XCEL SOLUTIONS LIFE AND HEALTH LICENSE EXAM 2024/2025 WITH 100% CORRECT ANSWERS
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Course
Xcel
Institution
Xcel
XCEL SOLUTIONS LIFE AND HEALTH LICENSE EXAM 2024/2025 WITH 100% CORRECT ANSWERS
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XCEL SOLUTIONS LIFE AND HEALTH LICENSE EXAM
2024/2025 WITH 100% CORRECT ANSWERS
A saving vehicle designed to first accumulate funds and then
systematically liquidates the funds - correct answer -Deferred annuity
An annuity which is backed by a life insurer's separate account - correct
answer -Variable Annuity
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? - correct
answer -60 payments
An annuitant would like 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? - correct answer -Variable Annuity
An annuitant would like to determine the amount of an annuity
distribution that is exempt from taxation. What is used to calculate this?
- correct answer -Exclusion Ratio
What is a common reason people purchase an annuity? - correct answer
-To protect against the risk of outliving their financial resources
,Which of the following is NOT a feature of equity annuities? - correct
answer -Offers a maximum interest rate that increases annually
When a mutual insurer becomes a stock company, the process is called -
correct answer -Demutualization
An insurer owned by its policyholder is called a - correct answer -
Mutual insurer
Which of the following statements regarding a life insurance policy
dividend is TRUE? - correct answer -It is the distribution of excess of
funds accumulated by the insurer on participating policies
Which of the following is a type of insurance where an insurer transfers
loss exposure from policies written for its insureds? - correct answer -
Reinsurance
AAA Insurance Company has transferred a portion of its loss exposure
to BBB Insurance Company. In this reinsurance transaction, what is
AAA Insurance Company called? - correct answer -Primary Insurer
John owns an insurance policy that gives him the right to share in the
insurer's surplus. What kind of policy is this? - correct answer -
Participating
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 task of her job. Kim is no considered to
be - correct answer -totally disabled
What are residual disability income insurance payments based on? -
correct answer -The amount of the insured's income is reduced by the
disability
Dyan is considered partially disabled by her insurance company. Which
of the following BEST describes her situation? - correct answer -She is
working part-time and receiving lost income under her long-term
disability benefit
Under a disability income insurance policy, which criteria must be met
for "bodily injury" tp be classified as accidental? - correct answer -The
cause may be intentional, but the result must be accidental
The elimination period in a disability income policy serves the same
purpose - correct answer -a deductible
Which of the following is NOT a provision in a disability income policy
- correct answer -Deductible and coinsurance provision
Allen has a disability income policy with a $2,500 monthly benefit and a
30-day elimination period. He is unable to work 90 days following an
automobile accident. What will the policy pay? - correct answer -$5,000
(90 days - 30 days = 60 days or 2 months) 2 months x $2,500
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