XCELL TESTING SOLUTIONS LIFE HEALTH EXAM SCRIPT
2025/2026 QUESTIONS WITH ANSWERS TAGGED A+
✔✔S recently received a $500,000 lump sum retirement buyout from her employer. She
would like to buy an annuity that will immediately furnish her with a guaranteed income
for life. What type of annuity is best suited for her situation? - ✔✔Single Premium
✔✔Which of these is an element of a Single Premium annuity? - ✔✔Lump-sum
payment
✔✔Which of these statements concerning an Individual Straight Life annuity is
accurate? - ✔✔Payments are made to an annuitant for life
✔✔An individual who purchases a Life annuity is given protection against - ✔✔the risk
of living longer than expected
✔✔An immediate annuity consists of a - ✔✔single premium
✔✔All of these are considered to be a benefit under Social Security EXCEPT for -
✔✔unemployment
✔✔Which product would best serve a retired individual looking to invest a lump-sum of
money through an insurance company? - ✔✔Annuity
✔✔Which statement regarding third-party ownership of a life insurance policy is true? -
✔✔It is used extensively in estate-planning as well as business circumstances
✔✔Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what would it
require? - ✔✔Each partner must own a policy on the other partners
✔✔Who elects the governing body of a mutual insurance company? - ✔✔policyholders
✔✔When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? - ✔✔at future dates specified in the contract with no evidence of insurability
required
✔✔S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT - ✔✔beneficiary's age
, ✔✔M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the - ✔✔policy
proceeds
✔✔What is the Suicide provision designed to do? - ✔✔safeguard the insurer from an
applicant who is contemplating suicide
✔✔What provision in a life insurance policy states that the application is considered part
of the contract? - ✔✔Entire Contract provision
✔✔The incontestable clause allows an insurer to - ✔✔contest a claim during the
contestable period
✔✔All of these statements about the Waiver of Premium provision are correct EXCEPT
- ✔✔Insured must be eligible for Social Security disability for claim to be accepted
✔✔Which of the following statements is CORRECT about accelerated death benefits? -
✔✔Must have a terminal illness to qualify
✔✔Which of the following provisions guarantees that premiums will be waived if a
Juvenile Life policyowner becomes disabled? - ✔✔Payor clause
✔✔What benefit does the Payor clause on a Juvenile Life policy provide? -
✔✔Premiums are waived if payor becomes disabled
✔✔P is blinded in an industrial accident. Which provision of his life insurance policy will
pay a stated benefit amount? - ✔✔Accidental Death and Dismemberment provision
✔✔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 - ✔✔adjust the death benefit to a
reduced amount
✔✔S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S
dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of
rider did S include on the policy? - ✔✔Return of premium rider
✔✔D was actively serving in the Marines when he was killed in an automobile accident
while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How
much will D's beneficiary's receive? - ✔✔The full face amount
✔✔In a Life insurance contract, an insurance company's promise to pay stated benefits
is called the - ✔✔Insuring clause
2025/2026 QUESTIONS WITH ANSWERS TAGGED A+
✔✔S recently received a $500,000 lump sum retirement buyout from her employer. She
would like to buy an annuity that will immediately furnish her with a guaranteed income
for life. What type of annuity is best suited for her situation? - ✔✔Single Premium
✔✔Which of these is an element of a Single Premium annuity? - ✔✔Lump-sum
payment
✔✔Which of these statements concerning an Individual Straight Life annuity is
accurate? - ✔✔Payments are made to an annuitant for life
✔✔An individual who purchases a Life annuity is given protection against - ✔✔the risk
of living longer than expected
✔✔An immediate annuity consists of a - ✔✔single premium
✔✔All of these are considered to be a benefit under Social Security EXCEPT for -
✔✔unemployment
✔✔Which product would best serve a retired individual looking to invest a lump-sum of
money through an insurance company? - ✔✔Annuity
✔✔Which statement regarding third-party ownership of a life insurance policy is true? -
✔✔It is used extensively in estate-planning as well as business circumstances
✔✔Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what would it
require? - ✔✔Each partner must own a policy on the other partners
✔✔Who elects the governing body of a mutual insurance company? - ✔✔policyholders
✔✔When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? - ✔✔at future dates specified in the contract with no evidence of insurability
required
✔✔S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT - ✔✔beneficiary's age
, ✔✔M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the - ✔✔policy
proceeds
✔✔What is the Suicide provision designed to do? - ✔✔safeguard the insurer from an
applicant who is contemplating suicide
✔✔What provision in a life insurance policy states that the application is considered part
of the contract? - ✔✔Entire Contract provision
✔✔The incontestable clause allows an insurer to - ✔✔contest a claim during the
contestable period
✔✔All of these statements about the Waiver of Premium provision are correct EXCEPT
- ✔✔Insured must be eligible for Social Security disability for claim to be accepted
✔✔Which of the following statements is CORRECT about accelerated death benefits? -
✔✔Must have a terminal illness to qualify
✔✔Which of the following provisions guarantees that premiums will be waived if a
Juvenile Life policyowner becomes disabled? - ✔✔Payor clause
✔✔What benefit does the Payor clause on a Juvenile Life policy provide? -
✔✔Premiums are waived if payor becomes disabled
✔✔P is blinded in an industrial accident. Which provision of his life insurance policy will
pay a stated benefit amount? - ✔✔Accidental Death and Dismemberment provision
✔✔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 - ✔✔adjust the death benefit to a
reduced amount
✔✔S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S
dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of
rider did S include on the policy? - ✔✔Return of premium rider
✔✔D was actively serving in the Marines when he was killed in an automobile accident
while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How
much will D's beneficiary's receive? - ✔✔The full face amount
✔✔In a Life insurance contract, an insurance company's promise to pay stated benefits
is called the - ✔✔Insuring clause
