XCEL Exam Questions with correct
Answers
Which of these is NOT considered to be a common life insurance nonforfeiture option?
a. Cash surrender
b. Extended term insurance
c. Reduced paid-up insurance
d. Life income annuity - Answers -d. Life income annuity
Which of these would NOT be considered a presumptive disability?
a. Loss of vision and speech
b. Loss of hearing
c. Loss of a leg or arm
d. Loss of a leg and arm - Answers -c. Loss of a leg or arm
A business will typically use which type of life insurance to cover their employees?
a. Group policy
b. Adjustable life policy
c. Whole life policy
d. Endowment policy - Answers -a. Group policy
Which of the following would evidence ownership in a participating health insurance?
a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment - Answers -c. Policy ownership
According to the principle of Utmost Good Faith, the insured will answer questions on
the application to the best of their knowledge and pay the required premium, while the
insurer will deal fairly with the insured and it's
a. Underwriting
b. Issuance of the policy
c. Promises made
d. Legal reserve - Answers -c. Promises made
,A life insurance policy sold in Michigan may be contested by the insurer ONLY during
the first ___ year(s) of the contract.
a. One
b. Two
c. Three
d. Four - Answers -b. Two
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How
much will she pay if she incurs a loss of $1,500?
a. $200
b. $500
c. $700
d. $1,300 - Answers -c. $700
Which of these is NOT a qualifying event for Medicare?
a. On Social Security disability for over 2 years
b. Kidney failure
c. Age 65 or older
d. Falling below the federal poverty level - Answers -d. Falling below the federal poverty
level
Naming a contingent beneficiary as "all surviving children" is described by which term?
a. Contingent designation
b. Primary designation
c. Class designation
d. Tertiary designation - Answers -c. Class designation
A Roth IRA owner must be at least what age in order to make tax-free withdrawals?
a. 59 1/2 and owned account for a minimum of 10 years
b. 59 1/2 and owned account for a minimum of 5 years
c. 70 1/2 and owned account for a minimum of 10 years
d. 70 1/2 and owned account for a minimum of 5 years - Answers -b. 59 1/2 and owned
account for a minimum of 5 years
Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called
a. Variable payout
,b. Fixed accumulation
c. Interest guaranteed
d. Annuity certain - Answers -d. Annuity certain
What does the Group Life underwriting risk selection process help protect insurance
companies from?
a. Risk aversion
b. Natural selection
c. Adverse selection
d. Risk management - Answers -c. Adverse selection
___ is NOT an element of a valid contract?
a. Legal
b. Consideration
c. Competent parties
d. Countersignature - Answers -d. Countersignature
The act of ___ insurance does NOT require an individual to hold an insurance producer
license.
a. Underwriting
b. Selling
c. Negotiating
d. Soliciting - Answers -a. Underwriting
Which of the following is included in the entire contract according to the entire contract
provision?
a. Investigative report
b. Occupational rating
c. Clauses
d. Application - Answers -d. Application
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 - Answers -a. Juvenile insurance
An insurer would be committing Unfair Discrimination if coverage was denied based
upon
a. HIV positive result
, b. Marital status
c. Diabetes
d. A mental disorder - Answers -b. Marital status
An example of risk sharing would be
a. Adding more security to a high-risk building
b. Choosing not to invest in the stock market
c. Doctors pooling their money to cover malpractice exposures
d. Buying an insurance policy to cover potential liabilities - Answers -c. Doctors pooling
their money to cover malpractice exposures
To be classified as a small employer in Michigan, an employer must employ
a. 1-10 employees
b. 2-50 employees
c. 1-25 employees
d. 2-100 employees - Answers -b. 2-50 employees
A hospital or medical expense policy will typically cover dental treatment expenses
under which circumstance?
a. After the annual limit of a dental policy's coverage is reached
b. Dental treatment is needed to repair an injury
c. Cosmetic dental treatment is performed
d. If treatment is performed at a in-network provider - Answers -b. Dental treatment is
needed to repair an injury
A professional liability for which producers can be sued for mistakes of putting a policy
into effect is called
a. Fiduciary bond
b. Errors and omissions
c. Fiduciary trust
d. Errors and oversights - Answers -b. Errors and omissions
A whole life insurance policy accumulates cash value that becomes
a. The policy loan value which the insured may borrow against
Answers
Which of these is NOT considered to be a common life insurance nonforfeiture option?
a. Cash surrender
b. Extended term insurance
c. Reduced paid-up insurance
d. Life income annuity - Answers -d. Life income annuity
Which of these would NOT be considered a presumptive disability?
a. Loss of vision and speech
b. Loss of hearing
c. Loss of a leg or arm
d. Loss of a leg and arm - Answers -c. Loss of a leg or arm
A business will typically use which type of life insurance to cover their employees?
a. Group policy
b. Adjustable life policy
c. Whole life policy
d. Endowment policy - Answers -a. Group policy
Which of the following would evidence ownership in a participating health insurance?
a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment - Answers -c. Policy ownership
According to the principle of Utmost Good Faith, the insured will answer questions on
the application to the best of their knowledge and pay the required premium, while the
insurer will deal fairly with the insured and it's
a. Underwriting
b. Issuance of the policy
c. Promises made
d. Legal reserve - Answers -c. Promises made
,A life insurance policy sold in Michigan may be contested by the insurer ONLY during
the first ___ year(s) of the contract.
a. One
b. Two
c. Three
d. Four - Answers -b. Two
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How
much will she pay if she incurs a loss of $1,500?
a. $200
b. $500
c. $700
d. $1,300 - Answers -c. $700
Which of these is NOT a qualifying event for Medicare?
a. On Social Security disability for over 2 years
b. Kidney failure
c. Age 65 or older
d. Falling below the federal poverty level - Answers -d. Falling below the federal poverty
level
Naming a contingent beneficiary as "all surviving children" is described by which term?
a. Contingent designation
b. Primary designation
c. Class designation
d. Tertiary designation - Answers -c. Class designation
A Roth IRA owner must be at least what age in order to make tax-free withdrawals?
a. 59 1/2 and owned account for a minimum of 10 years
b. 59 1/2 and owned account for a minimum of 5 years
c. 70 1/2 and owned account for a minimum of 10 years
d. 70 1/2 and owned account for a minimum of 5 years - Answers -b. 59 1/2 and owned
account for a minimum of 5 years
Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called
a. Variable payout
,b. Fixed accumulation
c. Interest guaranteed
d. Annuity certain - Answers -d. Annuity certain
What does the Group Life underwriting risk selection process help protect insurance
companies from?
a. Risk aversion
b. Natural selection
c. Adverse selection
d. Risk management - Answers -c. Adverse selection
___ is NOT an element of a valid contract?
a. Legal
b. Consideration
c. Competent parties
d. Countersignature - Answers -d. Countersignature
The act of ___ insurance does NOT require an individual to hold an insurance producer
license.
a. Underwriting
b. Selling
c. Negotiating
d. Soliciting - Answers -a. Underwriting
Which of the following is included in the entire contract according to the entire contract
provision?
a. Investigative report
b. Occupational rating
c. Clauses
d. Application - Answers -d. Application
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 - Answers -a. Juvenile insurance
An insurer would be committing Unfair Discrimination if coverage was denied based
upon
a. HIV positive result
, b. Marital status
c. Diabetes
d. A mental disorder - Answers -b. Marital status
An example of risk sharing would be
a. Adding more security to a high-risk building
b. Choosing not to invest in the stock market
c. Doctors pooling their money to cover malpractice exposures
d. Buying an insurance policy to cover potential liabilities - Answers -c. Doctors pooling
their money to cover malpractice exposures
To be classified as a small employer in Michigan, an employer must employ
a. 1-10 employees
b. 2-50 employees
c. 1-25 employees
d. 2-100 employees - Answers -b. 2-50 employees
A hospital or medical expense policy will typically cover dental treatment expenses
under which circumstance?
a. After the annual limit of a dental policy's coverage is reached
b. Dental treatment is needed to repair an injury
c. Cosmetic dental treatment is performed
d. If treatment is performed at a in-network provider - Answers -b. Dental treatment is
needed to repair an injury
A professional liability for which producers can be sued for mistakes of putting a policy
into effect is called
a. Fiduciary bond
b. Errors and omissions
c. Fiduciary trust
d. Errors and oversights - Answers -b. Errors and omissions
A whole life insurance policy accumulates cash value that becomes
a. The policy loan value which the insured may borrow against
