XCEL LIFE INSURANCE CERTIFICATION
REVIEW 2026 FULL SOLUTIONS AND
STUDY GUIDE GRADED A+
⩥ What kind of life insurance policy pays a specified monthly income to
a beneficiary for 30 years and then pays a lump sum benefit at the end of
that 30 years?.
Answer: Family Maintenance policy
⩥ What kind of insurance policy supplies an income stream over a set
period of time that starts when the insured dies?.
Answer: Family Maintenance Policy
⩥ Who benefits in Investor-Originated Life Insurance (IOLI) when the
insured dies?.
Answer: Policyowner
⩥ Which of these statements describes a Modified Endowment Contract
(MEC).
Answer: Exceeds the maximum amount of premium that can be paid
into a policy and still have it recognized as a life insurance contract.
,⩥ Which type of policy is considered to be overfunded, as stated by IRS
guidelines.
Answer: Modified Endowment Contract (MEC)
⩥ Which of these is NOT considered to e a right given to a
policyowner?.
Answer: Modify a provision in the insurance contract.
⩥ What does the ownership clause in a life insurance policy state?.
Answer: Who the policyowner is and what rights the policyowner is
entitled to
⩥ Which of these actions is taken when a policyowner uses a Life
Insurance policy as collateral for a bank loan?.
Answer: Collateral assignment
⩥ In a life insurance policy, which provision states who may select
policy options, designate and name a beneficiary, and be the recipient of
any financial benefits from the policy?.
Answer: Owner's Rights
⩥ Which of the following statements describes what an accident an
health policyowner may NOT do?.
Answer: Adjust the premium payments
, ⩥ The incontestable clause allows an insurer to...
Answer: contest a claim during the contestable period
⩥ J, and Accidental Death and Dismemberment (AD&D) policy holder,
dies after injuries sustained in an accident. J's age as stated on the
application 5 years ago was found to be understated by 10 years. Which
of the following actions will the insurance company take?.
Answer: The insurer will adjust the benefit to what the premiums paid
would have purchased at the insured's actual age
⩥ Which statement regarding the Misstatement of Age provision is
considered to be true.
Answer: Coverage will be adjusted to reflect the insured's true age if a
misstatement of age is discovered.
⩥ What is the Suicide provision designed to do?.
Answer: safeguard the insurer from an applicant who is contemplating
suicide
⩥ A Disability Income policy owner recently submitted a claim for a
chronic neck problem that has resulted in total disability. The original
neck injury occurred before the application was taken 5 years prior. The
neck injury was never disclosed to the insurer at the tome of application.
How will the insurer handle this claim.
REVIEW 2026 FULL SOLUTIONS AND
STUDY GUIDE GRADED A+
⩥ What kind of life insurance policy pays a specified monthly income to
a beneficiary for 30 years and then pays a lump sum benefit at the end of
that 30 years?.
Answer: Family Maintenance policy
⩥ What kind of insurance policy supplies an income stream over a set
period of time that starts when the insured dies?.
Answer: Family Maintenance Policy
⩥ Who benefits in Investor-Originated Life Insurance (IOLI) when the
insured dies?.
Answer: Policyowner
⩥ Which of these statements describes a Modified Endowment Contract
(MEC).
Answer: Exceeds the maximum amount of premium that can be paid
into a policy and still have it recognized as a life insurance contract.
,⩥ Which type of policy is considered to be overfunded, as stated by IRS
guidelines.
Answer: Modified Endowment Contract (MEC)
⩥ Which of these is NOT considered to e a right given to a
policyowner?.
Answer: Modify a provision in the insurance contract.
⩥ What does the ownership clause in a life insurance policy state?.
Answer: Who the policyowner is and what rights the policyowner is
entitled to
⩥ Which of these actions is taken when a policyowner uses a Life
Insurance policy as collateral for a bank loan?.
Answer: Collateral assignment
⩥ In a life insurance policy, which provision states who may select
policy options, designate and name a beneficiary, and be the recipient of
any financial benefits from the policy?.
Answer: Owner's Rights
⩥ Which of the following statements describes what an accident an
health policyowner may NOT do?.
Answer: Adjust the premium payments
, ⩥ The incontestable clause allows an insurer to...
Answer: contest a claim during the contestable period
⩥ J, and Accidental Death and Dismemberment (AD&D) policy holder,
dies after injuries sustained in an accident. J's age as stated on the
application 5 years ago was found to be understated by 10 years. Which
of the following actions will the insurance company take?.
Answer: The insurer will adjust the benefit to what the premiums paid
would have purchased at the insured's actual age
⩥ Which statement regarding the Misstatement of Age provision is
considered to be true.
Answer: Coverage will be adjusted to reflect the insured's true age if a
misstatement of age is discovered.
⩥ What is the Suicide provision designed to do?.
Answer: safeguard the insurer from an applicant who is contemplating
suicide
⩥ A Disability Income policy owner recently submitted a claim for a
chronic neck problem that has resulted in total disability. The original
neck injury occurred before the application was taken 5 years prior. The
neck injury was never disclosed to the insurer at the tome of application.
How will the insurer handle this claim.
