XCEL Final Exam California Life Insurance Latest
Update 2025-2026 Actual Exam 125 Questions
with 100% Verified Correct Answers Guaranteed
A+ Verified by Professor
A creditor would be allowed rights to life insurance policy proceeds if which of the
following beneficiaries is chosen? - CORRECT ANSWER: The Insured's Estate
A life insurance policy that pays the face amount if the insured survives to a specified
period of time is called - CORRECT ANSWER: Endowment Insurance
A life insurance policy's limit of liability would be - CORRECT ANSWER: The policy's
face amount
A person who asserts a right of recovery under an insurance policy is called -
CORRECT ANSWER: Claimant
A report which is based on creditworthiness and personal characteristics that influences
an insurance applicant's eligibility for life and health insurance is called a(n) -
CORRECT ANSWER: Consumer Report
A savings vehicle designed to first accumulate funds and then systematically liquidates
the funds is called a(n) - CORRECT ANSWER: Deferred Annuity
A spendthrift clause in a life insurance policy - CORRECT ANSWER: Restricts the ability
of the beneficiary to assign benefits
According to Section 1729.2 of the California Insurance Code, which of these does NOT
qualify as "background information"? - CORRECT ANSWER: Misdemeanor charges
filed, not resulting in a conviction
, According to the California Code governing claim settlement practices, which of the
following is NOT considered to be an act of unfair discrimination? - CORRECT
ANSWER: Denial of a claim based on reckless behavior
According to the California Insurance Code, what is "insurance"? - CORRECT
ANSWER: A contract
According to the California Insurance Code, what is the maximum penalty per violation
for anyone who unwillfully commits an unfair method of competition? - CORRECT
ANSWER: $5,000
According to the California Insurance Code, what term is used to describe a fact so
important it could affect the policy premium? - CORRECT ANSWER: Materiality
According to the California Insurance Code, which of the following is NOT an example
of an insurable event? - CORRECT ANSWER: An insured suffers a financial loss in the
state lottery
According to the California Insurance Code, who is responsible for submitting a life
agent's appointment? - CORRECT ANSWER: Insurer
After a policy has lapsed, which provision allows the insured to continue coverage? -
CORRECT ANSWER: Reinstatement Provision
All of these are reasons the Commissioner may disapprove a licensee's request to use
fictitious name EXCEPT - CORRECT ANSWER: The name is the licensee's actual
name
An agent's attempt to stop the replacement of an existing life insurance policy is known
as - CORRECT ANSWER: Conservation
Update 2025-2026 Actual Exam 125 Questions
with 100% Verified Correct Answers Guaranteed
A+ Verified by Professor
A creditor would be allowed rights to life insurance policy proceeds if which of the
following beneficiaries is chosen? - CORRECT ANSWER: The Insured's Estate
A life insurance policy that pays the face amount if the insured survives to a specified
period of time is called - CORRECT ANSWER: Endowment Insurance
A life insurance policy's limit of liability would be - CORRECT ANSWER: The policy's
face amount
A person who asserts a right of recovery under an insurance policy is called -
CORRECT ANSWER: Claimant
A report which is based on creditworthiness and personal characteristics that influences
an insurance applicant's eligibility for life and health insurance is called a(n) -
CORRECT ANSWER: Consumer Report
A savings vehicle designed to first accumulate funds and then systematically liquidates
the funds is called a(n) - CORRECT ANSWER: Deferred Annuity
A spendthrift clause in a life insurance policy - CORRECT ANSWER: Restricts the ability
of the beneficiary to assign benefits
According to Section 1729.2 of the California Insurance Code, which of these does NOT
qualify as "background information"? - CORRECT ANSWER: Misdemeanor charges
filed, not resulting in a conviction
, According to the California Code governing claim settlement practices, which of the
following is NOT considered to be an act of unfair discrimination? - CORRECT
ANSWER: Denial of a claim based on reckless behavior
According to the California Insurance Code, what is "insurance"? - CORRECT
ANSWER: A contract
According to the California Insurance Code, what is the maximum penalty per violation
for anyone who unwillfully commits an unfair method of competition? - CORRECT
ANSWER: $5,000
According to the California Insurance Code, what term is used to describe a fact so
important it could affect the policy premium? - CORRECT ANSWER: Materiality
According to the California Insurance Code, which of the following is NOT an example
of an insurable event? - CORRECT ANSWER: An insured suffers a financial loss in the
state lottery
According to the California Insurance Code, who is responsible for submitting a life
agent's appointment? - CORRECT ANSWER: Insurer
After a policy has lapsed, which provision allows the insured to continue coverage? -
CORRECT ANSWER: Reinstatement Provision
All of these are reasons the Commissioner may disapprove a licensee's request to use
fictitious name EXCEPT - CORRECT ANSWER: The name is the licensee's actual
name
An agent's attempt to stop the replacement of an existing life insurance policy is known
as - CORRECT ANSWER: Conservation
