XCEL LIFE INSURANCE ALABAMA FINAL
EXAM TEST | COMPLETE 2025 ACTUAL
EXAM WITH CORRECT VERIFIED ANSWERS
| GUARANTEED A+ EXAM EXCELLENCE
An insurance contract is said to be a(n) ______ because there is a
mutual reliance of truthfulness on both parties. - ✔✔✔ Correct Answer
> contract of utmost good faith
Michael has a universal life policy with an increasing death benefit
option. With an initial face amount of $50,000 and a value of $5,000,
what would the actual death benefit be? - ✔✔✔ Correct Answer >
$55,000
Julio, the insurance producer, has allowed his license to lapse. He
would like to reinstate his license without retaking a prelicense course
,or passing a written examination. To do this, Julio must reinstate the
license within _____ months from the renewal date. - ✔✔✔ Correct
Answer > 12
What is a certificate of insurance? - ✔✔✔ Correct Answer > A
certificate issued to each individual covered by the group life
insurance
Insurance policies issued by companies which are owned by
stockholders and do not pay policy dividends are known as: - ✔✔✔
Correct Answer > Non-participating policies
A _____ ______ company is one that is domiciled in another state and
has NOT received a license to do business in Alabama. - ✔✔✔ Correct
Answer > Foreign nonadmitted
,When can a lapsed life insurance policy usually be reinstated? - ✔✔✔
Correct Answer > Within 3-5 years of the policy lapsing
When the gross premium of a life insurance policy is computed, which
of these factors is NOT included? - ✔✔✔ Correct Answer > Number of
beneficiaries
Which type of life insurance policy combines insurance protection with
an accumulation of cash value? - ✔✔✔ Correct Answer > Permanent
insurance
The minimum grace period for a life insurance policy sold in Alabama is:
- ✔✔✔ Correct Answer > 30 days
, An insurance company that cedes a portion of an insured's coverage to
another insurer is said to be engaged in: - ✔✔✔ Correct Answer >
Reinsurance
If insurance premiums are paid more frequently than annually, the
policy owner can expect to: - ✔✔✔ Correct Answer > have a higher
total outlay of dollars for the coverage for that year
A substandard or special class risk typically results in: - ✔✔✔ Correct
Answer > a premium that is higher than for a normal risk
With term life insurance, which of the following types of premium
remains the same for the entire policy period? - ✔✔✔ Correct Answer
> Level Premium
EXAM TEST | COMPLETE 2025 ACTUAL
EXAM WITH CORRECT VERIFIED ANSWERS
| GUARANTEED A+ EXAM EXCELLENCE
An insurance contract is said to be a(n) ______ because there is a
mutual reliance of truthfulness on both parties. - ✔✔✔ Correct Answer
> contract of utmost good faith
Michael has a universal life policy with an increasing death benefit
option. With an initial face amount of $50,000 and a value of $5,000,
what would the actual death benefit be? - ✔✔✔ Correct Answer >
$55,000
Julio, the insurance producer, has allowed his license to lapse. He
would like to reinstate his license without retaking a prelicense course
,or passing a written examination. To do this, Julio must reinstate the
license within _____ months from the renewal date. - ✔✔✔ Correct
Answer > 12
What is a certificate of insurance? - ✔✔✔ Correct Answer > A
certificate issued to each individual covered by the group life
insurance
Insurance policies issued by companies which are owned by
stockholders and do not pay policy dividends are known as: - ✔✔✔
Correct Answer > Non-participating policies
A _____ ______ company is one that is domiciled in another state and
has NOT received a license to do business in Alabama. - ✔✔✔ Correct
Answer > Foreign nonadmitted
,When can a lapsed life insurance policy usually be reinstated? - ✔✔✔
Correct Answer > Within 3-5 years of the policy lapsing
When the gross premium of a life insurance policy is computed, which
of these factors is NOT included? - ✔✔✔ Correct Answer > Number of
beneficiaries
Which type of life insurance policy combines insurance protection with
an accumulation of cash value? - ✔✔✔ Correct Answer > Permanent
insurance
The minimum grace period for a life insurance policy sold in Alabama is:
- ✔✔✔ Correct Answer > 30 days
, An insurance company that cedes a portion of an insured's coverage to
another insurer is said to be engaged in: - ✔✔✔ Correct Answer >
Reinsurance
If insurance premiums are paid more frequently than annually, the
policy owner can expect to: - ✔✔✔ Correct Answer > have a higher
total outlay of dollars for the coverage for that year
A substandard or special class risk typically results in: - ✔✔✔ Correct
Answer > a premium that is higher than for a normal risk
With term life insurance, which of the following types of premium
remains the same for the entire policy period? - ✔✔✔ Correct Answer
> Level Premium
