XCEL SOLUTIONS LIFE INSURANCE
FINAL EXAM QUESTIONS WITH
COMPLETE ANSWERS
Which of these Nonforfeiture Options continue a build-up of cash value? - ANSWER-
Reduced Paid-Up
In Colorado, all of the following are considered unfair trade practices except -
ANSWER-Replacement
A policyowner is allowed to pay premiums more than once a year under which
provision? - ANSWER-Mode of Premium
M had an annual life insurance premium payment due January 1. She died January
10 without making the premium payment. What action will the insurer take? -
ANSWER-Pay face amount minus the past due premium
Which of the following does Social Security NOT provide benefits for? - ANSWER-
Dismemberment
Variable Whole Life Insurance can be described as - ANSWER-both an insurance
and securities product
What type of group insurance plan involves employees sharing the cost? -
ANSWER-Contributory Plan
Which statement regarding a Key Employee Life policy is NOT true? - ANSWER-The
beneficiary is named by the key employee
Which of the following consists of an offer, acceptance, and consideration? -
ANSWER-Contract
An employee with $25,000 group term life coverage was recently fired. This
employee's group coverage may be converted to a - ANSWER-$25,000 individual
whole life policy
P is a forty year old woman and would like to purchase an annuity that will provide a
lifetime income stream beginning at age sixty. Which of the following did she NOT
buy? - ANSWER-An immediate annuity
If a producer is going to deposit any premium into a bank account prior to remitting
the funds to the insurer, he/she must use a - ANSWER-separate insurance trust
account
An employee of 20 years recently retired at age 59 1/2. This employee's group life
contract can be: - ANSWER-converted to an individual permanent policy at an
individual rate
, F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed? - ANSWER-Decreasing term policy
When may the Commissioner conduct an examination of an insurance company? -
ANSWER-as often as deemed necessary
The advantage of reinstating an original life policy is - ANSWER-the premiums are
based on a younger age
An insurer cannot deny a claim unless - ANSWER-There is a reasonable explanation
of the claim
Dividends paid from a life insurance policy are - ANSWER-issued by the insurer
What kind of life insurance product covers children under their parent's policy? -
ANSWER-Term Rider
Consumer reports requested by an underwriter during the application process of a
life insurance policy can be used to determine: - ANSWER-probability of making
timely premium payments
Which of the following is NOT a problem when existing life insurance is replaced with
new coverage? - ANSWER-Comprehensive coverage may increase under the new
policy
The investment gains from a Universal Life Policy usually go toward - ANSWER-The
cash value
In order for coverage on a non-medical insurance application to take effect the same
day, the producer must collect a signed application and - ANSWER-The initial
premium
All of the following penalties apply to anyone giving intentional false testimony during
an insurance examination EXCEPT - ANSWER-guilty of a felony
What type of life policy covers two lives and pays the face amount after the first one
dies? - ANSWER-Joint Life Policy
P is blinded in an industrial accident. Which provision of his life insurance policy will
pay a stated benefit amount? - ANSWER-Accidental Death and Dismemberment
clause
How does the Commissioner attain this position? - ANSWER-Appointed by the
Governor
D the agent met with a prospect and ended up selling an insurance policy. While
filling out the insurance application, D makes a mistake. In this situation, D MUST -
ANSWER-Correct the information and have the prospect initial the change
FINAL EXAM QUESTIONS WITH
COMPLETE ANSWERS
Which of these Nonforfeiture Options continue a build-up of cash value? - ANSWER-
Reduced Paid-Up
In Colorado, all of the following are considered unfair trade practices except -
ANSWER-Replacement
A policyowner is allowed to pay premiums more than once a year under which
provision? - ANSWER-Mode of Premium
M had an annual life insurance premium payment due January 1. She died January
10 without making the premium payment. What action will the insurer take? -
ANSWER-Pay face amount minus the past due premium
Which of the following does Social Security NOT provide benefits for? - ANSWER-
Dismemberment
Variable Whole Life Insurance can be described as - ANSWER-both an insurance
and securities product
What type of group insurance plan involves employees sharing the cost? -
ANSWER-Contributory Plan
Which statement regarding a Key Employee Life policy is NOT true? - ANSWER-The
beneficiary is named by the key employee
Which of the following consists of an offer, acceptance, and consideration? -
ANSWER-Contract
An employee with $25,000 group term life coverage was recently fired. This
employee's group coverage may be converted to a - ANSWER-$25,000 individual
whole life policy
P is a forty year old woman and would like to purchase an annuity that will provide a
lifetime income stream beginning at age sixty. Which of the following did she NOT
buy? - ANSWER-An immediate annuity
If a producer is going to deposit any premium into a bank account prior to remitting
the funds to the insurer, he/she must use a - ANSWER-separate insurance trust
account
An employee of 20 years recently retired at age 59 1/2. This employee's group life
contract can be: - ANSWER-converted to an individual permanent policy at an
individual rate
, F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed? - ANSWER-Decreasing term policy
When may the Commissioner conduct an examination of an insurance company? -
ANSWER-as often as deemed necessary
The advantage of reinstating an original life policy is - ANSWER-the premiums are
based on a younger age
An insurer cannot deny a claim unless - ANSWER-There is a reasonable explanation
of the claim
Dividends paid from a life insurance policy are - ANSWER-issued by the insurer
What kind of life insurance product covers children under their parent's policy? -
ANSWER-Term Rider
Consumer reports requested by an underwriter during the application process of a
life insurance policy can be used to determine: - ANSWER-probability of making
timely premium payments
Which of the following is NOT a problem when existing life insurance is replaced with
new coverage? - ANSWER-Comprehensive coverage may increase under the new
policy
The investment gains from a Universal Life Policy usually go toward - ANSWER-The
cash value
In order for coverage on a non-medical insurance application to take effect the same
day, the producer must collect a signed application and - ANSWER-The initial
premium
All of the following penalties apply to anyone giving intentional false testimony during
an insurance examination EXCEPT - ANSWER-guilty of a felony
What type of life policy covers two lives and pays the face amount after the first one
dies? - ANSWER-Joint Life Policy
P is blinded in an industrial accident. Which provision of his life insurance policy will
pay a stated benefit amount? - ANSWER-Accidental Death and Dismemberment
clause
How does the Commissioner attain this position? - ANSWER-Appointed by the
Governor
D the agent met with a prospect and ended up selling an insurance policy. While
filling out the insurance application, D makes a mistake. In this situation, D MUST -
ANSWER-Correct the information and have the prospect initial the change
