XCEL Final Exam California Life
Insurance 2026 Exam Questions
and Answers | A+ Score Assured
A savings vehicle designed to first accumulate funds and then
systematically liquidates the funds is called a(n) - 🧠 ANSWER ✔✔Deferred
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? - 🧠 ANSWER ✔✔60
Payments
What distinguishes a deferred annuity from an immediate annuity? - 🧠
ANSWER ✔✔The time at which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) - 🧠
ANSWER ✔✔Annuity
What kind of annuity pays income to two annuitants until their deaths? - 🧠
ANSWER ✔✔Joint And Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? - 🧠
ANSWER ✔✔Offers a maximum interest rate that increases annually
An annuitant would like to determine the amount of an annuity distribution
that is exempt from taxation. What is used to calculate this? - 🧠 ANSWER
✔✔Exclusion Ratio
An annuity which is backed by a life insurer's separate account is called
a(n) - 🧠 ANSWER ✔✔Variable Annuity
, Which of the following is a contract that involves one party which
indemnifies another when a loss arises from an unknown event? - 🧠
ANSWER ✔✔Insurance Policy
Which of the following is NOT a benefit of insurance? - 🧠 ANSWER
✔✔Losses due to fraud are eliminated
What is a participating life insurance policy? - 🧠 ANSWER ✔✔Contract that
allows the policyowner to receive a share of surplus in the form of policy
dividends
Which of the following is an insurer established by a parent company for
the purpose of insuring the parent company's loss exposures? - 🧠
ANSWER ✔✔Captive Insurer
Which of the following is NOT a characteristic of reinsurance? - 🧠 ANSWER
✔✔Increases the unearned premium reserve
Which of the following is a type of insurance where an insurer transfers loss
exposures from policies written for its insureds? - 🧠 ANSWER
✔✔Reinsurance
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
Insurance 2026 Exam Questions
and Answers | A+ Score Assured
A savings vehicle designed to first accumulate funds and then
systematically liquidates the funds is called a(n) - 🧠 ANSWER ✔✔Deferred
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? - 🧠 ANSWER ✔✔60
Payments
What distinguishes a deferred annuity from an immediate annuity? - 🧠
ANSWER ✔✔The time at which benefit payments start
The systematic liquidation of a sum of money is provided by a(n) - 🧠
ANSWER ✔✔Annuity
What kind of annuity pays income to two annuitants until their deaths? - 🧠
ANSWER ✔✔Joint And Survivor Annuity
Which of the following is NOT a feature of equity-indexed annuities? - 🧠
ANSWER ✔✔Offers a maximum interest rate that increases annually
An annuitant would like to determine the amount of an annuity distribution
that is exempt from taxation. What is used to calculate this? - 🧠 ANSWER
✔✔Exclusion Ratio
An annuity which is backed by a life insurer's separate account is called
a(n) - 🧠 ANSWER ✔✔Variable Annuity
, Which of the following is a contract that involves one party which
indemnifies another when a loss arises from an unknown event? - 🧠
ANSWER ✔✔Insurance Policy
Which of the following is NOT a benefit of insurance? - 🧠 ANSWER
✔✔Losses due to fraud are eliminated
What is a participating life insurance policy? - 🧠 ANSWER ✔✔Contract that
allows the policyowner to receive a share of surplus in the form of policy
dividends
Which of the following is an insurer established by a parent company for
the purpose of insuring the parent company's loss exposures? - 🧠
ANSWER ✔✔Captive Insurer
Which of the following is NOT a characteristic of reinsurance? - 🧠 ANSWER
✔✔Increases the unearned premium reserve
Which of the following is a type of insurance where an insurer transfers loss
exposures from policies written for its insureds? - 🧠 ANSWER
✔✔Reinsurance
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
