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XCEL STATE SIMULATOR EXAM (LIFE & HEALTH) 2025
| ALL FREQUENTLY TESTED ACTUAL EXAM
QUESTIONS AND ANSWERS | ACCURATE AND
VERIFIED FOR GUARANTEED PASS | ALREADY
GRADED A+
What type of changes can be made to a guaranteed renewable health
insurance policy?
A) The incontestability period
B) The policy's provisions
C) The premium rates of the policyowner
D) The grace period ......answer.....C) The premium rates of the policyowner
Which of the following statements about aleatory contracts is NOT true?
A) The insured and the insurer have the potential for unequal contributions
B) Insurance contracts are considered aleatory
C) Aleatory contracts are conditioned upon the occurrence of an event
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D) The insured and the insurer contribute equally to the contract
......answer.....D) The insured and the insurer contribute equally to the
contract
This statement is NOT true. An aleatory contract
has the potential for the unequal exchange of value or consideration for both
parties. For example, an individual who is covered under a disability
insurance policy will collect benefits upon disability. However, if no
disability occurs, benefits are not paid.
All of the following are exempt from the 10% tax penalty for early qualified
plan withdrawals EXCEPT
A) First time home purchase
B) Stock purchase
C) Qualified college expenses
D) Death of the participant ......answer.....B) Stock purchase
What is a common reason people purchase an annuity?
A) To create an immediate estate
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B) To pay off a debt in the event of death
C) To minimize their tax burden
D) To protect against the risk of outliving their financial resources
......answer.....D) To protect against the risk of outliving their financial
resources
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?
A) No payments
B) 30 payments
C) 60 payments
D) 120 payments ......answer.....C) 60 payments
Which annuity payout option allows the policyowner to choose a pre-
determined number of benefit payments?
A) Period certain
B) Straight life
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C) Installment refund
C) Amount certain ......answer.....A) Period certain
Which of the following is NOT a feature of equity-indexed annuities?
A) Offers long term inflation protection
B) Offers a minimum guaranteed rate
C) Offers a maximum interest rate that increases annually
D) Offers protection during a decline in the stock market ......answer.....C)
Offers a maximum interest rate that increases annually
Fixed period settlement options are considered to be a form of a(n)
A) cash value loan
B) variable life policy
C) annuity
D) endowment ......answer.....C) annuity
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
XCEL STATE SIMULATOR EXAM (LIFE & HEALTH) 2025
| ALL FREQUENTLY TESTED ACTUAL EXAM
QUESTIONS AND ANSWERS | ACCURATE AND
VERIFIED FOR GUARANTEED PASS | ALREADY
GRADED A+
What type of changes can be made to a guaranteed renewable health
insurance policy?
A) The incontestability period
B) The policy's provisions
C) The premium rates of the policyowner
D) The grace period ......answer.....C) The premium rates of the policyowner
Which of the following statements about aleatory contracts is NOT true?
A) The insured and the insurer have the potential for unequal contributions
B) Insurance contracts are considered aleatory
C) Aleatory contracts are conditioned upon the occurrence of an event
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D) The insured and the insurer contribute equally to the contract
......answer.....D) The insured and the insurer contribute equally to the
contract
This statement is NOT true. An aleatory contract
has the potential for the unequal exchange of value or consideration for both
parties. For example, an individual who is covered under a disability
insurance policy will collect benefits upon disability. However, if no
disability occurs, benefits are not paid.
All of the following are exempt from the 10% tax penalty for early qualified
plan withdrawals EXCEPT
A) First time home purchase
B) Stock purchase
C) Qualified college expenses
D) Death of the participant ......answer.....B) Stock purchase
What is a common reason people purchase an annuity?
A) To create an immediate estate
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B) To pay off a debt in the event of death
C) To minimize their tax burden
D) To protect against the risk of outliving their financial resources
......answer.....D) To protect against the risk of outliving their financial
resources
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?
A) No payments
B) 30 payments
C) 60 payments
D) 120 payments ......answer.....C) 60 payments
Which annuity payout option allows the policyowner to choose a pre-
determined number of benefit payments?
A) Period certain
B) Straight life
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C) Installment refund
C) Amount certain ......answer.....A) Period certain
Which of the following is NOT a feature of equity-indexed annuities?
A) Offers long term inflation protection
B) Offers a minimum guaranteed rate
C) Offers a maximum interest rate that increases annually
D) Offers protection during a decline in the stock market ......answer.....C)
Offers a maximum interest rate that increases annually
Fixed period settlement options are considered to be a form of a(n)
A) cash value loan
B) variable life policy
C) annuity
D) endowment ......answer.....C) annuity
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
