XCEL Solutions Life Insurance Final Exam
(updated 2026) Questions & Answers
When is the face amount of a Whole Life policy paid? -Correct Answer ✔-When
the insured dies or at the policy's maturity date, whichever happens first
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? -Correct Answer ✔-59 1/2
In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What kind of contract is this? -Correct Answer ✔-Unilateral
Colorado's replacement rules apply to all of the following types of insurance
EXCEPT -Correct Answer ✔-Single premium whole life
What type of life policy covers two people and pays upon the death of the last
insured? -Correct Answer ✔-Survivorship
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased
on her life, which of these statements would be true? -Correct Answer ✔-ABC is
the policy owner, C is the insured, and ABC is the beneficiary
A policyowner is able to choose the frequency of premium payments through
what policy feature? -Correct Answer ✔-Premium Mode
Which of the following are Equity Indexed annuities typically invested in? -Correct
Answer ✔-S&P 500
An insurer that terminates a producer's appointment must inform the
Commissioner within how many days? -Correct Answer ✔-30
, When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? -Correct Answer ✔-At future dates specified in the contract with no
evidence of insurability required
Which of these types of policies may NOT have the Automatic Premium Loan
provision attached to it? -Correct Answer ✔-Decreasing Term
When recommending the purchase or exchange of an annuity, a producer must
determine the suitability of the purchase by performing all of the following
EXCEPT -Correct Answer ✔-Determining the marital status of the applicant
A producer license may be suspended or revoked if the producer is found to be
engaging in -Correct Answer ✔-Misrepresentation
Which of these is an element of a Single Premium annuity? -Correct Answer ✔-
Lump-sum payment
The commissioner may issue an emergency cease and desist order without a
hearing for all of the following circumstances EXCEPT -Correct Answer ✔-Writing
controlled business
The combination of Whole Life and _____ Term Insurance is referred to as a
Family Income Policy -Correct Answer ✔-Decreasing
Who is NOT required to sign a life insurance application? -Correct Answer ✔-
Beneficiary
Which type of life policy contains a monthly mortality charge as well as self-
directed investment choices? -Correct Answer ✔-Variable Universal Life
Typically a life insurance death benefit is paid by a lump-sum payment. A(n)
__________ option is a method of distributing a Life Insurance policy's death
benefit OTHER than by a lump sum payment. -Correct Answer ✔-Settlement
(updated 2026) Questions & Answers
When is the face amount of a Whole Life policy paid? -Correct Answer ✔-When
the insured dies or at the policy's maturity date, whichever happens first
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? -Correct Answer ✔-59 1/2
In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What kind of contract is this? -Correct Answer ✔-Unilateral
Colorado's replacement rules apply to all of the following types of insurance
EXCEPT -Correct Answer ✔-Single premium whole life
What type of life policy covers two people and pays upon the death of the last
insured? -Correct Answer ✔-Survivorship
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased
on her life, which of these statements would be true? -Correct Answer ✔-ABC is
the policy owner, C is the insured, and ABC is the beneficiary
A policyowner is able to choose the frequency of premium payments through
what policy feature? -Correct Answer ✔-Premium Mode
Which of the following are Equity Indexed annuities typically invested in? -Correct
Answer ✔-S&P 500
An insurer that terminates a producer's appointment must inform the
Commissioner within how many days? -Correct Answer ✔-30
, When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? -Correct Answer ✔-At future dates specified in the contract with no
evidence of insurability required
Which of these types of policies may NOT have the Automatic Premium Loan
provision attached to it? -Correct Answer ✔-Decreasing Term
When recommending the purchase or exchange of an annuity, a producer must
determine the suitability of the purchase by performing all of the following
EXCEPT -Correct Answer ✔-Determining the marital status of the applicant
A producer license may be suspended or revoked if the producer is found to be
engaging in -Correct Answer ✔-Misrepresentation
Which of these is an element of a Single Premium annuity? -Correct Answer ✔-
Lump-sum payment
The commissioner may issue an emergency cease and desist order without a
hearing for all of the following circumstances EXCEPT -Correct Answer ✔-Writing
controlled business
The combination of Whole Life and _____ Term Insurance is referred to as a
Family Income Policy -Correct Answer ✔-Decreasing
Who is NOT required to sign a life insurance application? -Correct Answer ✔-
Beneficiary
Which type of life policy contains a monthly mortality charge as well as self-
directed investment choices? -Correct Answer ✔-Variable Universal Life
Typically a life insurance death benefit is paid by a lump-sum payment. A(n)
__________ option is a method of distributing a Life Insurance policy's death
benefit OTHER than by a lump sum payment. -Correct Answer ✔-Settlement
