FINAL EXAM ARIZONA LIFE AND HEALTH 3
XCEL 2026 UPDATED EXAM PREP QUESTIONS
AND ANSWERS
◉ What determines how much an annuitant is paid for a variable
annuity
1. varies according to how many outstanding annuitant is paid for a
variable annuity
2. payments fluctuate as annuitant gets older
3. the market value variations of the securities backing it
4. varies according to the insurers investments in its general
account. Answer: the market value variations of the securities
backing it
◉ a terminated employee has how many days upon termination to
convert group life insurance coverage to an individual policy
10 days
,15 days
30 days
31 days. Answer: 31 days
◉ Rick owns a variable universal life insurance policy and chooses a
variable death benefit option. what will typically happen to the
death benefit as a result of this section
1. remain the same
2 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount. Answer: fluctuate with
changes in the cash amount
◉ the policy provision that permits an employee to change from
group life insurance to an individual policy is called
,1 assignment provision
2 conversion provision
3 certificate provision
4 modification provision. Answer: conversion provision
◉ when the deferred annuity is surrendered, who must sign the
authorization to do so
owner
annuitant and beneficiary
annuitant
all parties involved. Answer: owner
◉ Which of the following is NOT a valid contract exchange?
1. an annuity exchanged for a life insurance policy
, 2 an annuity exchanged for another annuity
3 a life insurance policy exchanged for another life insurance policy
4 a life insurance policy exchanged for another annuity. Answer: an
annuity exchanged for a life insurance policy
◉ which of these statements regarding the extended term insurance
nonforfeiture option in a life policy is accurate
evidence of insurability is required
coverage remains until death of the insured
the premium to purchase the coverage comes from the policy`s cash
value
cash value will continue to grow. Answer: the premium to purchase
the coverage comes from the policy`s cash value
◉ a life insurance policy that includes a return of premium rider will
pay the beneficiary how much upon the insured death
XCEL 2026 UPDATED EXAM PREP QUESTIONS
AND ANSWERS
◉ What determines how much an annuitant is paid for a variable
annuity
1. varies according to how many outstanding annuitant is paid for a
variable annuity
2. payments fluctuate as annuitant gets older
3. the market value variations of the securities backing it
4. varies according to the insurers investments in its general
account. Answer: the market value variations of the securities
backing it
◉ a terminated employee has how many days upon termination to
convert group life insurance coverage to an individual policy
10 days
,15 days
30 days
31 days. Answer: 31 days
◉ Rick owns a variable universal life insurance policy and chooses a
variable death benefit option. what will typically happen to the
death benefit as a result of this section
1. remain the same
2 decrease but never increase
3 increase but never decrease
4 fluctuate with changes in the cash amount. Answer: fluctuate with
changes in the cash amount
◉ the policy provision that permits an employee to change from
group life insurance to an individual policy is called
,1 assignment provision
2 conversion provision
3 certificate provision
4 modification provision. Answer: conversion provision
◉ when the deferred annuity is surrendered, who must sign the
authorization to do so
owner
annuitant and beneficiary
annuitant
all parties involved. Answer: owner
◉ Which of the following is NOT a valid contract exchange?
1. an annuity exchanged for a life insurance policy
, 2 an annuity exchanged for another annuity
3 a life insurance policy exchanged for another life insurance policy
4 a life insurance policy exchanged for another annuity. Answer: an
annuity exchanged for a life insurance policy
◉ which of these statements regarding the extended term insurance
nonforfeiture option in a life policy is accurate
evidence of insurability is required
coverage remains until death of the insured
the premium to purchase the coverage comes from the policy`s cash
value
cash value will continue to grow. Answer: the premium to purchase
the coverage comes from the policy`s cash value
◉ a life insurance policy that includes a return of premium rider will
pay the beneficiary how much upon the insured death
