XCEL Chapter Exam - Life Premiums
And Benefits Questions With Answers.
On a life insurance policy, who is qualified to change the beneficiary designation? -
ANSWER- policyowner
T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary
designation. If T wishes to change the beneficiary, T must obtain permission from the -
ANSWER- beneficiary
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used? - ANSWER- revocable
which of these is not an element of life insurance premiums? - ANSWER- morbidity rate
Quarterly premium payments increase the annual cost of insurance because -
ANSWER- interest to the insurer is decreased while the administrative costs are
increased
The common disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true? -
ANSWER- This clause provides the payment of proceeds to the insured's estate
a level premium includes - ANSWER- the premium is fixed for the entire duration of the
contract
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? -
ANSWER- daughter
What is the underlying concept regarding level premiums? - ANSWER- The early years
are charged more than what is needed
which type of life insurance beneficiary requires his/her consent when a change of
beneficiary is attempted by the policyowner - ANSWER- irrevocable beneficiary
which of the following statements is correct regarding the tax treatment of a lump-sum
payment paid to a life insurance policy's primary beneficiary? - ANSWER- All proceeds
are income tax free in the year they are received
Which premium schedule results in the lowest cost to the policyowner? - ANSWER-
annual
And Benefits Questions With Answers.
On a life insurance policy, who is qualified to change the beneficiary designation? -
ANSWER- policyowner
T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary
designation. If T wishes to change the beneficiary, T must obtain permission from the -
ANSWER- beneficiary
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used? - ANSWER- revocable
which of these is not an element of life insurance premiums? - ANSWER- morbidity rate
Quarterly premium payments increase the annual cost of insurance because -
ANSWER- interest to the insurer is decreased while the administrative costs are
increased
The common disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true? -
ANSWER- This clause provides the payment of proceeds to the insured's estate
a level premium includes - ANSWER- the premium is fixed for the entire duration of the
contract
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? -
ANSWER- daughter
What is the underlying concept regarding level premiums? - ANSWER- The early years
are charged more than what is needed
which type of life insurance beneficiary requires his/her consent when a change of
beneficiary is attempted by the policyowner - ANSWER- irrevocable beneficiary
which of the following statements is correct regarding the tax treatment of a lump-sum
payment paid to a life insurance policy's primary beneficiary? - ANSWER- All proceeds
are income tax free in the year they are received
Which premium schedule results in the lowest cost to the policyowner? - ANSWER-
annual
