California Life, Accident, and Health Insurance Final Exam
Questions and Answers (2022/2023) (Verified Answers)
1.What distinguishes a deferred annuity from an immediate annuity✔✔✔ The time at which benefit payments start
2.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 ✔✔✔ 60 payments
3.What is a common reason people purchase an annuity✔✔✔ To protect against the risk of outliving their financial resources
4.What kind of annuity pays income to two annuitants until their deaths✔✔✔ -
Joint and survivor annuity
5.What is a joint and survivor annuity✔✔✔ 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.
6.Victoria owns a life annuity and elects to receive annuity payments
month- ly for the remainder of her life with "ten years certain". Her annuity
will make payments: for a minimum of 120 months and a maximum of
the remainder of her life
7.Which of the following statements regarding a life insurance policy divi- dend is TRUE✔✔✔ It is the distribution of excess of funds accumulated by the insurer on participating policies.
8.An insured owned by its policyholders is called a: mutual insurer
9.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✔✔✔ - Reinsurance
10.What is reinsurance ✔✔✔ An arrangement by which an insurance
company transfers a portion of a risk it has assumed to another insurer
11.Which of the following is NOT a characteristic of reinsurance ✔✔✔
Increases the unearned premium reserve
12.Which of the following is a contract that involves one party which
indem- nifies another when a loss arises from an unknown event✔✔✔
Insurance policy
13.What is an insurance policy✔✔✔ A contract where one party promises to indemnify another against loss that arises from an unknown event
14.What is residual disability income insurance payments based on✔✔✔ The amount of the insured's income is reduced by the disability
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Toian. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
