XCEL Exam Questions
Study online at https://quizlet.com/_8gdzol
1. Which of these is NOT considered to be a common life d. Life income annuity
insurance nonforfeiture option?
a. Cash surrender
b. Extended term insurance
c. Reduced paid-up insurance
d. Life income annuity
2. Which of these would NOT be considered a presump- c. Loss of a leg or arm
tive disability?
a. Loss of vision and speech
b. Loss of hearing
c. Loss of a leg or arm
d. Loss of a leg and arm
3. A business will typically use which type of life insur- a. Group policy
ance to cover their employees?
a. Group policy
b. Adjustable life policy
c. Whole life policy
d. Endowment policy
4. Which of the following would evidence ownership in a c. Policy ownership
participating health insurance?
a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment
5. c. Promises made
, XCEL Exam Questions
Study online at https://quizlet.com/_8gdzol
According to the principle of Utmost Good Faith, the
insured will answer questions on the application to
the best of their knowledge and pay the required
premium, while the insurer will deal fairly with the
insured and it's
a. Underwriting
b. Issuance of the policy
c. Promises made
d. Legal reserve
6. A life insurance policy sold in Michigan may be con- b. Two
tested by the insurer ONLY during the first ___ year(s)
of the contract.
a. One
b. Two
c. Three
d. Four
7. Kim has health insurance with a deductible of $500 c. $700
and an 80/20 coinsurance. How much will she pay if
she incurs a loss of $1,500?
a. $200
b. $500
c. $700
d. $1,300
8. Which of these is NOT a qualifying event for d. Falling below the feder-
Medicare? al poverty level
a. On Social Security disability for over 2 years
, XCEL Exam Questions
Study online at https://quizlet.com/_8gdzol
b. Kidney failure
c. Age 65 or older
d. Falling below the federal poverty level
9. Naming a contingent beneficiary as "all surviving chil- c. Class designation
dren" is described by which term?
a. Contingent designation
b. Primary designation
c. Class designation
d. Tertiary designation
10. A Roth IRA owner must be at least what age in order b. 59 1/2 and owned ac-
to make tax-free withdrawals? count for a minimum of 5
years
a. 59 1/2 and owned account for a minimum of 10
years
b. 59 1/2 and owned account for a minimum of 5
years
c. 70 1/2 and owned account for a minimum of 10
years
d. 70 1/2 and owned account for a minimum of 5 years
11. Maria would like an annuity that provides a guaran- d. Annuity certain
teed accumulation or payout. The type of annuity she
is seeking is called
a. Variable payout
b. Fixed accumulation
c. Interest guaranteed
d. Annuity certain
, XCEL Exam Questions
Study online at https://quizlet.com/_8gdzol
12. What does the Group Life underwriting risk selection c. Adverse selection
process help protect insurance companies from?
a. Risk aversion
b. Natural selection
c. Adverse selection
d. Risk management
13. ___ is NOT an element of a valid contract? d. Countersignature
a. Legal
b. Consideration
c. Competent parties
d. Countersignature
14. The act of ___ insurance does NOT require an individ- a. Underwriting
ual to hold an insurance producer license.
a. Underwriting
b. Selling
c. Negotiating
d. Soliciting
15. Which of the following is included in the entire con- d. Application
tract according to the entire contract provision?
a. Investigative report
b. Occupational rating
c. Clauses
d. Application
16. Which type of life insurance is normally associated a. Juvenile insurance
with a Payor Benefit rider?
Study online at https://quizlet.com/_8gdzol
1. Which of these is NOT considered to be a common life d. Life income annuity
insurance nonforfeiture option?
a. Cash surrender
b. Extended term insurance
c. Reduced paid-up insurance
d. Life income annuity
2. Which of these would NOT be considered a presump- c. Loss of a leg or arm
tive disability?
a. Loss of vision and speech
b. Loss of hearing
c. Loss of a leg or arm
d. Loss of a leg and arm
3. A business will typically use which type of life insur- a. Group policy
ance to cover their employees?
a. Group policy
b. Adjustable life policy
c. Whole life policy
d. Endowment policy
4. Which of the following would evidence ownership in a c. Policy ownership
participating health insurance?
a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment
5. c. Promises made
, XCEL Exam Questions
Study online at https://quizlet.com/_8gdzol
According to the principle of Utmost Good Faith, the
insured will answer questions on the application to
the best of their knowledge and pay the required
premium, while the insurer will deal fairly with the
insured and it's
a. Underwriting
b. Issuance of the policy
c. Promises made
d. Legal reserve
6. A life insurance policy sold in Michigan may be con- b. Two
tested by the insurer ONLY during the first ___ year(s)
of the contract.
a. One
b. Two
c. Three
d. Four
7. Kim has health insurance with a deductible of $500 c. $700
and an 80/20 coinsurance. How much will she pay if
she incurs a loss of $1,500?
a. $200
b. $500
c. $700
d. $1,300
8. Which of these is NOT a qualifying event for d. Falling below the feder-
Medicare? al poverty level
a. On Social Security disability for over 2 years
, XCEL Exam Questions
Study online at https://quizlet.com/_8gdzol
b. Kidney failure
c. Age 65 or older
d. Falling below the federal poverty level
9. Naming a contingent beneficiary as "all surviving chil- c. Class designation
dren" is described by which term?
a. Contingent designation
b. Primary designation
c. Class designation
d. Tertiary designation
10. A Roth IRA owner must be at least what age in order b. 59 1/2 and owned ac-
to make tax-free withdrawals? count for a minimum of 5
years
a. 59 1/2 and owned account for a minimum of 10
years
b. 59 1/2 and owned account for a minimum of 5
years
c. 70 1/2 and owned account for a minimum of 10
years
d. 70 1/2 and owned account for a minimum of 5 years
11. Maria would like an annuity that provides a guaran- d. Annuity certain
teed accumulation or payout. The type of annuity she
is seeking is called
a. Variable payout
b. Fixed accumulation
c. Interest guaranteed
d. Annuity certain
, XCEL Exam Questions
Study online at https://quizlet.com/_8gdzol
12. What does the Group Life underwriting risk selection c. Adverse selection
process help protect insurance companies from?
a. Risk aversion
b. Natural selection
c. Adverse selection
d. Risk management
13. ___ is NOT an element of a valid contract? d. Countersignature
a. Legal
b. Consideration
c. Competent parties
d. Countersignature
14. The act of ___ insurance does NOT require an individ- a. Underwriting
ual to hold an insurance producer license.
a. Underwriting
b. Selling
c. Negotiating
d. Soliciting
15. Which of the following is included in the entire con- d. Application
tract according to the entire contract provision?
a. Investigative report
b. Occupational rating
c. Clauses
d. Application
16. Which type of life insurance is normally associated a. Juvenile insurance
with a Payor Benefit rider?
