XCELL TESTING SOLUTIONS LIFE AND HEALTH
FINAL 2026 STUDY GUIDE COMPLETE
INSURANCE PRINCIPLES AND PRACTICE
QUESTIONS
◉ M purchased an Accidental Death and Dismemberment (AD&D)
policy and named his son as beneficiary. M has the right to change
the beneficiary designation at anytime. What type of beneficiary is
his son? Answer: Revocable
◉ How would a contingent beneficiary receive the policy proceeds
in an Accidental Death and Dismemberment (AD&D) policy?
Answer: If the primary beneficiary dies before the insured
◉ What is the underlying concept regarding level premiums?
Answer: The early years are charged less than what is needed
◉ A policy owner is able to choose the frequency of premium
payments through what policy feature? Answer: Premium Mode
◉ Any changes made on an insurance application requires the
initials of whom? Answer: Applicant
,◉ All of these are considered sources of underwriting information
about an applicant EXCEPT Answer: Rating Services
◉ Q applied for life insurance and submitted the initial premium on
January 1. The policy was issued February 1, but it was not delivered
by the agent until February 7. Q is dissatisfied and returns the policy
February 13. How will the insurer handle this situation? Answer:
Policy was returned within the free-look period, premium will be
fully refunded
◉ M completes an application for life insurance but does not pay the
initial premium. All of these actions must occur before M's policy
goes into effect EXCEPT Answer: free-look period has expired
◉ 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
◉ Which of the following is an important underwriting principle of
group life insurance? Answer: Everyone must be covered in the
group
◉ Which requirement must be met for an association to be eligible
for a group life plan? Answer: Group was formed for a purpose other
than acquiring insurance
, ◉ When an employee is terminated, which statement about a group
term life conversion is true? Answer: Policy proceeds will be paid if
the employee dies during the conversion period
◉ Under a trustee group life policy, who would be eligible for a
certificate of coverage? Answer: Corporation
◉ N, age 50, recently bought an annuity that will pay a guaranteed
$2,000/month at age 70 for life. What type of annuity did N
purchase? Answer: Fixed Deferred
◉ S recently received a $500,000 lump sum retirement buyout from
her employer. She would like to buy an annuity that will immediately
furnish her with a guaranteed income for life. What type of annuity
is best suited for her situation? Answer: Single Premium
◉ Which of these is an element of a Single Premium annuity?
Answer: Lump-sum payment
◉ Which of these statements concerning an Individual Straight Life
annuity is accurate? Answer: Payments are made to an annuitant for
life
FINAL 2026 STUDY GUIDE COMPLETE
INSURANCE PRINCIPLES AND PRACTICE
QUESTIONS
◉ M purchased an Accidental Death and Dismemberment (AD&D)
policy and named his son as beneficiary. M has the right to change
the beneficiary designation at anytime. What type of beneficiary is
his son? Answer: Revocable
◉ How would a contingent beneficiary receive the policy proceeds
in an Accidental Death and Dismemberment (AD&D) policy?
Answer: If the primary beneficiary dies before the insured
◉ What is the underlying concept regarding level premiums?
Answer: The early years are charged less than what is needed
◉ A policy owner is able to choose the frequency of premium
payments through what policy feature? Answer: Premium Mode
◉ Any changes made on an insurance application requires the
initials of whom? Answer: Applicant
,◉ All of these are considered sources of underwriting information
about an applicant EXCEPT Answer: Rating Services
◉ Q applied for life insurance and submitted the initial premium on
January 1. The policy was issued February 1, but it was not delivered
by the agent until February 7. Q is dissatisfied and returns the policy
February 13. How will the insurer handle this situation? Answer:
Policy was returned within the free-look period, premium will be
fully refunded
◉ M completes an application for life insurance but does not pay the
initial premium. All of these actions must occur before M's policy
goes into effect EXCEPT Answer: free-look period has expired
◉ 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
◉ Which of the following is an important underwriting principle of
group life insurance? Answer: Everyone must be covered in the
group
◉ Which requirement must be met for an association to be eligible
for a group life plan? Answer: Group was formed for a purpose other
than acquiring insurance
, ◉ When an employee is terminated, which statement about a group
term life conversion is true? Answer: Policy proceeds will be paid if
the employee dies during the conversion period
◉ Under a trustee group life policy, who would be eligible for a
certificate of coverage? Answer: Corporation
◉ N, age 50, recently bought an annuity that will pay a guaranteed
$2,000/month at age 70 for life. What type of annuity did N
purchase? Answer: Fixed Deferred
◉ S recently received a $500,000 lump sum retirement buyout from
her employer. She would like to buy an annuity that will immediately
furnish her with a guaranteed income for life. What type of annuity
is best suited for her situation? Answer: Single Premium
◉ Which of these is an element of a Single Premium annuity?
Answer: Lump-sum payment
◉ Which of these statements concerning an Individual Straight Life
annuity is accurate? Answer: Payments are made to an annuitant for
life
