Xcell Testing Solutions (Life & Health) Final 150 Question Practice Exam Questions with accurate answers. 100% proven pass rate. 2022/2023.

Xcell Testing Solutions (Life & Health) Final 150 Question Practice Exam Questions with accurate answers. 100% proven pass rate. 2022/2023. When can a policy owner change a revocable beneficiary? - 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? - Revocable How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - If the primary beneficiary dies before the insured What is the underlying concept regarding level premiums? - 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? - Premium Mode Any changes made on an insurance application requires the initials of whom? - Applicant All of these are considered sources of underwriting information about an applicant EXCEPT - 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? - 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 - free-look period has expired What action should a producer take if the initial premium is NOT submitted with the application? - Forward the application to the insurer without the initial premium Which of the following is an important underwriting principle of group life insurance? - Everyone must be covered in the group Which requirement must be met for an association to be eligible for a group life plan? - 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? - 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? - Corporation N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase? - 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? - Single Premium Which of these is an element of a Single Premium annuity? - Lump-sum payment Which of these statements concerning an Individual Straight Life annuity is accurate? - Payments are made to an annuitant for life An individual who purchases a Life annuity is given protection against - the risk of living longer than expected An immediate annuity consists of a - single premium All of these are considered to be a benefit under Social Security EXCEPT for - unemployment Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - Annuity Which statement regarding third-party ownership of a life insurance policy is true? - It is used extensively in estate-planning as well as business circumstances Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require? - Each partner must own a policy on the other partners Who elects the governing body of a mutual insurance company? - policyholders When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - at future dates specified in the contract with no evidence of insurability required S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT - beneficiary's age M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - policy proceeds What is the Suicide provision designed to do? - safeguard the insurer from an applicant who is contemplating suicide What provision in a life insurance policy states that the application is considered part of the contract? - Entire Contract provision The incontestable clause allows an insurer to - contest a claim during the contestable period All of these statements about the Waiver of Premium provision are correct EXCEPT - Insured must be eligible for Social Security disability for claim to be accepted Which of the following statements is CORRECT about accelerated death benefits? - Must have a terminal illness to qualify Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled? - Payor clause What benefit does the Payor clause on a Juvenile Life policy provide? - Premiums are waived if payor becomes disabled P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? - Accidental Death and Dismemberment provision L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will - adjust the death benefit to a reduced amount S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? - Return of premium rider D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? - The full face amount In a Life insurance contract, an insurance company's promise to pay stated benefits is called the - Insuring clause What does the ownership clause in a life insurance policy state? - Who the policyowner is and what rights the policyowner is entitled to An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - Full face amount minus any past due premiums When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - Void the policy only if it is discovered during the Contestable period and proven to be material Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? - Variable Life What kind of special need would a policyowner require with an Adjustable Life insurance policy? - flexible premiums Credit Life insurance is - issued in an amount not to exceed the amount of the loan Which of these would be considered a Limited-Pay Life policy? - Life Paid-Up at Age 70 Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? - Conversion privilege What type of life insurance incorporates flexible premiums and an adjustable death benefit? - Universal Life A Limited-Pay Life policy has - premium payments limited to a specified number of years Which statement about a whole life policy is correct? - Cash value may be borrowed against Cash value may be borrowed against - Face amount plus the policy's cash value What type of life policy covers 2 lives and pays the face amount after the first one dies? - Joint Life Policy A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as - Variable Life How does a typical Variable Life Policy investment account grow? - Through mutual funds, stocks, bonds All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for - Modified Whole Life K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? - Modified Whole Life What kind of premium does a Whole Life policy have? - level What type of life policy covers two people and pays upon the death of the last insured? - survivorship A policy of adhesion can only be modified by whom? - The insurance company When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - insurable interest in the proposed insured The part of a life insurance policy guaranteed to be true is called a(n) - warranty A Business Overhead Expense policy would cover which of the following if a business owner becomes disabled? - Utilities and office rent Which statement is TRUE regarding a group accident & health policy issued to an employer? - The employer is the policyowner and each employee receives a certificate of coverage T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. When T submits a claim, his employer's plan is considered what type of carrier under the Model Group Coordination of Benefits provision? - Primary carrier J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy? - $25,000 When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans? - Contributory Which contract permits the remaining partners to buy-out the interest of a disabled business partner? - Disability Buy-Sell Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance? - Disability income policy premiums are tax-deductible An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses? - Loss of eyesight due to an accidental injury The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a(n) - closed panel The health insurance program which is administered by each state and funded by both the federal and state governments is called - Medicaid