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XCEL State Exam Simulator (3 LATEST VERSIONS) Correct
Complete Questions And Correct Complete Answers A+ Grade
||Just Out!!!
What does the ownership clause in a life insurance policy state?
- ANSWER-who the policy owner is
Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling? -
ANSWER-variable
A Health Reimbursement Arrangement MUST be established: -
ANSWER-established by the employer.
The Department may request all of these during the licensing
application process EXCEPT - ANSWER-drug test
Under a Renewable Term policy, - ANSWER-the renewal
premium is calculated on the basis of the insured's attained age
M's insurance company denied a reinstatement application for
her lapsed health insurance policy. The company did not notify
M of this denial. How many days from the reinstatement
application date does the insurance company have to notify M
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of the denial before the policy will be automatically placed back
in force? - ANSWER-45
Which factors are taken into consideration when an insurance
company determines the premium rate for a Whole Life policy
on an applicant? - ANSWER-risk classification
G is an accountant who has ten employees and is concerned
about how the business would survive financially if G became
disabled. The type of policy which BEST addresses this concern
is: - ANSWER-Business Overhead Expense.
A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the
early years of the policy. Which of these statements made by
the producer would be correct? - ANSWER-20-Pay Life
accumulates cash value faster than Straight Life
T and S are named co-primary beneficiaries on a $500,000
Accidental Death and Dismemberment policy insuring their
father. Their mother was named contingent beneficiary. Five
years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death
benefit will the mother receive? - ANSWER-0
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Which of these statements is INCORRECT regarding the federal
income tax treatment of life insurance? - ANSWER-Entire cash
surrender value is taxable.
Which of the following is NOT required in the Outline of
Coverage for a health insurance policy? - ANSWER-Projection of
the policy's future costs
B receives yearly dividends and interest from a participating life
insurance policy. Which of these should B include as gross
income for federal income tax purposes? - ANSWER-interest
only
The insurer must provide a prospective buyer with a(n) -
ANSWER-buyers guide an dpolicy summary
Information obtained from a phone conversation to the
proposed insured can be found in which of these reports? -
ANSWER-Inspection report.
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An incomplete life insurance application submitted to an insurer
will result in which of these actions? - ANSWER-Application will
be returned to the writing agent.
Under a life insurance policy, the ________ has the authority to
name the beneficiary. - ANSWER-owner
The free-look period for all qualified Long-term care policies
sold in Florida is __ days. - ANSWER-30 days
T is an agent and when hired, is reminded that he has a
responsibility to handle clients' funds in an honest and ethical
manner. This responsibility is referred to as - ANSWER-fiduciary
responsibility
Basic Hospital and Surgical policy benefits are: - ANSWER-lower
than the actual expenses incurred
An insurance company receives E's application for an individual
health policy. E did not complete all of the medical history
questions because she could not remember the exact dates. E
signed the policy and submitted it to the insurance company
anyway. A few weeks later, E suffers a heart attack and is
hospitalized without completing the medical history questions
XCEL State Exam Simulator (3 LATEST VERSIONS) Correct
Complete Questions And Correct Complete Answers A+ Grade
||Just Out!!!
What does the ownership clause in a life insurance policy state?
- ANSWER-who the policy owner is
Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling? -
ANSWER-variable
A Health Reimbursement Arrangement MUST be established: -
ANSWER-established by the employer.
The Department may request all of these during the licensing
application process EXCEPT - ANSWER-drug test
Under a Renewable Term policy, - ANSWER-the renewal
premium is calculated on the basis of the insured's attained age
M's insurance company denied a reinstatement application for
her lapsed health insurance policy. The company did not notify
M of this denial. How many days from the reinstatement
application date does the insurance company have to notify M
,2|Page
of the denial before the policy will be automatically placed back
in force? - ANSWER-45
Which factors are taken into consideration when an insurance
company determines the premium rate for a Whole Life policy
on an applicant? - ANSWER-risk classification
G is an accountant who has ten employees and is concerned
about how the business would survive financially if G became
disabled. The type of policy which BEST addresses this concern
is: - ANSWER-Business Overhead Expense.
A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the
early years of the policy. Which of these statements made by
the producer would be correct? - ANSWER-20-Pay Life
accumulates cash value faster than Straight Life
T and S are named co-primary beneficiaries on a $500,000
Accidental Death and Dismemberment policy insuring their
father. Their mother was named contingent beneficiary. Five
years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death
benefit will the mother receive? - ANSWER-0
,3|Page
Which of these statements is INCORRECT regarding the federal
income tax treatment of life insurance? - ANSWER-Entire cash
surrender value is taxable.
Which of the following is NOT required in the Outline of
Coverage for a health insurance policy? - ANSWER-Projection of
the policy's future costs
B receives yearly dividends and interest from a participating life
insurance policy. Which of these should B include as gross
income for federal income tax purposes? - ANSWER-interest
only
The insurer must provide a prospective buyer with a(n) -
ANSWER-buyers guide an dpolicy summary
Information obtained from a phone conversation to the
proposed insured can be found in which of these reports? -
ANSWER-Inspection report.
, 4|Page
An incomplete life insurance application submitted to an insurer
will result in which of these actions? - ANSWER-Application will
be returned to the writing agent.
Under a life insurance policy, the ________ has the authority to
name the beneficiary. - ANSWER-owner
The free-look period for all qualified Long-term care policies
sold in Florida is __ days. - ANSWER-30 days
T is an agent and when hired, is reminded that he has a
responsibility to handle clients' funds in an honest and ethical
manner. This responsibility is referred to as - ANSWER-fiduciary
responsibility
Basic Hospital and Surgical policy benefits are: - ANSWER-lower
than the actual expenses incurred
An insurance company receives E's application for an individual
health policy. E did not complete all of the medical history
questions because she could not remember the exact dates. E
signed the policy and submitted it to the insurance company
anyway. A few weeks later, E suffers a heart attack and is
hospitalized without completing the medical history questions
