XCEL LIFE INSURANCE CERTIFICATION
EVALUATION 2026 EXAM Q&A STUDY
SHEET
◉Incontestable Period. Answer: After 2 years a policy become
incontestable. At this point, the company can't contest a claim even if
it discovers misrepresentation or concealment on the application.
◉Joint Policy. Answer: What is written on one contract for two
people and is payable on the first death?
◉15 year mortgage. Answer: best with 15 year decreasing term
◉Owner Rights. Answer: The access rights granted to the owner of a
file or other resource
◉Suitability Form. Answer: Ensures that the customer is best suited
for the policy they are purchasing. ( Prevents the sale of unnecessary
insurance)
,◉Annuities. Answer: are ways of providing a stream of income for a
guaranteed period of time. ( protect against the risk of living too
long.)
◉Simple Annuity. Answer: Started with a large sum of money that
will paid out in installments over a period of time or until the money
is gone.
◉Annuity Monthly. Answer: Received monthly and is based on
factors such as: Principle amount, rate of interest the annuity earns,
and length of payout period.
◉Contract Owners. Answer: The individual who purchases the
annuity pays the premiums and has rights of ownership.
◉Annuitant. Answer: The income benefits distributed at regular
intervals during the liquidation phase of an annuity contract are
normally payable to the annuitant.
◉Beneficiary. Answer: The person receives survivor benefits upon
the annuitant's death.
◉Accumulation Period. Answer: The pay-in period where the
contract owner makes the purchase payments. ( Normally may
continue after the purchase payments cease.)
,◉Another Name for Annuity Period. Answer: a.k.a Liquidation
period, Annuitization period, or pay- out- period.
◉Annuity Period. Answer: This is the time when the money that has
accrued during the accumulation period is paid-out in the form of
payments to the annuitant.
◉Single Payment. Answer: lump sum
◉Periodic Payments. Answer: Installments paid over a period of
time
◉Immediate Annuity. Answer: purchased with a single lump sum,
and will start providing income payments within the first year, but
usually starting 30 days from the purchase date. ( It's purpose is to
provide for liquidation of principle sum.)
◉SPIA - Single Premium Immediate Annuity. Answer: Liability
Insurance Settlements, lottery winnings, and other large sums.
◉Deferred Annuities. Answer: will start providing income payments
AFTER the first year
, ◉SPDA (Single Premium Deferred Annuity). Answer: Paid deferred
annuities with a single lump sum payment.
◉Flexible Premium Deferred Annuity. Answer: Paid deferred
annuities from monthly payments
◉FPDA Flexible premium deferred Annuity. Answer: Pays out a fixed
amount for life starting at a future date.
◉What happens when a deferred annuity is cancelled during the
early contract years?. Answer: The insurer normally will assess a
back-end load known as a surrender charge.
◉" Bailout" Feature. Answer: Sometimes found in single premium
deferred annuity contracts, waives surrender charges when the
interest rate falls below a stated level.
◉Straight Life Income Payout Option. Answer: pays the annuitant a
guaranteed income for the annuitant's
lifetime. When the annuitant dies, no further payments are made to
anyone. This offers protection against exhaustion of savings due to
longevity.
◉Fixed Amount Option. Answer: The annuitant receives a fixed
payment until the contract value is exhausted, regardless of when
EVALUATION 2026 EXAM Q&A STUDY
SHEET
◉Incontestable Period. Answer: After 2 years a policy become
incontestable. At this point, the company can't contest a claim even if
it discovers misrepresentation or concealment on the application.
◉Joint Policy. Answer: What is written on one contract for two
people and is payable on the first death?
◉15 year mortgage. Answer: best with 15 year decreasing term
◉Owner Rights. Answer: The access rights granted to the owner of a
file or other resource
◉Suitability Form. Answer: Ensures that the customer is best suited
for the policy they are purchasing. ( Prevents the sale of unnecessary
insurance)
,◉Annuities. Answer: are ways of providing a stream of income for a
guaranteed period of time. ( protect against the risk of living too
long.)
◉Simple Annuity. Answer: Started with a large sum of money that
will paid out in installments over a period of time or until the money
is gone.
◉Annuity Monthly. Answer: Received monthly and is based on
factors such as: Principle amount, rate of interest the annuity earns,
and length of payout period.
◉Contract Owners. Answer: The individual who purchases the
annuity pays the premiums and has rights of ownership.
◉Annuitant. Answer: The income benefits distributed at regular
intervals during the liquidation phase of an annuity contract are
normally payable to the annuitant.
◉Beneficiary. Answer: The person receives survivor benefits upon
the annuitant's death.
◉Accumulation Period. Answer: The pay-in period where the
contract owner makes the purchase payments. ( Normally may
continue after the purchase payments cease.)
,◉Another Name for Annuity Period. Answer: a.k.a Liquidation
period, Annuitization period, or pay- out- period.
◉Annuity Period. Answer: This is the time when the money that has
accrued during the accumulation period is paid-out in the form of
payments to the annuitant.
◉Single Payment. Answer: lump sum
◉Periodic Payments. Answer: Installments paid over a period of
time
◉Immediate Annuity. Answer: purchased with a single lump sum,
and will start providing income payments within the first year, but
usually starting 30 days from the purchase date. ( It's purpose is to
provide for liquidation of principle sum.)
◉SPIA - Single Premium Immediate Annuity. Answer: Liability
Insurance Settlements, lottery winnings, and other large sums.
◉Deferred Annuities. Answer: will start providing income payments
AFTER the first year
, ◉SPDA (Single Premium Deferred Annuity). Answer: Paid deferred
annuities with a single lump sum payment.
◉Flexible Premium Deferred Annuity. Answer: Paid deferred
annuities from monthly payments
◉FPDA Flexible premium deferred Annuity. Answer: Pays out a fixed
amount for life starting at a future date.
◉What happens when a deferred annuity is cancelled during the
early contract years?. Answer: The insurer normally will assess a
back-end load known as a surrender charge.
◉" Bailout" Feature. Answer: Sometimes found in single premium
deferred annuity contracts, waives surrender charges when the
interest rate falls below a stated level.
◉Straight Life Income Payout Option. Answer: pays the annuitant a
guaranteed income for the annuitant's
lifetime. When the annuitant dies, no further payments are made to
anyone. This offers protection against exhaustion of savings due to
longevity.
◉Fixed Amount Option. Answer: The annuitant receives a fixed
payment until the contract value is exhausted, regardless of when
