Xcel Practice Chapter Exam 2024 Questions and Answers with complete solution

Xcel Practice Chapter Exam 2024 Questions and Answers with complete solution A whole life insurance policyownet foes not wish to continue making premium payments. Which of the following enables the policyowner to call the policy for more than its cash value? - Answer ️️ -Life-Settlement Contract P owns a 25,000 Life policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own? - Answer ️️ -Endowment at Age 70 Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? - Answer ️️ -Variable Universal Life A policy if adhesion can only be modified by whom? - Answer ️️ -The Insurance company Which of the following consists of an offer, acceptance, and consideration? - Answer ️️ - Contract What type of annuity has a cash value that is based upon the performance of it's underlying investment funds? - Answer ️️ -Variable Which of the following statements is CORRECT regarding the tax treatment of a lump-sum payment paid to a life insurance policy's primary beneficiary? - Answer ️️ -All proceeds are income tax free in the year they are recieved A life insurance application may be rejected on the basis of all of these factors EXCEPT: - Answer ️️ -Gender Term Insurance has which of the following characteristics? - Answer ️️ -Expires at the end of the policy period A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following? - Answer ️️ -Aviation Exclusion In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the policy? - Answer ️️ -Owner's Rights The entity whose sole purpose is sharing medical data among its member companies is called the - Answer ️️ -Medical Information Bureau (MIB) 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 The cash value in a(n)_________________ Life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors. - Answer ️️ -A Universal Life policy An employee with 25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a: - Answer ️️ -25,000 Individual Whole Life policy P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? - Answer ️️ -Accidental Death and Dismemberment clause Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? - Answer ️️ -5 Which statement regarding the Misstatement of Age provision is considered to be true? - Answer ️️ -Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered Which of the following is an important wunderwriting principle of group life insurance. - Answer ️️ -Everyone must be covered in the group An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager? - Answer ️️ - Key Person Life Policy S is covered by a whole life policy. Which insurance product can cover his children? - Answer ️️ -Child Term Rider A 15-year mortgage is best protected by what kind of life policy? - Answer ️️ -15-year decreasing term E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to? - Answer ️️ -F