XCEL State Exam Simulator Florida
XCEL STATE EXAM SIMULATOR FLORIDA INCLUDES
ACCURATE AND VERIFIED QUESTIONS TAILORED FOR LIFE,
HEALTH, PROPERTY, AND CASUALTY INSURANCE
LICENSING EXAMS ACROSS VARIOUS STATES
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?
A) No payments
B) 30 payments
C) 60 payments
D) 120 payments - ANSWER-C) 60 payments
Which annuity payout option allows the policyowner to choose a pre-determined number of
benefit payments?
A) Period certain
B) Straight life
C) Installment refund
C) Amount certain - ANSWER-A) Period certain
Which of the following is NOT a feature of equity-indexed annuities?
A) Offers long term inflation protection
B) Offers a minimum guaranteed rate
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, XCEL State Exam Simulator Florida
C) Offers a maximum interest rate that increases annually
D) Offers protection during a decline in the stock market - ANSWER-C) Offers a maximum
interest rate that increases annually
Fixed period settlement options are considered to be a form of a(n)
A) cash value loan
B) variable life policy
C) annuity
D) endowment - ANSWER-C) annuity
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?
A) Variable annuity
B) Fixed annuity
C) Immediate annuity
D) Life annuity - ANSWER-A) Variable annuity
A variable annuity holds its investments in an insurer's separate account, as opposed to the
insurer's general account. These separate accounts usually hold non-guaranteed equity
investments such as stocks and mutual funds.
Variable annuities shift the investment risk from the insurer to the annuity owner.
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary?
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, XCEL State Exam Simulator Florida
A) Fixed period
B) Interest only
C) Installment refund
D) Life income - ANSWER-D) Life income
What happens to interest earned if the annuitant dies before the payout start date?
A) It is taxable
B) It is taxable only if no beneficiary is named
C) It is not taxable
D) It is only taxable if contract has been in force
under one year - ANSWER-A) It is taxable
Which of these statements regarding the annuitant is CORRECT?
A) The contract can only be assigned by the annuitant
B) The annuitant is the only individual who can surrender the contract
C) The annuitant must also be the beneficiary
D) The annuitant's life expectancy determines the annuity payments - ANSWER-D) The
annuitant's life expectancy determines the annuity payments
Which of the following is an annuity that is linked to a market-related index?
A) Market-related annuity
B) Equity-indexed annuity
C) Deferred-risk annuity
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, XCEL State Exam Simulator Florida
D) Fixed-amount annuity - ANSWER-B) Equity-indexed annuity
What will the beneficiary receive if an annuitant dies during the accumulation period?
A) The greater of the accumulated cash value or the total premium paid
B) The lesser of the accumulated cash value or the total premium paid
C) The interest earned on the accumulated cash
value
D) Nothing - ANSWER-A) The greater of the accumulated cash value or the total premium paid
What kind of annuity pays income to two annuitants until their deaths?
A) Period certain annuity
B) Joint and survivor annuity
C) Straight life annuity
D) Installment refund - ANSWER-B) Joint and survivor annuity
Which market index is normally associated with an indexed annuity's rate of return?
A) NAIC
B) SEC
C) S&P 500
D) А&P 300 - ANSWER-C) S&P 500
Simon has purchased a fixed immediate annuity.
His payment amount will be dependent upon principal, interest, and the contract's
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XCEL STATE EXAM SIMULATOR FLORIDA INCLUDES
ACCURATE AND VERIFIED QUESTIONS TAILORED FOR LIFE,
HEALTH, PROPERTY, AND CASUALTY INSURANCE
LICENSING EXAMS ACROSS VARIOUS STATES
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?
A) No payments
B) 30 payments
C) 60 payments
D) 120 payments - ANSWER-C) 60 payments
Which annuity payout option allows the policyowner to choose a pre-determined number of
benefit payments?
A) Period certain
B) Straight life
C) Installment refund
C) Amount certain - ANSWER-A) Period certain
Which of the following is NOT a feature of equity-indexed annuities?
A) Offers long term inflation protection
B) Offers a minimum guaranteed rate
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, XCEL State Exam Simulator Florida
C) Offers a maximum interest rate that increases annually
D) Offers protection during a decline in the stock market - ANSWER-C) Offers a maximum
interest rate that increases annually
Fixed period settlement options are considered to be a form of a(n)
A) cash value loan
B) variable life policy
C) annuity
D) endowment - ANSWER-C) annuity
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?
A) Variable annuity
B) Fixed annuity
C) Immediate annuity
D) Life annuity - ANSWER-A) Variable annuity
A variable annuity holds its investments in an insurer's separate account, as opposed to the
insurer's general account. These separate accounts usually hold non-guaranteed equity
investments such as stocks and mutual funds.
Variable annuities shift the investment risk from the insurer to the annuity owner.
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary?
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, XCEL State Exam Simulator Florida
A) Fixed period
B) Interest only
C) Installment refund
D) Life income - ANSWER-D) Life income
What happens to interest earned if the annuitant dies before the payout start date?
A) It is taxable
B) It is taxable only if no beneficiary is named
C) It is not taxable
D) It is only taxable if contract has been in force
under one year - ANSWER-A) It is taxable
Which of these statements regarding the annuitant is CORRECT?
A) The contract can only be assigned by the annuitant
B) The annuitant is the only individual who can surrender the contract
C) The annuitant must also be the beneficiary
D) The annuitant's life expectancy determines the annuity payments - ANSWER-D) The
annuitant's life expectancy determines the annuity payments
Which of the following is an annuity that is linked to a market-related index?
A) Market-related annuity
B) Equity-indexed annuity
C) Deferred-risk annuity
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, XCEL State Exam Simulator Florida
D) Fixed-amount annuity - ANSWER-B) Equity-indexed annuity
What will the beneficiary receive if an annuitant dies during the accumulation period?
A) The greater of the accumulated cash value or the total premium paid
B) The lesser of the accumulated cash value or the total premium paid
C) The interest earned on the accumulated cash
value
D) Nothing - ANSWER-A) The greater of the accumulated cash value or the total premium paid
What kind of annuity pays income to two annuitants until their deaths?
A) Period certain annuity
B) Joint and survivor annuity
C) Straight life annuity
D) Installment refund - ANSWER-B) Joint and survivor annuity
Which market index is normally associated with an indexed annuity's rate of return?
A) NAIC
B) SEC
C) S&P 500
D) А&P 300 - ANSWER-C) S&P 500
Simon has purchased a fixed immediate annuity.
His payment amount will be dependent upon principal, interest, and the contract's
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