XCEL Virginia Life insurance Exam Simulator
XCEL VIRGINIA LIFE INSURANCE EXAM SIMULATOR INCLUDES
ACCURATE AND VERIFIED QUESTIONS TAILORED FOR LIFE,
HEALTH, PROPERTY, AND CASUALTY INSURANCE LICENSING
EXAMS ACROSS VARIOUS STATES.
if an insured dies during the grace period without having paid the premium, how much will the
insurer pay - ANSWER-policy face amount minus any premiums
A _________________ is a person appointed by an insurer that represents the company and
presents policies on its behalf - ANSWER-agent
an insurance company can be liable for a producers unauthorized acts - ANSWER-when the
agency contract is unclear concerning the authority given
an annuity contract may be returned for a full refund during the - ANSWER-free look period
Which tax is normally associated with an individuals death - ANSWER-federal estate tax
the application is part of the annuity contract according to the - ANSWER-entire contract clause
a cease and desist order issued against an agent - ANSWER-prohibits a specific practice listed in
the order
which of the following is true regarding a person receiving a waiver of premium benefit -
ANSWER-the insured must be disabled for a period of time
What minimum percentage of all eligible employees must participate in a group life insurance
plan if the premiums are completely paid for by the employer?
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, XCEL Virginia Life insurance Exam Simulator
0%
50%
75%
100% - ANSWER-100%
a prospective client was intimidated by an agents to purchase an insurance contract. the agent
could be found guilty of - ANSWER-coercion
the principal source of information concerning an applicants identity, age, and marital status is
found in the - ANSWER-completed application
how many quarters mist an employee have worked in a covered occupation to be considered
fully insured for social security disability income? - ANSWER-40
peter age 50 surrenders is modified endowment contract. How is the gain treated in terms of
federal income taxes - ANSWER-the gain is treated as taxable income and a penalty tax is
imposed on the gain
Tom has a qualified retirement plan with his employer that is currently considered to be 80%
"vested". How can this be interpreted? - ANSWER-if toms employment is terminated, 20% of
the funds could be forfeited
Who normally pays the premiums for group credit life insurance? - ANSWER-borrower
a life insurance policy that contains an accelerated living benefit ride will provide funds if the -
ANSWER-insured is expected to be confined to a nursing home for life
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, XCEL Virginia Life insurance Exam Simulator
When would evidence of insurability be required for a person already covered with a variable
universal life policy? - ANSWER-when the death benefit is increased
an insurable interest in each others lives may exist in absence of an economic interest when the
individuals are - ANSWER-marriage partners
The exclusion ratio determines - ANSWER-the amount of an annuity payment subject to income
tax
Which benefit can be found in an equity indexed annuity, but not in a fixed annuity?
Protection against living too long
Equity loans
A fixed rate of return
Protection against long-term inflation - ANSWER-protection against long term inflation
a 55 year old recently received a 30,000 distribution from a previous employer's 401k plan,
minus 6,000 for income tax withholding. which federal taxes apply if none of the funds were
rolled over? - ANSWER-income taxes plus a 10% penalty tax on 30,000
An insured is entitled to coverage under a policy that a prudent person would expect it to
provide. This principle is called - ANSWER-reasonable expectations
When does the insured stop making payments under a thirty-payment whole life policy?
At the time of death or 30 years after the policy's inception, whichever comes first
It depends on the performance of the underlying investment account
When the cash value surpasses the face amount
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, XCEL Virginia Life insurance Exam Simulator
At age 100 - ANSWER-At the time of death or 30 years after the policy's inception, whichever
comes first
in virgina a grace period of ____________ is required for a life insurance policy paid on an
annual basis. - ANSWER-31
all of these are considered to be a benefit under social security except for - ANSWER-
unemployment
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further
payments are permitted and the income stream begins in 15 years. This contract is a(n) -
ANSWER-single premium deferred annuity
Which of these is NOT considereed a type of limited payment whole life insurnace? - ANSWER-
Endowment at age 70
A material change in a modified endowment contract (MEC) results in - ANSWER-the seven pay
test, adjusted for cash value, applies again
All of these statements concerning group credit life insurance are false EXCEPT - ANSWER-the
face amount is based on the outstanding loan balance
The highest mortality rate belongs to which group? - ANSWER-Age 70 males
if an agent replaces a client's existing life insurance policy with a new one, which of these
actions is advisable? - ANSWER-Wait until the new policy is issued and delivered before
surrendering existing policy
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XCEL VIRGINIA LIFE INSURANCE EXAM SIMULATOR INCLUDES
ACCURATE AND VERIFIED QUESTIONS TAILORED FOR LIFE,
HEALTH, PROPERTY, AND CASUALTY INSURANCE LICENSING
EXAMS ACROSS VARIOUS STATES.
if an insured dies during the grace period without having paid the premium, how much will the
insurer pay - ANSWER-policy face amount minus any premiums
A _________________ is a person appointed by an insurer that represents the company and
presents policies on its behalf - ANSWER-agent
an insurance company can be liable for a producers unauthorized acts - ANSWER-when the
agency contract is unclear concerning the authority given
an annuity contract may be returned for a full refund during the - ANSWER-free look period
Which tax is normally associated with an individuals death - ANSWER-federal estate tax
the application is part of the annuity contract according to the - ANSWER-entire contract clause
a cease and desist order issued against an agent - ANSWER-prohibits a specific practice listed in
the order
which of the following is true regarding a person receiving a waiver of premium benefit -
ANSWER-the insured must be disabled for a period of time
What minimum percentage of all eligible employees must participate in a group life insurance
plan if the premiums are completely paid for by the employer?
1|Page
, XCEL Virginia Life insurance Exam Simulator
0%
50%
75%
100% - ANSWER-100%
a prospective client was intimidated by an agents to purchase an insurance contract. the agent
could be found guilty of - ANSWER-coercion
the principal source of information concerning an applicants identity, age, and marital status is
found in the - ANSWER-completed application
how many quarters mist an employee have worked in a covered occupation to be considered
fully insured for social security disability income? - ANSWER-40
peter age 50 surrenders is modified endowment contract. How is the gain treated in terms of
federal income taxes - ANSWER-the gain is treated as taxable income and a penalty tax is
imposed on the gain
Tom has a qualified retirement plan with his employer that is currently considered to be 80%
"vested". How can this be interpreted? - ANSWER-if toms employment is terminated, 20% of
the funds could be forfeited
Who normally pays the premiums for group credit life insurance? - ANSWER-borrower
a life insurance policy that contains an accelerated living benefit ride will provide funds if the -
ANSWER-insured is expected to be confined to a nursing home for life
2|Page
, XCEL Virginia Life insurance Exam Simulator
When would evidence of insurability be required for a person already covered with a variable
universal life policy? - ANSWER-when the death benefit is increased
an insurable interest in each others lives may exist in absence of an economic interest when the
individuals are - ANSWER-marriage partners
The exclusion ratio determines - ANSWER-the amount of an annuity payment subject to income
tax
Which benefit can be found in an equity indexed annuity, but not in a fixed annuity?
Protection against living too long
Equity loans
A fixed rate of return
Protection against long-term inflation - ANSWER-protection against long term inflation
a 55 year old recently received a 30,000 distribution from a previous employer's 401k plan,
minus 6,000 for income tax withholding. which federal taxes apply if none of the funds were
rolled over? - ANSWER-income taxes plus a 10% penalty tax on 30,000
An insured is entitled to coverage under a policy that a prudent person would expect it to
provide. This principle is called - ANSWER-reasonable expectations
When does the insured stop making payments under a thirty-payment whole life policy?
At the time of death or 30 years after the policy's inception, whichever comes first
It depends on the performance of the underlying investment account
When the cash value surpasses the face amount
3|Page
, XCEL Virginia Life insurance Exam Simulator
At age 100 - ANSWER-At the time of death or 30 years after the policy's inception, whichever
comes first
in virgina a grace period of ____________ is required for a life insurance policy paid on an
annual basis. - ANSWER-31
all of these are considered to be a benefit under social security except for - ANSWER-
unemployment
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further
payments are permitted and the income stream begins in 15 years. This contract is a(n) -
ANSWER-single premium deferred annuity
Which of these is NOT considereed a type of limited payment whole life insurnace? - ANSWER-
Endowment at age 70
A material change in a modified endowment contract (MEC) results in - ANSWER-the seven pay
test, adjusted for cash value, applies again
All of these statements concerning group credit life insurance are false EXCEPT - ANSWER-the
face amount is based on the outstanding loan balance
The highest mortality rate belongs to which group? - ANSWER-Age 70 males
if an agent replaces a client's existing life insurance policy with a new one, which of these
actions is advisable? - ANSWER-Wait until the new policy is issued and delivered before
surrendering existing policy
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