California Life Insurance State Exam Simulator Already Passed

California Life Insurance State Exam

Simulator Already Passed

Exclusion ratio ✔✔An annuitant would life to determine the amount of an annuity distribution

that is exempt from taxation. What is used to calculate this?

Mortality rate,

Exclusion ratio,

Morbidity rate,

Debt-to-Equity ration

Offers a maximum interest rate that increases annually ✔✔Which of the following is NOT a

feature of equity-indexed annuities?

Offers long term inflation protection, Offers a minimum guaranteed rate, Offers a maximum

interest rate that increases annually, Offers protection during a decline in the stock market

Joint and survivor annuity ✔✔What kind of annuity pays income to two annuitants until their

deaths?

Period certain annuity

Joint and survivor annuity

Straight life annuity

Installment refund

For a minimum of 120 months and a maximum of the remainder of his life ✔✔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

For a period of time dependent on the performance of the annuity's underlying assets

For a maximum of 120 months

For the remainder of her life only

For a minimum of 120 months and a maximum of the remainder of his life

Variable annuity ✔✔An annuitant would life 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?

Variable annuity

Fixed annuity

Immediate annuity

Life annuity

60 payments ✔✔Cindy buys a 10-year 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?

No payments

30 payments

60 payments

120 payments

To protect against the risk of outliving their financial resources ✔✔What is a common reason

people purchase an annuity?

To create an immediate estate

To pay off a debt in the event of death

To minimize their tax burden

To protect against the risk of outliving their financial resources