XCEL FL 240 literally every review
question in the course Exam 2026
Questions and Answers Graded A+
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the - Correct answer-"Fair Credit Reporting
Act".
When a policy pays dividends to its policyholders, it is said to be - Correct answer-
"participating".
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - Correct answer-"1970 Fair
Credit Reporting Act".
What type of reinsurance contract involves two companies automatically sharing
their risk exposure - Correct answer-Treaty
Select the appropriate response Which of the following BEST describes a
warranty? - Correct answer-Statement guaranteed to be true
,Who makes the legally enforceable promises in a unilateral insurance policy? -
Correct answer-Insurance Company
A life insurance arrangement which circumvents insurable interest statutes is
called: - Correct answer-Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be in violation of
which of the following contractual elements? - Correct answer-Legal Purpose
(Insurable Interest)
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - Correct answer-Bilateral
Life and health insurance policies are: - Correct answer-Unilateral contracts
The Consideration clause of an insurance contract includes: - Correct answer-the
schedule and amount of premium payments
What is the consideration given by an insurer in the Consideration clause of a life
policy? - Correct answer-Promise to pay a death benefit to a named beneficiary
E and F are business partners. Each takes out a $500,000 life insurance policy on
the other, naming himself as primary beneficiary. E and F eventually terminate
their business, and four months later E dies. Although E was married with three
children at the time of death, the primary beneficiary is still F. However, an
,insurable interest no longer exists. Where will the proceeds from E's life insurance
policy be directed to? - Correct answer-F
Insurance policies are offered on a "take it or leave it" basis, which make them: -
Correct answer-Contracts of Adhesion
A contract where one party either accepts or rejects the terms of a contract written
by another party is called a contract of - Correct answer-adhesion
Statements made on an insurance application that are believed to be true to the best
of the applicant's knowledge are called: - Correct answer-representations
Which of these is considered a statement that is assured to be true in every respect?
- Correct answer-Warranty
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - Correct answer-insurable interest
in the proposed insured
A Business Disability Buyout plan policy is designed: - Correct answer-to pay
benefits to the Corporation or other shareholders
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers
(and their families) whose employment has been terminated the right to: - Correct
answer-continue group health benefits
, Accidental Death coverage is provided to commercial airline passengers in which
of the following types of policies? - Correct answer-Blanket Accident policy
An insured covered by Accidental Death and Dismemberment (AD&D) insurance
has just died. What will happen if the primary beneficiary had already died before
the insured and contingent beneficiary? - Correct answer-Proceeds will go to the
contingent beneficiary
A Business Overhead Expense policy would cover which of the following if a
business owner becomes disabled? - Correct answer-Utilities and office rent
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
The provision in a Group Health policy that allows the insurer to postpone
coverage for a covered illness 30 days after the policy's effective date is referred to
as the: - Correct answer-Waiting Period
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the
contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are
killed instantly. The Accidental Death benefits will be paid to: - Correct answer-P
only
question in the course Exam 2026
Questions and Answers Graded A+
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the - Correct answer-"Fair Credit Reporting
Act".
When a policy pays dividends to its policyholders, it is said to be - Correct answer-
"participating".
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - Correct answer-"1970 Fair
Credit Reporting Act".
What type of reinsurance contract involves two companies automatically sharing
their risk exposure - Correct answer-Treaty
Select the appropriate response Which of the following BEST describes a
warranty? - Correct answer-Statement guaranteed to be true
,Who makes the legally enforceable promises in a unilateral insurance policy? -
Correct answer-Insurance Company
A life insurance arrangement which circumvents insurable interest statutes is
called: - Correct answer-Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be in violation of
which of the following contractual elements? - Correct answer-Legal Purpose
(Insurable Interest)
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - Correct answer-Bilateral
Life and health insurance policies are: - Correct answer-Unilateral contracts
The Consideration clause of an insurance contract includes: - Correct answer-the
schedule and amount of premium payments
What is the consideration given by an insurer in the Consideration clause of a life
policy? - Correct answer-Promise to pay a death benefit to a named beneficiary
E and F are business partners. Each takes out a $500,000 life insurance policy on
the other, naming himself as primary beneficiary. E and F eventually terminate
their business, and four months later E dies. Although E was married with three
children at the time of death, the primary beneficiary is still F. However, an
,insurable interest no longer exists. Where will the proceeds from E's life insurance
policy be directed to? - Correct answer-F
Insurance policies are offered on a "take it or leave it" basis, which make them: -
Correct answer-Contracts of Adhesion
A contract where one party either accepts or rejects the terms of a contract written
by another party is called a contract of - Correct answer-adhesion
Statements made on an insurance application that are believed to be true to the best
of the applicant's knowledge are called: - Correct answer-representations
Which of these is considered a statement that is assured to be true in every respect?
- Correct answer-Warranty
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - Correct answer-insurable interest
in the proposed insured
A Business Disability Buyout plan policy is designed: - Correct answer-to pay
benefits to the Corporation or other shareholders
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers
(and their families) whose employment has been terminated the right to: - Correct
answer-continue group health benefits
, Accidental Death coverage is provided to commercial airline passengers in which
of the following types of policies? - Correct answer-Blanket Accident policy
An insured covered by Accidental Death and Dismemberment (AD&D) insurance
has just died. What will happen if the primary beneficiary had already died before
the insured and contingent beneficiary? - Correct answer-Proceeds will go to the
contingent beneficiary
A Business Overhead Expense policy would cover which of the following if a
business owner becomes disabled? - Correct answer-Utilities and office rent
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
The provision in a Group Health policy that allows the insurer to postpone
coverage for a covered illness 30 days after the policy's effective date is referred to
as the: - Correct answer-Waiting Period
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the
contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are
killed instantly. The Accidental Death benefits will be paid to: - Correct answer-P
only
