1|Page
XCEL State Exam Simulator (3 LATEST VERSIONS)|| Questions
And Correct Detailed Answers (verified
Answers)||Already Graded A+||Newest Exam!!!!
G is an accountant who has ten employees and is concerned
about how the business would survive financially if G became
disabled. The type of policy which BEST addresses this concern
is: - ANSWER-Business Overhead Expense.
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? - ANSWER-20-Pay Life
accumulates cash value faster than Straight Life
T and S are named co-primary beneficiaries on a $500,000
Accidental Death and Dismemberment policy insuring their
father. Their mother was named contingent beneficiary. Five
years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death
benefit will the mother receive? - ANSWER-0
Which of these statements is INCORRECT regarding the federal
income tax treatment of life insurance? - ANSWER-Entire cash
surrender value is taxable.
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Which of the following is NOT required in the Outline of
Coverage for a health insurance policy? - ANSWER-Projection of
the policy's future costs
B receives yearly dividends and interest from a participating life
insurance policy. Which of these should B include as gross
income for federal income tax purposes? - ANSWER-interest
only
The insurer must provide a prospective buyer with a(n) -
ANSWER-buyers guide an dpolicy summary
Information obtained from a phone conversation to the
proposed insured can be found in which of these reports? -
ANSWER-Inspection report.
An incomplete life insurance application submitted to an insurer
will result in which of these actions? - ANSWER-Application will
be returned to the writing agent.
Under a life insurance policy, the ________ has the authority to
name the beneficiary. - ANSWER-owner
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The free-look period for all qualified Long-term care policies
sold in Florida is __ days. - ANSWER-30 days
T is an agent and when hired, is reminded that he has a
responsibility to handle clients' funds in an honest and ethical
manner. This responsibility is referred to as - ANSWER-fiduciary
responsibility
Basic Hospital and Surgical policy benefits are: - ANSWER-lower
than the actual expenses incurred
An insurance company receives E's application for an individual
health policy. E did not complete all of the medical history
questions because she could not remember the exact dates. E
signed the policy and submitted it to the insurance company
anyway. A few weeks later, E suffers a heart attack and is
hospitalized without completing the medical history questions
and paying the initial premium. E is not insured. Which of the
following clauses details the conditions that E did not meet? -
ANSWER-Consideration Clause
, 4|Page
Which of the following statements BEST describes dental care
indemnity coverage? - ANSWER-Services are reimbursed after
insurer receives the invoice
A policyowner would like to change the beneficiary on an
Accidental Death and Dismemberment (AD&D) insurance policy
and make the change permanent. Which type of designation
would fulfill this need? - ANSWER-Irrevocable
A Life insurance policyowner would like to take out a policy loan
against the cash value in his Whole Life policy. The interest rate
applied to this loan may vary over time. This is referred to as
a(n) ________ rate loan. - ANSWER-variable
Which of the following Life insurance policies combine term
insurance with an investment element? - ANSWER-Universal life
(UL) insurance
According to Florida law, group life insurance conversion
privileges must NOT - ANSWER-"require evidence of insurability
A pilot applies for Life insurance. The insurer approves the
application with a $10 additional monthly premium
modification due to the risk involved. The pilot declines the
XCEL State Exam Simulator (3 LATEST VERSIONS)|| Questions
And Correct Detailed Answers (verified
Answers)||Already Graded A+||Newest Exam!!!!
G is an accountant who has ten employees and is concerned
about how the business would survive financially if G became
disabled. The type of policy which BEST addresses this concern
is: - ANSWER-Business Overhead Expense.
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? - ANSWER-20-Pay Life
accumulates cash value faster than Straight Life
T and S are named co-primary beneficiaries on a $500,000
Accidental Death and Dismemberment policy insuring their
father. Their mother was named contingent beneficiary. Five
years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death
benefit will the mother receive? - ANSWER-0
Which of these statements is INCORRECT regarding the federal
income tax treatment of life insurance? - ANSWER-Entire cash
surrender value is taxable.
,2|Page
Which of the following is NOT required in the Outline of
Coverage for a health insurance policy? - ANSWER-Projection of
the policy's future costs
B receives yearly dividends and interest from a participating life
insurance policy. Which of these should B include as gross
income for federal income tax purposes? - ANSWER-interest
only
The insurer must provide a prospective buyer with a(n) -
ANSWER-buyers guide an dpolicy summary
Information obtained from a phone conversation to the
proposed insured can be found in which of these reports? -
ANSWER-Inspection report.
An incomplete life insurance application submitted to an insurer
will result in which of these actions? - ANSWER-Application will
be returned to the writing agent.
Under a life insurance policy, the ________ has the authority to
name the beneficiary. - ANSWER-owner
,3|Page
The free-look period for all qualified Long-term care policies
sold in Florida is __ days. - ANSWER-30 days
T is an agent and when hired, is reminded that he has a
responsibility to handle clients' funds in an honest and ethical
manner. This responsibility is referred to as - ANSWER-fiduciary
responsibility
Basic Hospital and Surgical policy benefits are: - ANSWER-lower
than the actual expenses incurred
An insurance company receives E's application for an individual
health policy. E did not complete all of the medical history
questions because she could not remember the exact dates. E
signed the policy and submitted it to the insurance company
anyway. A few weeks later, E suffers a heart attack and is
hospitalized without completing the medical history questions
and paying the initial premium. E is not insured. Which of the
following clauses details the conditions that E did not meet? -
ANSWER-Consideration Clause
, 4|Page
Which of the following statements BEST describes dental care
indemnity coverage? - ANSWER-Services are reimbursed after
insurer receives the invoice
A policyowner would like to change the beneficiary on an
Accidental Death and Dismemberment (AD&D) insurance policy
and make the change permanent. Which type of designation
would fulfill this need? - ANSWER-Irrevocable
A Life insurance policyowner would like to take out a policy loan
against the cash value in his Whole Life policy. The interest rate
applied to this loan may vary over time. This is referred to as
a(n) ________ rate loan. - ANSWER-variable
Which of the following Life insurance policies combine term
insurance with an investment element? - ANSWER-Universal life
(UL) insurance
According to Florida law, group life insurance conversion
privileges must NOT - ANSWER-"require evidence of insurability
A pilot applies for Life insurance. The insurer approves the
application with a $10 additional monthly premium
modification due to the risk involved. The pilot declines the
