XCEL INSURANCE LICENSING EXAM (ACTUAL
2024-2025 WITH QUESTIONS AND ANSWERS
Which of the following is NOT a characteristic of the
conversion privilege?
A) Ex-employee pays the premium for the converted policy
B) Proof of insurability is not required
C) Employer pays the premium for the converted policy
D) Conversion must take place within 31 days of employment
termination - --answers---C) Employer pays the premium for
the converted policy
Under a non-qualified annuity, interest is taxed after the
A) deposits have been made
B) death of the annuitant
C) distribution of payments
D) exclusion ratio has been calculated - --answers---D)
exclusion ratio has been calculated
What distinguishes a deferred annuity from an immediate
annuity?
A) The time at which benefit payments start
B) The benefit payment amount
Page 1 of 100
, XCEL INSURANCE LICENSING EXAM (ACTUAL
2024-2025 WITH QUESTIONS AND ANSWERS
C) The taxation of benefit payments
D) The age at which the annuity can be purchased - --
answers---A) The time at which benefit payments start
What is the nonforfeiture value of an annuity before
annuitization?
A) All premiums paid
B) All premiums paid plus interest
C) All premiums paid minus any withdrawals and surrender
charges
D) All premiums paid, plus interest, minus any withdrawals
and surrender charges - --answers---D) All premiums paid,
plus interest, minus any withdrawals and surrender charges
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 - --answers---B) Accumulation period
Page 2 of 100
, XCEL INSURANCE LICENSING EXAM (ACTUAL
2024-2025 WITH QUESTIONS AND ANSWERS
Victoria owns a life annuity and elects to receive annuity
payments monthly for the remainder of her life with "ten years
certain". Her annuity will make payments
A) for a period of time dependent on the
performance of the annuity's underlying assets
B) for a maximum of 120 months
C) for the remainder of her life only
D) for a minimum of 120 months and a maximum of the
remainder of her life - --answers---D) for a minimum of 120
months and a maximum of the remainder of her life
How soon can the benefit payments begin with a deferred
annuity?
A) Anytime after date of purchase
B) Anytime within 12 months after date of purchase
C) A minimum of 6 months after date of purchase
D) A minimum of 12 months after date of purchase - --
answers---D) A minimum of 12 months after date of purchase
Tim was recently terminated from his employment and opted
to change his existing group term life insurance to individual
permanent life insurance.
Page 3 of 100
, XCEL INSURANCE LICENSING EXAM (ACTUAL
2024-2025 WITH QUESTIONS AND ANSWERS
What is this process called?
A) Replacement
B) Conversion
C) Transformation
D) Reinstatement - --answers---B) Conversion
Changing group term insurance into an
equal amount of individual permanent coverage is called a
conversion.
Employer-provided group term life insurance is exempt from
income taxation up to
A) $10,000
B) $25,000
C) $40,000
D) $50,000 - --answers---D) $50,000
The IRS requires the cost of employer-provided group life
insurance above $50,000 to be taxable as income to the
employee.
Page 4 of 100
2024-2025 WITH QUESTIONS AND ANSWERS
Which of the following is NOT a characteristic of the
conversion privilege?
A) Ex-employee pays the premium for the converted policy
B) Proof of insurability is not required
C) Employer pays the premium for the converted policy
D) Conversion must take place within 31 days of employment
termination - --answers---C) Employer pays the premium for
the converted policy
Under a non-qualified annuity, interest is taxed after the
A) deposits have been made
B) death of the annuitant
C) distribution of payments
D) exclusion ratio has been calculated - --answers---D)
exclusion ratio has been calculated
What distinguishes a deferred annuity from an immediate
annuity?
A) The time at which benefit payments start
B) The benefit payment amount
Page 1 of 100
, XCEL INSURANCE LICENSING EXAM (ACTUAL
2024-2025 WITH QUESTIONS AND ANSWERS
C) The taxation of benefit payments
D) The age at which the annuity can be purchased - --
answers---A) The time at which benefit payments start
What is the nonforfeiture value of an annuity before
annuitization?
A) All premiums paid
B) All premiums paid plus interest
C) All premiums paid minus any withdrawals and surrender
charges
D) All premiums paid, plus interest, minus any withdrawals
and surrender charges - --answers---D) All premiums paid,
plus interest, minus any withdrawals and surrender charges
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 - --answers---B) Accumulation period
Page 2 of 100
, XCEL INSURANCE LICENSING EXAM (ACTUAL
2024-2025 WITH QUESTIONS AND ANSWERS
Victoria owns a life annuity and elects to receive annuity
payments monthly for the remainder of her life with "ten years
certain". Her annuity will make payments
A) for a period of time dependent on the
performance of the annuity's underlying assets
B) for a maximum of 120 months
C) for the remainder of her life only
D) for a minimum of 120 months and a maximum of the
remainder of her life - --answers---D) for a minimum of 120
months and a maximum of the remainder of her life
How soon can the benefit payments begin with a deferred
annuity?
A) Anytime after date of purchase
B) Anytime within 12 months after date of purchase
C) A minimum of 6 months after date of purchase
D) A minimum of 12 months after date of purchase - --
answers---D) A minimum of 12 months after date of purchase
Tim was recently terminated from his employment and opted
to change his existing group term life insurance to individual
permanent life insurance.
Page 3 of 100
, XCEL INSURANCE LICENSING EXAM (ACTUAL
2024-2025 WITH QUESTIONS AND ANSWERS
What is this process called?
A) Replacement
B) Conversion
C) Transformation
D) Reinstatement - --answers---B) Conversion
Changing group term insurance into an
equal amount of individual permanent coverage is called a
conversion.
Employer-provided group term life insurance is exempt from
income taxation up to
A) $10,000
B) $25,000
C) $40,000
D) $50,000 - --answers---D) $50,000
The IRS requires the cost of employer-provided group life
insurance above $50,000 to be taxable as income to the
employee.
Page 4 of 100
