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Final Exam: California Life, Accident,
and Health Insurance Questions with
Detailed Verified Answers
Question: The systematic liquidation of a sum of money is provided by a(n)
Ans: annuity
Question: 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?
Ans: Variable annuity
Question: What kind of annuity pays income to two annuitants until their
deaths?
Ans: Joint and survivor annuity
Question: What distinguishes a deferred annuity from an immediate annuity?
Ans: The time at which benefit payments start
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Question: 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
Question: When a mutual insurer becomes a stock company, the process is
called
Ans: Demutualization
Question: An insurer owned by its policyholders is called a
Ans: mutual insurer
Question: 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
Question: A participating company is also referred to as which type of
insurer?
Ans: Mutual insurer
Question: Which of the following is NOT a benefit of insurance?
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Ans: Losses due to fraud are eliminated
Question: Which of the following is NOT a provision in a disability income
policy?
Ans: Deductible and coinsurance provision
Question: Which of these statements is NOT true concerning recurrent
disabilities?
Ans: The insurer continues coverage after a new elimination period
Question: Allen has a disability income policy with a $2,500 monthly benefit
and a 30-day elimination period. He is unable to work 90 days following an
automobile accident. What will the policy pay?
Ans: $5,000
Question: 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
Question: Under a disability income policy, which criteria must be met for
"bodily injury" to be classified as accidental?
Ans: The cause may be intentional, but the result must be accidental
Final Exam: California Life, Accident,
and Health Insurance Questions with
Detailed Verified Answers
Question: The systematic liquidation of a sum of money is provided by a(n)
Ans: annuity
Question: 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?
Ans: Variable annuity
Question: What kind of annuity pays income to two annuitants until their
deaths?
Ans: Joint and survivor annuity
Question: What distinguishes a deferred annuity from an immediate annuity?
Ans: The time at which benefit payments start
, Page | 2
Question: 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
Question: When a mutual insurer becomes a stock company, the process is
called
Ans: Demutualization
Question: An insurer owned by its policyholders is called a
Ans: mutual insurer
Question: 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
Question: A participating company is also referred to as which type of
insurer?
Ans: Mutual insurer
Question: Which of the following is NOT a benefit of insurance?
, Page | 3
Ans: Losses due to fraud are eliminated
Question: Which of the following is NOT a provision in a disability income
policy?
Ans: Deductible and coinsurance provision
Question: Which of these statements is NOT true concerning recurrent
disabilities?
Ans: The insurer continues coverage after a new elimination period
Question: Allen has a disability income policy with a $2,500 monthly benefit
and a 30-day elimination period. He is unable to work 90 days following an
automobile accident. What will the policy pay?
Ans: $5,000
Question: 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
Question: Under a disability income policy, which criteria must be met for
"bodily injury" to be classified as accidental?
Ans: The cause may be intentional, but the result must be accidental
