Xcell Testing Solutions (Life & Health) Final
150 Question Practice Exam
When can a policy owner change a revocable beneficiary?
Anytime
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?
Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
What is the underlying concept regarding level premiums?
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?
Premium Mode
Any changes made on an insurance application requires the initials of whom?
Applicant
All of these are considered sources of underwriting information about an applicant
EXCEPT
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?
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
free-look period has expired
What action should a producer take if the initial premium is NOT submitted with the
application?
Forward the application to the insurer without the initial premium
Which of the following is an important underwriting principle of group life insurance?
Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan?
Group was formed for a purpose other than acquiring insurance
00:0301:42
When an employee is terminated, which statement about a group term life conversion is
true?
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?
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?
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?
Single Premium
Which of these is an element of a Single Premium annuity?
Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is accurate?
Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
the risk of living longer than expected
An immediate annuity consists of a
single premium
All of these are considered to be a benefit under Social Security EXCEPT for
unemployment
Which product would best serve a retired individual looking to invest a lump-sum of
money through an insurance company?
Annuity
Which statement regarding third-party ownership of a life insurance policy is true?
It is used extensively in estate-planning as well as business circumstances
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what would it
require?
Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company?
policyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage?
at future dates specified in the contract with no evidence of insurability required
S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT
beneficiary's age
M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the
policy proceeds
What is the Suicide provision designed to do?
safeguard the insurer from an applicant who is contemplating suicide
What provision in a life insurance policy states that the application is considered part of
the contract?
Entire Contract provision
The incontestable clause allows an insurer to
contest a claim during the contestable period
All of these statements about the Waiver of Premium provision are correct EXCEPT
150 Question Practice Exam
When can a policy owner change a revocable beneficiary?
Anytime
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?
Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy?
If the primary beneficiary dies before the insured
What is the underlying concept regarding level premiums?
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?
Premium Mode
Any changes made on an insurance application requires the initials of whom?
Applicant
All of these are considered sources of underwriting information about an applicant
EXCEPT
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?
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
free-look period has expired
What action should a producer take if the initial premium is NOT submitted with the
application?
Forward the application to the insurer without the initial premium
Which of the following is an important underwriting principle of group life insurance?
Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan?
Group was formed for a purpose other than acquiring insurance
00:0301:42
When an employee is terminated, which statement about a group term life conversion is
true?
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?
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?
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?
Single Premium
Which of these is an element of a Single Premium annuity?
Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is accurate?
Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
the risk of living longer than expected
An immediate annuity consists of a
single premium
All of these are considered to be a benefit under Social Security EXCEPT for
unemployment
Which product would best serve a retired individual looking to invest a lump-sum of
money through an insurance company?
Annuity
Which statement regarding third-party ownership of a life insurance policy is true?
It is used extensively in estate-planning as well as business circumstances
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what would it
require?
Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company?
policyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage?
at future dates specified in the contract with no evidence of insurability required
S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT
beneficiary's age
M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the
policy proceeds
What is the Suicide provision designed to do?
safeguard the insurer from an applicant who is contemplating suicide
What provision in a life insurance policy states that the application is considered part of
the contract?
Entire Contract provision
The incontestable clause allows an insurer to
contest a claim during the contestable period
All of these statements about the Waiver of Premium provision are correct EXCEPT
