XCEL Solutions Life Insurance Final Exam| EXPERT VERIFIED ACTUAL QUESTIONS & ANSWERS FOR GUARANTEED PASS | NEWEST UPDATED
2026
When is the face amount of a Whole Life policy paid? ✔️✔️When the insured dies or at the policy's maturity date, whichever happens first
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? ✔️✔️59 1/2
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this? ✔️✔️Unilateral
Colorado's replacement rules apply to all of the following types of insurance EXCEPT ✔️✔️Single premium whole life
What type of life policy covers two people and pays upon the death of the last insured? ✔️✔️Survivorship
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true?
✔️✔️ABC is the policy owner, C is the insured, and ABC is the beneficiary
A policyowner is able to choose the frequency of premium payments through what policy feature? ✔️✔️Premium Mode
Which of the following are Equity Indexed annuities typically invested in? ✔️✔️S&P 500
An insurer that terminates a producer's appointment must inform the Commissioner within how many days? ✔️✔️30
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? ✔️✔️At future dates specified in the contract with no
evidence of insurability required
Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? ✔️✔️Decreasing Term
When recommending the purchase or exchange of an annuity, a producer must determine the suitability of the purchase by performing all of
the following EXCEPT ✔️✔️Determining the marital status of the applicant
A producer license may be suspended or revoked if the producer is found to be engaging in ✔️✔️Misrepresentation
Which of these is an element of a Single Premium annuity? ✔️✔️Lump-sum payment
The commissioner may issue an emergency cease and desist order without a hearing for all of the following circumstances EXCEPT ✔️✔️Writing
controlled business
The combination of Whole Life and _____ Term Insurance is referred to as a Family Income Policy ✔️✔️Decreasing
Who is NOT required to sign a life insurance application? ✔️✔️Beneficiary
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? ✔️✔️Variable Universal Life
Typically a life insurance death benefit is paid by a lump-sum payment. A(n) __________ option is a method of distributing a Life Insurance
policy's death benefit OTHER than by a lump sum payment. ✔️✔️Settlement
A(n) ______ beneficiary may be changed by the policyowner WITHOUT the consent of the beneficiary ✔️✔️Revocable
Which of the following is an example of a misrepresentation? ✔️✔️Describing a universal life policy as a security
Before a life insurance policy is issued, which of these components of the contract is required? ✔️✔️A signed application by the prospect
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? ✔️✔️20-pay Life
Any changes made on an insurance application requires the initials of whom? ✔️✔️Applicant
Paying insurance premiums on a more frequent basis will cause the policy to have ✔️✔️Higher premiums
T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has received monthly payments since the inception of the
annuity. If T dies, the insurance company ✔️✔️Does NOT have to make any further payments
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant?
✔️✔️Risk classification
, Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply
for Social Security disability benefits? ✔️✔️5
Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2? ✔️✔️Ordinary income tax and 10% tax penalty
for early withdrawals
What advantage does the renewability feature give to term policy? ✔️✔️The insured may extend the coverage period
Which of the following may be used in the advertisement of life insurance or annuities? ✔️✔️Guaranteed
Which of the following is an example of a nonforfeiture option? ✔️✔️Reduced Paid-Up Option
According to the Colorado Fraud Statute, all of the following must contain a warning against insurance fraud EXCEPT ✔️✔️Certificates of
authority
Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? ✔️✔️Collateral Assignment
A life insurance arrangement which circumvents insurable interest statutes is called: ✔️✔️Investor-Originated Life Insurance
Which of the following Life insurance policies combine term insurance with an investment element? ✔️✔️Universal Life
T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving
payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? ✔️✔️Life
Annuity with Period Certain
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? ✔️✔️Complete
the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the
insurance company
An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies
during this Grace Period? ✔️✔️Full face amount minus any past due premiums
When a life insurance underwriter is determining insurability, it is illegal to base these decisions on ✔️✔️Sexual Orientation
In a life insurance policy, which feature states that the policy will not cover certain risks? ✔️✔️Exclusion
Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner?
✔️✔️Irrevocable beneficiary
Which of the following is CORRECT regarding a producer's fiduciary responsibility with client funds? ✔️✔️A producer may never commingle
personal funds with funds paid by or to a client
A license is deemed to be used for controlled business if during any 12-month period ✔️✔️the licensee's total premiums on controlled business
exceeded the total premiums on all other businesses
When may the commissioner issue an emergency cease and desist order? ✔️✔️If there is suspicion of an unauthorized person engaging in
insurance business without being licensed
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become
effective? ✔️✔️When the conditions of the receipt are met
What is the underlying concept regarding level premiums? ✔️✔️The early years are charged more than what is needed
On a life insurance policy, who is qualified to change the beneficiary designation? ✔️✔️Policyowner
Variable Life products require a producer to ✔️✔️hold a Life Insurance license and a Securities license
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster in the early years of the policy.
Which of these statements made by the producer would be correct? ✔️✔️20-Pay Life accumulates cash value faster that Straight Life
Additional coverage can be added to a Whole Life policy by adding a(n) ✔️✔️Decreasing Term Rider
The type of annuity that can be purchased with one monetary deposit is called a(n): ✔️✔️Immediate annuity
2026
When is the face amount of a Whole Life policy paid? ✔️✔️When the insured dies or at the policy's maturity date, whichever happens first
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? ✔️✔️59 1/2
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this? ✔️✔️Unilateral
Colorado's replacement rules apply to all of the following types of insurance EXCEPT ✔️✔️Single premium whole life
What type of life policy covers two people and pays upon the death of the last insured? ✔️✔️Survivorship
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true?
✔️✔️ABC is the policy owner, C is the insured, and ABC is the beneficiary
A policyowner is able to choose the frequency of premium payments through what policy feature? ✔️✔️Premium Mode
Which of the following are Equity Indexed annuities typically invested in? ✔️✔️S&P 500
An insurer that terminates a producer's appointment must inform the Commissioner within how many days? ✔️✔️30
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? ✔️✔️At future dates specified in the contract with no
evidence of insurability required
Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? ✔️✔️Decreasing Term
When recommending the purchase or exchange of an annuity, a producer must determine the suitability of the purchase by performing all of
the following EXCEPT ✔️✔️Determining the marital status of the applicant
A producer license may be suspended or revoked if the producer is found to be engaging in ✔️✔️Misrepresentation
Which of these is an element of a Single Premium annuity? ✔️✔️Lump-sum payment
The commissioner may issue an emergency cease and desist order without a hearing for all of the following circumstances EXCEPT ✔️✔️Writing
controlled business
The combination of Whole Life and _____ Term Insurance is referred to as a Family Income Policy ✔️✔️Decreasing
Who is NOT required to sign a life insurance application? ✔️✔️Beneficiary
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? ✔️✔️Variable Universal Life
Typically a life insurance death benefit is paid by a lump-sum payment. A(n) __________ option is a method of distributing a Life Insurance
policy's death benefit OTHER than by a lump sum payment. ✔️✔️Settlement
A(n) ______ beneficiary may be changed by the policyowner WITHOUT the consent of the beneficiary ✔️✔️Revocable
Which of the following is an example of a misrepresentation? ✔️✔️Describing a universal life policy as a security
Before a life insurance policy is issued, which of these components of the contract is required? ✔️✔️A signed application by the prospect
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? ✔️✔️20-pay Life
Any changes made on an insurance application requires the initials of whom? ✔️✔️Applicant
Paying insurance premiums on a more frequent basis will cause the policy to have ✔️✔️Higher premiums
T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has received monthly payments since the inception of the
annuity. If T dies, the insurance company ✔️✔️Does NOT have to make any further payments
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant?
✔️✔️Risk classification
, Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply
for Social Security disability benefits? ✔️✔️5
Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2? ✔️✔️Ordinary income tax and 10% tax penalty
for early withdrawals
What advantage does the renewability feature give to term policy? ✔️✔️The insured may extend the coverage period
Which of the following may be used in the advertisement of life insurance or annuities? ✔️✔️Guaranteed
Which of the following is an example of a nonforfeiture option? ✔️✔️Reduced Paid-Up Option
According to the Colorado Fraud Statute, all of the following must contain a warning against insurance fraud EXCEPT ✔️✔️Certificates of
authority
Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? ✔️✔️Collateral Assignment
A life insurance arrangement which circumvents insurable interest statutes is called: ✔️✔️Investor-Originated Life Insurance
Which of the following Life insurance policies combine term insurance with an investment element? ✔️✔️Universal Life
T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving
payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? ✔️✔️Life
Annuity with Period Certain
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? ✔️✔️Complete
the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the
insurance company
An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies
during this Grace Period? ✔️✔️Full face amount minus any past due premiums
When a life insurance underwriter is determining insurability, it is illegal to base these decisions on ✔️✔️Sexual Orientation
In a life insurance policy, which feature states that the policy will not cover certain risks? ✔️✔️Exclusion
Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner?
✔️✔️Irrevocable beneficiary
Which of the following is CORRECT regarding a producer's fiduciary responsibility with client funds? ✔️✔️A producer may never commingle
personal funds with funds paid by or to a client
A license is deemed to be used for controlled business if during any 12-month period ✔️✔️the licensee's total premiums on controlled business
exceeded the total premiums on all other businesses
When may the commissioner issue an emergency cease and desist order? ✔️✔️If there is suspicion of an unauthorized person engaging in
insurance business without being licensed
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become
effective? ✔️✔️When the conditions of the receipt are met
What is the underlying concept regarding level premiums? ✔️✔️The early years are charged more than what is needed
On a life insurance policy, who is qualified to change the beneficiary designation? ✔️✔️Policyowner
Variable Life products require a producer to ✔️✔️hold a Life Insurance license and a Securities license
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster in the early years of the policy.
Which of these statements made by the producer would be correct? ✔️✔️20-Pay Life accumulates cash value faster that Straight Life
Additional coverage can be added to a Whole Life policy by adding a(n) ✔️✔️Decreasing Term Rider
The type of annuity that can be purchased with one monetary deposit is called a(n): ✔️✔️Immediate annuity
