XCEL practice exams
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a
faster rate in the early years of the policy. Which of these statements made by the producer would be
correct? - Answer-20-Pay Life accumulates cash value faster than Straight Life
A variable insurance policy: - Answer-does not guarantee a return on its investment accounts
A Renewable Term Policy is renewable at the option of the: - Answer-Insured
Which of these types of life insurance allows the policyowner to have level premiums and to also choose
from a selection of investment options? - Answer-Variable Life
Which of the following actions is NOT possible with a Universal Life policy? - Answer-Premiums may be
applied as a credit against income tax
Which provision allows the policyowner to change a term life policy to a permanent one without
providing proof of good health? - Answer-conversion
What type of policy would offer a 40-year old the quickest accumulation of cash value? - Answer-20-pay
life
A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to
coverage as his/her needs change. Which of the following policies will best meet this need? - Answer-
Universal Life
,J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of
policies will provide the most rapid growth of cash value? - Answer-20-pay Life
All of these insurance products require an agent to have proper FINRA securities registration in order to
sell them, EXCEPT for: - Answer-Modified Whole Life
All of these are characteristics of an Adjustable Life policy, EXCEPT: - Answer-face amount can be
adjusted using policy dividends
What kind of special need would a policyowner require with an Adjustable Life insurance policy? -
Answer-flexible premiums
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How
much will the insurance company pay the beneficiary? - Answer-$20,000 death benefit
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? - Answer-Face
amount plus the policy's cash value
Variable Life products require a producer to - Answer-hold a Life Insurance license and a Securities
license
What kind of life policy either pays the face value upon the death of the insured or when the insured
reaches age 100? - Answer-whole life
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage
on himself under the same policy. What kind of policy should Q purchase? - Answer-Whole life policy
with other insured rider
Which of the following types of policies pays a benefit if the insured goes blind? - Answer-AD&D
, All of these statements about Equity Indexed Life Insurance are correct, EXCEPT: - Answer-The
premiums can be lowered or raised, based on investment performance
M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years.
At the beginning of the sixth year, the premium will increase to $800 per year but will remain level
thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy
that M has purchased is - Answer-Modified Premium Life
Additional coverage can be added to a Whole Life policy by adding a(n): - Answer-decreasing term rider
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer
will deduct the outstanding loan balance from the: - Answer-policy proceeds
Which provision prevents an insurer from changing the terms of the contract with the policyowner by
referring to documents not found within the policy itself? - Answer-Entire Contract provision
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1
year later of natural causes. How much will the insurer pay the beneficiary? - Answer-$50,000
A policy loan is made possible by which of these life insurance policy features? - Answer-Cash value
provision
What is the Suicide provision designed to do? - Answer-safeguard the insurer from an applicant who is
contemplating suicide
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the: -
Answer-Insuring clause
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a
faster rate in the early years of the policy. Which of these statements made by the producer would be
correct? - Answer-20-Pay Life accumulates cash value faster than Straight Life
A variable insurance policy: - Answer-does not guarantee a return on its investment accounts
A Renewable Term Policy is renewable at the option of the: - Answer-Insured
Which of these types of life insurance allows the policyowner to have level premiums and to also choose
from a selection of investment options? - Answer-Variable Life
Which of the following actions is NOT possible with a Universal Life policy? - Answer-Premiums may be
applied as a credit against income tax
Which provision allows the policyowner to change a term life policy to a permanent one without
providing proof of good health? - Answer-conversion
What type of policy would offer a 40-year old the quickest accumulation of cash value? - Answer-20-pay
life
A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to
coverage as his/her needs change. Which of the following policies will best meet this need? - Answer-
Universal Life
,J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of
policies will provide the most rapid growth of cash value? - Answer-20-pay Life
All of these insurance products require an agent to have proper FINRA securities registration in order to
sell them, EXCEPT for: - Answer-Modified Whole Life
All of these are characteristics of an Adjustable Life policy, EXCEPT: - Answer-face amount can be
adjusted using policy dividends
What kind of special need would a policyowner require with an Adjustable Life insurance policy? -
Answer-flexible premiums
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How
much will the insurance company pay the beneficiary? - Answer-$20,000 death benefit
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? - Answer-Face
amount plus the policy's cash value
Variable Life products require a producer to - Answer-hold a Life Insurance license and a Securities
license
What kind of life policy either pays the face value upon the death of the insured or when the insured
reaches age 100? - Answer-whole life
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage
on himself under the same policy. What kind of policy should Q purchase? - Answer-Whole life policy
with other insured rider
Which of the following types of policies pays a benefit if the insured goes blind? - Answer-AD&D
, All of these statements about Equity Indexed Life Insurance are correct, EXCEPT: - Answer-The
premiums can be lowered or raised, based on investment performance
M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years.
At the beginning of the sixth year, the premium will increase to $800 per year but will remain level
thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy
that M has purchased is - Answer-Modified Premium Life
Additional coverage can be added to a Whole Life policy by adding a(n): - Answer-decreasing term rider
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer
will deduct the outstanding loan balance from the: - Answer-policy proceeds
Which provision prevents an insurer from changing the terms of the contract with the policyowner by
referring to documents not found within the policy itself? - Answer-Entire Contract provision
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1
year later of natural causes. How much will the insurer pay the beneficiary? - Answer-$50,000
A policy loan is made possible by which of these life insurance policy features? - Answer-Cash value
provision
What is the Suicide provision designed to do? - Answer-safeguard the insurer from an applicant who is
contemplating suicide
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the: -
Answer-Insuring clause
