Xcel Laws and Rules Pertinent to Insurance Exam 2023
with complete solution
What must an agent sign when an existing Life Insurance policy is being reissued with a
reduction in cash value?
Policy Summary
Buyer's Guide
Affidavit
Notice Regarding Replacement of Life Insurance or Annuity
Notice Regarding Replacement of Life Insurance or Annuity
Which of these circumstances requires an agent to make reasonable efforts to obtain
information concerning the suitability of an annuity?
Agent helps a client with the purchase of an annuity
Agent sets up sales appointment
Agent purchases advertisement regarding a new annuity product
Agent helps a client with the purchase of an annuity
Agent helps a client with the purchase of an annuity
Life Insurance coverage will frequently contain an Accelerated Benefits rider attached to
the policy. What would be considered a "qualifying event " under these riders?
Seasonal unemployment
Short-term Disability
Medical condition resulting in a significantly- shortened lifespan
Divorce
Medical condition resulting in a significantly- shortened lifespan
J the agent makes false statements to a perspective client about the projected
dividends for a policy. J may be found guilty of:
Defamation
Misrepresentation
Subrogation
Twisting
Misrepresentation
Which of the following is the requirement for an individual to perform the duties of an
insurance agent?
Be bonded and insured
Reside in the state for 1 year
Be duly licensed
Keep an annual sales quota
Be duly licensed
Which of the following is a valid reason for suspending our revoking an insurance
agent's license?
Not meeting a sales quota
Filed for bankruptcy
Participating in the act of twisting
Convicted of misdemeanor
Participating in the act of twisting
, J is an insurance agent who maintains premiums in a fiduciary account. Which of the
following expenses may NOT be paid from using funds withdrawn from this account?
Return premiums due to insureds
Personal medical expenses
Commissions due to other licensees
Premiums due to insurers
Personal medical expenses
Under the Affordable Care Act (ACA):the coverage provided for dependents up to the
age of:
18
21
25
26
26
What is the qualification for being considered a small group in Virginia?
Three employees
1 to 25 members
2 to 50 members
75 members
2 to 50 members
Which of the following will happen if a licensed resident insurance agent moves to
another state?
Agent will need to forfeit residual commissions in the home state
Agent's license shall terminate immediately
Agent automatically qualifies for a license in the new state
Agent remains a resident agent for another 12 months in the original state of licensure
Agent's license shall terminate immediately
Which of the following does COBRA allow a terminated employee to receive?
Continued health coverage at no cost
Continued coverage in group health plan
Continued coverage for the spouse of the employee only
Continued coverage without administrative fee
Continued coverage in group health plan
Which of the following would be a valid reason for the state of Virginia to deny an
insurance agent license?
Felony Conviction
Traffic violation misdemeanor
Residing in Virginia for less than 120 days
Sharing commissions with another licensed insurance agent
Felony Conviction
Each Long Term Care policy sold in Virginia must include a Free Look provision that
refunds all prey within _________days of policy delivery.
15
30
60
90
with complete solution
What must an agent sign when an existing Life Insurance policy is being reissued with a
reduction in cash value?
Policy Summary
Buyer's Guide
Affidavit
Notice Regarding Replacement of Life Insurance or Annuity
Notice Regarding Replacement of Life Insurance or Annuity
Which of these circumstances requires an agent to make reasonable efforts to obtain
information concerning the suitability of an annuity?
Agent helps a client with the purchase of an annuity
Agent sets up sales appointment
Agent purchases advertisement regarding a new annuity product
Agent helps a client with the purchase of an annuity
Agent helps a client with the purchase of an annuity
Life Insurance coverage will frequently contain an Accelerated Benefits rider attached to
the policy. What would be considered a "qualifying event " under these riders?
Seasonal unemployment
Short-term Disability
Medical condition resulting in a significantly- shortened lifespan
Divorce
Medical condition resulting in a significantly- shortened lifespan
J the agent makes false statements to a perspective client about the projected
dividends for a policy. J may be found guilty of:
Defamation
Misrepresentation
Subrogation
Twisting
Misrepresentation
Which of the following is the requirement for an individual to perform the duties of an
insurance agent?
Be bonded and insured
Reside in the state for 1 year
Be duly licensed
Keep an annual sales quota
Be duly licensed
Which of the following is a valid reason for suspending our revoking an insurance
agent's license?
Not meeting a sales quota
Filed for bankruptcy
Participating in the act of twisting
Convicted of misdemeanor
Participating in the act of twisting
, J is an insurance agent who maintains premiums in a fiduciary account. Which of the
following expenses may NOT be paid from using funds withdrawn from this account?
Return premiums due to insureds
Personal medical expenses
Commissions due to other licensees
Premiums due to insurers
Personal medical expenses
Under the Affordable Care Act (ACA):the coverage provided for dependents up to the
age of:
18
21
25
26
26
What is the qualification for being considered a small group in Virginia?
Three employees
1 to 25 members
2 to 50 members
75 members
2 to 50 members
Which of the following will happen if a licensed resident insurance agent moves to
another state?
Agent will need to forfeit residual commissions in the home state
Agent's license shall terminate immediately
Agent automatically qualifies for a license in the new state
Agent remains a resident agent for another 12 months in the original state of licensure
Agent's license shall terminate immediately
Which of the following does COBRA allow a terminated employee to receive?
Continued health coverage at no cost
Continued coverage in group health plan
Continued coverage for the spouse of the employee only
Continued coverage without administrative fee
Continued coverage in group health plan
Which of the following would be a valid reason for the state of Virginia to deny an
insurance agent license?
Felony Conviction
Traffic violation misdemeanor
Residing in Virginia for less than 120 days
Sharing commissions with another licensed insurance agent
Felony Conviction
Each Long Term Care policy sold in Virginia must include a Free Look provision that
refunds all prey within _________days of policy delivery.
15
30
60
90
