XCEL CHAPTER 4 EXAM 2025
QUESTIONS AND ANSWERS
Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30.
His insurance agent told him the policy would be paid up if he reached age 100. The present
cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would
be - ANS 500,000.00
A life insurance policy that has premiums fully paid up within a stated time period is called -
ANS limited payment insurance
A Modified Endowment Contract (MEC) is best described as - ANS A life insurance contract
which accumulates cash values higher than the IRS will allow
1 @COPYRIGHT THEBRIGHT 2025/2026
, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering
all three of their lives. If Mike dies first, the policy proceeds - ANS will no longer provide
insurance protection
Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she
purchase that is designed to pay off the loan balance if she dies within the 30-year period? -
ANS Decreasing term insurance
What is the automatic continuance of insurance coverage referred to as? - ANS renewal
All of these statements concerning whole life insurance are false EXCEPT - ANS When a
whole life policy is surrendered, income taxes may be owed
Variable life insurance and Universal life insurance are very similar. Which of these features are
held exclusively by variable universal life insurance? - ANS Policyowner has the right to select
the investment which will provide the greatest return
A securities license is required for a life insurance producer to sell - ANS variable life
insurance
2 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30.
His insurance agent told him the policy would be paid up if he reached age 100. The present
cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would
be - ANS 500,000.00
A life insurance policy that has premiums fully paid up within a stated time period is called -
ANS limited payment insurance
A Modified Endowment Contract (MEC) is best described as - ANS A life insurance contract
which accumulates cash values higher than the IRS will allow
1 @COPYRIGHT THEBRIGHT 2025/2026
, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering
all three of their lives. If Mike dies first, the policy proceeds - ANS will no longer provide
insurance protection
Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she
purchase that is designed to pay off the loan balance if she dies within the 30-year period? -
ANS Decreasing term insurance
What is the automatic continuance of insurance coverage referred to as? - ANS renewal
All of these statements concerning whole life insurance are false EXCEPT - ANS When a
whole life policy is surrendered, income taxes may be owed
Variable life insurance and Universal life insurance are very similar. Which of these features are
held exclusively by variable universal life insurance? - ANS Policyowner has the right to select
the investment which will provide the greatest return
A securities license is required for a life insurance producer to sell - ANS variable life
insurance
2 @COPYRIGHT THEBRIGHT 2025/2026
