Xcel Solutions IN Life Insurance Final Exam
UPDATED Exam Questions and
CORRECT Answers
P is a producer who is licensed in Indiana , but a resident of Michigan . In Indiana , P is
considered to be a ( n ) __________ producer . - CORRECT ANSWER - nonresident .
Why would the Insurance Commissioner issue a temporary license ? - CORRECT
ANSWER - To allow the personal representative of a deceased producer to provide service
to existing policyowners
Which provision is NOT a requirement in a group life policy ? - CORRECT ANSWER -
Accidental
A ( n ) _________ beneficiary may be changed by the policyowner WITHOUT the consent of
the beneficiary . - CORRECT ANSWER - Revocable
Which of the following provides funding for the Indiana Life and Health Insurance Guaranty
Association ? - CORRECT ANSWER - Member company assessments
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained ? - CORRECT ANSWER - Fair Credit Reporting Act
Any changes made on an insurance application requires the initials of whom ? - CORRECT
ANSWER - Applicant
An individual working part - time has an annual income of $ 25,000 . If this individual has an
IRA , what isthe maximum deductible IRA contribution allowable ? - CORRECT
ANSWER - $ 6,000
, With whom may a producer share commissions with ? - CORRECT ANSWER - Anyone
the producer deems appropriate
To be eligible for Social Security disability benefits , an employee must be unable to perform : -
CORRECT ANSWER - any occupation
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner
can see the interest earned , cost of insurance , and the - CORRECT ANSWER - expense
charges
Which statement is TRUE in regards to a policy loan ? - CORRECT ANSWER - Past - due
interest on a policy loan is added to the total debt
As a condition for a loan , a bank requires the borrower to purchase credit insurance from a
specific company What is the bank guilty of ? - CORRECT ANSWER - Coercion
Why must an insurance applicant answer all questions on the application ? - CORRECT
ANSWER - Statements and representations are considered guarantees
T , age 70 , withdraws cash from a profit - sharing plan and purchases a Straight Life Annuity .
What will this transaction provide ? - CORRECT ANSWER - Income that cannot be
outlived by the owner
Term Life Policies that have the ability to be converted to permanent coverage may do so during
a specific time period . This conversion period - CORRECT ANSWER - varies according
to the contract
Which of these is NOT considered to be an element of an insurance contract ? - CORRECT
ANSWER - negotiating
A newly licensed producer must complete 24 hours of continuing education every ___ years . -
CORRECT ANSWER -2
UPDATED Exam Questions and
CORRECT Answers
P is a producer who is licensed in Indiana , but a resident of Michigan . In Indiana , P is
considered to be a ( n ) __________ producer . - CORRECT ANSWER - nonresident .
Why would the Insurance Commissioner issue a temporary license ? - CORRECT
ANSWER - To allow the personal representative of a deceased producer to provide service
to existing policyowners
Which provision is NOT a requirement in a group life policy ? - CORRECT ANSWER -
Accidental
A ( n ) _________ beneficiary may be changed by the policyowner WITHOUT the consent of
the beneficiary . - CORRECT ANSWER - Revocable
Which of the following provides funding for the Indiana Life and Health Insurance Guaranty
Association ? - CORRECT ANSWER - Member company assessments
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained ? - CORRECT ANSWER - Fair Credit Reporting Act
Any changes made on an insurance application requires the initials of whom ? - CORRECT
ANSWER - Applicant
An individual working part - time has an annual income of $ 25,000 . If this individual has an
IRA , what isthe maximum deductible IRA contribution allowable ? - CORRECT
ANSWER - $ 6,000
, With whom may a producer share commissions with ? - CORRECT ANSWER - Anyone
the producer deems appropriate
To be eligible for Social Security disability benefits , an employee must be unable to perform : -
CORRECT ANSWER - any occupation
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner
can see the interest earned , cost of insurance , and the - CORRECT ANSWER - expense
charges
Which statement is TRUE in regards to a policy loan ? - CORRECT ANSWER - Past - due
interest on a policy loan is added to the total debt
As a condition for a loan , a bank requires the borrower to purchase credit insurance from a
specific company What is the bank guilty of ? - CORRECT ANSWER - Coercion
Why must an insurance applicant answer all questions on the application ? - CORRECT
ANSWER - Statements and representations are considered guarantees
T , age 70 , withdraws cash from a profit - sharing plan and purchases a Straight Life Annuity .
What will this transaction provide ? - CORRECT ANSWER - Income that cannot be
outlived by the owner
Term Life Policies that have the ability to be converted to permanent coverage may do so during
a specific time period . This conversion period - CORRECT ANSWER - varies according
to the contract
Which of these is NOT considered to be an element of an insurance contract ? - CORRECT
ANSWER - negotiating
A newly licensed producer must complete 24 hours of continuing education every ___ years . -
CORRECT ANSWER -2
