XCEL Solutions Life and Health License Exam (CA) 200 Questions with Correct Answers

XCEL Solutions Life and Health License Exam (CA) 200 Questions with Correct Answers A saving vehicle designed to first accumulate funds and then systematically liquidates the funds - Correct Answer Deferred annuity An annuity which is backed by a life insurer's separate account - Correct Answer Variable 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? - Correct Answer 60 payments 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 the unit value of the "separate account". What kind of annuity BEST matches this description? - Correct Answer Variable Annuity An annuitant would like to determine the amount of an annuity distribution that is exempt from taxation. What is used to calculate this? - Correct Answer Exclusion Ratio What is a common reason people purchase an annuity? - Correct Answer To protect against the risk of outliving their financial resources Which of the following is NOT a feature of equity annuities? - Correct Answer Offers a maximum interest rate that increases annually When a mutual insurer becomes a stock company, the process is called - Correct Answer Demutualization An insurer owned by its policyholder is called a - Correct Answer Mutual insurer Which of the following statements regarding a life insurance policy dividend is TRUE? - Correct Answer It is the distribution of excess of funds accumulated by the insurer on participating policies Which of the following is a type of insurance where