XCEL Final Exam California Life Insurance EXAM 2025/2026
ACTUAL COMPLETE REAL EXAM QUESTIONS AND
ACCURATE ANSWERS (VERIFIED ANSWERS)
|ALREADY PASSED!! GRADED A+ / 2025
BRAND NEW EXAM!!
How is a life insurance policy dividend legally defined? -
ANSWER-A return of
excess premium and not
taxable
Mike and Ike are 30 year old identical twins. Both are in
excellent health. Each brother purchases a life policy that has a
$750 annual premium. Mike buys a 10-year renewable term
policy. Ike purchases a whole life policy. All of the following
statements are true EXCEPT - ANSWER-Mike has the option of
using his cash value to purchase a reduced amount of paid-up
whole life insurance
What does the grace period allow a life insurance policyowner
to do? - ANSWER-Make a premium payment after the due date
without any loss of coverage
,Which of the following is NOT a risk classification that an
underwriter would
use? - ANSWER-
Dividend Risk
How does a conditional receipt differ from a binding
receipt? - ANSWER-
Binding receipts always provide insurance which starts
from date of receipt
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) - ANSWER-Consumer Report
An applicant has revealed conditions that require more
information. Which of
the following is needed next? - ANSWER-Attending
physician's statement
The risk selection process is primarily given to which
insurance company
department? - ANSWER-
Underwriting
, When an applicant applies for insurance, the process by
which the insurer
determines whether to issue a policy is called - ANSWER-
Underwriting
Moral hazard is described as the - ANSWER-Increased
chance of a loss
because of an insured's dishonest
tendencies
Which of the following would NOT be accomplished with the
purchase of an
insurance policy? - ANSWER-Risk Is
Eliminated
An insurer having a large number of similar exposure units is
considered important because - ANSWER-The greater the
number insured, the more accurately the insurer can predict
losses and set appropriate premiums
Which of these statements correctly describes risk? - ANSWER-
Pure risk is the
only insurable
risk
ACTUAL COMPLETE REAL EXAM QUESTIONS AND
ACCURATE ANSWERS (VERIFIED ANSWERS)
|ALREADY PASSED!! GRADED A+ / 2025
BRAND NEW EXAM!!
How is a life insurance policy dividend legally defined? -
ANSWER-A return of
excess premium and not
taxable
Mike and Ike are 30 year old identical twins. Both are in
excellent health. Each brother purchases a life policy that has a
$750 annual premium. Mike buys a 10-year renewable term
policy. Ike purchases a whole life policy. All of the following
statements are true EXCEPT - ANSWER-Mike has the option of
using his cash value to purchase a reduced amount of paid-up
whole life insurance
What does the grace period allow a life insurance policyowner
to do? - ANSWER-Make a premium payment after the due date
without any loss of coverage
,Which of the following is NOT a risk classification that an
underwriter would
use? - ANSWER-
Dividend Risk
How does a conditional receipt differ from a binding
receipt? - ANSWER-
Binding receipts always provide insurance which starts
from date of receipt
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) - ANSWER-Consumer Report
An applicant has revealed conditions that require more
information. Which of
the following is needed next? - ANSWER-Attending
physician's statement
The risk selection process is primarily given to which
insurance company
department? - ANSWER-
Underwriting
, When an applicant applies for insurance, the process by
which the insurer
determines whether to issue a policy is called - ANSWER-
Underwriting
Moral hazard is described as the - ANSWER-Increased
chance of a loss
because of an insured's dishonest
tendencies
Which of the following would NOT be accomplished with the
purchase of an
insurance policy? - ANSWER-Risk Is
Eliminated
An insurer having a large number of similar exposure units is
considered important because - ANSWER-The greater the
number insured, the more accurately the insurer can predict
losses and set appropriate premiums
Which of these statements correctly describes risk? - ANSWER-
Pure risk is the
only insurable
risk
