Xcell Testing Solutions (Life & Health) Final 150 Question
Practice Exam 100% Accuracy
When can a policy owner change a revocable beneficiary? - Correct AnswersAnytime
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 AnswersRevocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy? - Correct AnswersIf the primary beneficiary dies
before the insured
What is the underlying concept regarding level premiums? - Correct AnswersThe 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 AnswersPremium Mode
Any changes made on an insurance application requires the initials of whom? - Correct
AnswersApplicant
All of these are considered sources of underwriting information about an applicant
EXCEPT - Correct AnswersRating 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
AnswersPolicy 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
Answersfree-look period has expired
What action should a producer take if the initial premium is NOT submitted with the
application? - Correct AnswersForward the application to the insurer without the initial
premium
Which of the following is an important underwriting principle of group life insurance? -
Correct AnswersEveryone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan? -
Correct AnswersGroup 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 AnswersPolicy 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 AnswersCorporation
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 AnswersFixed 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 AnswersSingle Premium
Which of these is an element of a Single Premium annuity? - Correct AnswersLump-sum
payment
Which of these statements concerning an Individual Straight Life annuity is accurate? -
Correct AnswersPayments are made to an annuitant for life
, An individual who purchases a Life annuity is given protection against - Correct
Answersthe risk of living longer than expected
An immediate annuity consists of a - Correct Answerssingle premium
All of these are considered to be a benefit under Social Security EXCEPT for - Correct
Answersunemployment
Which product would best serve a retired individual looking to invest a lump-sum of money
through an insurance company? - Correct AnswersAnnuity
Which statement regarding third-party ownership of a life insurance policy is true? -
Correct AnswersIt 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 AnswersEach partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - Correct
Answerspolicyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? -
Correct Answersat 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 - Correct Answersbeneficiary'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 - Correct Answerspolicy
proceeds
Practice Exam 100% Accuracy
When can a policy owner change a revocable beneficiary? - Correct AnswersAnytime
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 AnswersRevocable
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy? - Correct AnswersIf the primary beneficiary dies
before the insured
What is the underlying concept regarding level premiums? - Correct AnswersThe 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 AnswersPremium Mode
Any changes made on an insurance application requires the initials of whom? - Correct
AnswersApplicant
All of these are considered sources of underwriting information about an applicant
EXCEPT - Correct AnswersRating 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
AnswersPolicy 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
Answersfree-look period has expired
What action should a producer take if the initial premium is NOT submitted with the
application? - Correct AnswersForward the application to the insurer without the initial
premium
Which of the following is an important underwriting principle of group life insurance? -
Correct AnswersEveryone must be covered in the group
Which requirement must be met for an association to be eligible for a group life plan? -
Correct AnswersGroup 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 AnswersPolicy 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 AnswersCorporation
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 AnswersFixed 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 AnswersSingle Premium
Which of these is an element of a Single Premium annuity? - Correct AnswersLump-sum
payment
Which of these statements concerning an Individual Straight Life annuity is accurate? -
Correct AnswersPayments are made to an annuitant for life
, An individual who purchases a Life annuity is given protection against - Correct
Answersthe risk of living longer than expected
An immediate annuity consists of a - Correct Answerssingle premium
All of these are considered to be a benefit under Social Security EXCEPT for - Correct
Answersunemployment
Which product would best serve a retired individual looking to invest a lump-sum of money
through an insurance company? - Correct AnswersAnnuity
Which statement regarding third-party ownership of a life insurance policy is true? -
Correct AnswersIt 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 AnswersEach partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - Correct
Answerspolicyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? -
Correct Answersat 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 - Correct Answersbeneficiary'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 - Correct Answerspolicy
proceeds
