Xcel Testing Solutions (Life & Health) Final 150 Question Practice
Exam
When can a policyowner change a revocable beneficiary?
Answer: Anytime.
M purchased an Accidental Death and Dismemberment (AD&D) policy and designated his son as the
beneficiary. What type of beneficiary is his son, given that M has the right to change the beneficiary
designation at any time?
Answer: Revocable.
Under what condition would a contingent beneficiary receive the policy proceeds from an Accidental
Death and Dismemberment (AD&D) policy?
Answer: If the primary beneficiary dies before the insured.
What is the main principle behind level premiums?
Answer: The early years are charged less than what is needed.
Through what policy feature can a policyowner decide on the frequency of premium payments?
Answer: Premium Mode.
Who must initial any changes made on an insurance application?
Answer: Applicant.
All of the following are sources of underwriting information about an applicant EXCEPT:
Answer: Rating Services.
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued on
February 1 but not delivered until February 7. Q returned the policy on February 13. How will the insurer
address this?
,Answer: The policy was returned within the free-look period, and the premium will be fully refunded.
M filled out a life insurance application but did not pay the initial premium. All the following actions
must occur before M's policy becomes effective EXCEPT:
Answer: Free-look period has expired.
What should a producer do if the initial premium is NOT included with the application?
Answer: Forward the application to the insurer without the initial premium.
Which principle is crucial in underwriting group life insurance?
Answer: Everyone must be covered in the group.
What requirement must an association fulfill to qualify for a group life plan?
Answer: The group was formed for a purpose other than acquiring insurance.
After an employee is terminated, which statement about converting group term life insurance is true?
Answer: Policy proceeds will be paid if the employee dies during the conversion period.
Under a trustee group life policy, who qualifies for a certificate of coverage?
Answer: Corporation.
N, age 50, has purchased an annuity that guarantees a payment of $2,000 per month starting at age 70
for life. What type of annuity has N acquired?
Answer: Fixed Deferred.
After receiving a $500,000 lump-sum retirement buyout from her employer, S wants to buy an annuity
that will immediately provide her with guaranteed income for life. What type of annuity is best suited
for her situation?
Answer: Single Premium.
, Which of the following is an element of a Single Premium annuity?
Answer: Lump-sum payment.
Which statement about an Individual Straight Life annuity is correct?
Answer: Payments are made to an annuitant for life.
What protection does an individual who purchases a Life annuity receive?
Answer: Protection against the risk of living longer than expected.
An immediate annuity consists of a:
Answer: Single premium.
All of the following are considered benefits under Social Security EXCEPT for:
Answer: Unemployment.
Which product would be the most suitable for a retired individual wanting to invest a lump sum of
money through an insurance company?
Answer: Annuity.
Which statement about third-party ownership of a life insurance policy is true?
Answer: It is used extensively in estate-planning as well as business circumstances.
If Company Z has a Cross Purchase Buy-Sell Agreement among its three founding partners and the
agreement is funded with individual life insurance, what is required?
Answer: Each partner must own a policy on the other partners.
Who elects the governing body of a mutual insurance company?
Answer: Policyholders.
Exam
When can a policyowner change a revocable beneficiary?
Answer: Anytime.
M purchased an Accidental Death and Dismemberment (AD&D) policy and designated his son as the
beneficiary. What type of beneficiary is his son, given that M has the right to change the beneficiary
designation at any time?
Answer: Revocable.
Under what condition would a contingent beneficiary receive the policy proceeds from an Accidental
Death and Dismemberment (AD&D) policy?
Answer: If the primary beneficiary dies before the insured.
What is the main principle behind level premiums?
Answer: The early years are charged less than what is needed.
Through what policy feature can a policyowner decide on the frequency of premium payments?
Answer: Premium Mode.
Who must initial any changes made on an insurance application?
Answer: Applicant.
All of the following are sources of underwriting information about an applicant EXCEPT:
Answer: Rating Services.
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued on
February 1 but not delivered until February 7. Q returned the policy on February 13. How will the insurer
address this?
,Answer: The policy was returned within the free-look period, and the premium will be fully refunded.
M filled out a life insurance application but did not pay the initial premium. All the following actions
must occur before M's policy becomes effective EXCEPT:
Answer: Free-look period has expired.
What should a producer do if the initial premium is NOT included with the application?
Answer: Forward the application to the insurer without the initial premium.
Which principle is crucial in underwriting group life insurance?
Answer: Everyone must be covered in the group.
What requirement must an association fulfill to qualify for a group life plan?
Answer: The group was formed for a purpose other than acquiring insurance.
After an employee is terminated, which statement about converting group term life insurance is true?
Answer: Policy proceeds will be paid if the employee dies during the conversion period.
Under a trustee group life policy, who qualifies for a certificate of coverage?
Answer: Corporation.
N, age 50, has purchased an annuity that guarantees a payment of $2,000 per month starting at age 70
for life. What type of annuity has N acquired?
Answer: Fixed Deferred.
After receiving a $500,000 lump-sum retirement buyout from her employer, S wants to buy an annuity
that will immediately provide her with guaranteed income for life. What type of annuity is best suited
for her situation?
Answer: Single Premium.
, Which of the following is an element of a Single Premium annuity?
Answer: Lump-sum payment.
Which statement about an Individual Straight Life annuity is correct?
Answer: Payments are made to an annuitant for life.
What protection does an individual who purchases a Life annuity receive?
Answer: Protection against the risk of living longer than expected.
An immediate annuity consists of a:
Answer: Single premium.
All of the following are considered benefits under Social Security EXCEPT for:
Answer: Unemployment.
Which product would be the most suitable for a retired individual wanting to invest a lump sum of
money through an insurance company?
Answer: Annuity.
Which statement about third-party ownership of a life insurance policy is true?
Answer: It is used extensively in estate-planning as well as business circumstances.
If Company Z has a Cross Purchase Buy-Sell Agreement among its three founding partners and the
agreement is funded with individual life insurance, what is required?
Answer: Each partner must own a policy on the other partners.
Who elects the governing body of a mutual insurance company?
Answer: Policyholders.
