XCEL EXAMS CERTIFICATION SCRIPT
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
• A potential client, age 40, would like to purchase a Whole Life policy that
will accumulate cash value at a faster rate in the early years of the policy.
Which of these statements made by the producer would be correct?.
Answer: 20-Pay Life accumulates cash value faster than Straight Life
• A variable insurance policy:.
Answer: does not guarantee a return on its investment accounts
• A Renewable Term Policy is renewable at the option of the:.
Answer: Insured
• Agent.
Answer: an individual authorized to solicit, sell and transact coverage for
specific insurance providers under an agent contract
• Broker.
Answer: a person who represents the insured (client) rather than the
insurance company and cannot bind coverage
• claims department.
Answer: The department responsible for processing, investigating, and
paying claims.
• Which of these types of life insurance allows the policyowner to have level
premiums and to also choose from a selection of investment options?.
Answer: Variable Life
• Which of the following actions is NOT possible with a Universal Life
policy?.
Answer: Premiums may be applied as a credit against income tax
• Which provision allows the policyowner to change a term life policy to a
, permanent one without providing proof of good health?.
Answer: conversion
• What type of policy would offer a 40-year old the quickest accumulation of
cash value?.
Answer: 20-pay life
• insurance.
Answer: The transfer of risk through the pooling or accumulation of funds.
• A 42-year-old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the
following policies will best meet this need?.
Answer: Universal Life
• insured.
Answer: The customer who receives insurance protection under an insurance
policy.
• J is 35-years old and looking to purchase a whole life insurance policy.
Which of the following types of policies will provide the most rapid growth
of cash value?.
Answer: 20-pay Life
• Insurer.
Answer: An insurance company that provides coverage and assumes risk.
• All of these insurance products require an agent to have proper FINRA
securities registration in order to sell them, EXCEPT for:.
Answer: Modified Whole Life
• mutual insurance company.
Answer: An insurer owned by policyholders that typically issues
participating insurance policies with potential dividends.
• nonparticipating policy.
Answer: A policy that doesn't provide dividends or voting rights to policy
owners.
,• All of these are characteristics of an Adjustable Life policy, EXCEPT:.
Answer: face amount can be adjusted using policy dividends
• What kind of special need would a policyowner require with an Adjustable
Life insurance policy?.
Answer: flexible premiums
• K pays on a $20,000 20-Year Endowment policy for 10 years and dies from
an automobile accident. How much will the insurance company pay the
beneficiary?.
Answer: $20,000 death benefit
• participating policy.
Answer: A policy that allows policy owners to receive dividends and elect
the board of directors.
• What does a Face Amount Plus Cash Value Policy supposed to pay at the
insured's death?.
Answer: Face amount plus the policy's cash value
• producer.
Answer: An individual licensed to sell, solicit, or transact insurance,
including both agents and brokers.
• Variable Life products require a producer to.
Answer: hold a Life Insurance license and a Securities license
• stock insurance company.
Answer: An insurer owned by stockholders that typically issues
nonparticipating policies.
• What kind of life policy either pays the face value upon the death of the
insured or when the insured reaches age 100?.
Answer: whole life
• Q would like to purchase $100,000 of permanent protection on his wife and
$50,000 of Term coverage on himself under the same policy. What kind of
policy should Q purchase?.
, Answer: Whole life policy with other insured rider
• Which of the following types of policies pays a benefit if the insured goes
blind?.
Answer: AD&D
• underwriting deparment.
Answer: The department responsible for reviewing applications, approving
or declining coverage, and assigning risk classifications.
• All of these statements about Equity Indexed Life Insurance are correct,
EXCEPT:.
Answer: The premiums can be lowered or raised, based on investment
performance
• M purchases a $70,000 Life Insurance Policy with premium payments of
$550 a year for the first 5 years. At the beginning of the sixth year, the
premium will increase to $800 per year but will remain level thereafter. The
face amount will remain at $70,000 throughout the life of the policy. The
type of policy that M has purchased is.
Answer: Modified Premium Life
• adverse selection.
Answer: The tendency of higher-risk individuals to seek insurance coverage
more frequently than lower-risk individuals.
• Additional coverage can be added to a Whole Life policy by adding a(n):.
Answer: decreasing term rider
• hazard.
Answer: A condition that increases the likelihood of a loss occurring.
• 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:.
Answer: policy proceeds
• Which provision prevents an insurer from changing the terms of the contract
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
• A potential client, age 40, would like to purchase a Whole Life policy that
will accumulate cash value at a faster rate in the early years of the policy.
Which of these statements made by the producer would be correct?.
Answer: 20-Pay Life accumulates cash value faster than Straight Life
• A variable insurance policy:.
Answer: does not guarantee a return on its investment accounts
• A Renewable Term Policy is renewable at the option of the:.
Answer: Insured
• Agent.
Answer: an individual authorized to solicit, sell and transact coverage for
specific insurance providers under an agent contract
• Broker.
Answer: a person who represents the insured (client) rather than the
insurance company and cannot bind coverage
• claims department.
Answer: The department responsible for processing, investigating, and
paying claims.
• Which of these types of life insurance allows the policyowner to have level
premiums and to also choose from a selection of investment options?.
Answer: Variable Life
• Which of the following actions is NOT possible with a Universal Life
policy?.
Answer: Premiums may be applied as a credit against income tax
• Which provision allows the policyowner to change a term life policy to a
, permanent one without providing proof of good health?.
Answer: conversion
• What type of policy would offer a 40-year old the quickest accumulation of
cash value?.
Answer: 20-pay life
• insurance.
Answer: The transfer of risk through the pooling or accumulation of funds.
• A 42-year-old executive wants to purchase life insurance that will allow for
increases or decreases to coverage as his/her needs change. Which of the
following policies will best meet this need?.
Answer: Universal Life
• insured.
Answer: The customer who receives insurance protection under an insurance
policy.
• J is 35-years old and looking to purchase a whole life insurance policy.
Which of the following types of policies will provide the most rapid growth
of cash value?.
Answer: 20-pay Life
• Insurer.
Answer: An insurance company that provides coverage and assumes risk.
• All of these insurance products require an agent to have proper FINRA
securities registration in order to sell them, EXCEPT for:.
Answer: Modified Whole Life
• mutual insurance company.
Answer: An insurer owned by policyholders that typically issues
participating insurance policies with potential dividends.
• nonparticipating policy.
Answer: A policy that doesn't provide dividends or voting rights to policy
owners.
,• All of these are characteristics of an Adjustable Life policy, EXCEPT:.
Answer: face amount can be adjusted using policy dividends
• What kind of special need would a policyowner require with an Adjustable
Life insurance policy?.
Answer: flexible premiums
• K pays on a $20,000 20-Year Endowment policy for 10 years and dies from
an automobile accident. How much will the insurance company pay the
beneficiary?.
Answer: $20,000 death benefit
• participating policy.
Answer: A policy that allows policy owners to receive dividends and elect
the board of directors.
• What does a Face Amount Plus Cash Value Policy supposed to pay at the
insured's death?.
Answer: Face amount plus the policy's cash value
• producer.
Answer: An individual licensed to sell, solicit, or transact insurance,
including both agents and brokers.
• Variable Life products require a producer to.
Answer: hold a Life Insurance license and a Securities license
• stock insurance company.
Answer: An insurer owned by stockholders that typically issues
nonparticipating policies.
• What kind of life policy either pays the face value upon the death of the
insured or when the insured reaches age 100?.
Answer: whole life
• Q would like to purchase $100,000 of permanent protection on his wife and
$50,000 of Term coverage on himself under the same policy. What kind of
policy should Q purchase?.
, Answer: Whole life policy with other insured rider
• Which of the following types of policies pays a benefit if the insured goes
blind?.
Answer: AD&D
• underwriting deparment.
Answer: The department responsible for reviewing applications, approving
or declining coverage, and assigning risk classifications.
• All of these statements about Equity Indexed Life Insurance are correct,
EXCEPT:.
Answer: The premiums can be lowered or raised, based on investment
performance
• M purchases a $70,000 Life Insurance Policy with premium payments of
$550 a year for the first 5 years. At the beginning of the sixth year, the
premium will increase to $800 per year but will remain level thereafter. The
face amount will remain at $70,000 throughout the life of the policy. The
type of policy that M has purchased is.
Answer: Modified Premium Life
• adverse selection.
Answer: The tendency of higher-risk individuals to seek insurance coverage
more frequently than lower-risk individuals.
• Additional coverage can be added to a Whole Life policy by adding a(n):.
Answer: decreasing term rider
• hazard.
Answer: A condition that increases the likelihood of a loss occurring.
• 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:.
Answer: policy proceeds
• Which provision prevents an insurer from changing the terms of the contract
