Xcel Testing Solutions (Life & Health) Final
150 Question Practice Exam Questions with
Correct Answers 2025
When can a policy owner change a revocable beneficiary? - CORRECT ANSWER -Anytime
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as
beneficiary. M has the right to change the beneficiary designation at anytime. What type of
beneficiary is his son? - CORRECT ANSWER -Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy? - CORRECT ANSWER -If the primary beneficiary dies before the
insured
What is the underlying concept regarding level premiums? - CORRECT ANSWER -The early years
are charged less than what is needed
A policy owner is able to choose the frequency of premium payments through what policy
feature? - CORRECT ANSWER -Premium Mode
Any changes made on an insurance application requires the initials of whom? - CORRECT
ANSWER -Applicant
All of these are considered sources of underwriting information about an applicant EXCEPT -
CORRECT ANSWER -Rating Services
Q applied for life insurance and submitted the initial premium on January 1. The policy was
issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and
,returns the policy February 13. How will the insurer handle this situation? - CORRECT ANSWER -
Policy was returned within the free-look period, premium will be fully refunded
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT - CORRECT ANSWER -free-look
period has expired
What action should a producer take if the initial premium is NOT submitted with the
application? - CORRECT ANSWER -Forward the application to the insurer without the initial
premium
Which of the following is an important underwriting principle of group life insurance? -
CORRECT ANSWER -Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan? -
CORRECT ANSWER -Group was formed for a purpose other than acquiring insurance
When an employee is terminated, which statement about a group term life conversion is true? -
CORRECT ANSWER -Policy proceeds will be paid if the employee dies during the conversion
period
Under a trustee group life policy, who would be eligible for a certificate of coverage? - CORRECT
ANSWER -Corporation
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for
life. What type of annuity did N purchase? - CORRECT ANSWER -Fixed Deferred
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? - CORRECT ANSWER -Single Premium
, Which of these is an element of a Single Premium annuity? - CORRECT ANSWER -Lump-sum
payment
Which of these statements concerning an Individual Straight Life annuity is accurate? - CORRECT
ANSWER -Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against - CORRECT ANSWER -the
risk of living longer than expected
An immediate annuity consists of a - CORRECT ANSWER -single premium
All of these are considered to be a benefit under Social Security EXCEPT for - CORRECT ANSWER
-unemployment
Which product would best serve a retired individual looking to invest a lump-sum of money
through an insurance company? - CORRECT ANSWER -Annuity
Which statement regarding third-party ownership of a life insurance policy is true? - CORRECT
ANSWER -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? -
CORRECT ANSWER -Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - CORRECT ANSWER -
policyholders
150 Question Practice Exam Questions with
Correct Answers 2025
When can a policy owner change a revocable beneficiary? - CORRECT ANSWER -Anytime
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as
beneficiary. M has the right to change the beneficiary designation at anytime. What type of
beneficiary is his son? - CORRECT ANSWER -Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy? - CORRECT ANSWER -If the primary beneficiary dies before the
insured
What is the underlying concept regarding level premiums? - CORRECT ANSWER -The early years
are charged less than what is needed
A policy owner is able to choose the frequency of premium payments through what policy
feature? - CORRECT ANSWER -Premium Mode
Any changes made on an insurance application requires the initials of whom? - CORRECT
ANSWER -Applicant
All of these are considered sources of underwriting information about an applicant EXCEPT -
CORRECT ANSWER -Rating Services
Q applied for life insurance and submitted the initial premium on January 1. The policy was
issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and
,returns the policy February 13. How will the insurer handle this situation? - CORRECT ANSWER -
Policy was returned within the free-look period, premium will be fully refunded
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT - CORRECT ANSWER -free-look
period has expired
What action should a producer take if the initial premium is NOT submitted with the
application? - CORRECT ANSWER -Forward the application to the insurer without the initial
premium
Which of the following is an important underwriting principle of group life insurance? -
CORRECT ANSWER -Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan? -
CORRECT ANSWER -Group was formed for a purpose other than acquiring insurance
When an employee is terminated, which statement about a group term life conversion is true? -
CORRECT ANSWER -Policy proceeds will be paid if the employee dies during the conversion
period
Under a trustee group life policy, who would be eligible for a certificate of coverage? - CORRECT
ANSWER -Corporation
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for
life. What type of annuity did N purchase? - CORRECT ANSWER -Fixed Deferred
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? - CORRECT ANSWER -Single Premium
, Which of these is an element of a Single Premium annuity? - CORRECT ANSWER -Lump-sum
payment
Which of these statements concerning an Individual Straight Life annuity is accurate? - CORRECT
ANSWER -Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against - CORRECT ANSWER -the
risk of living longer than expected
An immediate annuity consists of a - CORRECT ANSWER -single premium
All of these are considered to be a benefit under Social Security EXCEPT for - CORRECT ANSWER
-unemployment
Which product would best serve a retired individual looking to invest a lump-sum of money
through an insurance company? - CORRECT ANSWER -Annuity
Which statement regarding third-party ownership of a life insurance policy is true? - CORRECT
ANSWER -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? -
CORRECT ANSWER -Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - CORRECT ANSWER -
policyholders
