Xcell Testing Solutions (Life & Health) Final 150 Question Practice Exam Answered Correctly
When can a policy owner change a revocable beneficiary? - Answers 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? -
Answers Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy? - Answers If the primary beneficiary dies before the insured
What is the underlying concept regarding level premiums? - Answers 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? -
Answers Premium Mode
Any changes made on an insurance application requires the initials of whom? - Answers Applicant
All of these are considered sources of underwriting information about an applicant EXCEPT - Answers
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? - Answers 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 - Answers free-look period has expired
What action should a producer take if the initial premium is NOT submitted with the application? -
Answers Forward the application to the insurer without the initial premium
Which of the following is an important underwriting principle of group life insurance? - Answers
Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan? - Answers 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? -
Answers 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? - Answers
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? - Answers 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? - Answers Single Premium
Which of these is an element of a Single Premium annuity? - Answers Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is accurate? - Answers
Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against - Answers the risk of living longer
than expected
An immediate annuity consists of a - Answers single premium
All of these are considered to be a benefit under Social Security EXCEPT for - Answers unemployment
Which product would best serve a retired individual looking to invest a lump-sum of money through an
insurance company? - Answers Annuity
Which statement regarding third-party ownership of a life insurance policy is true? - Answers 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? - Answers Each partner must
own a policy on the other partners
Who elects the governing body of a mutual insurance company? - Answers policyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - Answers 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 - Answers 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 - Answers policy proceeds
What is the Suicide provision designed to do? - Answers 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? -
Answers Entire Contract provision
The incontestable clause allows an insurer to - Answers contest a claim during the contestable period
When can a policy owner change a revocable beneficiary? - Answers 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? -
Answers Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy? - Answers If the primary beneficiary dies before the insured
What is the underlying concept regarding level premiums? - Answers 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? -
Answers Premium Mode
Any changes made on an insurance application requires the initials of whom? - Answers Applicant
All of these are considered sources of underwriting information about an applicant EXCEPT - Answers
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? - Answers 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 - Answers free-look period has expired
What action should a producer take if the initial premium is NOT submitted with the application? -
Answers Forward the application to the insurer without the initial premium
Which of the following is an important underwriting principle of group life insurance? - Answers
Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan? - Answers 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? -
Answers 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? - Answers
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? - Answers 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? - Answers Single Premium
Which of these is an element of a Single Premium annuity? - Answers Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is accurate? - Answers
Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against - Answers the risk of living longer
than expected
An immediate annuity consists of a - Answers single premium
All of these are considered to be a benefit under Social Security EXCEPT for - Answers unemployment
Which product would best serve a retired individual looking to invest a lump-sum of money through an
insurance company? - Answers Annuity
Which statement regarding third-party ownership of a life insurance policy is true? - Answers 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? - Answers Each partner must
own a policy on the other partners
Who elects the governing body of a mutual insurance company? - Answers policyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - Answers 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 - Answers 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 - Answers policy proceeds
What is the Suicide provision designed to do? - Answers 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? -
Answers Entire Contract provision
The incontestable clause allows an insurer to - Answers contest a claim during the contestable period
