XCEL |200 EXAM SIMULATOR QUESTIONS
AND
ANSWERS|100% CORRECT 2026/2027
S recently received a $500,000 lump sum retirement buyout
from her employer. She would like to buy an annuity that will
immediately furnish her with a guaranteed income for life.
What type of annuity is best suited for her situation? -
ANSWER -Single Premium.
Immediate Annuities are purchased with a single lump sum
payment and will start providing income payments within the
first year, but usually starting 30 days from the purchase
date.
What type of group plan involves employees sharing the
cost? - ANSWER contributory plan.
Which of these circumstances is a Business Disability Buy-Sell
policy designed to help in the sale of a business? - ANSWER -
Business owner becoming disabled.
w.o
,A business Disability Buy-Sell policy is signed to assist in the
sale of a business when one of the owners becomes disabled.
On August 6, D submitted an application for a $50,000 Life
Insurance policy and did not pay the initial premium. On
August 18, D went to his doctor complaining of chest pains
and some tests were given by the doctor. The life policy was
delivered by the producer on August 20 and D explains what
had recently taken place with the doctor. What action should
the producer then take? - ANSWER -Collect initial premium
along with a signed health statement.
in this situation, the producer should deliver the policy and
obtain the premium payment along with a signed health
statement.
On a life insurance policy, who is qualified to change the
beneficiary designation? - ANSWER -Policyowner.
However, consent may be needed by the current beneficiary
if designated as irrevocable.
w.o
,Generally, how long is a benefit period for a major medical
expense plan? - ANSWER -One year.
Which of these life products is NOT considered interest-
sensitive?
-Variable universal life
-Modified whole life
-Interest sensitive whole life
-Variable life - ANSWER -Modified Whole Life.
The following ARE interest sensitive:
-Variable universal life
-Interest sensitive whole life
-Variable life
How does an indexed annuity differ from a fixed annuity? -
ANSWER indexed annuity owners receive credited interest
tied to the fluctuations of the linked index.
w.o
, Which mode of payment is NOT used by health insurance
policies? -
ANSWER -Single premium
A Disability Income policyowner suffers a disability which was
due to the same cause as a previous disability. Both
disabilities occurred within a fivemonth period. The insurer
may cover the second disability without a new elimination
period under the - ANSWER -Recurrent Disability provision.
In this situation, the insurer will provide the same benefits
without a new elimination period under the recurrent
disability provision.
In Major Medical Expense policies, what is the intent of a Stop
Loss provision? - ANSWER -limits an insured's out-of-pocket
medical expenses
What must an insurer obtain to conduct an HIV test? -
ANSWER -written consent
w.o
AND
ANSWERS|100% CORRECT 2026/2027
S recently received a $500,000 lump sum retirement buyout
from her employer. She would like to buy an annuity that will
immediately furnish her with a guaranteed income for life.
What type of annuity is best suited for her situation? -
ANSWER -Single Premium.
Immediate Annuities are purchased with a single lump sum
payment and will start providing income payments within the
first year, but usually starting 30 days from the purchase
date.
What type of group plan involves employees sharing the
cost? - ANSWER contributory plan.
Which of these circumstances is a Business Disability Buy-Sell
policy designed to help in the sale of a business? - ANSWER -
Business owner becoming disabled.
w.o
,A business Disability Buy-Sell policy is signed to assist in the
sale of a business when one of the owners becomes disabled.
On August 6, D submitted an application for a $50,000 Life
Insurance policy and did not pay the initial premium. On
August 18, D went to his doctor complaining of chest pains
and some tests were given by the doctor. The life policy was
delivered by the producer on August 20 and D explains what
had recently taken place with the doctor. What action should
the producer then take? - ANSWER -Collect initial premium
along with a signed health statement.
in this situation, the producer should deliver the policy and
obtain the premium payment along with a signed health
statement.
On a life insurance policy, who is qualified to change the
beneficiary designation? - ANSWER -Policyowner.
However, consent may be needed by the current beneficiary
if designated as irrevocable.
w.o
,Generally, how long is a benefit period for a major medical
expense plan? - ANSWER -One year.
Which of these life products is NOT considered interest-
sensitive?
-Variable universal life
-Modified whole life
-Interest sensitive whole life
-Variable life - ANSWER -Modified Whole Life.
The following ARE interest sensitive:
-Variable universal life
-Interest sensitive whole life
-Variable life
How does an indexed annuity differ from a fixed annuity? -
ANSWER indexed annuity owners receive credited interest
tied to the fluctuations of the linked index.
w.o
, Which mode of payment is NOT used by health insurance
policies? -
ANSWER -Single premium
A Disability Income policyowner suffers a disability which was
due to the same cause as a previous disability. Both
disabilities occurred within a fivemonth period. The insurer
may cover the second disability without a new elimination
period under the - ANSWER -Recurrent Disability provision.
In this situation, the insurer will provide the same benefits
without a new elimination period under the recurrent
disability provision.
In Major Medical Expense policies, what is the intent of a Stop
Loss provision? - ANSWER -limits an insured's out-of-pocket
medical expenses
What must an insurer obtain to conduct an HIV test? -
ANSWER -written consent
w.o
