XCEL Exam 4 Questions with
Complete Answers7
When does a life insurance contract become effective if the initial premium is not collected
during the application process? - ANSWERS-when producer delivers policy and collects initial
premium
Under the USA Patriot Act, insurers are required to report receipt of cash payment in excess of: -
ANSWERS-$10,000
The underwriting process involves all of these, EXCEPT for: - ANSWERS-policy loan
ABC Insurance Company has accepted a life insurance application which contains unanswered
questions. The company then makes the application part of the life contract. In this situation,
the insurer has - ANSWERS-waived one of its legal rights
An insurance company may NOT reject a prospective insured's life application on the basis of
which of the following factors? - ANSWERS-gender
Information obtained from a phone conversation to the proposed insured can be found in which
of these reports? - ANSWERS-inspection report
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the
initial premium. On August 18, D went to his doctor complaining of chest pains and some tests
were given by the doctor. The life policy was delivered by the producer on August 20 and D
explains what had recently taken place with the doctor. What action should the producer then
take? - ANSWERS-collect initial premium along with a signed health statement
, All are true statements regarding the underwriting process, EXCEPT: - ANSWERS-AIDS and HIV
testing must be conducted in a uniform fashion and cannot be discriminatory
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may
be considered a red flag for a(n) - ANSWERS-Anti-Money Laundering violation
What action should a producer take if the initial premium is NOT submitted with the
application? - ANSWERS-forward the application to the insurer without the initial premium
An underwriter determines that an applicant's risk should be recategorized due to a health
issue. This policy may be issued with a(n): - ANSWERS-exclusion for the medical condition
P is a producer who notices 5 questions on a life application were not answered. What actions
should P take? - ANSWERS-set up a meeting with the applicant to answer the remaining
questions
Before a life insurance policy is issued, which of these components of the contract is required? -
ANSWERS-applicant's signature on application
Consumer reports requested by an underwriter during the application process of a life
insurance policy can be used to determine: - ANSWERS-probability of making timely premium
payments
K is an agent who takes an application for individual life insurance and accepts a check from the
client. He submits the application and check to the insurance company, however the check was
never signed by the applicant. If the application is approved, when will coverage be effective? -
ANSWERS-the date the agent delivered the policy, collected the initial premium, and obtained a
good health statement
Complete Answers7
When does a life insurance contract become effective if the initial premium is not collected
during the application process? - ANSWERS-when producer delivers policy and collects initial
premium
Under the USA Patriot Act, insurers are required to report receipt of cash payment in excess of: -
ANSWERS-$10,000
The underwriting process involves all of these, EXCEPT for: - ANSWERS-policy loan
ABC Insurance Company has accepted a life insurance application which contains unanswered
questions. The company then makes the application part of the life contract. In this situation,
the insurer has - ANSWERS-waived one of its legal rights
An insurance company may NOT reject a prospective insured's life application on the basis of
which of the following factors? - ANSWERS-gender
Information obtained from a phone conversation to the proposed insured can be found in which
of these reports? - ANSWERS-inspection report
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the
initial premium. On August 18, D went to his doctor complaining of chest pains and some tests
were given by the doctor. The life policy was delivered by the producer on August 20 and D
explains what had recently taken place with the doctor. What action should the producer then
take? - ANSWERS-collect initial premium along with a signed health statement
, All are true statements regarding the underwriting process, EXCEPT: - ANSWERS-AIDS and HIV
testing must be conducted in a uniform fashion and cannot be discriminatory
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may
be considered a red flag for a(n) - ANSWERS-Anti-Money Laundering violation
What action should a producer take if the initial premium is NOT submitted with the
application? - ANSWERS-forward the application to the insurer without the initial premium
An underwriter determines that an applicant's risk should be recategorized due to a health
issue. This policy may be issued with a(n): - ANSWERS-exclusion for the medical condition
P is a producer who notices 5 questions on a life application were not answered. What actions
should P take? - ANSWERS-set up a meeting with the applicant to answer the remaining
questions
Before a life insurance policy is issued, which of these components of the contract is required? -
ANSWERS-applicant's signature on application
Consumer reports requested by an underwriter during the application process of a life
insurance policy can be used to determine: - ANSWERS-probability of making timely premium
payments
K is an agent who takes an application for individual life insurance and accepts a check from the
client. He submits the application and check to the insurance company, however the check was
never signed by the applicant. If the application is approved, when will coverage be effective? -
ANSWERS-the date the agent delivered the policy, collected the initial premium, and obtained a
good health statement
