XCEL Final Exam Questions and
Answers
The policy proceeds will be paid if the employee dies during the conversion period. -
ANSWER-When an employee is terminated, which statement about a group term life
conversion is true?
Certificate - ANSWER-A person who is insured within a group contract will be given
a
Immediate annuity - ANSWER-W is a 39-year old female who just purchased an
annuity to provide income for life starting at age 60. All of these would be acceptable
annuity choices EXCEPT a(n)
Single premium - ANSWER-An immediate annuity consists of a
Social Security - ANSWER-What is Old Age and Survivors Health Insurance
(OASDHI) also known as?
Individual Retirement Account (IRA) - ANSWER-Which of these retirement plans can
be started by an employee, even if another plan is in existence?
at future dates specified in the contract with no evidence of insurability required. -
ANSWER-When does a guaranteed Insurability Rider allow the insured to buy
additional coverage?
Reinstatement - ANSWER-Which of these provisions require proof of insurability
after a policy has lapsed?
the initial premium. - ANSWER-The consideration clause in a life insurance policy
indicated that a policy owner's consideration consists of a completed application and
Entire contract provision - ANSWER-what provision in a life insurance policy states
that the application is considered part of the contract?
Contest a claim during the contestable period - ANSWER-The incontestable clause
allows an insurer to
Must have a terminal illness to qualify - ANSWER-Which of the following statements
is correct about accelerated death benefits?
payor clause - ANSWER-Which of the following provisions guarantees that
premiums will be waived if a juvenile life policy owner becomes disabled?
Assign policy ownership to the bank - ANSWER-What action can a policy owner take
if an application for a bank loan requires collateral?
, Claims are denied under the suicide clause of the policy - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-Which type of policy is considered to be
over funded, as stated by IRS guidelines?
Conversion provision - ANSWER-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 - ANSWER-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 - ANSWER-How long does the coverage normally remain on a limited-pay
life policy?
does not guarantee a return on its investment accounts - ANSWER-A variable
insurance policy
issued in an amount not to exceed the amount of the loan - ANSWER-Credit life
insurance is
Expires at the end of the policy period - ANSWER-Term insurance has which of the
following characteristics?
Family Maintenance Policy - ANSWER-What kind of insurance policy supplies an
income stream over a set period of time that starts when the insured dies?
level - ANSWER-What kind of premium does a whole life policy have?
Level term - ANSWER-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?
Answers
The policy proceeds will be paid if the employee dies during the conversion period. -
ANSWER-When an employee is terminated, which statement about a group term life
conversion is true?
Certificate - ANSWER-A person who is insured within a group contract will be given
a
Immediate annuity - ANSWER-W is a 39-year old female who just purchased an
annuity to provide income for life starting at age 60. All of these would be acceptable
annuity choices EXCEPT a(n)
Single premium - ANSWER-An immediate annuity consists of a
Social Security - ANSWER-What is Old Age and Survivors Health Insurance
(OASDHI) also known as?
Individual Retirement Account (IRA) - ANSWER-Which of these retirement plans can
be started by an employee, even if another plan is in existence?
at future dates specified in the contract with no evidence of insurability required. -
ANSWER-When does a guaranteed Insurability Rider allow the insured to buy
additional coverage?
Reinstatement - ANSWER-Which of these provisions require proof of insurability
after a policy has lapsed?
the initial premium. - ANSWER-The consideration clause in a life insurance policy
indicated that a policy owner's consideration consists of a completed application and
Entire contract provision - ANSWER-what provision in a life insurance policy states
that the application is considered part of the contract?
Contest a claim during the contestable period - ANSWER-The incontestable clause
allows an insurer to
Must have a terminal illness to qualify - ANSWER-Which of the following statements
is correct about accelerated death benefits?
payor clause - ANSWER-Which of the following provisions guarantees that
premiums will be waived if a juvenile life policy owner becomes disabled?
Assign policy ownership to the bank - ANSWER-What action can a policy owner take
if an application for a bank loan requires collateral?
, Claims are denied under the suicide clause of the policy - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-Which type of policy is considered to be
over funded, as stated by IRS guidelines?
Conversion provision - ANSWER-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 - ANSWER-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 - ANSWER-How long does the coverage normally remain on a limited-pay
life policy?
does not guarantee a return on its investment accounts - ANSWER-A variable
insurance policy
issued in an amount not to exceed the amount of the loan - ANSWER-Credit life
insurance is
Expires at the end of the policy period - ANSWER-Term insurance has which of the
following characteristics?
Family Maintenance Policy - ANSWER-What kind of insurance policy supplies an
income stream over a set period of time that starts when the insured dies?
level - ANSWER-What kind of premium does a whole life policy have?
Level term - ANSWER-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?
