XCEL Exam Questions
Which of these is NOT considered to be a common life insurance nonforfeiture option?
a. Cash surrender
b. Extended term insurance
c. Reduced paid-up insurance
d. Life income annuity - Answer-d. Life income annuity
Which of these would NOT be considered a presumptive disability?
a. Loss of vision and speech
b. Loss of hearing
c. Loss of a leg or arm
d. Loss of a leg and arm - Answer-c. Loss of a leg or arm
A business will typically use which type of life insurance to cover their employees?
a. Group policy
b. Adjustable life policy
c. Whole life policy
d. Endowment policy - Answer-a. Group policy
Which of the following would evidence ownership in a participating health insurance?
,a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment - Answer-c. Policy ownership
According to the principle of Utmost Good Faith, the insured will answer questions on the application to
the best of their knowledge and pay the required premium, while the insurer will deal fairly with the
insured and it's
a. Underwriting
b. Issuance of the policy
c. Promises made
d. Legal reserve - Answer-c. Promises made
A life insurance policy sold in Michigan may be contested by the insurer ONLY during the first ___ year(s)
of the contract.
a. One
b. Two
c. Three
d. Four - Answer-b. Two
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if
she incurs a loss of $1,500?
a. $200
,b. $500
c. $700
d. $1,300 - Answer-c. $700
Which of these is NOT a qualifying event for Medicare?
a. On Social Security disability for over 2 years
b. Kidney failure
c. Age 65 or older
d. Falling below the federal poverty level - Answer-d. Falling below the federal poverty level
Naming a contingent beneficiary as "all surviving children" is described by which term?
a. Contingent designation
b. Primary designation
c. Class designation
d. Tertiary designation - Answer-c. Class designation
A Roth IRA owner must be at least what age in order to make tax-free withdrawals?
a. 59 1/2 and owned account for a minimum of 10 years
b. 59 1/2 and owned account for a minimum of 5 years
c. 70 1/2 and owned account for a minimum of 10 years
, d. 70 1/2 and owned account for a minimum of 5 years - Answer-b. 59 1/2 and owned account for a
minimum of 5 years
Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she
is seeking is called
a. Variable payout
b. Fixed accumulation
c. Interest guaranteed
d. Annuity certain - Answer-d. Annuity certain
What does the Group Life underwriting risk selection process help protect insurance companies from?
a. Risk aversion
b. Natural selection
c. Adverse selection
d. Risk management - Answer-c. Adverse selection
___ is NOT an element of a valid contract?
a. Legal
b. Consideration
c. Competent parties
d. Countersignature - Answer-d. Countersignature
Which of these is NOT considered to be a common life insurance nonforfeiture option?
a. Cash surrender
b. Extended term insurance
c. Reduced paid-up insurance
d. Life income annuity - Answer-d. Life income annuity
Which of these would NOT be considered a presumptive disability?
a. Loss of vision and speech
b. Loss of hearing
c. Loss of a leg or arm
d. Loss of a leg and arm - Answer-c. Loss of a leg or arm
A business will typically use which type of life insurance to cover their employees?
a. Group policy
b. Adjustable life policy
c. Whole life policy
d. Endowment policy - Answer-a. Group policy
Which of the following would evidence ownership in a participating health insurance?
,a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment - Answer-c. Policy ownership
According to the principle of Utmost Good Faith, the insured will answer questions on the application to
the best of their knowledge and pay the required premium, while the insurer will deal fairly with the
insured and it's
a. Underwriting
b. Issuance of the policy
c. Promises made
d. Legal reserve - Answer-c. Promises made
A life insurance policy sold in Michigan may be contested by the insurer ONLY during the first ___ year(s)
of the contract.
a. One
b. Two
c. Three
d. Four - Answer-b. Two
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if
she incurs a loss of $1,500?
a. $200
,b. $500
c. $700
d. $1,300 - Answer-c. $700
Which of these is NOT a qualifying event for Medicare?
a. On Social Security disability for over 2 years
b. Kidney failure
c. Age 65 or older
d. Falling below the federal poverty level - Answer-d. Falling below the federal poverty level
Naming a contingent beneficiary as "all surviving children" is described by which term?
a. Contingent designation
b. Primary designation
c. Class designation
d. Tertiary designation - Answer-c. Class designation
A Roth IRA owner must be at least what age in order to make tax-free withdrawals?
a. 59 1/2 and owned account for a minimum of 10 years
b. 59 1/2 and owned account for a minimum of 5 years
c. 70 1/2 and owned account for a minimum of 10 years
, d. 70 1/2 and owned account for a minimum of 5 years - Answer-b. 59 1/2 and owned account for a
minimum of 5 years
Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she
is seeking is called
a. Variable payout
b. Fixed accumulation
c. Interest guaranteed
d. Annuity certain - Answer-d. Annuity certain
What does the Group Life underwriting risk selection process help protect insurance companies from?
a. Risk aversion
b. Natural selection
c. Adverse selection
d. Risk management - Answer-c. Adverse selection
___ is NOT an element of a valid contract?
a. Legal
b. Consideration
c. Competent parties
d. Countersignature - Answer-d. Countersignature
