XCEL Chapter Exam - Life Premiums and Benefits
Questions and Answers
On a life insurance policy, who is qualified to change the beneficiary designation? -
Answerpolicyowner
.T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary
designation. If T wishes to change the beneficiary, T must obtain permission from the -
Answerbeneficiary
.J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used? - Answerrevocable
.which of these is not an element of life insurance premiums? - Answermorbidity rate
.Quarterly premium payments increase the annual cost of insurance because -
Answerinterest to the insurer is decreased while the administrative costs are increased
.The common disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true? -
AnswerThis clause provides the payment of proceeds to the insured's estate
.a level premium includes - Answerthe premium is fixed for the entire duration of the
contract
.K has a life insurance policy where her husband is beneficiary and her daughter is
contingent beneficiary. Under the Common Disaster clause, if K and her husband are
both killed in an automobile accident, where would the death proceeds be directed? -
Answerdaughter
.What is the underlying concept regarding level premiums? - AnswerThe early years are
charged more than what is needed
.which type of life insurance beneficiary requires his/her consent when a change of
beneficiary is attempted by the policyowner - Answerirrevocable beneficiary
.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? - AnswerAll proceeds are
income tax free in the year they are received
.Which premium schedule results in the lowest cost to the policyowner? - Answerannual
.which of the following best describes a contingent beneficiary? - AnswerPerson
designated by the insured to receive policy proceeds in the event that the primary
beneficiary dies before the insured
Questions and Answers
On a life insurance policy, who is qualified to change the beneficiary designation? -
Answerpolicyowner
.T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary
designation. If T wishes to change the beneficiary, T must obtain permission from the -
Answerbeneficiary
.J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used? - Answerrevocable
.which of these is not an element of life insurance premiums? - Answermorbidity rate
.Quarterly premium payments increase the annual cost of insurance because -
Answerinterest to the insurer is decreased while the administrative costs are increased
.The common disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true? -
AnswerThis clause provides the payment of proceeds to the insured's estate
.a level premium includes - Answerthe premium is fixed for the entire duration of the
contract
.K has a life insurance policy where her husband is beneficiary and her daughter is
contingent beneficiary. Under the Common Disaster clause, if K and her husband are
both killed in an automobile accident, where would the death proceeds be directed? -
Answerdaughter
.What is the underlying concept regarding level premiums? - AnswerThe early years are
charged more than what is needed
.which type of life insurance beneficiary requires his/her consent when a change of
beneficiary is attempted by the policyowner - Answerirrevocable beneficiary
.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? - AnswerAll proceeds are
income tax free in the year they are received
.Which premium schedule results in the lowest cost to the policyowner? - Answerannual
.which of the following best describes a contingent beneficiary? - AnswerPerson
designated by the insured to receive policy proceeds in the event that the primary
beneficiary dies before the insured
