1|Page
XCEL Solutions Life and Health
License Exam (CA) Questions and
Answers 100% Pass
A saving vehicle designed to first accumulate funds and then systematically liquidates the funds -
✔✔Deferred annuity
An annuity which is backed by a life insurer's separate account - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔Exclusion Ratio
What is a common reason people purchase an annuity? - ✔✔To protect against the risk of outliving their
financial resources
Which of the following is NOT a feature of equity annuities? - ✔✔Offers a maximum interest rate that
increases annually
When a mutual insurer becomes a stock company, the process is called - ✔✔Demutualization
Created by Katelyn Whitman © 2025, All Rights Reserved. 100% PASS GUARANTEE
,2|Page
An insurer owned by its policyholder is called a - ✔✔Mutual insurer
Which of the following statements regarding a life insurance policy dividend is TRUE? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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 - ✔✔totally disabled
What are residual disability income insurance payments based on? - ✔✔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? - ✔✔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? - ✔✔The cause may be intentional, but the result must be accidental
The elimination period in a disability income policy serves the same purpose - ✔✔a deductible
Which of the following is NOT a provision in a disability income policy - ✔✔Deductible and coinsurance
provision
Created by Katelyn Whitman © 2025, All Rights Reserved. 100% PASS GUARANTEE
, 3|Page
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? - ✔✔$5,000 (90 days
- 30 days = 60 days or 2 months) 2 months x $2,500
The problem of overinsurance is addressed in which health insurance provision - ✔✔Coordination of
benefits
When a claimant has coverage under more than one health plan, which group medical plan provision
applies? - ✔✔Coordination of benefits
The Consolidated Omnibus Budget Reconciliation Act (COBRA) applies to employers who employ at
least - ✔✔20 employees
Minimum participation standards exist for group health insurance plans in order to - ✔✔prevent adverse
selection
What percentage of eligible employees must participate in a noncontributory group health plan before it
can be put in effect? - ✔✔100%
An eligible individual who would like to obtain group health insurance without providing evidence of
insurability must - ✔✔enroll within a specified eligibility period
In regards to a group health insurance plan, which statement is CORRECT - ✔✔A non-contributory
group health plan must cover all eligible members
Bruce is involved in an accident and becomes totally and permanently disabled. His insurance policy
continues in force without payment of further premiums. Which policy provision is responsible for this? -
✔✔Waiver of premium provision
What type of changes can be made to a guaranteed renewable health insurance policy? - ✔✔The
premium rates of the policy-owner
Created by Katelyn Whitman © 2025, All Rights Reserved. 100% PASS GUARANTEE
XCEL Solutions Life and Health
License Exam (CA) Questions and
Answers 100% Pass
A saving vehicle designed to first accumulate funds and then systematically liquidates the funds -
✔✔Deferred annuity
An annuity which is backed by a life insurer's separate account - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔Exclusion Ratio
What is a common reason people purchase an annuity? - ✔✔To protect against the risk of outliving their
financial resources
Which of the following is NOT a feature of equity annuities? - ✔✔Offers a maximum interest rate that
increases annually
When a mutual insurer becomes a stock company, the process is called - ✔✔Demutualization
Created by Katelyn Whitman © 2025, All Rights Reserved. 100% PASS GUARANTEE
,2|Page
An insurer owned by its policyholder is called a - ✔✔Mutual insurer
Which of the following statements regarding a life insurance policy dividend is TRUE? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔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 - ✔✔totally disabled
What are residual disability income insurance payments based on? - ✔✔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? - ✔✔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? - ✔✔The cause may be intentional, but the result must be accidental
The elimination period in a disability income policy serves the same purpose - ✔✔a deductible
Which of the following is NOT a provision in a disability income policy - ✔✔Deductible and coinsurance
provision
Created by Katelyn Whitman © 2025, All Rights Reserved. 100% PASS GUARANTEE
, 3|Page
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? - ✔✔$5,000 (90 days
- 30 days = 60 days or 2 months) 2 months x $2,500
The problem of overinsurance is addressed in which health insurance provision - ✔✔Coordination of
benefits
When a claimant has coverage under more than one health plan, which group medical plan provision
applies? - ✔✔Coordination of benefits
The Consolidated Omnibus Budget Reconciliation Act (COBRA) applies to employers who employ at
least - ✔✔20 employees
Minimum participation standards exist for group health insurance plans in order to - ✔✔prevent adverse
selection
What percentage of eligible employees must participate in a noncontributory group health plan before it
can be put in effect? - ✔✔100%
An eligible individual who would like to obtain group health insurance without providing evidence of
insurability must - ✔✔enroll within a specified eligibility period
In regards to a group health insurance plan, which statement is CORRECT - ✔✔A non-contributory
group health plan must cover all eligible members
Bruce is involved in an accident and becomes totally and permanently disabled. His insurance policy
continues in force without payment of further premiums. Which policy provision is responsible for this? -
✔✔Waiver of premium provision
What type of changes can be made to a guaranteed renewable health insurance policy? - ✔✔The
premium rates of the policy-owner
Created by Katelyn Whitman © 2025, All Rights Reserved. 100% PASS GUARANTEE
