XCEL Solutions practice Exam Simulator Questions and Answers Graded A+

XCEL Solutions practice Exam Simulator Questions and Answers Graded A+ Which of the following statements is CORRECT regarding the tax treatment of a lump- sum payment paid to a life insurance policy's primary beneficiary? - Correct Answer ️️ -All proceeds are income tax free in the year they are received. A(n) _____ insurance company is one formed in a country other than the United States. - Correct Answer ️️ -Alien Term insurance has which of the following characteristics? - Correct Answer ️️ - Expires at the end of the policy period. Which Federal law allows an insurer to obtain an inspection report on a potential insured? - Correct Answer ️️ -Fair Credit Reporting Act N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take? - Correct Answer ️️ -Claim will be denied. 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? - Correct Answer ️️ -$0 All of the following are consider to be typical characteristics describing the nature of an insurance contract, EXCEPT: - Correct Answer ️️ -Aleatory K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable? - Correct Answer ️️ -Level A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached? - Correct Answer ️️ -Waiver of Premium P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? - Correct Answer ️️ -P will still receive declared dividends. A policy of adhesion can only be modified by whom? - Correct Answer ️️ -The insurance company An individual working part-time has an annual income of 25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allow