XCEL NEVADA FINAL EXAM QUESTIONS WITH COMPLETE
SOLUTIONS GUARANTEED PASS BRAND NEW 2025
Which of these arrangements allows one to bypass insurable
interest laws?
Concealment
Indemnity contract
Contract of adhesion
Investor-Originated Life Insurance - CORRECT ANSWER -
>Investor-Originated Life Insurance
Sometimes called IOLI, stranger-originated life insurance
What determines the full amount of Social Security retirement
benefits a qualified individual is entitled to receive?
Primary Insurance Amount (PIA)
Total taxes paid paid into FICA
Number of dependents
State of residence - CORRECT ANSWER - >Primary Insurance
Amount (PIA)
Which statement regarding the Misstatement of Age provision
is considered to be true?
Coverage will be adjusted to reflect the insured's true age if a
misstatement of age is discovered
Requires that a new policy must be applied for if a
misstatement of age is found on the current policy
,Misstatement of Age provision is valid only during the
contestable period
Insurer may void the policy if a misstatement of age is
discovered - CORRECT ANSWER - >Coverage will be adjusted to
reflect the insured's true age if a misstatement of age is
discovered
A written agreement to provide a Life insurance Policy holder
immediate cash in exchange for the sale and transfer of a Life
Insurance Policy is a:
Variable Life Policy
Viatical Settlement
Equity Index Annuity
Health Care Savings Account - CORRECT ANSWER - >Viatical
Settlement
A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the
early years of the policy. Which of these statements made by
the producer would be correct?
Straight life accumulates faster than Limited-Pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-pay Life and Straight Life
depend on the surer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same
rate - CORRECT ANSWER - >20-pay Life accumulates cash value
faster than Straight Life
,Which health policy clause specifies the amount of benefits to
be paid?
Insuring
Consideration
Free-look
Payment Mode - CORRECT ANSWER - >Insuring
Within how many days after policy delivery can a Medicare
Supplement policy be returned for a 100% premium refund?
15
20
25
30 - CORRECT ANSWER - >30
All of these Settlement options involve the systematic
liquidation of the death proceeds in the event of the insured's
death, EXCEPT:
Fixed Period
Interest Only
Fixed Amount
Life Income - CORRECT ANSWER - >Interest Only
Nevada insurance law specifically allows the Commissioner to
issue a temporary license to which of the following individuals?
A nonresident producer who has relocated to Tennessee
A resident producer whose license has lapsed
A new appointed officer of an insurance agent who is actively
completing relicensing requirements
, A surviving spouse of a deceased producer - CORRECT ANSWER
- >A surviving spouse of a deceased producer
Under federal tax laws, what is the tax treatment for an
employer providing $50,000 of a contributory group Term Life
plan to all its eligible employees?
Portion of the premiums paid for by the employer may be a tax
deduction
Portion of the premiums paid for by the employee may be a tax
deduction
Portion of the death proceeds are taxable to the beneficiary
Portion of the death proceeds are taxable to the estate -
CORRECT ANSWER - >Portion of the premiums paid for by the
employer may be a tax deduction
L takes out a life insurance policy and dies 10 years later. During
the claim process, the insurer discovers that L had understated
her age on the application. Under the Misstatement of Age
provision, the insurer will
pay the death benefit in full
adjust the death benefit to an increased amount
adjust the death benefit to a reduced amount
deny the claim - CORRECT ANSWER - >adjust the death benefit
to a reduced amount
N has a Major Medical policy that only pays a portion of N's
medical expenses. N is responsible for paying the remaining
balance. This provision is known as
Assignment of Benefits
SOLUTIONS GUARANTEED PASS BRAND NEW 2025
Which of these arrangements allows one to bypass insurable
interest laws?
Concealment
Indemnity contract
Contract of adhesion
Investor-Originated Life Insurance - CORRECT ANSWER -
>Investor-Originated Life Insurance
Sometimes called IOLI, stranger-originated life insurance
What determines the full amount of Social Security retirement
benefits a qualified individual is entitled to receive?
Primary Insurance Amount (PIA)
Total taxes paid paid into FICA
Number of dependents
State of residence - CORRECT ANSWER - >Primary Insurance
Amount (PIA)
Which statement regarding the Misstatement of Age provision
is considered to be true?
Coverage will be adjusted to reflect the insured's true age if a
misstatement of age is discovered
Requires that a new policy must be applied for if a
misstatement of age is found on the current policy
,Misstatement of Age provision is valid only during the
contestable period
Insurer may void the policy if a misstatement of age is
discovered - CORRECT ANSWER - >Coverage will be adjusted to
reflect the insured's true age if a misstatement of age is
discovered
A written agreement to provide a Life insurance Policy holder
immediate cash in exchange for the sale and transfer of a Life
Insurance Policy is a:
Variable Life Policy
Viatical Settlement
Equity Index Annuity
Health Care Savings Account - CORRECT ANSWER - >Viatical
Settlement
A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the
early years of the policy. Which of these statements made by
the producer would be correct?
Straight life accumulates faster than Limited-Pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-pay Life and Straight Life
depend on the surer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same
rate - CORRECT ANSWER - >20-pay Life accumulates cash value
faster than Straight Life
,Which health policy clause specifies the amount of benefits to
be paid?
Insuring
Consideration
Free-look
Payment Mode - CORRECT ANSWER - >Insuring
Within how many days after policy delivery can a Medicare
Supplement policy be returned for a 100% premium refund?
15
20
25
30 - CORRECT ANSWER - >30
All of these Settlement options involve the systematic
liquidation of the death proceeds in the event of the insured's
death, EXCEPT:
Fixed Period
Interest Only
Fixed Amount
Life Income - CORRECT ANSWER - >Interest Only
Nevada insurance law specifically allows the Commissioner to
issue a temporary license to which of the following individuals?
A nonresident producer who has relocated to Tennessee
A resident producer whose license has lapsed
A new appointed officer of an insurance agent who is actively
completing relicensing requirements
, A surviving spouse of a deceased producer - CORRECT ANSWER
- >A surviving spouse of a deceased producer
Under federal tax laws, what is the tax treatment for an
employer providing $50,000 of a contributory group Term Life
plan to all its eligible employees?
Portion of the premiums paid for by the employer may be a tax
deduction
Portion of the premiums paid for by the employee may be a tax
deduction
Portion of the death proceeds are taxable to the beneficiary
Portion of the death proceeds are taxable to the estate -
CORRECT ANSWER - >Portion of the premiums paid for by the
employer may be a tax deduction
L takes out a life insurance policy and dies 10 years later. During
the claim process, the insurer discovers that L had understated
her age on the application. Under the Misstatement of Age
provision, the insurer will
pay the death benefit in full
adjust the death benefit to an increased amount
adjust the death benefit to a reduced amount
deny the claim - CORRECT ANSWER - >adjust the death benefit
to a reduced amount
N has a Major Medical policy that only pays a portion of N's
medical expenses. N is responsible for paying the remaining
balance. This provision is known as
Assignment of Benefits
