XCELL TESTING SOLUTIONS LIFE AND HEALTH
FINAL 2026 EXAM PREPARATION PACK KEY
LIFE INSURANCE AND HEALTH COVERAGE
CONCEPTS WITH SAMPLE QUESTIONS
◉ Company Z has a Cross Purchase Buy-Sell Agreement in place
among its three founding partners. If the agreement is funded with
individual life insurance, what would it require? Answer: Each
partner must own a policy on the other partners
◉ Who elects the governing body of a mutual insurance company?
Answer: policyholders
◉ When does a Guaranteed Insurability Rider allow the insured to
buy additional coverage? Answer: at future dates specified in the
contract with no evidence of insurability required
◉ S would like to use dividends from her life insurance policy to
purchase paid-up additions. All of these would be factors that
determine how much coverage can be purchased EXCEPT Answer:
beneficiary's age
,◉ 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
◉ What is the Suicide provision designed to do? Answer: safeguard
the insurer from an applicant who is contemplating suicide
◉ What provision in a life insurance policy states that the
application is considered part of the contract? Answer: Entire
Contract provision
◉ The incontestable clause allows an insurer to Answer: contest a
claim during the contestable period
◉ All of these statements about the Waiver of Premium provision
are correct EXCEPT Answer: Insured must be eligible for Social
Security disability for claim to be accepted
◉ Which of the following statements is CORRECT about accelerated
death benefits? Answer: Must have a terminal illness to qualify
◉ Which of the following provisions guarantees that premiums will
be waived if a Juvenile Life policyowner becomes disabled? Answer:
Payor clause
, ◉ What benefit does the Payor clause on a Juvenile Life policy
provide? Answer: Premiums are waived if payor becomes disabled
◉ P is blinded in an industrial accident. Which provision of his life
insurance policy will pay a stated benefit amount? Answer:
Accidental Death and Dismemberment provision
◉ L takes out a life insurance policy and dies 10 years later. During
the claim process, the insurer discovers that L had understated her
age on the application. Under the Misstatement of Age provision, the
insurer will Answer: adjust the death benefit to a reduced amount
◉ S buys a $10,000 Whole Life policy in 2003 and pays an annual
premium of $100. S dies 5 years later in 2008 and the insurer pays
the beneficiary $10,500. What kind of rider did S include on the
policy? Answer: Return of premium rider
◉ D was actively serving in the Marines when he was killed in an
automobile accident while on leave. His $100,000 Whole life policy
contains a War Exclusion clause. How much will D's beneficiary's
receive? Answer: The full face amount
◉ In a Life insurance contract, an insurance company's promise to
pay stated benefits is called the Answer: Insuring clause
FINAL 2026 EXAM PREPARATION PACK KEY
LIFE INSURANCE AND HEALTH COVERAGE
CONCEPTS WITH SAMPLE QUESTIONS
◉ Company Z has a Cross Purchase Buy-Sell Agreement in place
among its three founding partners. If the agreement is funded with
individual life insurance, what would it require? Answer: Each
partner must own a policy on the other partners
◉ Who elects the governing body of a mutual insurance company?
Answer: policyholders
◉ When does a Guaranteed Insurability Rider allow the insured to
buy additional coverage? Answer: at future dates specified in the
contract with no evidence of insurability required
◉ S would like to use dividends from her life insurance policy to
purchase paid-up additions. All of these would be factors that
determine how much coverage can be purchased EXCEPT Answer:
beneficiary's age
,◉ 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
◉ What is the Suicide provision designed to do? Answer: safeguard
the insurer from an applicant who is contemplating suicide
◉ What provision in a life insurance policy states that the
application is considered part of the contract? Answer: Entire
Contract provision
◉ The incontestable clause allows an insurer to Answer: contest a
claim during the contestable period
◉ All of these statements about the Waiver of Premium provision
are correct EXCEPT Answer: Insured must be eligible for Social
Security disability for claim to be accepted
◉ Which of the following statements is CORRECT about accelerated
death benefits? Answer: Must have a terminal illness to qualify
◉ Which of the following provisions guarantees that premiums will
be waived if a Juvenile Life policyowner becomes disabled? Answer:
Payor clause
, ◉ What benefit does the Payor clause on a Juvenile Life policy
provide? Answer: Premiums are waived if payor becomes disabled
◉ P is blinded in an industrial accident. Which provision of his life
insurance policy will pay a stated benefit amount? Answer:
Accidental Death and Dismemberment provision
◉ L takes out a life insurance policy and dies 10 years later. During
the claim process, the insurer discovers that L had understated her
age on the application. Under the Misstatement of Age provision, the
insurer will Answer: adjust the death benefit to a reduced amount
◉ S buys a $10,000 Whole Life policy in 2003 and pays an annual
premium of $100. S dies 5 years later in 2008 and the insurer pays
the beneficiary $10,500. What kind of rider did S include on the
policy? Answer: Return of premium rider
◉ D was actively serving in the Marines when he was killed in an
automobile accident while on leave. His $100,000 Whole life policy
contains a War Exclusion clause. How much will D's beneficiary's
receive? Answer: The full face amount
◉ In a Life insurance contract, an insurance company's promise to
pay stated benefits is called the Answer: Insuring clause
