XCEL CHAPTER 7 EXAM 2025
QUESTIONS AND ANSWERS
When does a life insurance policy typically become effective?
A. When the policy is issued
B. When initial premium is collected and policy is issued
C. When the application is completed and signed
D. When the completed application is signed and initial premium is collected - ANS When
initial premium is collected and policy is issued
What is the purpose of the Medical Information Bureau (MIB)?
A. To accept or decline insurance applicants
B. To set the premium rates for insurers
C. To help underwriters evaluate risk
D. To perform physical examinations on applicants - ANS To help underwriters evaluate risk
How many months can a life insurance policy normally be backdated from the date of
application?
A. 3
B. 6
C. 9
D. 12 - ANS 6
1 @COPYRIGHT THEBRIGHT 2025/2026
, Upon policy delivery, which of the following must a producer have an applicant sign if no initial
premium was collected with the life insurance application?
A. A waiver of premium
B. A replacement form
C. A good health statement
D. An exclusion - ANS A replacement form
What is involved when a life insurance policy has been backdated?
A. Setting a policy's effective date prior to a preexisting condition
B. Redating a policy after it has been issued
C. Reinstating a lapsed policy
D. Making the policy effective on an earlier date than the present - ANS Making the policy
effective on an earlier date than the present
A change in an insurance application requires?
A. an initial made by the producer
B. an initial made by the applicant
C. approval by the insurer
D. submitting a new application - ANS an initial made by the applicant
Signatures for an insurance application MUST be obtained by the producer from all of the
following sources EXCEPT?
A. the producer
B. the insured
C. the policyowner
D. the beneficiary - ANS the beneficiary
What happens when an insurance policy is backdated?
2 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
When does a life insurance policy typically become effective?
A. When the policy is issued
B. When initial premium is collected and policy is issued
C. When the application is completed and signed
D. When the completed application is signed and initial premium is collected - ANS When
initial premium is collected and policy is issued
What is the purpose of the Medical Information Bureau (MIB)?
A. To accept or decline insurance applicants
B. To set the premium rates for insurers
C. To help underwriters evaluate risk
D. To perform physical examinations on applicants - ANS To help underwriters evaluate risk
How many months can a life insurance policy normally be backdated from the date of
application?
A. 3
B. 6
C. 9
D. 12 - ANS 6
1 @COPYRIGHT THEBRIGHT 2025/2026
, Upon policy delivery, which of the following must a producer have an applicant sign if no initial
premium was collected with the life insurance application?
A. A waiver of premium
B. A replacement form
C. A good health statement
D. An exclusion - ANS A replacement form
What is involved when a life insurance policy has been backdated?
A. Setting a policy's effective date prior to a preexisting condition
B. Redating a policy after it has been issued
C. Reinstating a lapsed policy
D. Making the policy effective on an earlier date than the present - ANS Making the policy
effective on an earlier date than the present
A change in an insurance application requires?
A. an initial made by the producer
B. an initial made by the applicant
C. approval by the insurer
D. submitting a new application - ANS an initial made by the applicant
Signatures for an insurance application MUST be obtained by the producer from all of the
following sources EXCEPT?
A. the producer
B. the insured
C. the policyowner
D. the beneficiary - ANS the beneficiary
What happens when an insurance policy is backdated?
2 @COPYRIGHT THEBRIGHT 2025/2026
