XCEL
Xcel Solutions IN Life Insurance Final
Exam Questions and Answers 2025
P is a producer who is licensed in Indiana , but a resident of Michigan . In Indiana , P is
considered to be a ( n ) __________ producer . -Correct Answer ✔nonresident .
Why would the Insurance Commissioner issue a temporary license ? -Correct Answer
✔To allow the personal representative of a deceased producer to provide service to
existing policyowners
Which provision is NOT a requirement in a group life policy ? -Correct Answer
✔Accidental
A ( n ) _________ beneficiary may be changed by the policyowner WITHOUT the
consent of the beneficiary . -Correct Answer ✔Revocable
Which of the following provides funding for the Indiana Life and Health Insurance
Guaranty Association ? -Correct Answer ✔Member company assessments
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained ? -Correct Answer ✔Fair Credit
Reporting Act
Any changes made on an insurance application requires the initials of whom ? -Correct
Answer ✔Applicant
An individual working part - time has an annual income of $ 25,000 . If this individual
has an IRA , what isthe maximum deductible IRA contribution allowable ? -Correct
Answer ✔$ 6,000
With whom may a producer share commissions with ? -Correct Answer ✔Anyone the
producer deems appropriate
To be eligible for Social Security disability benefits , an employee must be unable to
perform : -Correct Answer ✔any occupation
A Universal Life policy is sometimes referred to as an unbundled Life Policy because
the owner can see the interest earned , cost of insurance , and the -Correct Answer
✔expense charges
Which statement is TRUE in regards to a policy loan ? -Correct Answer ✔Past - due
interest on a policy loan is added to the total debt
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As a condition for a loan , a bank requires the borrower to purchase credit insurance
from a specific company What is the bank guilty of ? -Correct Answer ✔Coercion
Why must an insurance applicant answer all questions on the application ? -Correct
Answer ✔Statements and representations are considered guarantees
T , age 70 , withdraws cash from a profit - sharing plan and purchases a Straight Life
Annuity . What will this transaction provide ? -Correct Answer ✔Income that cannot be
outlived by the owner
Term Life Policies that have the ability to be converted to permanent coverage may do
so during a specific time period . This conversion period -Correct Answer ✔varies
according to the contract
Which of these is NOT considered to be an element of an insurance contract ? -Correct
Answer ✔negotiating
A newly licensed producer must complete 24 hours of continuing education every ___
years . -Correct Answer ✔2
A ( n ) _________ insurance company is one formed in a country other than the United
States . -Correct Answer ✔alien
K's whole life insurance policy lapsed two months ago due to nonpayment . She would
now like to reinstate the policy . All of these statements are correct about the policy's
reinstatement EXCEPT -Correct Answer ✔K must provide evidence of insurability
An existing life insurance policy is being replaced by a new one . A notice of
replacement must be provided by the _______ to be signed by the applicant . -Correct
Answer ✔producer
Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated : -Correct Answer ✔1970 - Fair Credit Reporting Act
K is the insured and P is the sole beneficiary on a life insurance policy . Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision , which of these statements is true ? -Correct Answer ✔Proceeds will be
payable to K's estate if P dies within a specified time
A policyowner is allowed to pay premiums more than once a year under which provision
? -Correct Answer ✔Mode of Premium
Which of the following is an example of false advertising ? -Correct Answer ✔An
insurance company publishing misleading information about its policy's provisions
XCEL
Xcel Solutions IN Life Insurance Final
Exam Questions and Answers 2025
P is a producer who is licensed in Indiana , but a resident of Michigan . In Indiana , P is
considered to be a ( n ) __________ producer . -Correct Answer ✔nonresident .
Why would the Insurance Commissioner issue a temporary license ? -Correct Answer
✔To allow the personal representative of a deceased producer to provide service to
existing policyowners
Which provision is NOT a requirement in a group life policy ? -Correct Answer
✔Accidental
A ( n ) _________ beneficiary may be changed by the policyowner WITHOUT the
consent of the beneficiary . -Correct Answer ✔Revocable
Which of the following provides funding for the Indiana Life and Health Insurance
Guaranty Association ? -Correct Answer ✔Member company assessments
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained ? -Correct Answer ✔Fair Credit
Reporting Act
Any changes made on an insurance application requires the initials of whom ? -Correct
Answer ✔Applicant
An individual working part - time has an annual income of $ 25,000 . If this individual
has an IRA , what isthe maximum deductible IRA contribution allowable ? -Correct
Answer ✔$ 6,000
With whom may a producer share commissions with ? -Correct Answer ✔Anyone the
producer deems appropriate
To be eligible for Social Security disability benefits , an employee must be unable to
perform : -Correct Answer ✔any occupation
A Universal Life policy is sometimes referred to as an unbundled Life Policy because
the owner can see the interest earned , cost of insurance , and the -Correct Answer
✔expense charges
Which statement is TRUE in regards to a policy loan ? -Correct Answer ✔Past - due
interest on a policy loan is added to the total debt
XCEL
, XCEL
As a condition for a loan , a bank requires the borrower to purchase credit insurance
from a specific company What is the bank guilty of ? -Correct Answer ✔Coercion
Why must an insurance applicant answer all questions on the application ? -Correct
Answer ✔Statements and representations are considered guarantees
T , age 70 , withdraws cash from a profit - sharing plan and purchases a Straight Life
Annuity . What will this transaction provide ? -Correct Answer ✔Income that cannot be
outlived by the owner
Term Life Policies that have the ability to be converted to permanent coverage may do
so during a specific time period . This conversion period -Correct Answer ✔varies
according to the contract
Which of these is NOT considered to be an element of an insurance contract ? -Correct
Answer ✔negotiating
A newly licensed producer must complete 24 hours of continuing education every ___
years . -Correct Answer ✔2
A ( n ) _________ insurance company is one formed in a country other than the United
States . -Correct Answer ✔alien
K's whole life insurance policy lapsed two months ago due to nonpayment . She would
now like to reinstate the policy . All of these statements are correct about the policy's
reinstatement EXCEPT -Correct Answer ✔K must provide evidence of insurability
An existing life insurance policy is being replaced by a new one . A notice of
replacement must be provided by the _______ to be signed by the applicant . -Correct
Answer ✔producer
Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated : -Correct Answer ✔1970 - Fair Credit Reporting Act
K is the insured and P is the sole beneficiary on a life insurance policy . Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision , which of these statements is true ? -Correct Answer ✔Proceeds will be
payable to K's estate if P dies within a specified time
A policyowner is allowed to pay premiums more than once a year under which provision
? -Correct Answer ✔Mode of Premium
Which of the following is an example of false advertising ? -Correct Answer ✔An
insurance company publishing misleading information about its policy's provisions
XCEL
