XCEL Final Exam with 100% correct answers

Irrevocable beneficiary - Correct answer-What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made? Anytime - Correct answer-When can a policy-owner change a revocable beneficiary? Daughter - Correct answer-K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? 0 - Correct answer-T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? If the primary beneficiary dies before the insured - Correct answer-How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? Irrevocable - Correct answer-A policy would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need? The early years are charged more than what is needed - Correct answer-What is the underlying concept regarding level premiums? Premium Mode - Correct answer-A policy-owner is able to choose the frequency of premium payments through what policy feature? Mode of Premium - Correct answer-A policy owner is allowed to pay premiums more than once a year under which provision? Application will be returned to the writing agent. - Correct answer-An incomplete life insurance application submitted to an insurer will result in which of these actions? Applicant - Correct answer-Any changes made on an insurance application requires the initials of whom? Set up a meeting with the applicant to answer the remaining questions - Correct answer-P is a producer who notices 5 questions on a life application were not answered. What actions should P take? Policy was returned within the free-look period, premium will be fully refunded. - Correct answer-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? Beneficiary - Correct answer-Who is NOT required to sign a life insurance application? Forward the application o the insurer without the initial premium. - Correct answer-What action should a producer take if the initial premium is NOT Submitted with the application? applicant's physician - Correct answer-An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the To detect and deter terrorism - Correct answer-What is the purpose of the USA Patriot Act The group was formed for a purpose other than acquiring insurance. - Correct answerWhich requirement must be met for an association to be eligible for a group life plan? The policy proceeds will be paid if the employee dies during the conversion period. - Correct answer-When an employee is terminated, which statement about a group term life conversion is true? Certificate - Correct answer-A person who is insured within a group contract will be given a Immediate annuity - Correct answer-W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) Single premium - Correct answer-An immediate annuity consists of a Social Security - Correct answer-What is Old Age and Survivors Health Insurance (OASDHI) also known as? Individual Retirement Account (IRA) - Correct answer-Which of these retirement plans can be started by an employee, even if another plan is in existence? at future dates specified in the contract with no evidence of insurability required. - Correct answer-When does a guaranteed Insurability Rider allow the insured to buy additional coverage? Reinstatement - Correct answer-Which of these provisions require proof of insurability after a policy has lapsed? the initial premium. - Correct answer-The consideration clause in a life insurance policy indicated that a policy owner's consideration consists of a completed application and Entire contract provision - Correct answer-what provision in a life insurance policy states that the application is considered part of the contract? Contest a claim during the contestable period - Correct answer-The incontestable clause allows an insurer to Must have a terminal illness to qualify - Correct answer-Which of the following statements is correct about accelerated death benefits? payor clause - Correct answer-Which of the following provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled? Assign policy ownership to the bank - Correct answer-What action can a policy owner take if an application for a bank loan requires collateral? Claims are denied under the suicide clause of the policy - Correct answer-How do life insurance companies handle cases where the insured commits suicide within he contract's stated contestable period? additional Whole Life coverage at specific times - Correct answer-B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurabillity, stated amounts of $50,000 minus any outstanding policy loans - Correct answer-P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary? The full face amount - Correct answer-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? A modified endowment contract - Correct answer-Which type of policy is considered to be over funded, as stated by IRS guidelines? Conversion provision - Correct answer-When a policy owner exchanges a term policy for a whole life policy providing proof of good health, which of these apply?