XCEL STATE SIMULATOR EXAM (LIFE
& HEALTH) 2025/2026 BANK | ALL
FREQUENTLY TESTED ACTUAL EXAM
QUESTIONS AND ANSWERS |
ACCURATE AND VERIFIED FOR
GUARANTEED PASS | ALREADY
GRADED A+
Which of the following annuity payout options makes no
additional payments regardless of when the annuitant
dies?
A) Life only
B) Life with period certain
C) Cash refund
D) Installment refund - ....ANSWER...A) Life only
Which type of annuity guarantees a stated number of
income payments, whether or not the annuitant is still
alive to receive them?
A) Life annuity certain
1
,B) Secure life annuity
C) Irrevocable survivor annuity
D) Guaranteed life annuity - ....ANSWER...A) Life
annuity certain
An annuitant would like to determine the amount of an
annuity distribution that is exempt from taxation. What
is used to calculate this?
A) Mortality rate
B) Exclusion ratio
C) Morbidity rate
D) Debt-to-Equity ratio - ....ANSWER...B) Exclusion
ratio
If the annuitant dies before the annuity start date,
A) the benefits will be given tax-free only to a stated
beneficiary
B) nothing is given to the beneficiary
C) the premiums paid will be given to the beneficiary
D) the premiums paid plus interest earned will be
given to the beneficiary - ....ANSWER...D) the premiums
2
,paid plus interest earned will be given to the beneficiary
Who assumes the investment risk with a fixed annuity
contract?
A) The owner
B) The annuitant
C) The insurer
D) The beneficiary - ....ANSWER...C) The insurer
It is the insurance company that bears the investment risk
of a fixed annuity. The insurance company guarantees the
annuitant's principal as well as a guaranteed minimum
rate of return, even if the underlying assets underperform
the guaranteed rate.
An annuitant is guaranteed to NOT outlive their benefits
with a(n)
A) Survivorship clause
B) Guaranteed lifetime withdrawal benefit
C) Period certain provision
3
, D) Guaranteed minimum accumulation benefit -
....ANSWER...B) Guaranteed lifetime withdrawal benefit
What is the primary reason for buying an annuity?
A) Provide tax-free income
B) Provide a risky, yet high return investment
C) Provide an instant estate
D) Provide future economic security -
....ANSWER...D) Provide future economic security
An individual that has 40 quarters of coverage, for Social
Security purposes, is considered to be
A) fully insured
B) currently insured
C) PIA insured
D) partially insured - ....ANSWER...A) fully insured
In order to be considered "currently insured" under
4
& HEALTH) 2025/2026 BANK | ALL
FREQUENTLY TESTED ACTUAL EXAM
QUESTIONS AND ANSWERS |
ACCURATE AND VERIFIED FOR
GUARANTEED PASS | ALREADY
GRADED A+
Which of the following annuity payout options makes no
additional payments regardless of when the annuitant
dies?
A) Life only
B) Life with period certain
C) Cash refund
D) Installment refund - ....ANSWER...A) Life only
Which type of annuity guarantees a stated number of
income payments, whether or not the annuitant is still
alive to receive them?
A) Life annuity certain
1
,B) Secure life annuity
C) Irrevocable survivor annuity
D) Guaranteed life annuity - ....ANSWER...A) Life
annuity certain
An annuitant would like to determine the amount of an
annuity distribution that is exempt from taxation. What
is used to calculate this?
A) Mortality rate
B) Exclusion ratio
C) Morbidity rate
D) Debt-to-Equity ratio - ....ANSWER...B) Exclusion
ratio
If the annuitant dies before the annuity start date,
A) the benefits will be given tax-free only to a stated
beneficiary
B) nothing is given to the beneficiary
C) the premiums paid will be given to the beneficiary
D) the premiums paid plus interest earned will be
given to the beneficiary - ....ANSWER...D) the premiums
2
,paid plus interest earned will be given to the beneficiary
Who assumes the investment risk with a fixed annuity
contract?
A) The owner
B) The annuitant
C) The insurer
D) The beneficiary - ....ANSWER...C) The insurer
It is the insurance company that bears the investment risk
of a fixed annuity. The insurance company guarantees the
annuitant's principal as well as a guaranteed minimum
rate of return, even if the underlying assets underperform
the guaranteed rate.
An annuitant is guaranteed to NOT outlive their benefits
with a(n)
A) Survivorship clause
B) Guaranteed lifetime withdrawal benefit
C) Period certain provision
3
, D) Guaranteed minimum accumulation benefit -
....ANSWER...B) Guaranteed lifetime withdrawal benefit
What is the primary reason for buying an annuity?
A) Provide tax-free income
B) Provide a risky, yet high return investment
C) Provide an instant estate
D) Provide future economic security -
....ANSWER...D) Provide future economic security
An individual that has 40 quarters of coverage, for Social
Security purposes, is considered to be
A) fully insured
B) currently insured
C) PIA insured
D) partially insured - ....ANSWER...A) fully insured
In order to be considered "currently insured" under
4
