XCEL SOLUTIONS PRACTICE EXAM
SIMULATOR QUESTIONS AND
ANSWERS
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against
inflation, which Dividend Option should she close? - ANSWER-Paid-Up Additional
Insurance
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary? -
ANSWER-$20,000
What does a certificate pf authority allow? - ANSWER-An insurance company to
conduct insurance business in Indiana.
Quarterly premium payments increase the annual cost of insurance because -
ANSWER-Interest to the insurer is decreased while the administrative costs are
increased.
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased
on her life, which of these statements would be true? - ANSWER-ABC is the
policyowner, C is the insured, and ABC is the beneficiary.
Taking receipt of premiums and holding them for the insurance company is an
example of - ANSWER-Fiduciary responsibility
The free-look period for life insurance policies issues in Indiana is ____ days. -
ANSWER-10
A hearing must be held before a producer's license can be suspended or revoked.
Prior to the hearing, the Insurance Commissioner is required to: - ANSWER-Give
written notice to the producer.
A policy loan is made possible by which of these life insurance policy features? -
ANSWER-Cash value provision
When an employee is terminated, which statement about a group term life
conversion is true? - ANSWER-Policy proceeds will be paid if the employee dies
during the conversion period.
What is the purpose of a Policy Summary? - ANSWER-It highlights the critical parts
of the policy issued
Which of the following statements is CORRECT regarding the tax treatment of a
lump-sum payment paid to a life insurance policy's primary beneficiary? - ANSWER-
All proceeds are income tax free in the year they are received.
SIMULATOR QUESTIONS AND
ANSWERS
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against
inflation, which Dividend Option should she close? - ANSWER-Paid-Up Additional
Insurance
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident. How much will the insurance company pay the beneficiary? -
ANSWER-$20,000
What does a certificate pf authority allow? - ANSWER-An insurance company to
conduct insurance business in Indiana.
Quarterly premium payments increase the annual cost of insurance because -
ANSWER-Interest to the insurer is decreased while the administrative costs are
increased.
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased
on her life, which of these statements would be true? - ANSWER-ABC is the
policyowner, C is the insured, and ABC is the beneficiary.
Taking receipt of premiums and holding them for the insurance company is an
example of - ANSWER-Fiduciary responsibility
The free-look period for life insurance policies issues in Indiana is ____ days. -
ANSWER-10
A hearing must be held before a producer's license can be suspended or revoked.
Prior to the hearing, the Insurance Commissioner is required to: - ANSWER-Give
written notice to the producer.
A policy loan is made possible by which of these life insurance policy features? -
ANSWER-Cash value provision
When an employee is terminated, which statement about a group term life
conversion is true? - ANSWER-Policy proceeds will be paid if the employee dies
during the conversion period.
What is the purpose of a Policy Summary? - ANSWER-It highlights the critical parts
of the policy issued
Which of the following statements is CORRECT regarding the tax treatment of a
lump-sum payment paid to a life insurance policy's primary beneficiary? - ANSWER-
All proceeds are income tax free in the year they are received.
