FInal Exam: California Life, Accident, and Health
Insurance Correct 100%
What distinguishes a deferred annuity from an
immediate annuity? - ANSWER 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? - ANSWER 60 payments
What is a common reason people purchase an
annuity? - ANSWER To protect against the risk of
outliving their financial resources
What kind of annuity pays income to two annuitants
until their deaths? - ANSWER Joint and survivor
annuity
, What is a joint and survivor annuity? - ANSWER
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 - ANSWER 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? - ANSWER It is
the distribution of excess of funds accumulated by
the insurer on participating policies.
, An insured owned by its policyholders is called a -
ANSWER 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? - ANSWER
Reinsurance
What is reinsurance? - ANSWER 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? - ANSWER 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? - ANSWER
Insurance policy
Insurance Correct 100%
What distinguishes a deferred annuity from an
immediate annuity? - ANSWER 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? - ANSWER 60 payments
What is a common reason people purchase an
annuity? - ANSWER To protect against the risk of
outliving their financial resources
What kind of annuity pays income to two annuitants
until their deaths? - ANSWER Joint and survivor
annuity
, What is a joint and survivor annuity? - ANSWER
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 - ANSWER 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? - ANSWER It is
the distribution of excess of funds accumulated by
the insurer on participating policies.
, An insured owned by its policyholders is called a -
ANSWER 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? - ANSWER
Reinsurance
What is reinsurance? - ANSWER 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? - ANSWER 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? - ANSWER
Insurance policy
