of the annuity's
underlying assets
For a maximum of 120 months
For the remainder of her life only
For a minimum of 120 months and a maximum of the remainder of his life
Question: Variable annuity
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Ans: An annuitant would life 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?
Variable annuity
Fixed annuity
Immediate annuity
Life annuity
Question: 60 payments
Ans: Cindy buys a 10-year 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
Question: To protect against the risk of outliving their financial resources
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Ans: What is a common reason people purchase an annuity?
To create an immediate estate
To pay off a debt in the event of death
To minimize their tax burden
To protect against the risk of outliving their financial resources
Question: Variable annuity
Ans: 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
Question: The time at which benefit payments start
California Life Insurance State Exam
Simulator Questions with Detailed
Verified Answers
Question: Exclusion ratio
Ans: An annuitant would life 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 ration
Question: Offers a maximum interest rate that increases annually
Ans: Which of the following is NOT a feature of equity-indexed annuities?
Offers long term inflation protection, Offers a minimum guaranteed rate,
Offers a maximum interest rate that increases annually, Offers protection
during a decline in the stock market
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Question: Joint and survivor annuity
Ans: What kind of annuity pays income to two annuitants until their deaths?
Period certain annuity
Joint and survivor annuity
Straight life annuity
Installment refund
Question: For a minimum of 120 months and a maximum of the remainder of
his life
Ans: 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
For a period of time dependent on the performance of the annuity's
underlying assets
For a maximum of 120 months
For the remainder of her life only
For a minimum of 120 months and a maximum of the remainder of his life
Question: Variable annuity
, Page | 3
Ans: An annuitant would life 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?
Variable annuity
Fixed annuity
Immediate annuity
Life annuity
Question: 60 payments
Ans: Cindy buys a 10-year 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
Question: To protect against the risk of outliving their financial resources
, Page | 4
Ans: What is a common reason people purchase an annuity?
To create an immediate estate
To pay off a debt in the event of death
To minimize their tax burden
To protect against the risk of outliving their financial resources
Question: Variable annuity
Ans: 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
Question: The time at which benefit payments start
