XCEL Solutions practice Exam Simulator
Questions and Answers
Rick recently died and left behind an individual IRA account in his name. His widow
was forwarded the balance of the IRA. The widow qualifies for the - ANSWER-
Marital deduction
The amount of monthly disability benefits payable under Social Security is affected
by which of the following factors? - ANSWER-Amount of the benefit available from
other sources.
An individual covered under a Group Life insurance policy is considered to be a(n): -
ANSWER-Certificate holder
The Consideration cause in a life insurance contract contains what pertinent
information? - ANSWER-Amount of premium payments and when they are due.
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - ANSWER-Fair Credit Reporting Act
A(n) _____ term life policy is normally used when covering an insured's mortgage
balance. - ANSWER-Decreasing
Life insurance coverage will frequently contain an Accelerated Benefit rider attached
to the policy. What would be considered a "qualifying event" under these riders? -
ANSWER-Medical condition resulting in a significantly-shortened lifespan.
Which of the following types of Term Life policies most likely contains a Renewability
feature? - ANSWER-10 years Convertible Term
What does the Indiana Life and Health Insurance Guaranty Association provide? -
ANSWER-Claim payments of admitted, involved insurance companies
Which of these is NOT considered to be a right given to a p[policyowner? -
ANSWER-Modify a provision in the insurance contract.
A(n) ____ contained in a life insurance policy states that the policy will NOT cover
certain risks. - ANSWER-Exclusion
Which provision is NOT a requirement in a group life policy? - ANSWER-Accidental
(no AD&D)
S is close to retiring and would like to purchase a policy that will yield greater gains
than bonds, but will still protect the principle will a minimum level or risk. Which
product would S be advised to purchase? - ANSWER-Equity Index insurance
, The Common Disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true>Exam
Simulator - Indiana Life Insurance Only State Exam Simulator? - ANSWER-This
clause provided the payment of proceeds to the insured's estate.
Variable annuities may invest premiums in each of the following, EXCEPT: -
ANSWER-Insurer's corporate business account
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 - ANSWER-Adjust the death benefit to
a reduced amount
In life insurance, the needs approach is used mostly to establish: - ANSWER-How
much life insurance a client should apply for.
If a contract of adhesion contains questionable language, to whom would the
interpretation be in favor of? - ANSWER-Insured
What type of life insurance gives the greatest amount of coverage for a limited period
of time? - ANSWER-Term life
T is given a receipt after completing a life insurance application and paying the initial
premium. Under this situation, T;s coverage is - ANSWER-Conditional, depending on
the Insurer's underwriting guidelines.
J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600
per year in premium for the first 5 years. The premium then increases to $900 per
year in the sixth year, and remain level thereafter. The policy's death benefit also
remains at $100,00. What type of Life Insurance policy is this? - ANSWER-Modified
Premium Life
What benefit does the Payor clause on a Juvenile Life policy provide? - ANSWER-
Premium are waived if the payor becomes disabled.
At the very least, an admitted insurance company shall be examined every _____
years. - ANSWER-5
When an insurance application is taken by a producer, which of these statements is
true? - ANSWER-Any changes made on the application require the applicant's
initials.
The type of annuity that can be purchased with one monetary deposit is called a(n): -
ANSWER-Immediate annuity
Group life insurance policies are generally written as: - ANSWER-Annually
renewable term
E and F are business partners. Each takes out a $500,000 life insurance policy on
the other, naming himself as primary beneficiary. E and F eventually terminate their
Questions and Answers
Rick recently died and left behind an individual IRA account in his name. His widow
was forwarded the balance of the IRA. The widow qualifies for the - ANSWER-
Marital deduction
The amount of monthly disability benefits payable under Social Security is affected
by which of the following factors? - ANSWER-Amount of the benefit available from
other sources.
An individual covered under a Group Life insurance policy is considered to be a(n): -
ANSWER-Certificate holder
The Consideration cause in a life insurance contract contains what pertinent
information? - ANSWER-Amount of premium payments and when they are due.
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - ANSWER-Fair Credit Reporting Act
A(n) _____ term life policy is normally used when covering an insured's mortgage
balance. - ANSWER-Decreasing
Life insurance coverage will frequently contain an Accelerated Benefit rider attached
to the policy. What would be considered a "qualifying event" under these riders? -
ANSWER-Medical condition resulting in a significantly-shortened lifespan.
Which of the following types of Term Life policies most likely contains a Renewability
feature? - ANSWER-10 years Convertible Term
What does the Indiana Life and Health Insurance Guaranty Association provide? -
ANSWER-Claim payments of admitted, involved insurance companies
Which of these is NOT considered to be a right given to a p[policyowner? -
ANSWER-Modify a provision in the insurance contract.
A(n) ____ contained in a life insurance policy states that the policy will NOT cover
certain risks. - ANSWER-Exclusion
Which provision is NOT a requirement in a group life policy? - ANSWER-Accidental
(no AD&D)
S is close to retiring and would like to purchase a policy that will yield greater gains
than bonds, but will still protect the principle will a minimum level or risk. Which
product would S be advised to purchase? - ANSWER-Equity Index insurance
, The Common Disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true>Exam
Simulator - Indiana Life Insurance Only State Exam Simulator? - ANSWER-This
clause provided the payment of proceeds to the insured's estate.
Variable annuities may invest premiums in each of the following, EXCEPT: -
ANSWER-Insurer's corporate business account
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 - ANSWER-Adjust the death benefit to
a reduced amount
In life insurance, the needs approach is used mostly to establish: - ANSWER-How
much life insurance a client should apply for.
If a contract of adhesion contains questionable language, to whom would the
interpretation be in favor of? - ANSWER-Insured
What type of life insurance gives the greatest amount of coverage for a limited period
of time? - ANSWER-Term life
T is given a receipt after completing a life insurance application and paying the initial
premium. Under this situation, T;s coverage is - ANSWER-Conditional, depending on
the Insurer's underwriting guidelines.
J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600
per year in premium for the first 5 years. The premium then increases to $900 per
year in the sixth year, and remain level thereafter. The policy's death benefit also
remains at $100,00. What type of Life Insurance policy is this? - ANSWER-Modified
Premium Life
What benefit does the Payor clause on a Juvenile Life policy provide? - ANSWER-
Premium are waived if the payor becomes disabled.
At the very least, an admitted insurance company shall be examined every _____
years. - ANSWER-5
When an insurance application is taken by a producer, which of these statements is
true? - ANSWER-Any changes made on the application require the applicant's
initials.
The type of annuity that can be purchased with one monetary deposit is called a(n): -
ANSWER-Immediate annuity
Group life insurance policies are generally written as: - ANSWER-Annually
renewable term
E and F are business partners. Each takes out a $500,000 life insurance policy on
the other, naming himself as primary beneficiary. E and F eventually terminate their
