Xcel Final Exam-with 100% verified solu;ons-
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Claims are denied under the suicide clause of the policy
How do life insurance companies handle cases where the insured commits suicide
within he contract's stated contestable period?
additional Whole Life coverage at specific times
B owns a Whole Life policy with a guaranteed insurability option that allows him to
purchase, without evidence of insurabillity, stated amounts of
$50,000 minus any outstanding policy loans
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the
application ask if P engages in scuba diving, to which P answers "No". The policy is then
issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-
related accident in 2011. What will the insurer pay to P's beneficiary?
The full face amount
D was actively serving in the Marines when he was killed in an automobile accident
while on leave. His $100,000 Whole life policy contains a war exclusion clause. How
much will D's beneficiary's receive?
A modified endowment contract
Which type of policy is considered to be over funded, as stated by IRS guidelines?
,Conversion provision
When a policy owner exchanges a term policy for a whole life policy providing proof of
good health, which of these apply?
30 pay life
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at
retirement. Which of these should N purchase?
age 100
How long does the coverage normally remain on a limited-pay life policy?
does not guarantee a return on its investment accounts
A variable insurance policy
issued in an amount not to exceed the amount of the loan
Credit life insurance is
Expires at the end of the policy period
Term insurance has which of the following characteristics?
Family Maintenance Policy
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies?
level
What kind of premium does a whole life policy have?
, Level term
D needs life insurance that provides coverage for only a limited amount of time while
also paying the lowest possible premium. What kind of policy is needed?
20-pay life
What type of policy would oZer a 40-year old the quickest accumulation of cash value?
Survivor-ship
What type of life policy covers two people and pays upon the death of the last insured?
A renewable
T has a term policy that allows him to continue the coverage after expiration of the initial
policy period. What type of term coverage is this?
Investor-Originated Life Insurance
which of these arrangements allows one to bypass insurable interest laws?
Promise to pay a death benefit
What is the consideration given by an insurer in the consideration clause of a life policy?
Accidental Death and Dismemberment rider (AD&D)
personalized success
Claims are denied under the suicide clause of the policy
How do life insurance companies handle cases where the insured commits suicide
within he contract's stated contestable period?
additional Whole Life coverage at specific times
B owns a Whole Life policy with a guaranteed insurability option that allows him to
purchase, without evidence of insurabillity, stated amounts of
$50,000 minus any outstanding policy loans
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the
application ask if P engages in scuba diving, to which P answers "No". The policy is then
issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-
related accident in 2011. What will the insurer pay to P's beneficiary?
The full face amount
D was actively serving in the Marines when he was killed in an automobile accident
while on leave. His $100,000 Whole life policy contains a war exclusion clause. How
much will D's beneficiary's receive?
A modified endowment contract
Which type of policy is considered to be over funded, as stated by IRS guidelines?
,Conversion provision
When a policy owner exchanges a term policy for a whole life policy providing proof of
good health, which of these apply?
30 pay life
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at
retirement. Which of these should N purchase?
age 100
How long does the coverage normally remain on a limited-pay life policy?
does not guarantee a return on its investment accounts
A variable insurance policy
issued in an amount not to exceed the amount of the loan
Credit life insurance is
Expires at the end of the policy period
Term insurance has which of the following characteristics?
Family Maintenance Policy
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies?
level
What kind of premium does a whole life policy have?
, Level term
D needs life insurance that provides coverage for only a limited amount of time while
also paying the lowest possible premium. What kind of policy is needed?
20-pay life
What type of policy would oZer a 40-year old the quickest accumulation of cash value?
Survivor-ship
What type of life policy covers two people and pays upon the death of the last insured?
A renewable
T has a term policy that allows him to continue the coverage after expiration of the initial
policy period. What type of term coverage is this?
Investor-Originated Life Insurance
which of these arrangements allows one to bypass insurable interest laws?
Promise to pay a death benefit
What is the consideration given by an insurer in the consideration clause of a life policy?
Accidental Death and Dismemberment rider (AD&D)
