Xcel Final Exam| Questions and Verified
Answers| 100% Correct| A Grade (New 2024/
2025)
QUESTION
How do life insurance companies handle cases where the insured commits suicide within he
contract's stated contestable period?
Answer:
Claims are denied under the suicide clause of the policy
QUESTION
B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase,
without evidence of insurabillity, stated amounts of
Answer:
additional Whole Life coverage at specific times
QUESTION
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the
application ask if P engages in scuba diving, to which P answers "No". The policy is then issued
with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident
in 2011. What will the insurer pay to P's beneficiary?
Answer:
$50,000 minus any outstanding policy loans
QUESTION
D was actively serving in the Marines when he was killed in an automobile accident while on
leave. His $100,000 Whole life policy contains a war exclusion clause. How much will D's
beneficiary's receive?
,Answer:
The full face amount
The stated amount or percent of liquid assets that an insurer must have on hand
that will satisfy future obligations to its policyholders is called
reserves
Which of these describe a participating insurance policy?
Policyowners are entitled to receive dividends
When a policy pays dividends to its policyholders, it is said to be
participating
QUESTION
Which type of policy is considered to be over funded, as stated by IRS guidelines?
Answer:
A modified endowment contract
QUESTION
When a policy owner exchanges a term policy for a whole life policy providing proof of good
health, which of these apply?
Answer:
Conversion provision
QUESTION
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at retirement.
Which of these should N purchase?
Answer:
30 pay life
, QUESTION
How long does the coverage normally remain on a limited-pay life policy?
Answer: age
100
QUESTION
A variable insurance policy
Answer:
does not guarantee a return on its investment accounts
QUESTION
Credit life insurance is
Answer:
issued in an amount not to exceed the amount of the loan
QUESTION
Term insurance has which of the following characteristics?
Answer:
Expires at the end of the policy period
QUESTION
What kind of insurance policy supplies an income stream over a set period of time that starts
when the insured dies?
Answer:
Family Maintenance Policy
Answers| 100% Correct| A Grade (New 2024/
2025)
QUESTION
How do life insurance companies handle cases where the insured commits suicide within he
contract's stated contestable period?
Answer:
Claims are denied under the suicide clause of the policy
QUESTION
B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase,
without evidence of insurabillity, stated amounts of
Answer:
additional Whole Life coverage at specific times
QUESTION
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the
application ask if P engages in scuba diving, to which P answers "No". The policy is then issued
with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident
in 2011. What will the insurer pay to P's beneficiary?
Answer:
$50,000 minus any outstanding policy loans
QUESTION
D was actively serving in the Marines when he was killed in an automobile accident while on
leave. His $100,000 Whole life policy contains a war exclusion clause. How much will D's
beneficiary's receive?
,Answer:
The full face amount
The stated amount or percent of liquid assets that an insurer must have on hand
that will satisfy future obligations to its policyholders is called
reserves
Which of these describe a participating insurance policy?
Policyowners are entitled to receive dividends
When a policy pays dividends to its policyholders, it is said to be
participating
QUESTION
Which type of policy is considered to be over funded, as stated by IRS guidelines?
Answer:
A modified endowment contract
QUESTION
When a policy owner exchanges a term policy for a whole life policy providing proof of good
health, which of these apply?
Answer:
Conversion provision
QUESTION
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at retirement.
Which of these should N purchase?
Answer:
30 pay life
, QUESTION
How long does the coverage normally remain on a limited-pay life policy?
Answer: age
100
QUESTION
A variable insurance policy
Answer:
does not guarantee a return on its investment accounts
QUESTION
Credit life insurance is
Answer:
issued in an amount not to exceed the amount of the loan
QUESTION
Term insurance has which of the following characteristics?
Answer:
Expires at the end of the policy period
QUESTION
What kind of insurance policy supplies an income stream over a set period of time that starts
when the insured dies?
Answer:
Family Maintenance Policy
