XCEL Testing Solutions (Life & Health)
Final 150 Questions Practice Exam with
Answers
1. When can a policy owner change a revocable beneficiary?: Anytime
2. M purchased an Accidental Death and Dismemberment (AD&D)
policy and named his son as beneficiary. M has the right to change
the beneficiary designation at anytime. What type of beneficiary is his
son?: Revocable
3. How would a contingent beneficiary receive the policy proceeds in
an Accidental Death and Dismemberment (AD&D) policy?: If the primary
beneficiary dies before the insured
4. What is the underlying concept regarding level premiums?: The early
years are charged less than what is needed
5. A policy owner is able to choose the frequency of premium
payments through what policy feature?: Premium Mode
6. Any changes made on an insurance application requires the initials of
whom?-
,: Applicant
7. All of these are considered sources of underwriting information
about an applicant EXCEPT: Rating Services
8. Q applied for life insurance and submitted the initial premium on
January 1. The policy was issued February 1, but it was not delivered
by the agent until February 7. Q is dissatisfied and returns the policy
February 13. How will the insurer handle this situation?: Policy was returned
within the free-look period, premium will be fully refunded
9. M completes an application for life insurance but does not pay
the initial premium. All of these actions must occur before M's
policy goes into effect EXCEPT: free-look period has expired
10. What action should a producer take if the initial premium is
NOT submitted with the application?: Forward the application to the insurer without
the initial premium
11. Which of the following is an important underwriting principle
of group life insurance?: Everyone must be covered in the group
12. Which requirement must be met for an association to be
eligible for a group life plan?: Group was formed for a purpose other than acquiring
insurance
, 13. When an employee is terminated, which statement about a
group term life conversion is true?: Policy proceeds will be paid if the employee dies
during the conversion period
14. Under a trustee group life policy, who would be eligible for a
certificate of coverage?: Corporation
15. N, age 50, recently bought an annuity that will pay a
guaranteed
$2,000/month at age 70 for life. What type of annuity did N purchase?:
Fixed Deferred
16. S recently received a $500,000 lump sum retirement buyout
from her em- ployer. She would like to buy an annuity that will
immediately furnish her with a guaranteed income for life. What
type of annuity is best suited for her situation?: Single Premium
17. Which of these is an element of a Single Premium annuity?: Lump-
sum payment
18. Which of these statements concerning an Individual Straight
Life annuity is accurate?: Payments are made to an annuitant for life
Final 150 Questions Practice Exam with
Answers
1. When can a policy owner change a revocable beneficiary?: Anytime
2. M purchased an Accidental Death and Dismemberment (AD&D)
policy and named his son as beneficiary. M has the right to change
the beneficiary designation at anytime. What type of beneficiary is his
son?: Revocable
3. How would a contingent beneficiary receive the policy proceeds in
an Accidental Death and Dismemberment (AD&D) policy?: If the primary
beneficiary dies before the insured
4. What is the underlying concept regarding level premiums?: The early
years are charged less than what is needed
5. A policy owner is able to choose the frequency of premium
payments through what policy feature?: Premium Mode
6. Any changes made on an insurance application requires the initials of
whom?-
,: Applicant
7. All of these are considered sources of underwriting information
about an applicant EXCEPT: Rating Services
8. Q applied for life insurance and submitted the initial premium on
January 1. The policy was issued February 1, but it was not delivered
by the agent until February 7. Q is dissatisfied and returns the policy
February 13. How will the insurer handle this situation?: Policy was returned
within the free-look period, premium will be fully refunded
9. M completes an application for life insurance but does not pay
the initial premium. All of these actions must occur before M's
policy goes into effect EXCEPT: free-look period has expired
10. What action should a producer take if the initial premium is
NOT submitted with the application?: Forward the application to the insurer without
the initial premium
11. Which of the following is an important underwriting principle
of group life insurance?: Everyone must be covered in the group
12. Which requirement must be met for an association to be
eligible for a group life plan?: Group was formed for a purpose other than acquiring
insurance
, 13. When an employee is terminated, which statement about a
group term life conversion is true?: Policy proceeds will be paid if the employee dies
during the conversion period
14. Under a trustee group life policy, who would be eligible for a
certificate of coverage?: Corporation
15. N, age 50, recently bought an annuity that will pay a
guaranteed
$2,000/month at age 70 for life. What type of annuity did N purchase?:
Fixed Deferred
16. S recently received a $500,000 lump sum retirement buyout
from her em- ployer. She would like to buy an annuity that will
immediately furnish her with a guaranteed income for life. What
type of annuity is best suited for her situation?: Single Premium
17. Which of these is an element of a Single Premium annuity?: Lump-
sum payment
18. Which of these statements concerning an Individual Straight
Life annuity is accurate?: Payments are made to an annuitant for life
