Xcell Testing Solutions (Life & Health) Final Exam Questions with
100% Correct Answers Latest Graded A+
Question:
When can a policy owner change a revocable beneficiary?
Answer:
Anytime
Question:
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?
Answer:
Revocable
Question:
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy?
Answer:
If the primary beneficiary dies before the insured
Question:
What is the underlying concept regarding level premiums?
Answer:
The early years are charged less than what is needed
Question:
A policy owner is able to choose the frequency of premium payments through what policy feature?
Answer:
Premium Mode
Question:
,Any changes made on an insurance application requires the initials of whom?
Answer:
Applicant
All of these are considered sources of underwriting information about an applicant EXCEPT -
Rating Services
Question:
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?
Answer:
Policy was returned within the free-look period, premium will be fully refunded
Question:
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
Answer:
free-look period has expired
Question:
What action should a producer take if the initial premium is NOT submitted with the application?
Answer:
Forward the application to the insurer without the initial premium
Question:
Which of the following is an important underwriting principle of group life insurance?
Answer:
Everyone must be covered in the group
Question:
Which requirement must be met for an association to be eligible for a group life plan?
Answer:
, Group was formed for a purpose other than acquiring insurance
Question:
When an employee is terminated, which statement about a group term life conversion is true?
Answer:
Policy proceeds will be paid if the employee dies during the conversion period
Question:
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Answer:
Corporation
Question:
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?
Answer:
Fixed Deferred
Question:
S recently received a $500,000 lump sum retirement buyout from her employer. 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?
Answer:
Single Premium
Question:
Which of these is an element of a Single Premium annuity?
Answer:
Lump-sum payment
Question:
Which of these statements concerning an Individual Straight Life annuity is accurate? -
Payments are made to an annuitant for life An individual who purchases a Life annuity is given
protection against
100% Correct Answers Latest Graded A+
Question:
When can a policy owner change a revocable beneficiary?
Answer:
Anytime
Question:
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?
Answer:
Revocable
Question:
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy?
Answer:
If the primary beneficiary dies before the insured
Question:
What is the underlying concept regarding level premiums?
Answer:
The early years are charged less than what is needed
Question:
A policy owner is able to choose the frequency of premium payments through what policy feature?
Answer:
Premium Mode
Question:
,Any changes made on an insurance application requires the initials of whom?
Answer:
Applicant
All of these are considered sources of underwriting information about an applicant EXCEPT -
Rating Services
Question:
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?
Answer:
Policy was returned within the free-look period, premium will be fully refunded
Question:
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
Answer:
free-look period has expired
Question:
What action should a producer take if the initial premium is NOT submitted with the application?
Answer:
Forward the application to the insurer without the initial premium
Question:
Which of the following is an important underwriting principle of group life insurance?
Answer:
Everyone must be covered in the group
Question:
Which requirement must be met for an association to be eligible for a group life plan?
Answer:
, Group was formed for a purpose other than acquiring insurance
Question:
When an employee is terminated, which statement about a group term life conversion is true?
Answer:
Policy proceeds will be paid if the employee dies during the conversion period
Question:
Under a trustee group life policy, who would be eligible for a certificate of coverage?
Answer:
Corporation
Question:
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?
Answer:
Fixed Deferred
Question:
S recently received a $500,000 lump sum retirement buyout from her employer. 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?
Answer:
Single Premium
Question:
Which of these is an element of a Single Premium annuity?
Answer:
Lump-sum payment
Question:
Which of these statements concerning an Individual Straight Life annuity is accurate? -
Payments are made to an annuitant for life An individual who purchases a Life annuity is given
protection against
