X cell Testing Solutions (Life & Health)
Final 150 Question Practice Exam
Questions
When can a policy owner change a revocable beneficiary?
- CORRECT ANSWERS ✔✔Anytime
M purchased an Accidental Death and Dismemberment
(AD&D) policy and named his son as beneficiary. M has
the right to change the beneficiary designation at
anytime. What type of beneficiary is his son? - CORRECT
ANSWERS ✔✔Revocable
How would a contingent beneficiary receive the policy
proceeds in an Accidental Death and Dismemberment
(AD&D) policy? - CORRECT ANSWERS ✔✔If the
primary beneficiary dies before the insured
What is the underlying concept regarding level
premiums? - CORRECT ANSWERS ✔✔The early years
are charged less than what is needed
A policy owner is able to choose the frequency of
premium payments through what policy feature? -
CORRECT ANSWERS ✔✔Premium Mode
,X cell Testing Solutions (Life & Health)
Final 150 Question Practice Exam
Questions
Any changes made on an insurance application requires
the initials of whom? - CORRECT ANSWERS
✔✔Applicant
All of these are considered sources of underwriting
information about an applicant EXCEPT - CORRECT
ANSWERS ✔✔Rating Services
Q applied for life insurance and submitted the initial
premium on January 1. The policy was issued February 1,
but it was not delivered by the agent until February 7. Q
is dissatisfied and returns the policy February 13. How will
the insurer handle this situation? - CORRECT ANSWERS
✔✔Policy was returned within the free-look period,
premium will be fully refunded
M completes an application for life insurance but does not
pay the initial premium. All of these actions must occur
before M's policy goes into effect EXCEPT - CORRECT
ANSWERS ✔✔free-look period has expired
What action should a producer take if the initial premium
is NOT submitted with the application? - CORRECT
,X cell Testing Solutions (Life & Health)
Final 150 Question Practice Exam
Questions
ANSWERS ✔✔Forward the application to the insurer
without the initial premium
Which of the following is an important underwriting
principle of group life insurance? - CORRECT ANSWERS
✔✔Everyone must be covered in the group
Which requirement must be met for an association to be
eligible for a group life plan? - CORRECT ANSWERS
✔✔Group was formed for a purpose other than acquiring
insurance
When an employee is terminated, which statement about
a group term life conversion is true? - CORRECT
ANSWERS ✔✔Policy proceeds will be paid if the
employee dies during the conversion period
Under a trustee group life policy, who would be eligible
for a certificate of coverage? - CORRECT ANSWERS
✔✔Corporation
N, age 50, recently bought an annuity that will pay a
guaranteed $2,000/month at age 70 for life. What type of
, X cell Testing Solutions (Life & Health)
Final 150 Question Practice Exam
Questions
annuity did N purchase? - CORRECT ANSWERS
✔✔Fixed Deferred
S recently received a $500,000 lump sum retirement
buyout from her employer. She would like to buy an
annuity that will immediately furnish her with a
guaranteed income for life. What type of annuity is best
suited for her situation? - CORRECT ANSWERS
✔✔Single Premium
Which of these is an element of a Single Premium
annuity? - CORRECT ANSWERS ✔✔Lump-sum
payment
Which of these statements concerning an Individual
Straight Life annuity is accurate? - CORRECT ANSWERS
✔✔Payments are made to an annuitant for life
An individual who purchases a Life annuity is given
protection against - CORRECT ANSWERS ✔✔the risk
of living longer than expected
Final 150 Question Practice Exam
Questions
When can a policy owner change a revocable beneficiary?
- CORRECT ANSWERS ✔✔Anytime
M purchased an Accidental Death and Dismemberment
(AD&D) policy and named his son as beneficiary. M has
the right to change the beneficiary designation at
anytime. What type of beneficiary is his son? - CORRECT
ANSWERS ✔✔Revocable
How would a contingent beneficiary receive the policy
proceeds in an Accidental Death and Dismemberment
(AD&D) policy? - CORRECT ANSWERS ✔✔If the
primary beneficiary dies before the insured
What is the underlying concept regarding level
premiums? - CORRECT ANSWERS ✔✔The early years
are charged less than what is needed
A policy owner is able to choose the frequency of
premium payments through what policy feature? -
CORRECT ANSWERS ✔✔Premium Mode
,X cell Testing Solutions (Life & Health)
Final 150 Question Practice Exam
Questions
Any changes made on an insurance application requires
the initials of whom? - CORRECT ANSWERS
✔✔Applicant
All of these are considered sources of underwriting
information about an applicant EXCEPT - CORRECT
ANSWERS ✔✔Rating Services
Q applied for life insurance and submitted the initial
premium on January 1. The policy was issued February 1,
but it was not delivered by the agent until February 7. Q
is dissatisfied and returns the policy February 13. How will
the insurer handle this situation? - CORRECT ANSWERS
✔✔Policy was returned within the free-look period,
premium will be fully refunded
M completes an application for life insurance but does not
pay the initial premium. All of these actions must occur
before M's policy goes into effect EXCEPT - CORRECT
ANSWERS ✔✔free-look period has expired
What action should a producer take if the initial premium
is NOT submitted with the application? - CORRECT
,X cell Testing Solutions (Life & Health)
Final 150 Question Practice Exam
Questions
ANSWERS ✔✔Forward the application to the insurer
without the initial premium
Which of the following is an important underwriting
principle of group life insurance? - CORRECT ANSWERS
✔✔Everyone must be covered in the group
Which requirement must be met for an association to be
eligible for a group life plan? - CORRECT ANSWERS
✔✔Group was formed for a purpose other than acquiring
insurance
When an employee is terminated, which statement about
a group term life conversion is true? - CORRECT
ANSWERS ✔✔Policy proceeds will be paid if the
employee dies during the conversion period
Under a trustee group life policy, who would be eligible
for a certificate of coverage? - CORRECT ANSWERS
✔✔Corporation
N, age 50, recently bought an annuity that will pay a
guaranteed $2,000/month at age 70 for life. What type of
, X cell Testing Solutions (Life & Health)
Final 150 Question Practice Exam
Questions
annuity did N purchase? - CORRECT ANSWERS
✔✔Fixed Deferred
S recently received a $500,000 lump sum retirement
buyout from her employer. She would like to buy an
annuity that will immediately furnish her with a
guaranteed income for life. What type of annuity is best
suited for her situation? - CORRECT ANSWERS
✔✔Single Premium
Which of these is an element of a Single Premium
annuity? - CORRECT ANSWERS ✔✔Lump-sum
payment
Which of these statements concerning an Individual
Straight Life annuity is accurate? - CORRECT ANSWERS
✔✔Payments are made to an annuitant for life
An individual who purchases a Life annuity is given
protection against - CORRECT ANSWERS ✔✔the risk
of living longer than expected
