Alabama Life & Health-XCEL Solutions.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20&%20Hea
Alabama Life & Health Insurance XCEL Testing Solutions
Questions and Answers
1. The life and health insurance marketing system utilizing non-employee agents that
represent just one insurance company and are often paid an allowance to cover office
expense and staffing is known as what? ANS the generalagency system.
2. Dividends payable to a policyowner are declared by? ANS the insurance company
3. A nonprofit incorporated society that doesn't have capital stock and oper-ates for the
sole benefit of its members is known as what? ANS fraternal benefit society
4. Insurance policies issued by companies which are owned by stockholdersand do not pay
policy dividends are known as what? ANS non-participating policies
5. Insurance policies issued by companies which allow their policyowners toparticipate in
the favorable experience of the company through payment of dividends are known as
what? ANS participating policies
6. A life insurance producer's agency agreement normally authorizes the li-censee to do
what? ANS Solicit and sell insurance, collect premiums
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,Alabama Life & Health-XCEL Solutions.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20&%20Hea
7. Who issues policies? ANS the insurer
8. People with higher loss exposure have the tendency to purchase insurancemore often than
those at average risk. This is called? ANS adverse selection
9. With respect to an insurance application.... ANS a representation is valid as longas its
true.
10. Pat the producer just sold an insurance policy to a client, explaining that hehas authority to
issue the policy. Pat was not specifically granted this powerfrom the insurance company.
Pat is exercising what? ANS implied authority
11. Why are insurance contracts said to be contracts of adhesion? ANS One partywrites
the contract, and the other party must accept the contract as written.
12. The agreement between a producer and the insurance company specifiesthe authority
given to a producer to act on behalf of the insurer. What is this called? ANS Expressed
authority
13. How do term life insurance and whole life insurance differ? ANS Term insurancedoes not
build cash value.
14. Who can collect the face amount on an endowment policy? ANS the policyown-er.
15. A policyowner can collect the face amount on what kind of policy? ANS endow-ment
policy
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,Alabama Life & Health-XCEL Solutions.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20&%20Hea
16. What life insurance policy would build up cash value the fastest? ANS singlepremium
17. Mortgage protection is typically covered with? ANS decreasing term life insur-ance
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,Alabama Life & Health-XCEL Solutions.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20&%20Hea
18. With an initial face amount of $50,000, and a value of $5,000, the actualdeath
benefit would be? ANS $55,000
19. Which option would the beneficiary receive the death benefit plus theaccumulated
cash value? ANS increasing death benefit option
20. At what age does a whole life policy endow? ANS 100
21. Tim has a Universal Life policy. What is the cash value growth in hispolicy? ANS
interest sensitive
22. In an adjustable life policy, what may be adjusted to meet the policyholder'sneeds? ANS
frequency of premium payments, amount of payment, policy's face amount
23. What can NOT be adjusted in an adjustable life policy? ANS the insured
24. Which of the following combines insurance protection with a cash accu-mulation? ANS
permanent insurance
25. With term life insurance, what remains the same throughout the policyperiod? ANS a
level premium
26. The premium and the protection remain constant for the term of the policy.What kind of
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Alabama Life & Health Insurance XCEL Testing Solutions
Questions and Answers
1. The life and health insurance marketing system utilizing non-employee agents that
represent just one insurance company and are often paid an allowance to cover office
expense and staffing is known as what? ANS the generalagency system.
2. Dividends payable to a policyowner are declared by? ANS the insurance company
3. A nonprofit incorporated society that doesn't have capital stock and oper-ates for the
sole benefit of its members is known as what? ANS fraternal benefit society
4. Insurance policies issued by companies which are owned by stockholdersand do not pay
policy dividends are known as what? ANS non-participating policies
5. Insurance policies issued by companies which allow their policyowners toparticipate in
the favorable experience of the company through payment of dividends are known as
what? ANS participating policies
6. A life insurance producer's agency agreement normally authorizes the li-censee to do
what? ANS Solicit and sell insurance, collect premiums
1 of 41 9/10/2024, 9:22
,Alabama Life & Health-XCEL Solutions.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20&%20Hea
7. Who issues policies? ANS the insurer
8. People with higher loss exposure have the tendency to purchase insurancemore often than
those at average risk. This is called? ANS adverse selection
9. With respect to an insurance application.... ANS a representation is valid as longas its
true.
10. Pat the producer just sold an insurance policy to a client, explaining that hehas authority to
issue the policy. Pat was not specifically granted this powerfrom the insurance company.
Pat is exercising what? ANS implied authority
11. Why are insurance contracts said to be contracts of adhesion? ANS One partywrites
the contract, and the other party must accept the contract as written.
12. The agreement between a producer and the insurance company specifiesthe authority
given to a producer to act on behalf of the insurer. What is this called? ANS Expressed
authority
13. How do term life insurance and whole life insurance differ? ANS Term insurancedoes not
build cash value.
14. Who can collect the face amount on an endowment policy? ANS the policyown-er.
15. A policyowner can collect the face amount on what kind of policy? ANS endow-ment
policy
2 of 41 9/10/2024, 9:22
,Alabama Life & Health-XCEL Solutions.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20&%20Hea
16. What life insurance policy would build up cash value the fastest? ANS singlepremium
17. Mortgage protection is typically covered with? ANS decreasing term life insur-ance
3 of 41 9/10/2024, 9:22
,Alabama Life & Health-XCEL Solutions.pdf file:///C:/Users/Admin/Downloads/Alabama%20Life%20&%20Hea
18. With an initial face amount of $50,000, and a value of $5,000, the actualdeath
benefit would be? ANS $55,000
19. Which option would the beneficiary receive the death benefit plus theaccumulated
cash value? ANS increasing death benefit option
20. At what age does a whole life policy endow? ANS 100
21. Tim has a Universal Life policy. What is the cash value growth in hispolicy? ANS
interest sensitive
22. In an adjustable life policy, what may be adjusted to meet the policyholder'sneeds? ANS
frequency of premium payments, amount of payment, policy's face amount
23. What can NOT be adjusted in an adjustable life policy? ANS the insured
24. Which of the following combines insurance protection with a cash accu-mulation? ANS
permanent insurance
25. With term life insurance, what remains the same throughout the policyperiod? ANS a
level premium
26. The premium and the protection remain constant for the term of the policy.What kind of
4 of 41 9/10/2024, 9:22
