XCEL/Pearson Vue - Life Provisions,
Riders, Options, and Exclusions
Review Exam Questions & Answers
(Grade A+)
Which of these Nonforfeiture Options continue a build-up of cash
value? -
correct answer ✅Reduced Paid-Up
Which of these provisions require proof of insurability after a policy
has lapsed? -
correct answer ✅Reinstatement
A Life insurance policyowner would like to take out a policy loan
against the cash value in his Whole Life policy. The interest rate
applied to this loan may vary over time. This is referred to as a(n)
________ rate loan. -
correct answer ✅Variable
A long-term care rider in a life insurance policy pays a daily benefit
in the event of which of the following? -
correct answer ✅Inability of the insured to perform more than 2
Activities of Daily Living (ADL's)
,XCEL/Pearson Vue - Life Provisions,
Riders, Options, and Exclusions
Review Exam Questions & Answers
(Grade A+)
A policyowner may generate taxable income from which of the
following Dividend Options? -
correct answer ✅Accumulation at Interest
A Whole Life insurance policyowner does NOT have the right to -
correct answer ✅change the grace period
Which of these statements about a Guaranteed Insurability Option
rider is NOT TRUE? -
correct answer ✅Evidence of insurability is required when the
option is exercised
All of these statements about the Waiver of Premium provision are
correct, EXCEPT: -
correct answer ✅Insured must be eligible for Social Security
disability for claim to be accepted
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? -
correct answer ✅Entire Contract Provision
,XCEL/Pearson Vue - Life Provisions,
Riders, Options, and Exclusions
Review Exam Questions & Answers
(Grade A+)
An insured is past due on his life insurance premium, but is still
within the Grace Period. What will the beneficiary receive if the
insured dies during this Grace Period? -
correct answer ✅Full face amount minus any past due premiums
Which type of life policy contains a monthly mortality charge as
well as self-directed investment choices? -
correct answer ✅Variable Universal Life
Whose life is covered on a life insurance policy that contains a
payor benefit clause? -
correct answer ✅Child
An insurer may normally delay the payment of a cash value loan or
surrender value for up to -
correct answer ✅6 months
A Nonforfeiture clause gives the policyowner -
correct answer ✅guaranteed values even if the policy has lapsed
, XCEL/Pearson Vue - Life Provisions,
Riders, Options, and Exclusions
Review Exam Questions & Answers
(Grade A+)
A policy loan is made possible by which of these life insurance
policy features? -
correct answer ✅Cash value provision
A Cost of Living rider gives the insured -
correct answer ✅additional death benefits
All of these statements concerning Settlement Options are true,
EXCEPT: -
correct answer ✅Only the beneficiary may select
Which of the following statements is CORRECT regarding the tax
treatment of a lump-sum payment paid to a life insurance policy's
primary beneficiary? -
correct answer ✅All proceeds are income tax free in the year they
are received
B owns a Whole Life policy with a guaranteed insurability option
that allows him to purchase, without evidence of insurability, stated
Riders, Options, and Exclusions
Review Exam Questions & Answers
(Grade A+)
Which of these Nonforfeiture Options continue a build-up of cash
value? -
correct answer ✅Reduced Paid-Up
Which of these provisions require proof of insurability after a policy
has lapsed? -
correct answer ✅Reinstatement
A Life insurance policyowner would like to take out a policy loan
against the cash value in his Whole Life policy. The interest rate
applied to this loan may vary over time. This is referred to as a(n)
________ rate loan. -
correct answer ✅Variable
A long-term care rider in a life insurance policy pays a daily benefit
in the event of which of the following? -
correct answer ✅Inability of the insured to perform more than 2
Activities of Daily Living (ADL's)
,XCEL/Pearson Vue - Life Provisions,
Riders, Options, and Exclusions
Review Exam Questions & Answers
(Grade A+)
A policyowner may generate taxable income from which of the
following Dividend Options? -
correct answer ✅Accumulation at Interest
A Whole Life insurance policyowner does NOT have the right to -
correct answer ✅change the grace period
Which of these statements about a Guaranteed Insurability Option
rider is NOT TRUE? -
correct answer ✅Evidence of insurability is required when the
option is exercised
All of these statements about the Waiver of Premium provision are
correct, EXCEPT: -
correct answer ✅Insured must be eligible for Social Security
disability for claim to be accepted
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? -
correct answer ✅Entire Contract Provision
,XCEL/Pearson Vue - Life Provisions,
Riders, Options, and Exclusions
Review Exam Questions & Answers
(Grade A+)
An insured is past due on his life insurance premium, but is still
within the Grace Period. What will the beneficiary receive if the
insured dies during this Grace Period? -
correct answer ✅Full face amount minus any past due premiums
Which type of life policy contains a monthly mortality charge as
well as self-directed investment choices? -
correct answer ✅Variable Universal Life
Whose life is covered on a life insurance policy that contains a
payor benefit clause? -
correct answer ✅Child
An insurer may normally delay the payment of a cash value loan or
surrender value for up to -
correct answer ✅6 months
A Nonforfeiture clause gives the policyowner -
correct answer ✅guaranteed values even if the policy has lapsed
, XCEL/Pearson Vue - Life Provisions,
Riders, Options, and Exclusions
Review Exam Questions & Answers
(Grade A+)
A policy loan is made possible by which of these life insurance
policy features? -
correct answer ✅Cash value provision
A Cost of Living rider gives the insured -
correct answer ✅additional death benefits
All of these statements concerning Settlement Options are true,
EXCEPT: -
correct answer ✅Only the beneficiary may select
Which of the following statements is CORRECT regarding the tax
treatment of a lump-sum payment paid to a life insurance policy's
primary beneficiary? -
correct answer ✅All proceeds are income tax free in the year they
are received
B owns a Whole Life policy with a guaranteed insurability option
that allows him to purchase, without evidence of insurability, stated
