Xcel Solutions Final Exam - Michigan Life
and Health (2026) Exam Questions &
Answers | Latest Already Graded A+
UPDATE 2026!! STUDY GUIDE EXAM
A saving vehicle designed to first accumulate funds and then systematically liquidates
the funds -CORRECTANSWER Deferred annuity
An annuity which is backed by a life insurer's separate account -CORRECTANSWER
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? -CORRECTANSWER 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? -
CORRECTANSWER 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? -CORRECTANSWER Exclusion
Ratio
,What is a common reason people purchase an annuity? -CORRECTANSWER To
protect against the risk of outliving their financial resources
Which of the following is NOT a feature of equity annuities? -CORRECTANSWER
Offers a maximum interest rate that increases annually
When a mutual insurer becomes a stock company, the process is called -
CORRECTANSWER Demutualization
An insurer owned by its policyholder is called a -CORRECTANSWER Mutual insurer
Which of the following statements regarding a life insurance policy dividend is TRUE? -
CORRECTANSWER 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? -CORRECTANSWER 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? -CORRECTANSWER 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? -CORRECTANSWER 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 -CORRECTANSWER totally disabled
What are residual disability income insurance payments based on? -
CORRECTANSWER 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? -CORRECTANSWER 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? -CORRECTANSWER The cause may be intentional, but
the result must be accidental
The elimination period in a disability income policy serves the same purpose -
CORRECTANSWER a deductible
Which of the following is NOT a provision in a disability income policy -
CORRECTANSWER Deductible and coinsurance provision
and Health (2026) Exam Questions &
Answers | Latest Already Graded A+
UPDATE 2026!! STUDY GUIDE EXAM
A saving vehicle designed to first accumulate funds and then systematically liquidates
the funds -CORRECTANSWER Deferred annuity
An annuity which is backed by a life insurer's separate account -CORRECTANSWER
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? -CORRECTANSWER 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? -
CORRECTANSWER 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? -CORRECTANSWER Exclusion
Ratio
,What is a common reason people purchase an annuity? -CORRECTANSWER To
protect against the risk of outliving their financial resources
Which of the following is NOT a feature of equity annuities? -CORRECTANSWER
Offers a maximum interest rate that increases annually
When a mutual insurer becomes a stock company, the process is called -
CORRECTANSWER Demutualization
An insurer owned by its policyholder is called a -CORRECTANSWER Mutual insurer
Which of the following statements regarding a life insurance policy dividend is TRUE? -
CORRECTANSWER 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? -CORRECTANSWER 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? -CORRECTANSWER 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? -CORRECTANSWER 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 -CORRECTANSWER totally disabled
What are residual disability income insurance payments based on? -
CORRECTANSWER 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? -CORRECTANSWER 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? -CORRECTANSWER The cause may be intentional, but
the result must be accidental
The elimination period in a disability income policy serves the same purpose -
CORRECTANSWER a deductible
Which of the following is NOT a provision in a disability income policy -
CORRECTANSWER Deductible and coinsurance provision
