XCEL Chapter 4 Exam Questions with Correct Answers

XCEL Chapter 4 Exam Questions with Correct Answers Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? A. Can be converted to permanent coverage without evidence of insurability B. Coverage can be different for each child C. Premiums on this rider are not required until the limiting age is reached D. Increases the policy's overall cash value - Answer-Can be converted to permanent coverage without evidence of insurability A renewable Term Life insurance policy allows the policyowner the right to renew the policy? A. at anytime the policyowner chooses B. as many times as the policyowner chooses C. paying the same premium as before the renewal D. without producing proof of insurability - Answer-without producing proof of insurability Which type of life insurance is normally associated with a Payor Benefit rider? A. Juvenile insurance B. Family income insurance C. Spouse insurance D. Term rider - Answer-Juvenile insurance A life insurance policy that has premiums fully paid up within a stated time period is called? A. stated payment insurance B. limited universal insurance C. stated modified insurance D. limited payment insurance - Answer-limited payment insurance Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? A. Policy loans are disallowed B. The premium payments will be tax deductible C. Pre-death distributions are typically taxable D. Withdrawals will be prohibited - Answer-Pre-death distributions are typically taxable