Insurance license practice XCEL solutions FINAL EXAM #12
Insurance license practice XCEL solutions
FINAL EXAM #12 Questions and Answers
2025
Question 1
Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? -Correct Answer ✔Life income
Question 2
A new agent must complete at least _____ hours of continuing education within 24
months of initial license? -Correct Answer ✔24 hours
Question 3
L takes out a life insurance policy and dies 10 years later. During the claim process, the
insurer discovers that L has understated range on the application. Under the
misstatement of age provision the insurer will? -Correct Answer ✔Adjust the death
benefits to a reduced amount
Question 4
An example of false advertising would be? -Correct Answer ✔And insurer exaggerating
in dividends in a magazine advertisement
Question 5
With whom an agent legally share commissions? -Correct Answer ✔Another agent with
the same line of insurance
Question 6
Insurance agent as a fiduciary responsibility to all of the following EXCEPT? -Correct
Answer ✔Other agents
Question 7
Which of these is not an example of doing insurance business? -Correct Answer
✔Selling shares of stock
Question 8
taking receipt of premiums and holding them for the insurance company is an example
of? -Correct Answer ✔Fiduciary responsibility
Question 9
How does an indexed annuity differ from a fixed annuity? -Correct Answer ✔Indexed
annuity owners receive crediting interest time to the fluctuation of the linked index
Insurance license practice XCEL solutions FINAL EXAM #12
, Insurance license practice XCEL solutions FINAL EXAM #12
Question 10
which of the following policies combines investment choices with a form of Term
coverage? -Correct Answer ✔Variable universal life
Question 11
How long does an insurance company appointment remain in force? -Correct Answer
✔Until terminated
Question 12
in Texas an individual life insurance policy is REQUIRED to have a grace period of? -
Correct Answer ✔31 days
Question 13
Which statement is TRUE regarding a variable whole life policy? -Correct Answer ✔A
minimum guaranteed death benefit is provided
Question 14
in an insurance contract the insurer is the only party who makes a -Correct Answer
✔Unilateral
Question 15
which of these is NOT considered to be an element of an insurance contract? -Correct
Answer ✔Negotiating
Question 16
What does a 401(k) plan generally provide its participants? -Correct Answer ✔Salary-
deferral contributions
Question 17
All these statements concerning Settlement Options are true, EXCEPT? -Correct
Answer ✔Only the beneficiary may select
Question 18
A domestic insurance company in Texas is considered a company that? -Correct
Answer ✔Is incorporated and formed in Texas
Question 19
Which of the following statements about non-contributory employee group life insurance
is FALSE? -Correct Answer ✔A minimum number of employees is required to
participate
Question 20
when a misrepresentation on a life insurance policy application is discovered what
action may an insurance company take? -Correct Answer ✔void the policy only if it is
discovered during the contestable period and proven to be material
Insurance license practice XCEL solutions FINAL EXAM #12
Insurance license practice XCEL solutions
FINAL EXAM #12 Questions and Answers
2025
Question 1
Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? -Correct Answer ✔Life income
Question 2
A new agent must complete at least _____ hours of continuing education within 24
months of initial license? -Correct Answer ✔24 hours
Question 3
L takes out a life insurance policy and dies 10 years later. During the claim process, the
insurer discovers that L has understated range on the application. Under the
misstatement of age provision the insurer will? -Correct Answer ✔Adjust the death
benefits to a reduced amount
Question 4
An example of false advertising would be? -Correct Answer ✔And insurer exaggerating
in dividends in a magazine advertisement
Question 5
With whom an agent legally share commissions? -Correct Answer ✔Another agent with
the same line of insurance
Question 6
Insurance agent as a fiduciary responsibility to all of the following EXCEPT? -Correct
Answer ✔Other agents
Question 7
Which of these is not an example of doing insurance business? -Correct Answer
✔Selling shares of stock
Question 8
taking receipt of premiums and holding them for the insurance company is an example
of? -Correct Answer ✔Fiduciary responsibility
Question 9
How does an indexed annuity differ from a fixed annuity? -Correct Answer ✔Indexed
annuity owners receive crediting interest time to the fluctuation of the linked index
Insurance license practice XCEL solutions FINAL EXAM #12
, Insurance license practice XCEL solutions FINAL EXAM #12
Question 10
which of the following policies combines investment choices with a form of Term
coverage? -Correct Answer ✔Variable universal life
Question 11
How long does an insurance company appointment remain in force? -Correct Answer
✔Until terminated
Question 12
in Texas an individual life insurance policy is REQUIRED to have a grace period of? -
Correct Answer ✔31 days
Question 13
Which statement is TRUE regarding a variable whole life policy? -Correct Answer ✔A
minimum guaranteed death benefit is provided
Question 14
in an insurance contract the insurer is the only party who makes a -Correct Answer
✔Unilateral
Question 15
which of these is NOT considered to be an element of an insurance contract? -Correct
Answer ✔Negotiating
Question 16
What does a 401(k) plan generally provide its participants? -Correct Answer ✔Salary-
deferral contributions
Question 17
All these statements concerning Settlement Options are true, EXCEPT? -Correct
Answer ✔Only the beneficiary may select
Question 18
A domestic insurance company in Texas is considered a company that? -Correct
Answer ✔Is incorporated and formed in Texas
Question 19
Which of the following statements about non-contributory employee group life insurance
is FALSE? -Correct Answer ✔A minimum number of employees is required to
participate
Question 20
when a misrepresentation on a life insurance policy application is discovered what
action may an insurance company take? -Correct Answer ✔void the policy only if it is
discovered during the contestable period and proven to be material
Insurance license practice XCEL solutions FINAL EXAM #12
