Xcel - Virginia Life Insurance State Exam Simulator
When compared to a fixed annuity, a variable annuity has what distinguishing feature? - correct
answer Investment risk is assumed by the purchaser
The ________ is required to notify the Bureau of Insurance of a licensee's change of name or
address. - correct answer Licensee
The ________ is required to notify the State Corporation Commission in the event of
appointment termination. - correct answer Insurer
Employers often purchase life insurance on a key employee in order to - correct answer pay for
finding and training a replacement if the employee dies prematurely.
A trustee to trustee transfer of rollover funds in a qualified plan allows a participant to avoid -
correct answer mandatory income tax withholding on the amount transferred.
An individual who purchases a modified life insurance policy expects - correct answer an
improvement in future income
Which of these is not a true statement of the war exclusion - correct answer it applies to civil
insurrections
Which of these is not considered a Federal punishment for unfair and deceptive insurance
practices? - correct answer Community Service
Which of the following is generally a form of a group credit life insurance? - correct answer
Decreasing term insurance
If a group is considering applying for a group life policy, it MUST - correct answer have a
minimum number of eligible persons
Which of these is not a reason to buy a term life policy? - correct answer To accumulate savings
When a ten year renewable term life insurance policy issued at age 45 is renewed, the premium
rate will be the current rate for - correct answer Ten year term insurance for a person aged 55
An example of misrepresentation is - correct answer Falsifying the terms, benefits, advantages,
or conditions of an insurance policy
A(n) ________ insurance company conducts business in a state outside the one in which it is
domiciled - correct answer alien
When an individual is planning to protect his family with life insurance, one method of doing so
is called needs analysis. What exactly does needs analysis involve? - correct answer Identifies
the needs of an individual and the individual's dependents
, If replacement was involved in the sale of a life insurance policy, an agent must provide a
replacement notice no later than the - correct answer application date
A policyowner has a life insurance policy where she had listed her age on the application as 5
years younger than her actual age. If she dies and the insurer discovers the misstatement of
age, how much will the insurance company pay? - correct answer Less than the face amount
Statements made by an insured on an accident and health insurance application are considered
to be - correct answer representations
Which of these is not considered the responsibility of a producer during the underwriting
process? - correct answer Selecting the final approval date
The interest credited to the cash values of personally owned non qualified annuities is
considered - correct answer tax deferred
which of the following is not a valid reason for an insurer to contest a life insurance policy
during the policy's first two years of existence? - correct answer Misstatement of age
An agent who attempts to intimidate is engaging in - correct answer coercion
a life insurance producers underwriting duties may include - correct answer seeking additional
information by the insurance company
a life insurance policy can be backdated before the application date for up to ___________
months - correct answer 6
which of these is not used as selection criteria in the underwriting process of a life insurance
application - correct answer national origin
what would be a valid reason for naming a trust beneficiary of a life insurance policy opposed
to naming an individual - correct answer management of proceeds would be provided
a life annuity with period certain is characterized as - correct answer guaranteeing benefit
payments for a stated minimum number of years
a qualified profit-sharing plan is designed to - correct answer distribute a portion of company
earnings to its employees
administrative actions taken against an agent must be reported to the state corporation
commission within ______________ days of the final disposition - correct answer 30
which element of a contract constitutes a definite and unqualified proposal by one party to
another - correct answer consideration
how are qualified Roth IRA distributions normally treated for tax purposes - correct answer
Received income tax free
When compared to a fixed annuity, a variable annuity has what distinguishing feature? - correct
answer Investment risk is assumed by the purchaser
The ________ is required to notify the Bureau of Insurance of a licensee's change of name or
address. - correct answer Licensee
The ________ is required to notify the State Corporation Commission in the event of
appointment termination. - correct answer Insurer
Employers often purchase life insurance on a key employee in order to - correct answer pay for
finding and training a replacement if the employee dies prematurely.
A trustee to trustee transfer of rollover funds in a qualified plan allows a participant to avoid -
correct answer mandatory income tax withholding on the amount transferred.
An individual who purchases a modified life insurance policy expects - correct answer an
improvement in future income
Which of these is not a true statement of the war exclusion - correct answer it applies to civil
insurrections
Which of these is not considered a Federal punishment for unfair and deceptive insurance
practices? - correct answer Community Service
Which of the following is generally a form of a group credit life insurance? - correct answer
Decreasing term insurance
If a group is considering applying for a group life policy, it MUST - correct answer have a
minimum number of eligible persons
Which of these is not a reason to buy a term life policy? - correct answer To accumulate savings
When a ten year renewable term life insurance policy issued at age 45 is renewed, the premium
rate will be the current rate for - correct answer Ten year term insurance for a person aged 55
An example of misrepresentation is - correct answer Falsifying the terms, benefits, advantages,
or conditions of an insurance policy
A(n) ________ insurance company conducts business in a state outside the one in which it is
domiciled - correct answer alien
When an individual is planning to protect his family with life insurance, one method of doing so
is called needs analysis. What exactly does needs analysis involve? - correct answer Identifies
the needs of an individual and the individual's dependents
, If replacement was involved in the sale of a life insurance policy, an agent must provide a
replacement notice no later than the - correct answer application date
A policyowner has a life insurance policy where she had listed her age on the application as 5
years younger than her actual age. If she dies and the insurer discovers the misstatement of
age, how much will the insurance company pay? - correct answer Less than the face amount
Statements made by an insured on an accident and health insurance application are considered
to be - correct answer representations
Which of these is not considered the responsibility of a producer during the underwriting
process? - correct answer Selecting the final approval date
The interest credited to the cash values of personally owned non qualified annuities is
considered - correct answer tax deferred
which of the following is not a valid reason for an insurer to contest a life insurance policy
during the policy's first two years of existence? - correct answer Misstatement of age
An agent who attempts to intimidate is engaging in - correct answer coercion
a life insurance producers underwriting duties may include - correct answer seeking additional
information by the insurance company
a life insurance policy can be backdated before the application date for up to ___________
months - correct answer 6
which of these is not used as selection criteria in the underwriting process of a life insurance
application - correct answer national origin
what would be a valid reason for naming a trust beneficiary of a life insurance policy opposed
to naming an individual - correct answer management of proceeds would be provided
a life annuity with period certain is characterized as - correct answer guaranteeing benefit
payments for a stated minimum number of years
a qualified profit-sharing plan is designed to - correct answer distribute a portion of company
earnings to its employees
administrative actions taken against an agent must be reported to the state corporation
commission within ______________ days of the final disposition - correct answer 30
which element of a contract constitutes a definite and unqualified proposal by one party to
another - correct answer consideration
how are qualified Roth IRA distributions normally treated for tax purposes - correct answer
Received income tax free
