1|Page
XCEL Virginia Life insurance Exam Simulator Verified Correct
Questions And Correct Answers A+ Graded ||Just Out!!!
the initial premium for a life insurance policy is typically paid in
what way? - ANSWER-it is typically obtained by the producer
and forwarded to the insurer
With life insurance, the needs approach is used primarily in
determining - ANSWER-how much life insurance a client should
apply for
which of these is not an unfair claims settlement practice -
ANSWER-refusing to pay persons bringing false or fraudulent
claims
all of these statements correctly describe an aleatory contract
except - ANSWER-only one party makes any kind of legally
enforceable offer
insurable interest involves what assumption - ANSWER-One
person benefits from another person's continued life
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The premiums paid by an employer for his employee's group
life insurance are usually considered to be - ANSWER-tax-
deductible to the employer
How do benefit payments fluctuate over time in a variable life
annuity?
Benefit payments stay fixed
Reflects changes in the market value of assets in a separate
account
Annuitant controls any benefit payment changes
Any benefit payment fluctuations have to be approved in
writing by the owner - ANSWER-reflects changes in the market
value of assets in a separate account
which of these is not an advantage of term life insurance -
ANSWER-a cash benefit will be provided if the insured is alive at
the end of the policy period
what are premiums for group life insurance based on -
ANSWER-flat rate unrelated to the borrowers age
,3|Page
a terminally ill policyowner decides to sell his life insurance
policy at a discount to help support his family. This sale is called
- ANSWER-viatical settlement
which of the following is a true statement regarding universal
life insurance - ANSWER-policy states how much of each
premium is used toward company expenses
What would be the disadvantage of naming a trust as
beneficiary of a life insurance policy? - ANSWER-true
administration fees would reduce policy proceeds
the policy provision that permits an employee to change from
group life coverage to an individual life policy is called the -
ANSWER-conversion provision
XYA Corp has implemented a qualified retirement plan. This
plan may not discriminate - ANSWER-in favor of highly
compensated employees
which of the following would not be appropriate for an
immediate annuity - ANSWER-a parent saving for a child's
college
, 4|Page
the automatic premium loan provision can be accurately
described as a - ANSWER-provision that provides a policy loan
to pay any premiums by the end of the grace period
Greg applies for insurance and makes a false statement on the
application that will influence whether or not the insurer will
accept the risk. Greg's false statement is called a(n) - ANSWER-
material misrepresentation
John has a criminal record in which he was convicted of a felony
that involved dishonesty. Under Federal law, how would John be
able to engage in insurance transactions? - ANSWER-given
written consent by the state insurance regulatory agency
What is payable to the policyowner if a whole life policy is
surrendered prior to its maturity date? - ANSWER-the cash
value
According to the needs approach, an emergency reserve fund's
primary purpose is to - ANSWER-cover the cost of unexpected
expenses
XCEL Virginia Life insurance Exam Simulator Verified Correct
Questions And Correct Answers A+ Graded ||Just Out!!!
the initial premium for a life insurance policy is typically paid in
what way? - ANSWER-it is typically obtained by the producer
and forwarded to the insurer
With life insurance, the needs approach is used primarily in
determining - ANSWER-how much life insurance a client should
apply for
which of these is not an unfair claims settlement practice -
ANSWER-refusing to pay persons bringing false or fraudulent
claims
all of these statements correctly describe an aleatory contract
except - ANSWER-only one party makes any kind of legally
enforceable offer
insurable interest involves what assumption - ANSWER-One
person benefits from another person's continued life
,2|Page
The premiums paid by an employer for his employee's group
life insurance are usually considered to be - ANSWER-tax-
deductible to the employer
How do benefit payments fluctuate over time in a variable life
annuity?
Benefit payments stay fixed
Reflects changes in the market value of assets in a separate
account
Annuitant controls any benefit payment changes
Any benefit payment fluctuations have to be approved in
writing by the owner - ANSWER-reflects changes in the market
value of assets in a separate account
which of these is not an advantage of term life insurance -
ANSWER-a cash benefit will be provided if the insured is alive at
the end of the policy period
what are premiums for group life insurance based on -
ANSWER-flat rate unrelated to the borrowers age
,3|Page
a terminally ill policyowner decides to sell his life insurance
policy at a discount to help support his family. This sale is called
- ANSWER-viatical settlement
which of the following is a true statement regarding universal
life insurance - ANSWER-policy states how much of each
premium is used toward company expenses
What would be the disadvantage of naming a trust as
beneficiary of a life insurance policy? - ANSWER-true
administration fees would reduce policy proceeds
the policy provision that permits an employee to change from
group life coverage to an individual life policy is called the -
ANSWER-conversion provision
XYA Corp has implemented a qualified retirement plan. This
plan may not discriminate - ANSWER-in favor of highly
compensated employees
which of the following would not be appropriate for an
immediate annuity - ANSWER-a parent saving for a child's
college
, 4|Page
the automatic premium loan provision can be accurately
described as a - ANSWER-provision that provides a policy loan
to pay any premiums by the end of the grace period
Greg applies for insurance and makes a false statement on the
application that will influence whether or not the insurer will
accept the risk. Greg's false statement is called a(n) - ANSWER-
material misrepresentation
John has a criminal record in which he was convicted of a felony
that involved dishonesty. Under Federal law, how would John be
able to engage in insurance transactions? - ANSWER-given
written consent by the state insurance regulatory agency
What is payable to the policyowner if a whole life policy is
surrendered prior to its maturity date? - ANSWER-the cash
value
According to the needs approach, an emergency reserve fund's
primary purpose is to - ANSWER-cover the cost of unexpected
expenses
