XCEL TEST SOLUTIONS 2025 QUESTIONS WITH ANSWERS
GUARANTEE A+
✔✔Which course of action is the insurer entitled to when deliberate concealment is
committed by the insured? - ✔✔rescinding the contract
✔✔which principle is accurately described with the statement 'insureds are entitled to
recover an amount NOT greater than the amount of their loss'? - ✔✔indemnity
✔✔which is NOT true regarding a family policy that covers children? - ✔✔conversion of
child's coverage to permanent insurance requires requires evidence of insurability.
✔✔in a modified endowment contract, the penalty tax imposed on premature
withdrawals is - ✔✔10%
✔✔a life insurance policy that pays the face amount if the insured survives to a
specified period of time is called - ✔✔endowment insurance
✔✔Which is NOT a true description of non-medical life insurance? - ✔✔Applicants are
not required to answer medical questions on the application
✔✔Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax penalty
for taking a loan against this policy prior to age 59 1/2? - ✔✔10%
✔✔Lynn owns a life policy that guarantees the right to renew the policy each year,
regardless of health, but at an increased premium. What kind of policy is this? -
✔✔renewable term
✔✔in a renewable term life insurance policy, the contract will usually - ✔✔require a
higher premium payable at each renewal
✔✔a life insurance policy's limit of liability would be - ✔✔the policy's face amount
✔✔which statements do NOT apply to child coverage in a family policy? - ✔✔only
children born prior to policy's issue date may be included
✔✔Tom is shopping for a policy that covers two people and would pay the face amount
ONLY when the first person dies. The type of life policy he is looking for is called a -
✔✔joint life policy
✔✔what is the proper order of initial life insurance premiums, from lowest to highest? -
✔✔modified premium, ordinary life, single premium
, ✔✔which of the following is a life insurance policy that does NOT require a physical
exam? - ✔✔non-medical
✔✔John and Mary have a handicapped child that is financially dependent upon them.
The death of one of the parents would not be financially disastrous, however the death
of both likely would be. Which policy would be best suited for them? - ✔✔second-to-die
policy
✔✔which of the following types of life insurance is normally associated with a mortgage
loan? - ✔✔decreasing term
✔✔a life insurance policy where the insured can choose where the cash value can be
invested is called - ✔✔variable life
✔✔scott has just purchased a new house. he is now shopping for a life insurance policy
that provides a death benefit that matches the projected outstanding debt of his
mortgage. Which life policy would best suit his needs? - ✔✔mortgage redemption
✔✔an insurance policy written after 1988 that fails to pass the seven-pay test is known
as - ✔✔a modified endowment contract
✔✔all of the statement about whole life insurance are false EXCEPT - ✔✔when a whole
life policy us surrendered, income taxes may be owed
✔✔the least expensive option to pay off a 30-year mortgage balance would be -
✔✔decreasing term life
✔✔which of the following types of life insurance combines a savings element along with
a flexible premium option? - ✔✔universal life
✔✔which type of life insurance is normally associated with a Payor Benefit rider? -
✔✔juvenile insurance
✔✔The premium for a Modified whole life policy is - ✔✔lower than the typical whole life
policy during the first few years and then higher than typical for the remainder
✔✔what can a policy owner NOT change? - ✔✔dividen schedule
✔✔which statement is true regarding policy dividends? - ✔✔a dividend option is always
selected by the insured at the time of the policy purchase
✔✔in an insured dies because of an accident, which type of life insurance rider will
provide additional coverage? - ✔✔accidental death rider
GUARANTEE A+
✔✔Which course of action is the insurer entitled to when deliberate concealment is
committed by the insured? - ✔✔rescinding the contract
✔✔which principle is accurately described with the statement 'insureds are entitled to
recover an amount NOT greater than the amount of their loss'? - ✔✔indemnity
✔✔which is NOT true regarding a family policy that covers children? - ✔✔conversion of
child's coverage to permanent insurance requires requires evidence of insurability.
✔✔in a modified endowment contract, the penalty tax imposed on premature
withdrawals is - ✔✔10%
✔✔a life insurance policy that pays the face amount if the insured survives to a
specified period of time is called - ✔✔endowment insurance
✔✔Which is NOT a true description of non-medical life insurance? - ✔✔Applicants are
not required to answer medical questions on the application
✔✔Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax penalty
for taking a loan against this policy prior to age 59 1/2? - ✔✔10%
✔✔Lynn owns a life policy that guarantees the right to renew the policy each year,
regardless of health, but at an increased premium. What kind of policy is this? -
✔✔renewable term
✔✔in a renewable term life insurance policy, the contract will usually - ✔✔require a
higher premium payable at each renewal
✔✔a life insurance policy's limit of liability would be - ✔✔the policy's face amount
✔✔which statements do NOT apply to child coverage in a family policy? - ✔✔only
children born prior to policy's issue date may be included
✔✔Tom is shopping for a policy that covers two people and would pay the face amount
ONLY when the first person dies. The type of life policy he is looking for is called a -
✔✔joint life policy
✔✔what is the proper order of initial life insurance premiums, from lowest to highest? -
✔✔modified premium, ordinary life, single premium
, ✔✔which of the following is a life insurance policy that does NOT require a physical
exam? - ✔✔non-medical
✔✔John and Mary have a handicapped child that is financially dependent upon them.
The death of one of the parents would not be financially disastrous, however the death
of both likely would be. Which policy would be best suited for them? - ✔✔second-to-die
policy
✔✔which of the following types of life insurance is normally associated with a mortgage
loan? - ✔✔decreasing term
✔✔a life insurance policy where the insured can choose where the cash value can be
invested is called - ✔✔variable life
✔✔scott has just purchased a new house. he is now shopping for a life insurance policy
that provides a death benefit that matches the projected outstanding debt of his
mortgage. Which life policy would best suit his needs? - ✔✔mortgage redemption
✔✔an insurance policy written after 1988 that fails to pass the seven-pay test is known
as - ✔✔a modified endowment contract
✔✔all of the statement about whole life insurance are false EXCEPT - ✔✔when a whole
life policy us surrendered, income taxes may be owed
✔✔the least expensive option to pay off a 30-year mortgage balance would be -
✔✔decreasing term life
✔✔which of the following types of life insurance combines a savings element along with
a flexible premium option? - ✔✔universal life
✔✔which type of life insurance is normally associated with a Payor Benefit rider? -
✔✔juvenile insurance
✔✔The premium for a Modified whole life policy is - ✔✔lower than the typical whole life
policy during the first few years and then higher than typical for the remainder
✔✔what can a policy owner NOT change? - ✔✔dividen schedule
✔✔which statement is true regarding policy dividends? - ✔✔a dividend option is always
selected by the insured at the time of the policy purchase
✔✔in an insured dies because of an accident, which type of life insurance rider will
provide additional coverage? - ✔✔accidental death rider
