Xcel Solutions IN Life Insurance Final
Exam Questions and Answers
Which statement is TRUE in regards to a policy loan ? - ANSWER-Past - due
interest on a policy loan is added to the total debt
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 ? - ANSWER-Coercion
Why must an insurance applicant answer all questions on the application ? -
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 ? - 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 - ANSWER-varies
according to the contract
Which of these is NOT considered to be an element of an insurance contract ? -
ANSWER-negotiating
A newly licensed producer must complete 24 hours of continuing education every
___ years . - ANSWER-2
A ( n ) _________ insurance company is one formed in a country other than the
United States . - 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 - 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 . -
ANSWER-producer
Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated : - 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 ? - 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 ? - ANSWER-Mode of Premium
, Which of the following is an example of false advertising ? - ANSWER-An insurance
company publishing misleading information about its policy's provisions
A policyowner's rights are limited under which beneficiary designation ? - ANSWER-
Irrevocable
N is covered by a Term Life policy and does not make the required premium
payment which was due August 1. N dies September 15. What action will the insurer
take ? - ANSWER-Claim will be denied
Which of the following is NOT a required provision in group life policies ? -
ANSWER-• Right to Loan
The free - look period for life insurance policies issued in Indiana is days . -
ANSWER--10
J is a producer who has induced an insured through misrepresentation to surrender
an existing insurance policy . What is J guilty of ? - ANSWER-Twisting
Insurance policies are offered on a " take it or leave it " basis , which make them : -
ANSWER-Contracts of Adhesion
Which of the following is a requirement to attain a nonresident producer license in
Indiana ? - ANSWER-Be licensed as a producer in the producer's state of domicile
A producer must notify the Commissioner within _______ days of a felony conviction
- ANSWER-30
Quarterly premium payments increase the annual cost of insurance because -
ANSWER-interest to the insurer is decreased while the administrative costs are
increased
An individual who in any manner sells , solicits , or negotiates insurance on behalf of
insurance companies for compensation is an insurance : - ANSWER-producer
How often must an insurance producer's license in Indiana be renewed ? -
ANSWER-Every two years .
Variable annuities may invest premiums in each of the following , EXCEPT : -
ANSWER-Insurer's corporate business account
In order to sell a ( n )_________ Life policy , a producer is required to register with
the Financial Industry Regulatory Authority ( FINRA ) . - ANSWER-Variable
J would like to maintain the right to change beneficiaries . Which beneficiary
designation should be used ? - ANSWER-Revocable
Exam Questions and Answers
Which statement is TRUE in regards to a policy loan ? - ANSWER-Past - due
interest on a policy loan is added to the total debt
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 ? - ANSWER-Coercion
Why must an insurance applicant answer all questions on the application ? -
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 ? - 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 - ANSWER-varies
according to the contract
Which of these is NOT considered to be an element of an insurance contract ? -
ANSWER-negotiating
A newly licensed producer must complete 24 hours of continuing education every
___ years . - ANSWER-2
A ( n ) _________ insurance company is one formed in a country other than the
United States . - 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 - 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 . -
ANSWER-producer
Which of the following requires insurers to disclose when an applicant's consumer or
credit history is being investigated : - 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 ? - 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 ? - ANSWER-Mode of Premium
, Which of the following is an example of false advertising ? - ANSWER-An insurance
company publishing misleading information about its policy's provisions
A policyowner's rights are limited under which beneficiary designation ? - ANSWER-
Irrevocable
N is covered by a Term Life policy and does not make the required premium
payment which was due August 1. N dies September 15. What action will the insurer
take ? - ANSWER-Claim will be denied
Which of the following is NOT a required provision in group life policies ? -
ANSWER-• Right to Loan
The free - look period for life insurance policies issued in Indiana is days . -
ANSWER--10
J is a producer who has induced an insured through misrepresentation to surrender
an existing insurance policy . What is J guilty of ? - ANSWER-Twisting
Insurance policies are offered on a " take it or leave it " basis , which make them : -
ANSWER-Contracts of Adhesion
Which of the following is a requirement to attain a nonresident producer license in
Indiana ? - ANSWER-Be licensed as a producer in the producer's state of domicile
A producer must notify the Commissioner within _______ days of a felony conviction
- ANSWER-30
Quarterly premium payments increase the annual cost of insurance because -
ANSWER-interest to the insurer is decreased while the administrative costs are
increased
An individual who in any manner sells , solicits , or negotiates insurance on behalf of
insurance companies for compensation is an insurance : - ANSWER-producer
How often must an insurance producer's license in Indiana be renewed ? -
ANSWER-Every two years .
Variable annuities may invest premiums in each of the following , EXCEPT : -
ANSWER-Insurer's corporate business account
In order to sell a ( n )_________ Life policy , a producer is required to register with
the Financial Industry Regulatory Authority ( FINRA ) . - ANSWER-Variable
J would like to maintain the right to change beneficiaries . Which beneficiary
designation should be used ? - ANSWER-Revocable
