©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
Xcel Practice Chapter Exam Practice
Questions and Answers
A whole life insurance policyownet foes not wish to continue making
premium payments. Which of the following enables the policyowner to call
the policy for more than its cash value? - Answer✔️✔️-Life-Settlement
Contract
P owns a 25,000 Life policy that pays the face amount to him if he lives to
age 70, or to his beneficiary if he dies before age 70. What kind of policy
does P own? - Answer✔️✔️-Endowment at Age 70
Which type of life policy contains a monthly mortality charge as well as
self-directed investment choices? - Answer✔️✔️-Variable Universal Life
A policy if adhesion can only be modified by whom? - Answer✔️✔️-The
Insurance company
Which of the following consists of an offer, acceptance, and consideration?
- Answer✔️✔️-Contract
What type of annuity has a cash value that is based upon the performance
of it's underlying investment funds? - Answer✔️✔️-Variable
Which of the following statements is CORRECT regarding the tax
treatment of a lump-sum payment paid to a life insurance policy's primary
1
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
beneficiary? - Answer✔️✔️-All proceeds are income tax free in the year they
are recieved
A life insurance application may be rejected on the basis of all of these
factors EXCEPT: - Answer✔️✔️-Gender
Term Insurance has which of the following characteristics? - Answer✔️✔️-
Expires at the end of the policy period
A student pilot can pay regular premium costs for her life insurance policy
with the addition of which of the following? - Answer✔️✔️-Aviation
Exclusion
In a life insurance policy, which provision states who may select policy
options, designate and name a beneficiary, and be the policy? - Answer✔️✔️-
Owner's Rights
The entity whose sole purpose is sharing medical data among its member
companies is called the - Answer✔️✔️-Medical Information Bureau (MIB)
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 - Answer✔️✔️-Free-look period has expired
The cash value in a(n)_________________ Life policy may fluctuate to
reflect changing assumptions regarding mortality cost, interest, and
expense factors. - Answer✔️✔️-A Universal Life policy
2
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
An employee with 25,000 group term life coverage was recently fired. This
employee's group coverage may be converted to a: - Answer✔️✔️-25,000
Individual Whole Life policy
P is blinded in an industrial accident. Which provision of his life insurance
policy will pay a stated benefit amount? - Answer✔️✔️-Accidental Death
and Dismemberment clause
Q is severely injured in an automobile accident and becomes totally
disabled. How many months must Q be disabled before being able to apply
for Social Security disability benefits? - Answer✔️✔️-5
Which statement regarding the Misstatement of Age provision is
considered to be true? - Answer✔️✔️-Coverage will be adjusted to reflect the
insured's true age if a misstatement of age is discovered
Which of the following is an important wunderwriting principle of group
life insurance. - Answer✔️✔️-Everyone must be covered in the group
An architecture firm would stand to lose a lot of money in the event of the
death of its project manager. Which type of policy should the firm
purchase on its project manager? - Answer✔️✔️-Key Person Life Policy
S is covered by a whole life policy. Which insurance product can cover his
children? - Answer✔️✔️-Child Term Rider
A 15-year mortgage is best protected by what kind of life policy? -
Answer✔️✔️-15-year decreasing term
3
Xcel Practice Chapter Exam Practice
Questions and Answers
A whole life insurance policyownet foes not wish to continue making
premium payments. Which of the following enables the policyowner to call
the policy for more than its cash value? - Answer✔️✔️-Life-Settlement
Contract
P owns a 25,000 Life policy that pays the face amount to him if he lives to
age 70, or to his beneficiary if he dies before age 70. What kind of policy
does P own? - Answer✔️✔️-Endowment at Age 70
Which type of life policy contains a monthly mortality charge as well as
self-directed investment choices? - Answer✔️✔️-Variable Universal Life
A policy if adhesion can only be modified by whom? - Answer✔️✔️-The
Insurance company
Which of the following consists of an offer, acceptance, and consideration?
- Answer✔️✔️-Contract
What type of annuity has a cash value that is based upon the performance
of it's underlying investment funds? - Answer✔️✔️-Variable
Which of the following statements is CORRECT regarding the tax
treatment of a lump-sum payment paid to a life insurance policy's primary
1
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
beneficiary? - Answer✔️✔️-All proceeds are income tax free in the year they
are recieved
A life insurance application may be rejected on the basis of all of these
factors EXCEPT: - Answer✔️✔️-Gender
Term Insurance has which of the following characteristics? - Answer✔️✔️-
Expires at the end of the policy period
A student pilot can pay regular premium costs for her life insurance policy
with the addition of which of the following? - Answer✔️✔️-Aviation
Exclusion
In a life insurance policy, which provision states who may select policy
options, designate and name a beneficiary, and be the policy? - Answer✔️✔️-
Owner's Rights
The entity whose sole purpose is sharing medical data among its member
companies is called the - Answer✔️✔️-Medical Information Bureau (MIB)
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 - Answer✔️✔️-Free-look period has expired
The cash value in a(n)_________________ Life policy may fluctuate to
reflect changing assumptions regarding mortality cost, interest, and
expense factors. - Answer✔️✔️-A Universal Life policy
2
, ©SOPHIABENNETT@2024-2025 Monday, August 26, 2024 6:09 AM
An employee with 25,000 group term life coverage was recently fired. This
employee's group coverage may be converted to a: - Answer✔️✔️-25,000
Individual Whole Life policy
P is blinded in an industrial accident. Which provision of his life insurance
policy will pay a stated benefit amount? - Answer✔️✔️-Accidental Death
and Dismemberment clause
Q is severely injured in an automobile accident and becomes totally
disabled. How many months must Q be disabled before being able to apply
for Social Security disability benefits? - Answer✔️✔️-5
Which statement regarding the Misstatement of Age provision is
considered to be true? - Answer✔️✔️-Coverage will be adjusted to reflect the
insured's true age if a misstatement of age is discovered
Which of the following is an important wunderwriting principle of group
life insurance. - Answer✔️✔️-Everyone must be covered in the group
An architecture firm would stand to lose a lot of money in the event of the
death of its project manager. Which type of policy should the firm
purchase on its project manager? - Answer✔️✔️-Key Person Life Policy
S is covered by a whole life policy. Which insurance product can cover his
children? - Answer✔️✔️-Child Term Rider
A 15-year mortgage is best protected by what kind of life policy? -
Answer✔️✔️-15-year decreasing term
3
