1
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FInal Exam: California Life, Accident, and
Health Insurance Questions and Answers
(100% Correct Answers) Already Graded
A+
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
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many remaining payments will the insurer make to her
beneficiary? [ ANS: ] 60 payments
What is a common reason people purchase an annuity? [ ANS: ]
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To protect against the risk of outliving their financial resources
What kind of annuity pays income to two annuitants until their
deaths? [ 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.
An insured owned by its policyholders is called a [ ANS: ] mutual
insurer
, 2
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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
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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? [ ANS: ] Deductible and coinsurance provision
Which of these statements is NOT true concerning recurrent
disabilities? [ ANS: ] The insurer continues coverage after a new
elimination period
Kim is insured under a disability income insurance policy with an
"own-occupation" clause. She was recently injured in an
automobile accident and can no longer perform the tasks of her
job. Kim is now considered to be [ ANS: ] totally disabled
For Expert help and assignment solutions, +254707240657
FInal Exam: California Life, Accident, and
Health Insurance Questions and Answers
(100% Correct Answers) Already Graded
A+
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
© 2025 Assignment Expert
many remaining payments will the insurer make to her
beneficiary? [ ANS: ] 60 payments
What is a common reason people purchase an annuity? [ ANS: ]
Guru01 - Stuvia
To protect against the risk of outliving their financial resources
What kind of annuity pays income to two annuitants until their
deaths? [ 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.
An insured owned by its policyholders is called a [ ANS: ] mutual
insurer
, 2
For Expert help and assignment solutions, +254707240657
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? [
© 2025 Assignment Expert
ANS: ] Insurance policy
What is an insurance policy? [ ANS: ] A contract where one party
promises to indemnify another against loss that arises from an
Guru01 - Stuvia
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? [ ANS: ] Deductible and coinsurance provision
Which of these statements is NOT true concerning recurrent
disabilities? [ ANS: ] The insurer continues coverage after a new
elimination period
Kim is insured under a disability income insurance policy with an
"own-occupation" clause. She was recently injured in an
automobile accident and can no longer perform the tasks of her
job. Kim is now considered to be [ ANS: ] totally disabled
