XCEL TESTING SOLUTIONS LIFE AND
HEALTH ACTUAL EXAM PAPER 2026
COMPLETE QUESTIONS AND VERIFIED
SOLUTIONS GRADED A+
⩥ An example of a tax-qualified retirement plan would be a(n) Answer: -
equity compensation plan
- defined contribution plan
- executive index plan
- 1035 exchange plan
defined contribution plan.
⩥ What will the beneficiary receive if an annuitant dies during the
accumulation period? Answer: - The greater of the accumulated cash
value or the total premium paid
- The lesser of the accumulated cash value or the total premium paid
- The interest earned on the accumulated cash value
- Nothing
The greater of the accumulated cash value or the total premium paid.
, ⩥ Loans obtained by a policyowner against the cash value of a life
insurance policy: Answer: - are treated as taxable income
- would not be treated as taxable income
- are limited by the face amount of the policy
- would be subject to a Federal estate tax
would not be treated as taxable income
⩥ A provision in a whole life policy that allows a policyowner to
terminate the policy in return for a reduced paid-up policy of the same
type is called a(n) Answer: - insuring clause
- payor provision
- reinstatement provision
- nonforfeiture provision
A nonforfeiture provision in a cash value life insurance policy allows a
policyowner to terminate the policy in return for a reduced paid-up
policy of the same type.
⩥ Pre-death distributions from a modified endowment contract (MEC)
receive different tax treatment than other life insurance policies because
Answer: - the MEC has tax deductible premiums
- the MEC is considered an illegal product
- the MEC tends to be an investment vehicle
HEALTH ACTUAL EXAM PAPER 2026
COMPLETE QUESTIONS AND VERIFIED
SOLUTIONS GRADED A+
⩥ An example of a tax-qualified retirement plan would be a(n) Answer: -
equity compensation plan
- defined contribution plan
- executive index plan
- 1035 exchange plan
defined contribution plan.
⩥ What will the beneficiary receive if an annuitant dies during the
accumulation period? Answer: - The greater of the accumulated cash
value or the total premium paid
- The lesser of the accumulated cash value or the total premium paid
- The interest earned on the accumulated cash value
- Nothing
The greater of the accumulated cash value or the total premium paid.
, ⩥ Loans obtained by a policyowner against the cash value of a life
insurance policy: Answer: - are treated as taxable income
- would not be treated as taxable income
- are limited by the face amount of the policy
- would be subject to a Federal estate tax
would not be treated as taxable income
⩥ A provision in a whole life policy that allows a policyowner to
terminate the policy in return for a reduced paid-up policy of the same
type is called a(n) Answer: - insuring clause
- payor provision
- reinstatement provision
- nonforfeiture provision
A nonforfeiture provision in a cash value life insurance policy allows a
policyowner to terminate the policy in return for a reduced paid-up
policy of the same type.
⩥ Pre-death distributions from a modified endowment contract (MEC)
receive different tax treatment than other life insurance policies because
Answer: - the MEC has tax deductible premiums
- the MEC is considered an illegal product
- the MEC tends to be an investment vehicle
