Xcell Testing Solutions (Life & Health) Final
150 Question Practice Exam
1.When can a policy owner change a revocable beneficiary?
ANS Anytime
2.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?
ANS Revocable
3.How would a contingent beneficiary receive the policy proceeds in an Ac-
cidental Death and Dismemberment (AD&D) policy?
ANS If the primary beneficiary dies before the insured
4.What is the underlying concept regarding level premiums?
ANS The early years are charged less than what is needed
5.A policy owner is able to choose the frequency of premium
payments through what policy feature?
ANS Premium Mode
,6.Any changes made on an insurance application requires the initials
of whom?
ANS Applicant
7.All of these are considered sources of underwriting information about
an applicant EXCEPT
ANS Rating Services
8.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?
ANS Policy was returned within the free-look period, premium will be
fully refunded
9.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
ANS free-look period has expired
10.What action should a producer take if the initial premium is NOT
submitted with the application?
ANS Forward the application to the insurer without the initial premium
,11.Which of the following is an important underwriting principle of group
life insurance?
ANS Everyone must be covered in the group
12. Which requirement must be met for an association to be eligible for a
group life plan?
ANS Group was formed for a purpose other than acquiring insurance
13.When an employee is terminated, which statement about a group term
life conversion is true?
ANS Policy proceeds will be paid if the employee dies during the
conversion period
14.Under a trustee group life policy, who would be eligible for a certificate
of coverage?
ANS Corporation
15.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?
ANS Fixed Deferred
, 16.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?
ANS Single Premium
17.Which of these is an element of a Single Premium annuity?
ANS Lump-sum payment
18.Which of these statements concerning an Individual Straight Life
annuity is accurate?
ANS Payments are made to an annuitant for life
19.An individual who purchases a Life annuity is given protection against
ANS the risk of living longer than expected
20.An immediate annuity consists of a
ANS single premium
21.All of these are considered to be a benefit under Social Security EXCEPT
for
ANS unemployment
22.Which product would best serve a retired individual looking to invest
150 Question Practice Exam
1.When can a policy owner change a revocable beneficiary?
ANS Anytime
2.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?
ANS Revocable
3.How would a contingent beneficiary receive the policy proceeds in an Ac-
cidental Death and Dismemberment (AD&D) policy?
ANS If the primary beneficiary dies before the insured
4.What is the underlying concept regarding level premiums?
ANS The early years are charged less than what is needed
5.A policy owner is able to choose the frequency of premium
payments through what policy feature?
ANS Premium Mode
,6.Any changes made on an insurance application requires the initials
of whom?
ANS Applicant
7.All of these are considered sources of underwriting information about
an applicant EXCEPT
ANS Rating Services
8.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?
ANS Policy was returned within the free-look period, premium will be
fully refunded
9.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
ANS free-look period has expired
10.What action should a producer take if the initial premium is NOT
submitted with the application?
ANS Forward the application to the insurer without the initial premium
,11.Which of the following is an important underwriting principle of group
life insurance?
ANS Everyone must be covered in the group
12. Which requirement must be met for an association to be eligible for a
group life plan?
ANS Group was formed for a purpose other than acquiring insurance
13.When an employee is terminated, which statement about a group term
life conversion is true?
ANS Policy proceeds will be paid if the employee dies during the
conversion period
14.Under a trustee group life policy, who would be eligible for a certificate
of coverage?
ANS Corporation
15.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?
ANS Fixed Deferred
, 16.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?
ANS Single Premium
17.Which of these is an element of a Single Premium annuity?
ANS Lump-sum payment
18.Which of these statements concerning an Individual Straight Life
annuity is accurate?
ANS Payments are made to an annuitant for life
19.An individual who purchases a Life annuity is given protection against
ANS the risk of living longer than expected
20.An immediate annuity consists of a
ANS single premium
21.All of these are considered to be a benefit under Social Security EXCEPT
for
ANS unemployment
22.Which product would best serve a retired individual looking to invest
