Xcell Testing Solutions (Life & Health) Final 150
Question Practice Exam questions with verified
answers
When can a policy owner change a revocable beneficiary? Ans✔✔-
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?
Ans✔✔-Revocable
How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? Ans✔✔-If the
primary beneficiary dies before the insured
What is the underlying concept regarding level premiums? Ans✔✔-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? Ans✔✔-Premium Mode
Any changes made on an insurance application requires the initials of
whom? Ans✔✔-Applicant
All of these are considered sources of underwriting information about an
applicant EXCEPT Ans✔✔-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? Ans✔✔-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 Ans✔✔-free-look period has expired
What action should a producer take if the initial premium is NOT
submitted with the application? Ans✔✔-Forward the application to the
insurer without the initial premium
Which of the following is an important underwriting principle of group
life insurance? Ans✔✔-Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a
group life plan? Ans✔✔-Group was formed for a purpose other than
acquiring insurance
When an employee is terminated, which statement about a group term
life conversion is true? Ans✔✔-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? Ans✔✔-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?
Ans✔✔-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? Ans✔✔-Single Premium
Which of these is an element of a Single Premium annuity? Ans✔✔-
Lump-sum payment
Which of these statements concerning an Individual Straight Life
annuity is accurate? Ans✔✔-Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
Ans✔✔-the risk of living longer than expected
An immediate annuity consists of a Ans✔✔-single premium
All of these are considered to be a benefit under Social Security
EXCEPT for Ans✔✔-unemployment
Question Practice Exam questions with verified
answers
When can a policy owner change a revocable beneficiary? Ans✔✔-
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?
Ans✔✔-Revocable
How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? Ans✔✔-If the
primary beneficiary dies before the insured
What is the underlying concept regarding level premiums? Ans✔✔-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? Ans✔✔-Premium Mode
Any changes made on an insurance application requires the initials of
whom? Ans✔✔-Applicant
All of these are considered sources of underwriting information about an
applicant EXCEPT Ans✔✔-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? Ans✔✔-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 Ans✔✔-free-look period has expired
What action should a producer take if the initial premium is NOT
submitted with the application? Ans✔✔-Forward the application to the
insurer without the initial premium
Which of the following is an important underwriting principle of group
life insurance? Ans✔✔-Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a
group life plan? Ans✔✔-Group was formed for a purpose other than
acquiring insurance
When an employee is terminated, which statement about a group term
life conversion is true? Ans✔✔-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? Ans✔✔-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?
Ans✔✔-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? Ans✔✔-Single Premium
Which of these is an element of a Single Premium annuity? Ans✔✔-
Lump-sum payment
Which of these statements concerning an Individual Straight Life
annuity is accurate? Ans✔✔-Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
Ans✔✔-the risk of living longer than expected
An immediate annuity consists of a Ans✔✔-single premium
All of these are considered to be a benefit under Social Security
EXCEPT for Ans✔✔-unemployment
