XCEL Practice Exams Questions and
Answers
1. A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the early
years of the policy. Which of these statements made by the producer
would be correct?
ANS 20-Pay Life accumulates cash value faster than Straight Life
2. A variable insurance policy
ANS does not guarantee a return on its investment accounts
3. A Renewable Term Policy is renewable at the option of the
ANS Insured
4. Which of these types of life insurance allows the policyowner to
have level premiums and to also choose from a selection of
investment options?
ANS Variable Life
5. Which of the following actions is NOT possible with a Universal Life
policy?
ANS -
,Premiums may be applied as a credit against income tax
6. Which provision allows the policyowner to change a term life
policy to a permanent one without providing proof of good health?
ANS conversion
7. What type of policy would offer a 40-year old the quickest
accumulation of cash value?
ANS 20-pay life
8. A 42-year-old executive wants to purchase life insurance that
will allow for increases or decreases to coverage as his/her needs
change. Which of the following policies will best meet this need?
ANS Universal Life
9. J is 35-years old and looking to purchase a whole life insurance
policy. Which of the following types of policies will provide the most
rapid growth of cash value?
ANS 20-pay Life
10. All of these insurance products require an agent to have
proper FINRA securities registration in order to sell them, EXCEPT
for
ANS Modified Whole Life
,11. All of these are characteristics of an Adjustable Life policy,
EXCEPT
ANS face amount can be adjusted using policy dividends
12. What kind of special need would a policyowner require with
an Adjustable Life insurance policy?
ANS flexible premiums
13. K pays on a $20,000 20-Year Endowment policy for 10 years
and dies from an automobile accident. How much will the insurance
company pay the bene- ficiary?
ANS $20,000 death benefit
14. What does a Face Amount Plus Cash Value Policy supposed
to pay at the insured's death?
ANS Face amount plus the policy's cash value
15. Variable Life products require a producer to
ANS hold a Life Insurance license and a Securities license
16. What kind of life policy either pays the face value upon
the death of the insured or when the insured reaches age 100?
ANS whole life
, 17. Q would like to purchase $100,000 of permanent protection on
his wife and
$50,000 of Term coverage on himself under the same policy. What kind
of policy should Q purchase?
ANS Whole life policy with other insured rider
18. Which of the following types of policies pays a benefit if the
insured goes blind?
ANS AD&D
19. All of these statements about Equity Indexed Life Insurance
are correct, EXCEPT
ANS The premiums can be lowered or raised, based on investment performance
20. M purchases a $70,000 Life Insurance Policy with premium
payments of $550 a year for the first 5 years. At the beginning of
the sixth year, the premium will increase to $800 per year but will
remain level thereafter. The face amount will remain at $70,000
throughout the life of the policy. The type of policy that M has
purchased is
ANS Modified Premium Life
21. Additional coverage can be added to a Whole Life policy by
adding a(n)
ANS de- creasing term rider
Answers
1. A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the early
years of the policy. Which of these statements made by the producer
would be correct?
ANS 20-Pay Life accumulates cash value faster than Straight Life
2. A variable insurance policy
ANS does not guarantee a return on its investment accounts
3. A Renewable Term Policy is renewable at the option of the
ANS Insured
4. Which of these types of life insurance allows the policyowner to
have level premiums and to also choose from a selection of
investment options?
ANS Variable Life
5. Which of the following actions is NOT possible with a Universal Life
policy?
ANS -
,Premiums may be applied as a credit against income tax
6. Which provision allows the policyowner to change a term life
policy to a permanent one without providing proof of good health?
ANS conversion
7. What type of policy would offer a 40-year old the quickest
accumulation of cash value?
ANS 20-pay life
8. A 42-year-old executive wants to purchase life insurance that
will allow for increases or decreases to coverage as his/her needs
change. Which of the following policies will best meet this need?
ANS Universal Life
9. J is 35-years old and looking to purchase a whole life insurance
policy. Which of the following types of policies will provide the most
rapid growth of cash value?
ANS 20-pay Life
10. All of these insurance products require an agent to have
proper FINRA securities registration in order to sell them, EXCEPT
for
ANS Modified Whole Life
,11. All of these are characteristics of an Adjustable Life policy,
EXCEPT
ANS face amount can be adjusted using policy dividends
12. What kind of special need would a policyowner require with
an Adjustable Life insurance policy?
ANS flexible premiums
13. K pays on a $20,000 20-Year Endowment policy for 10 years
and dies from an automobile accident. How much will the insurance
company pay the bene- ficiary?
ANS $20,000 death benefit
14. What does a Face Amount Plus Cash Value Policy supposed
to pay at the insured's death?
ANS Face amount plus the policy's cash value
15. Variable Life products require a producer to
ANS hold a Life Insurance license and a Securities license
16. What kind of life policy either pays the face value upon
the death of the insured or when the insured reaches age 100?
ANS whole life
, 17. Q would like to purchase $100,000 of permanent protection on
his wife and
$50,000 of Term coverage on himself under the same policy. What kind
of policy should Q purchase?
ANS Whole life policy with other insured rider
18. Which of the following types of policies pays a benefit if the
insured goes blind?
ANS AD&D
19. All of these statements about Equity Indexed Life Insurance
are correct, EXCEPT
ANS The premiums can be lowered or raised, based on investment performance
20. M purchases a $70,000 Life Insurance Policy with premium
payments of $550 a year for the first 5 years. At the beginning of
the sixth year, the premium will increase to $800 per year but will
remain level thereafter. The face amount will remain at $70,000
throughout the life of the policy. The type of policy that M has
purchased is
ANS Modified Premium Life
21. Additional coverage can be added to a Whole Life policy by
adding a(n)
ANS de- creasing term rider
