XCEL Solutions practice Exam Simulator
$0 - ANS-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?
$2,500 - ANS-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 allowable?
$20,000 - ANS-K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary?
10 - ANS-The free-look period for life insurance policies issues in Indiana is ____ days.
10 years Convertible Term - ANS-Which of the following types of Term Life policies most likely
contains a Renewability feature?
5 - ANS-At the very least, an admitted insurance company shall be examined every _____
years.
ABC is the policyowner, C is the insured, and ABC is the beneficiary. - ANS-C is a key employee
at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these
statements would be true?
Accidental (no AD&D) - ANS-Which provision is NOT a requirement in a group life policy?
AD&D - ANS-Which of the following types of policies pays a benefit if the insured goes blind?
Adjust the death benefit to a reduced amount - ANS-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
Age 100 - ANS-How long does the coverage normally remain on a limited-pay life policy?
AIDS and HIV virus exams can be conducted in a discriminatory fashion. - ANS-All are true
statements regarding the underwriting process, EXCEPT:
Aleatory - ANS-All of the following are consider to be typical characteristics describing the
nature of an insurance contract, EXCEPT:
, Alien - ANS-A(n) _____ insurance company is one formed in a country other than the United
States.
All proceeds are income tax free in the year they are received. - ANS-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?
Amount of premium payments and when they are due. - ANS-The Consideration cause in a life
insurance contract contains what pertinent information?
Amount of the benefit available from other sources. - ANS-The amount of monthly disability
benefits payable under Social Security is affected by which of the following factors?
An insurance company to conduct insurance business in Indiana. - ANS-What does a certificate
pf authority allow?
Annually renewable term - ANS-Group life insurance policies are generally written as:
Any changes made on the application require the applicant's initials. - ANS-When an insurance
application is taken by a producer, which of these statements is true?
Cash value provision - ANS-A policy loan is made possible by which of these life insurance
policy features?
Certificate holder - ANS-An individual covered under a Group Life insurance policy is
considered to be a(n):
Claim payments of admitted, involved insurance companies - ANS-What does the Indiana Life
and Health Insurance Guaranty Association provide?
Claim will be denied. - ANS-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?
Conditional, depending on the Insurer's underwriting guidelines. - ANS-T is given a receipt after
completing a life insurance application and paying the initial premium. Under this situation, T;s
coverage is
Decreasing - ANS-A(n) _____ term life policy is normally used when covering an insured's
mortgage balance.
does not guarantee a return on its investment accounts - ANS-A variable insurance policy:
$0 - ANS-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?
$2,500 - ANS-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 allowable?
$20,000 - ANS-K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary?
10 - ANS-The free-look period for life insurance policies issues in Indiana is ____ days.
10 years Convertible Term - ANS-Which of the following types of Term Life policies most likely
contains a Renewability feature?
5 - ANS-At the very least, an admitted insurance company shall be examined every _____
years.
ABC is the policyowner, C is the insured, and ABC is the beneficiary. - ANS-C is a key employee
at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these
statements would be true?
Accidental (no AD&D) - ANS-Which provision is NOT a requirement in a group life policy?
AD&D - ANS-Which of the following types of policies pays a benefit if the insured goes blind?
Adjust the death benefit to a reduced amount - ANS-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
Age 100 - ANS-How long does the coverage normally remain on a limited-pay life policy?
AIDS and HIV virus exams can be conducted in a discriminatory fashion. - ANS-All are true
statements regarding the underwriting process, EXCEPT:
Aleatory - ANS-All of the following are consider to be typical characteristics describing the
nature of an insurance contract, EXCEPT:
, Alien - ANS-A(n) _____ insurance company is one formed in a country other than the United
States.
All proceeds are income tax free in the year they are received. - ANS-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?
Amount of premium payments and when they are due. - ANS-The Consideration cause in a life
insurance contract contains what pertinent information?
Amount of the benefit available from other sources. - ANS-The amount of monthly disability
benefits payable under Social Security is affected by which of the following factors?
An insurance company to conduct insurance business in Indiana. - ANS-What does a certificate
pf authority allow?
Annually renewable term - ANS-Group life insurance policies are generally written as:
Any changes made on the application require the applicant's initials. - ANS-When an insurance
application is taken by a producer, which of these statements is true?
Cash value provision - ANS-A policy loan is made possible by which of these life insurance
policy features?
Certificate holder - ANS-An individual covered under a Group Life insurance policy is
considered to be a(n):
Claim payments of admitted, involved insurance companies - ANS-What does the Indiana Life
and Health Insurance Guaranty Association provide?
Claim will be denied. - ANS-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?
Conditional, depending on the Insurer's underwriting guidelines. - ANS-T is given a receipt after
completing a life insurance application and paying the initial premium. Under this situation, T;s
coverage is
Decreasing - ANS-A(n) _____ term life policy is normally used when covering an insured's
mortgage balance.
does not guarantee a return on its investment accounts - ANS-A variable insurance policy:
