XCEL Exam 4
When does a life insurance contract become effective if the initial premium is not collected during the
application process? - Answer-when producer delivers policy and collects initial premium
Under the USA Patriot Act, insurers are required to report receipt of cash payment in excess of: -
Answer-$10,000
The underwriting process involves all of these, EXCEPT for: - Answer-policy loan
ABC Insurance Company has accepted a life insurance application which contains unanswered questions.
The company then makes the application part of the life contract. In this situation, the insurer has -
Answer-waived one of its legal rights
An insurance company may NOT reject a prospective insured's life application on the basis of which of
the following factors? - Answer-gender
Information obtained from a phone conversation to the proposed insured can be found in which of
these reports? - Answer-inspection report
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial
premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by
the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently
taken place with the doctor. What action should the producer then take? - Answer-collect initial
premium along with a signed health statement
All are true statements regarding the underwriting process, EXCEPT: - Answer-AIDS and HIV testing must
be conducted in a uniform fashion and cannot be discriminatory
, When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be
considered a red flag for a(n) - Answer-Anti-Money Laundering violation
What action should a producer take if the initial premium is NOT submitted with the application? -
Answer-forward the application to the insurer without the initial premium
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This
policy may be issued with a(n): - Answer-exclusion for the medical condition
P is a producer who notices 5 questions on a life application were not answered. What actions should P
take? - Answer-set up a meeting with the applicant to answer the remaining questions
Before a life insurance policy is issued, which of these components of the contract is required? - Answer-
applicant's signature on application
Consumer reports requested by an underwriter during the application process of a life insurance policy
can be used to determine: - Answer-probability of making timely premium payments
K is an agent who takes an application for individual life insurance and accepts a check from the client.
He submits the application and check to the insurance company, however the check was never signed
by the applicant. If the application is approved, when will coverage be effective? - Answer-the date the
agent delivered the policy, collected the initial premium, and obtained a good health statement
A statement made by an insured in an insurance application that must be true to the best of one's
knowledge and which becomes a part of the contract is known as: - Answer-a representation
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of
the following? - Answer-aviation exclusion
When does a life insurance contract become effective if the initial premium is not collected during the
application process? - Answer-when producer delivers policy and collects initial premium
Under the USA Patriot Act, insurers are required to report receipt of cash payment in excess of: -
Answer-$10,000
The underwriting process involves all of these, EXCEPT for: - Answer-policy loan
ABC Insurance Company has accepted a life insurance application which contains unanswered questions.
The company then makes the application part of the life contract. In this situation, the insurer has -
Answer-waived one of its legal rights
An insurance company may NOT reject a prospective insured's life application on the basis of which of
the following factors? - Answer-gender
Information obtained from a phone conversation to the proposed insured can be found in which of
these reports? - Answer-inspection report
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial
premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by
the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently
taken place with the doctor. What action should the producer then take? - Answer-collect initial
premium along with a signed health statement
All are true statements regarding the underwriting process, EXCEPT: - Answer-AIDS and HIV testing must
be conducted in a uniform fashion and cannot be discriminatory
, When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be
considered a red flag for a(n) - Answer-Anti-Money Laundering violation
What action should a producer take if the initial premium is NOT submitted with the application? -
Answer-forward the application to the insurer without the initial premium
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This
policy may be issued with a(n): - Answer-exclusion for the medical condition
P is a producer who notices 5 questions on a life application were not answered. What actions should P
take? - Answer-set up a meeting with the applicant to answer the remaining questions
Before a life insurance policy is issued, which of these components of the contract is required? - Answer-
applicant's signature on application
Consumer reports requested by an underwriter during the application process of a life insurance policy
can be used to determine: - Answer-probability of making timely premium payments
K is an agent who takes an application for individual life insurance and accepts a check from the client.
He submits the application and check to the insurance company, however the check was never signed
by the applicant. If the application is approved, when will coverage be effective? - Answer-the date the
agent delivered the policy, collected the initial premium, and obtained a good health statement
A statement made by an insured in an insurance application that must be true to the best of one's
knowledge and which becomes a part of the contract is known as: - Answer-a representation
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of
the following? - Answer-aviation exclusion
