XCEL Georgia Life, Accident, & Sickness Exam Simulator
XCEL GEORGIA LIFE, ACCIDENT, & SICKNESS EXAM SIMULATOR
INCLUDES ACCURATE AND VERIFIED QUESTIONS TAILORED FOR
LIFE, HEALTH, PROPERTY, AND CASUALTY INSURANCE
LICENSING EXAMS ACROSS VARIOUS STATES.
Why would the Commissioner examine an insurer's records?
A) To determine the solvency of the insurer
B) To determine claims rate of the insurer
C) To approve a rate increase by the insurer
D) To determine the AM Best rating of the insurer - ANSWER-A) To determine the solvency of
the insurer
What is the initial source of underwriting for an insurance policy?
A) Application containing statements from the insured
B) MIB report
C) Credit report
D) Medical exam - ANSWER-A) Application containing statements from the insured
The initial source of underwriting for an insurance policy is the application containing
statements from the insured.
A level premium indicates:
A) The premium is fixed for a period stated in the contract, then becomes variable
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, XCEL Georgia Life, Accident, & Sickness Exam Simulator
B) The premium can only be changed with the consent of the insurer
C) The premium stays level until the policy's renewal date
D) The premium is fixed for the entire duration of the contract - ANSWER-D) The premium is
fixed for the entire duration of the contract
A level premium means that the premium remains fixed through the life of a policy.
An insurer must provide an insured with claim forms within ____ days after receiving notice of a
loss.
A) 5
B) 10
C) 15
D) 20 - ANSWER-C) 15
Under the Claims Forms provision, an insurer must provide an insured with claim forms within a
MAXIMUM of 15 days after receiving notice of a loss.
In a Disability Income policy, which of these clauses acts as a deductible?
A) Elimination Period
B) Waiver Period
C) Deductible Period
D) Probationary Period - ANSWER-A) Elimination Period
The Elimination Period serves as the deductible in a disability income policy.
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, XCEL Georgia Life, Accident, & Sickness Exam Simulator
Which of these retirement plans can be started by an employee, even if another plan is in
existence?
A) Individual Retirement Account (IRA)
B) Defined plan
C) Keogh plan
D) 403(b) plan - ANSWER-A) Individual Retirement Account (IRA)
An IRA may be established by an employee, regardless of any other retirement plan.
An insured's inability to perform two or more activities of daily living may trigger which type of
life policy rider?
A) Waiver of Premium
B) Long-term care
C) Accelerated Death Benefit
D) Accidental - ANSWER-B) Long-term care
A long-term care rider is triggered by the insured's inability to perform two or more activities of
daily living.
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?
A) The proceeds which exceed the amount paid in premiums are taxable
B) The proceeds are taxable only if the beneficiary's tax bracket has changed from the payout
C) All proceeds are considered taxable income in the year they are received
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, XCEL Georgia Life, Accident, & Sickness Exam Simulator
D) All proceeds are income tax-free in the year they are received - ANSWER-D) All proceeds are
income tax-free in the year they are received
If a life insurance policy has a stated beneficiary, all the proceeds are income tax-free in the year
they are received.
A policy owner may generate taxable income from which of the following Dividend Options?
A) Nonforfeiture
B) Cash
C) Accumulation at Interest
D) Reduced Premium - ANSWER-C) Accumulation at Interest
While policy dividends are not taxable, any interest paid on them is taxable income in the year
the interest is credited to the policy.
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at retirement.
Which of these should N purchase?
A) 30 Pay Life
B) Term to Age 70
C) Universal Life
D) Adjustable Life - ANSWER-A) 30 Pay Life
Limited pay whole life policies have level premiums that are limited to a certain period.
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XCEL GEORGIA LIFE, ACCIDENT, & SICKNESS EXAM SIMULATOR
INCLUDES ACCURATE AND VERIFIED QUESTIONS TAILORED FOR
LIFE, HEALTH, PROPERTY, AND CASUALTY INSURANCE
LICENSING EXAMS ACROSS VARIOUS STATES.
Why would the Commissioner examine an insurer's records?
A) To determine the solvency of the insurer
B) To determine claims rate of the insurer
C) To approve a rate increase by the insurer
D) To determine the AM Best rating of the insurer - ANSWER-A) To determine the solvency of
the insurer
What is the initial source of underwriting for an insurance policy?
A) Application containing statements from the insured
B) MIB report
C) Credit report
D) Medical exam - ANSWER-A) Application containing statements from the insured
The initial source of underwriting for an insurance policy is the application containing
statements from the insured.
A level premium indicates:
A) The premium is fixed for a period stated in the contract, then becomes variable
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, XCEL Georgia Life, Accident, & Sickness Exam Simulator
B) The premium can only be changed with the consent of the insurer
C) The premium stays level until the policy's renewal date
D) The premium is fixed for the entire duration of the contract - ANSWER-D) The premium is
fixed for the entire duration of the contract
A level premium means that the premium remains fixed through the life of a policy.
An insurer must provide an insured with claim forms within ____ days after receiving notice of a
loss.
A) 5
B) 10
C) 15
D) 20 - ANSWER-C) 15
Under the Claims Forms provision, an insurer must provide an insured with claim forms within a
MAXIMUM of 15 days after receiving notice of a loss.
In a Disability Income policy, which of these clauses acts as a deductible?
A) Elimination Period
B) Waiver Period
C) Deductible Period
D) Probationary Period - ANSWER-A) Elimination Period
The Elimination Period serves as the deductible in a disability income policy.
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, XCEL Georgia Life, Accident, & Sickness Exam Simulator
Which of these retirement plans can be started by an employee, even if another plan is in
existence?
A) Individual Retirement Account (IRA)
B) Defined plan
C) Keogh plan
D) 403(b) plan - ANSWER-A) Individual Retirement Account (IRA)
An IRA may be established by an employee, regardless of any other retirement plan.
An insured's inability to perform two or more activities of daily living may trigger which type of
life policy rider?
A) Waiver of Premium
B) Long-term care
C) Accelerated Death Benefit
D) Accidental - ANSWER-B) Long-term care
A long-term care rider is triggered by the insured's inability to perform two or more activities of
daily living.
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?
A) The proceeds which exceed the amount paid in premiums are taxable
B) The proceeds are taxable only if the beneficiary's tax bracket has changed from the payout
C) All proceeds are considered taxable income in the year they are received
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, XCEL Georgia Life, Accident, & Sickness Exam Simulator
D) All proceeds are income tax-free in the year they are received - ANSWER-D) All proceeds are
income tax-free in the year they are received
If a life insurance policy has a stated beneficiary, all the proceeds are income tax-free in the year
they are received.
A policy owner may generate taxable income from which of the following Dividend Options?
A) Nonforfeiture
B) Cash
C) Accumulation at Interest
D) Reduced Premium - ANSWER-C) Accumulation at Interest
While policy dividends are not taxable, any interest paid on them is taxable income in the year
the interest is credited to the policy.
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at retirement.
Which of these should N purchase?
A) 30 Pay Life
B) Term to Age 70
C) Universal Life
D) Adjustable Life - ANSWER-A) 30 Pay Life
Limited pay whole life policies have level premiums that are limited to a certain period.
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