XCEL SOLUTIONS LIFE INSURANCE FINAL
EXAM
Questions & Answers
1.When is the face amount of a Whole Life policy paid?
Answer When the insured dies or at the policy's maturity date,
whichever happens first
2.An IRA owner can start making withdrawals and NOT be subjected to a
tax penalty beginning at what age?
Answer 59 ½
3.In an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this?
Answer Unilateral
4.Colorado's replacement rules apply to all of the following types of
insurance EXCEPT
Answer Single premium whole life
5.What type of life policy covers two people and pays upon the death of
the last insured?
Answer Survivorship
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,6.C is a key employee at ABC Incorporated. If a Key Employee life policy is
purchased on her life, which of these statements would be true?
Answer ABC is the policy owner, C is the insured, and ABC is the
beneficiary
7.A policyowner is able to choose the frequency of premium
payments through what policy feature?
Answer Premium Mode
8.Which of the following are Equity Indexed annuities typically invested in?-
Answer S&P 500
9.An insurer that terminates a producer's appointment must inform the
Com- missioner within how many days?
Answer 30
10.When does a Guaranteed Insurability Rider allow the insured to buy
ad- ditional coverage?
Answer At future dates specified in the contract with no evidence of
insurability required
11.Which of these types of policies may NOT have the Automatic
Premium Loan provision attached to it?
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, Answer Decreasing Term
12.When recommending the purchase or exchange of an annuity, a
producer must determine the suitability of the purchase by performing all of
the follow- ing EXCEPT
Answer Determining the marital status of the applicant
13.A producer license may be suspended or revoked if the producer is
found to be engaging in
Answer Misrepresentation
14.Which of these is an element of a Single Premium annuity?
Answer Lump-sum payment
15.The commissioner may issue an emergency cease and desist order with-
out a hearing for all of the following circumstances EXCEPT
Answer Writing controlled business
16.The combination of Whole Life and Term Insurance is referred to as
a Family Income Policy
Answer Decreasing
17.Who is NOT required to sign a life insurance application?
Answer Beneficiary
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EXAM
Questions & Answers
1.When is the face amount of a Whole Life policy paid?
Answer When the insured dies or at the policy's maturity date,
whichever happens first
2.An IRA owner can start making withdrawals and NOT be subjected to a
tax penalty beginning at what age?
Answer 59 ½
3.In an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this?
Answer Unilateral
4.Colorado's replacement rules apply to all of the following types of
insurance EXCEPT
Answer Single premium whole life
5.What type of life policy covers two people and pays upon the death of
the last insured?
Answer Survivorship
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21
,6.C is a key employee at ABC Incorporated. If a Key Employee life policy is
purchased on her life, which of these statements would be true?
Answer ABC is the policy owner, C is the insured, and ABC is the
beneficiary
7.A policyowner is able to choose the frequency of premium
payments through what policy feature?
Answer Premium Mode
8.Which of the following are Equity Indexed annuities typically invested in?-
Answer S&P 500
9.An insurer that terminates a producer's appointment must inform the
Com- missioner within how many days?
Answer 30
10.When does a Guaranteed Insurability Rider allow the insured to buy
ad- ditional coverage?
Answer At future dates specified in the contract with no evidence of
insurability required
11.Which of these types of policies may NOT have the Automatic
Premium Loan provision attached to it?
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21
, Answer Decreasing Term
12.When recommending the purchase or exchange of an annuity, a
producer must determine the suitability of the purchase by performing all of
the follow- ing EXCEPT
Answer Determining the marital status of the applicant
13.A producer license may be suspended or revoked if the producer is
found to be engaging in
Answer Misrepresentation
14.Which of these is an element of a Single Premium annuity?
Answer Lump-sum payment
15.The commissioner may issue an emergency cease and desist order with-
out a hearing for all of the following circumstances EXCEPT
Answer Writing controlled business
16.The combination of Whole Life and Term Insurance is referred to as
a Family Income Policy
Answer Decreasing
17.Who is NOT required to sign a life insurance application?
Answer Beneficiary
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