FINAL EXAM: CALIFORNIA
LIFE, ACCIDENT, AND
K
C
HEALTH INSURANCE
LO
QUESTIONS AND CORRECT
VERIFIED ANSWERS 100%
YC
GUARANTEED PASS A+
GRADED
D
U
ST
, 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
K
What is a common reason people purchase an annuity? - ANS To protect against the risk of
outliving their financial resources
C
What kind of annuity pays income to two annuitants until their deaths? - ANS Joint and
survivor annuity
LO
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
YC
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.
D
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
U
policies it issues. What is the agreement called? - ANS Reinsurance
What is reinsurance? - ANS An arrangement by which an insurance company transfers a
ST
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? - 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
LIFE, ACCIDENT, AND
K
C
HEALTH INSURANCE
LO
QUESTIONS AND CORRECT
VERIFIED ANSWERS 100%
YC
GUARANTEED PASS A+
GRADED
D
U
ST
, 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
K
What is a common reason people purchase an annuity? - ANS To protect against the risk of
outliving their financial resources
C
What kind of annuity pays income to two annuitants until their deaths? - ANS Joint and
survivor annuity
LO
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
YC
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.
D
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
U
policies it issues. What is the agreement called? - ANS Reinsurance
What is reinsurance? - ANS An arrangement by which an insurance company transfers a
ST
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? - 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
