XCEL CHAPTER 8 EXAM 2025
QUESTIONS AND ANSWERS
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out?
A. Annuitization phase
B. Accumulation phase
C. Principal phase
D. Period certain phase - ANS A. Annuitization phase
An annuity is primarily used to provide
A. retirement income
B. disability income
C. long-term care benefits
D. death benefits - ANS A. retirement income
Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies, this
income will become payable to their children for the remainder of the period. Kristi has what
kind of annuity?
A. Joint life with period certain
B. Life annuity with survivorship
C. Survivorship annuity
D. Temporary annuity certain - ANS D. Temporary annuity certain
1 @COPYRIGHT THEBRIGHT 2025/2026
, Andy the annuitant dies before the annuity start date. Which of the following is a TRUE
statement?
A. Principal returned is taxable
B. Benefits are still payable tax-free to the beneficiary
C. Company retains entire cash value
D. Premiums paid plus interest earned is returned to the beneficiary - ANS D. Premiums paid
plus interest earned is returned to the beneficiary
Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is
this annuity in?
A. Payout period
B. Accumulation period
C. Deferred period
D. Growth period - ANS B. Accumulation period
An annuitant is guaranteed to NOT outlive their benefits with a(n)
A. Survivorship clause
B. Guaranteed lifetime withdrawal benefit
C. Period certain provision
D. Guaranteed minimum accumulation benefit - ANS B. Guaranteed lifetime withdrawal
benefit
Which market index is normally associated with an indexed annuity's rate of return?
A. NAIC
B. SEC
C. S & P 500
D. A & P 300 - ANS C. S & P 500
2 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out?
A. Annuitization phase
B. Accumulation phase
C. Principal phase
D. Period certain phase - ANS A. Annuitization phase
An annuity is primarily used to provide
A. retirement income
B. disability income
C. long-term care benefits
D. death benefits - ANS A. retirement income
Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies, this
income will become payable to their children for the remainder of the period. Kristi has what
kind of annuity?
A. Joint life with period certain
B. Life annuity with survivorship
C. Survivorship annuity
D. Temporary annuity certain - ANS D. Temporary annuity certain
1 @COPYRIGHT THEBRIGHT 2025/2026
, Andy the annuitant dies before the annuity start date. Which of the following is a TRUE
statement?
A. Principal returned is taxable
B. Benefits are still payable tax-free to the beneficiary
C. Company retains entire cash value
D. Premiums paid plus interest earned is returned to the beneficiary - ANS D. Premiums paid
plus interest earned is returned to the beneficiary
Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is
this annuity in?
A. Payout period
B. Accumulation period
C. Deferred period
D. Growth period - ANS B. Accumulation period
An annuitant is guaranteed to NOT outlive their benefits with a(n)
A. Survivorship clause
B. Guaranteed lifetime withdrawal benefit
C. Period certain provision
D. Guaranteed minimum accumulation benefit - ANS B. Guaranteed lifetime withdrawal
benefit
Which market index is normally associated with an indexed annuity's rate of return?
A. NAIC
B. SEC
C. S & P 500
D. A & P 300 - ANS C. S & P 500
2 @COPYRIGHT THEBRIGHT 2025/2026
