Xcel Practice Chapter Exam
Questions and Answers 100% Pass
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? - ✔✔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? -
✔✔Endowment at Age 70
Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - ✔✔Variable Universal Life
A policy if adhesion can only be modified by whom? - ✔✔The Insurance company
Which of the following consists of an offer, acceptance, and consideration? -
✔✔Contract
What type of annuity has a cash value that is based upon the performance of it's
underlying investment funds? - ✔✔Variable
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,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? - ✔✔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:
- ✔✔Gender
Term Insurance has which of the following characteristics? - ✔✔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? - ✔✔Aviation Exclusion
In a life insurance policy, which provision states who may select policy options,
designate and name a beneficiary, and be the policy? - ✔✔Owner's Rights
The entity whose sole purpose is sharing medical data among its member companies is
called the - ✔✔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 - ✔✔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. - ✔✔A Universal
Life policy
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, An employee with 25,000 group term life coverage was recently fired. This employee's
group coverage may be converted to a: - ✔✔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? - ✔✔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? - ✔✔5
Which statement regarding the Misstatement of Age provision is considered to be true?
- ✔✔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.
- ✔✔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?
- ✔✔Key Person Life Policy
S is covered by a whole life policy. Which insurance product can cover his children? -
✔✔Child Term Rider
A 15-year mortgage is best protected by what kind of life policy? - ✔✔15-year
decreasing term
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 3
Questions and Answers 100% Pass
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? - ✔✔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? -
✔✔Endowment at Age 70
Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - ✔✔Variable Universal Life
A policy if adhesion can only be modified by whom? - ✔✔The Insurance company
Which of the following consists of an offer, acceptance, and consideration? -
✔✔Contract
What type of annuity has a cash value that is based upon the performance of it's
underlying investment funds? - ✔✔Variable
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 1
,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? - ✔✔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:
- ✔✔Gender
Term Insurance has which of the following characteristics? - ✔✔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? - ✔✔Aviation Exclusion
In a life insurance policy, which provision states who may select policy options,
designate and name a beneficiary, and be the policy? - ✔✔Owner's Rights
The entity whose sole purpose is sharing medical data among its member companies is
called the - ✔✔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 - ✔✔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. - ✔✔A Universal
Life policy
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 2
, An employee with 25,000 group term life coverage was recently fired. This employee's
group coverage may be converted to a: - ✔✔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? - ✔✔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? - ✔✔5
Which statement regarding the Misstatement of Age provision is considered to be true?
- ✔✔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.
- ✔✔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?
- ✔✔Key Person Life Policy
S is covered by a whole life policy. Which insurance product can cover his children? -
✔✔Child Term Rider
A 15-year mortgage is best protected by what kind of life policy? - ✔✔15-year
decreasing term
EMILY CHARLENE © 2025, ALL RIGHTS RESERVED 3
