Xcell Testing Solutions (Life & Health)
Final 150 Question Practice Exam
When can a policy owner change a revocable beneficiary? - CORRECT ANSWER
Anytime
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? - CORRECT ANSWER Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy? - CORRECT ANSWER If the primary beneficiary
dies before the insured
What is the underlying concept regarding level premiums? - CORRECT ANSWER The
early years are charged less than what is needed
A policy owner is able to choose the frequency of premium payments through what
policy feature? - CORRECT ANSWER Premium Mode
Any changes made on an insurance application requires the initials of whom? -
CORRECT ANSWER Applicant
All of these are considered sources of underwriting information about an applicant
EXCEPT - CORRECT ANSWER Rating Services
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? - CORRECT ANSWER Policy was returned within the free-look period,
premium will be fully refunded
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 - CORRECT
ANSWER free-look period has expired
What action should a producer take if the initial premium is NOT submitted with the
application? - CORRECT ANSWER Forward the application to the insurer without the
initial premium
Which of the following is an important underwriting principle of group life insurance? -
CORRECT ANSWER Everyone must be covered in the group
, Which requirement must be met for an association to be eligible for a group life plan? -
CORRECT ANSWER Group was formed for a purpose other than acquiring insurance
When an employee is terminated, which statement about a group term life conversion is
true? - CORRECT ANSWER Policy proceeds will be paid if the employee dies during
the conversion period
Under a trustee group life policy, who would be eligible for a certificate of coverage? -
CORRECT ANSWER Corporation
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? - CORRECT ANSWER Fixed Deferred
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? - CORRECT ANSWER
Single Premium
Which of these is an element of a Single Premium annuity? - CORRECT ANSWER
Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is accurate? -
CORRECT ANSWER Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against - CORRECT
ANSWER the risk of living longer than expected
An immediate annuity consists of a - CORRECT ANSWER single premium
All of these are considered to be a benefit under Social Security EXCEPT for -
CORRECT ANSWER unemployment
Which product would best serve a retired individual looking to invest a lump-sum of
money through an insurance company? - CORRECT ANSWER Annuity
Which statement regarding third-party ownership of a life insurance policy is true? -
CORRECT ANSWER It is used extensively in estate-planning as well as business
circumstances
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what would it
require? - CORRECT ANSWER Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - CORRECT ANSWER
policyholders
Final 150 Question Practice Exam
When can a policy owner change a revocable beneficiary? - CORRECT ANSWER
Anytime
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? - CORRECT ANSWER Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy? - CORRECT ANSWER If the primary beneficiary
dies before the insured
What is the underlying concept regarding level premiums? - CORRECT ANSWER The
early years are charged less than what is needed
A policy owner is able to choose the frequency of premium payments through what
policy feature? - CORRECT ANSWER Premium Mode
Any changes made on an insurance application requires the initials of whom? -
CORRECT ANSWER Applicant
All of these are considered sources of underwriting information about an applicant
EXCEPT - CORRECT ANSWER Rating Services
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? - CORRECT ANSWER Policy was returned within the free-look period,
premium will be fully refunded
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 - CORRECT
ANSWER free-look period has expired
What action should a producer take if the initial premium is NOT submitted with the
application? - CORRECT ANSWER Forward the application to the insurer without the
initial premium
Which of the following is an important underwriting principle of group life insurance? -
CORRECT ANSWER Everyone must be covered in the group
, Which requirement must be met for an association to be eligible for a group life plan? -
CORRECT ANSWER Group was formed for a purpose other than acquiring insurance
When an employee is terminated, which statement about a group term life conversion is
true? - CORRECT ANSWER Policy proceeds will be paid if the employee dies during
the conversion period
Under a trustee group life policy, who would be eligible for a certificate of coverage? -
CORRECT ANSWER Corporation
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? - CORRECT ANSWER Fixed Deferred
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? - CORRECT ANSWER
Single Premium
Which of these is an element of a Single Premium annuity? - CORRECT ANSWER
Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is accurate? -
CORRECT ANSWER Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against - CORRECT
ANSWER the risk of living longer than expected
An immediate annuity consists of a - CORRECT ANSWER single premium
All of these are considered to be a benefit under Social Security EXCEPT for -
CORRECT ANSWER unemployment
Which product would best serve a retired individual looking to invest a lump-sum of
money through an insurance company? - CORRECT ANSWER Annuity
Which statement regarding third-party ownership of a life insurance policy is true? -
CORRECT ANSWER It is used extensively in estate-planning as well as business
circumstances
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what would it
require? - CORRECT ANSWER Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - CORRECT ANSWER
policyholders
