XCEL LIFE INSURANCE EXAM SCRIPT FINAL
PAPER 2026 SOLVED QUESTION SET
GRADED A+
◉Valued Contract. Answer: Life insurance contracts are valued
◉indemnity contract:. Answer: Health insurance contracts are
indemnity contracts and will only reimburse the actual cost of the
loss( pay medical bills)
◉Warranties. Answer: Statements made by the applicant guaranteed
to be true - (name, DOB)
◉Representations. Answer: Statements made by the applicant
believed to be true - (height, weight)
◉Concealment. Answer: withholding of information of facts by the
applicant (smoker, diabetes)
◉Insurable Interest. Answer: Requires that an individual have a
valid concern for the continuation of the life of well-being of the
,person insured. Without the insurable interest, an insurance
contract is not legally enforceable and would be considered a
wagering contract.
◉Insurable Interest only needs to exist when?. Answer: Inception of
the contract
◉Reasonable Expectations. Answer: A concept which states that the
insured is entitled to coverage under a policy that a sensible and
prudent person would expect it to provide. Reinforces the rule that
ambiguities in insurance contracts should be interpreted in favor of
the policyholder.
◉STOLI (stranger-originated life insurance). Answer: a consumer
purchases a life insurance policy with he agreement that a third
party agent/ broker or investor will purchase the consumer's policy
and receive the proceeds as a profit upon the consumer's death.
◉STOLI policies. Answer: are typically illegal as they violate
insurable interest requirements.
◉Level Term. Answer: Premiums tend to be higher than annual
renewable term because they are level throughout the policy period.
,◉Decreasing Term. Answer: Term life insurance that provides a
decreasing face amount over time with fixed premiums. These
policies are usually used for mortgage protection.
◉15-year decreasing term. Answer: A 15-year mortgage is best
protected by what kind of life policy?
◉Increasing Term. Answer: Term life insurance that provides an
increasing face amount over time based on specific amounts or a
percentage of the original face amount.
◉Convertible Term. Answer: A term life policy that allows
policyowners to convert their term insurance into permanent
policies without showing proof of insurability.
◉What provides temporary coverage that may be changed to
permanent coverage without evidence of insurability?. Answer:
Convertible Term
◉Conversion Privilege of a group term life policy. Answer: allows an
individual to leave the group term (temporary ) plan and convert his
or her insurance to an individual (permanent) policy without
providing evidence of insurability.
, ◉Renewable Term. Answer: provides temporary level coverage at
the lowest possible cost for a limited period of time, but the allows
the policyowner to renew the policy to maintain coverage past the
policy termination.
◉Annual Renewable Term. Answer: Term coverage that provides a
level face amount that renews annually. This type of coverage is
guaranteed renewable annually without proof of insurability.
◉Term Riders. Answer: life insurance product which covers children
under their parents policies. A term rider is always level term.
◉Whole Life. Answer: insurance that provides death benefits for the
entire life of the insured. It also provides living benefits in the form
of cash values. It matures at age 100 and normally has a level
premium.
◉whole life insurance. Answer: Provides both living and death
benefits. Provides permanent life insurance protection for the
insured's entire life. It also provides living benefits such as cash
value and policy loans. All whole life lasts until death or age 100, has
a fixed premium, and level benefit with cash value accumulation,
regardless of how it is paid.
PAPER 2026 SOLVED QUESTION SET
GRADED A+
◉Valued Contract. Answer: Life insurance contracts are valued
◉indemnity contract:. Answer: Health insurance contracts are
indemnity contracts and will only reimburse the actual cost of the
loss( pay medical bills)
◉Warranties. Answer: Statements made by the applicant guaranteed
to be true - (name, DOB)
◉Representations. Answer: Statements made by the applicant
believed to be true - (height, weight)
◉Concealment. Answer: withholding of information of facts by the
applicant (smoker, diabetes)
◉Insurable Interest. Answer: Requires that an individual have a
valid concern for the continuation of the life of well-being of the
,person insured. Without the insurable interest, an insurance
contract is not legally enforceable and would be considered a
wagering contract.
◉Insurable Interest only needs to exist when?. Answer: Inception of
the contract
◉Reasonable Expectations. Answer: A concept which states that the
insured is entitled to coverage under a policy that a sensible and
prudent person would expect it to provide. Reinforces the rule that
ambiguities in insurance contracts should be interpreted in favor of
the policyholder.
◉STOLI (stranger-originated life insurance). Answer: a consumer
purchases a life insurance policy with he agreement that a third
party agent/ broker or investor will purchase the consumer's policy
and receive the proceeds as a profit upon the consumer's death.
◉STOLI policies. Answer: are typically illegal as they violate
insurable interest requirements.
◉Level Term. Answer: Premiums tend to be higher than annual
renewable term because they are level throughout the policy period.
,◉Decreasing Term. Answer: Term life insurance that provides a
decreasing face amount over time with fixed premiums. These
policies are usually used for mortgage protection.
◉15-year decreasing term. Answer: A 15-year mortgage is best
protected by what kind of life policy?
◉Increasing Term. Answer: Term life insurance that provides an
increasing face amount over time based on specific amounts or a
percentage of the original face amount.
◉Convertible Term. Answer: A term life policy that allows
policyowners to convert their term insurance into permanent
policies without showing proof of insurability.
◉What provides temporary coverage that may be changed to
permanent coverage without evidence of insurability?. Answer:
Convertible Term
◉Conversion Privilege of a group term life policy. Answer: allows an
individual to leave the group term (temporary ) plan and convert his
or her insurance to an individual (permanent) policy without
providing evidence of insurability.
, ◉Renewable Term. Answer: provides temporary level coverage at
the lowest possible cost for a limited period of time, but the allows
the policyowner to renew the policy to maintain coverage past the
policy termination.
◉Annual Renewable Term. Answer: Term coverage that provides a
level face amount that renews annually. This type of coverage is
guaranteed renewable annually without proof of insurability.
◉Term Riders. Answer: life insurance product which covers children
under their parents policies. A term rider is always level term.
◉Whole Life. Answer: insurance that provides death benefits for the
entire life of the insured. It also provides living benefits in the form
of cash values. It matures at age 100 and normally has a level
premium.
◉whole life insurance. Answer: Provides both living and death
benefits. Provides permanent life insurance protection for the
insured's entire life. It also provides living benefits such as cash
value and policy loans. All whole life lasts until death or age 100, has
a fixed premium, and level benefit with cash value accumulation,
regardless of how it is paid.
