Xcel Pre Licensing Exam Questions with
Correct Answers 2025/2026
Which cof cthese cis cNOT cconsidered cto cbe ca cpurpose cof can cannuity? c- cCORRECT cANSWER
c- cAnnuities care cintended cto ccreate can cestate
Which ctype cof cannuity cstops call cpayments cupon cthe cdeath cof cthe cannuitant? c- cCORRECT
cANSWER
-life cannuity
An cannuitant cis cguaranteed cto cNOT coutlive ctheir cbenefits cwith ca(n) c- cCORRECT cANSWER
c- cGuaranteed clifetime cwithdrawal cbenefit
Kathy's cannuity cis ccurrently cexperiencing ctax-deferred cgrowth cuntil cshe cretires. cWhich
cphase cis cthis cannuity cin? c- cCORRECT cANSWER c-Accumulation cperiod
A clife cinsurance ccompany chas ctransferred csome cof cits crisk cto canother cinsurer. cThe cinsurer
cassuming cthe crisk cis ccalled cthe c- cCORRECT cANSWER c-reinsurer
When cdoes can cimmediate cannuity cbegin cmaking cpayments? c- cCORRECT cANSWER c-After cthe
cfirst cpremium chas cbeen cpaid
Fraternal cBenefit cSociety chas ceach cof cthe cfollowing ccharacteristics cEXCEPT c- cCORRECT
cANSWER c- cExist cFor cprofit
,A ctype cof cgroup cthat chas ca cconstitution cand cbylaws cand chas cbeen corganized cfor
cpurposes cother cthan cobtaining cinsurance cis ccalled ca(n) c- cCORRECT cANSWER c-association
cor clabor cgroup
,Which cof cthese cannuities crequire cpremium cpayments cthat cvary cfrom cyear cto cyear? c-
cCORRECT cANSWER c-Flexible cpremium cdeferred cannuity
Fixed cperiod csettlement coptions care cconsidered cto cbe ca cform cof ca(n) c- cCORRECT
cANSWER c- cannuity
The cDo cNot cCall cRegistry coffers cexemptions cfor ccalls cplaced cfrom call cof cthe cfollowing
cEXCEPT c- cCORRECT cANSWER c-insurance csales ccalls
Which cof cthese cwill chave cthe chighest cmonthly cpayout cupon cannuitization? c- cCORRECT
cANSWER c- cStraight clife
The cleast cexpensive coption cto cpay coff ca c30-year cmortgage cbalance cwould cbe c- cCORRECT
cANSWER
-decreasing cterm clife
The cauthority cgranted cto ca clicensed cproducer cis cprovided cvia cthe c- cCORRECT cANSWER c-
Law cof cAgency
The ctype cof cpolicy cwhich cpays con cthe cdeath cof cthe clast cperson cis ccalled c- cCORRECT
cANSWER c- csurvivorship clife
An cemployee cunder ca cgroup cinsurance cpolicy chas cthe cright cto cname ca cbeneficiary cand cthe
cright cto
- cCORRECT cANSWER c-convert cto can cindividual cpolicy cin cthe cevent cof cemployment ctermination
The cpower cgiven cto can cindividual cproducer cthat cis cnot cspecifically caddressed cin chis/her
ccontract cis cconsidered cwhat ctype cof cauthority? c- cCORRECT cANSWER c-implied
A cModified cEndowment cContract c(MEC) cis cbest cdescribed cas c- cCORRECT cANSWER c-A clife
cinsurance ccontract cwhich caccumulates ccash cvalues chigher cthan cthe cIRS cwill callow
, A cRenewable cTerm cLife cinsurance cpolicy ccan cbe crenewed c- cCORRECT cANSWER c-at ca
cpredetermined cdate cor cage, cregardless cof cthe cinsured's chealth
Which cof cthe cfollowing cenables ca clife cpolicy cto cbe creplaced cwith canother clife cpolicy cand
cresults cin cthe cpostponement cof cthe ctax cconsequence? c- cCORRECT cANSWER c-Section
c1035 cexchange
What cwill cthe cbeneficiary creceive cif can cannuitant cdies cduring cthe caccumulation cperiod?
c- cCORRECT cANSWER c-The cgreater cof cthe caccumulated ccash cvalue cor cthe ctotal cpremium
cpaid
A cspouse cand cchild ccan cbe cadded cto cthe cprimary cinsured's ccoverage cas cwhat ckind cof
crider? c- cCORRECT cANSWER c-Family cterms
How csoon ccan cthe cbenefit cpayments cbegin cwith ca cdeferred cannuity? c- cCORRECT cANSWER
c-A cminimum cof c12 cmonths cafter cdate cof cpurchase
Index cwhole clife cinsurance ccontains ca csecurities ccomponent cthat cacts cas ca(n) c- cCORRECT
cANSWER
-hedge cagainst cinflation
Which cof cthese criders cwill cpay ca cdeath cbenefit cif cthe cinsured's cspouse cdies? c- cCORRECT
cANSWER c- cFamily cterm cinsurance crider
Joe chas ca clife cinsurance cpolicy cthat chas ca cface camount cof c$300,000. cAfter ca cnumber cof
cyears, cthe cpolicy's ccash cvalue caccumulates cto c$50,000 cand cthe cface camount cbecomes
c$350,000. cWhat ckind cof cpolicy cis cthis? c- cCORRECT cANSWER c-Universal cLife cpolicy
Who cis cresponsible cfor cassembling cthe cpolicy cforms cfor cinsureds? c- cCORRECT cANSWER c-
Insurance ccarriers
Correct Answers 2025/2026
Which cof cthese cis cNOT cconsidered cto cbe ca cpurpose cof can cannuity? c- cCORRECT cANSWER
c- cAnnuities care cintended cto ccreate can cestate
Which ctype cof cannuity cstops call cpayments cupon cthe cdeath cof cthe cannuitant? c- cCORRECT
cANSWER
-life cannuity
An cannuitant cis cguaranteed cto cNOT coutlive ctheir cbenefits cwith ca(n) c- cCORRECT cANSWER
c- cGuaranteed clifetime cwithdrawal cbenefit
Kathy's cannuity cis ccurrently cexperiencing ctax-deferred cgrowth cuntil cshe cretires. cWhich
cphase cis cthis cannuity cin? c- cCORRECT cANSWER c-Accumulation cperiod
A clife cinsurance ccompany chas ctransferred csome cof cits crisk cto canother cinsurer. cThe cinsurer
cassuming cthe crisk cis ccalled cthe c- cCORRECT cANSWER c-reinsurer
When cdoes can cimmediate cannuity cbegin cmaking cpayments? c- cCORRECT cANSWER c-After cthe
cfirst cpremium chas cbeen cpaid
Fraternal cBenefit cSociety chas ceach cof cthe cfollowing ccharacteristics cEXCEPT c- cCORRECT
cANSWER c- cExist cFor cprofit
,A ctype cof cgroup cthat chas ca cconstitution cand cbylaws cand chas cbeen corganized cfor
cpurposes cother cthan cobtaining cinsurance cis ccalled ca(n) c- cCORRECT cANSWER c-association
cor clabor cgroup
,Which cof cthese cannuities crequire cpremium cpayments cthat cvary cfrom cyear cto cyear? c-
cCORRECT cANSWER c-Flexible cpremium cdeferred cannuity
Fixed cperiod csettlement coptions care cconsidered cto cbe ca cform cof ca(n) c- cCORRECT
cANSWER c- cannuity
The cDo cNot cCall cRegistry coffers cexemptions cfor ccalls cplaced cfrom call cof cthe cfollowing
cEXCEPT c- cCORRECT cANSWER c-insurance csales ccalls
Which cof cthese cwill chave cthe chighest cmonthly cpayout cupon cannuitization? c- cCORRECT
cANSWER c- cStraight clife
The cleast cexpensive coption cto cpay coff ca c30-year cmortgage cbalance cwould cbe c- cCORRECT
cANSWER
-decreasing cterm clife
The cauthority cgranted cto ca clicensed cproducer cis cprovided cvia cthe c- cCORRECT cANSWER c-
Law cof cAgency
The ctype cof cpolicy cwhich cpays con cthe cdeath cof cthe clast cperson cis ccalled c- cCORRECT
cANSWER c- csurvivorship clife
An cemployee cunder ca cgroup cinsurance cpolicy chas cthe cright cto cname ca cbeneficiary cand cthe
cright cto
- cCORRECT cANSWER c-convert cto can cindividual cpolicy cin cthe cevent cof cemployment ctermination
The cpower cgiven cto can cindividual cproducer cthat cis cnot cspecifically caddressed cin chis/her
ccontract cis cconsidered cwhat ctype cof cauthority? c- cCORRECT cANSWER c-implied
A cModified cEndowment cContract c(MEC) cis cbest cdescribed cas c- cCORRECT cANSWER c-A clife
cinsurance ccontract cwhich caccumulates ccash cvalues chigher cthan cthe cIRS cwill callow
, A cRenewable cTerm cLife cinsurance cpolicy ccan cbe crenewed c- cCORRECT cANSWER c-at ca
cpredetermined cdate cor cage, cregardless cof cthe cinsured's chealth
Which cof cthe cfollowing cenables ca clife cpolicy cto cbe creplaced cwith canother clife cpolicy cand
cresults cin cthe cpostponement cof cthe ctax cconsequence? c- cCORRECT cANSWER c-Section
c1035 cexchange
What cwill cthe cbeneficiary creceive cif can cannuitant cdies cduring cthe caccumulation cperiod?
c- cCORRECT cANSWER c-The cgreater cof cthe caccumulated ccash cvalue cor cthe ctotal cpremium
cpaid
A cspouse cand cchild ccan cbe cadded cto cthe cprimary cinsured's ccoverage cas cwhat ckind cof
crider? c- cCORRECT cANSWER c-Family cterms
How csoon ccan cthe cbenefit cpayments cbegin cwith ca cdeferred cannuity? c- cCORRECT cANSWER
c-A cminimum cof c12 cmonths cafter cdate cof cpurchase
Index cwhole clife cinsurance ccontains ca csecurities ccomponent cthat cacts cas ca(n) c- cCORRECT
cANSWER
-hedge cagainst cinflation
Which cof cthese criders cwill cpay ca cdeath cbenefit cif cthe cinsured's cspouse cdies? c- cCORRECT
cANSWER c- cFamily cterm cinsurance crider
Joe chas ca clife cinsurance cpolicy cthat chas ca cface camount cof c$300,000. cAfter ca cnumber cof
cyears, cthe cpolicy's ccash cvalue caccumulates cto c$50,000 cand cthe cface camount cbecomes
c$350,000. cWhat ckind cof cpolicy cis cthis? c- cCORRECT cANSWER c-Universal cLife cpolicy
Who cis cresponsible cfor cassembling cthe cpolicy cforms cfor cinsureds? c- cCORRECT cANSWER c-
Insurance ccarriers
