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XCELL TESTING SOLUTIONS (LIFE & HEALTH)
FINAL 150 QUESTION PRACTICE EXAM LATEST
2025 REVISED EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS
When can a policy owner change a revocable beneficiary?
ANSWER: Anytime
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?
ANSWER: Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy?
ANSWER: If the primary beneficiary dies before the insured
What is the underlying concept regarding level premiums?
ANSWER: The 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?
ANSWER: Premium Mode
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Any changes made on an insurance application requires the initials of whom?
ANSWER: Applicant
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? ANSWER: Policy 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
ANSWER: free-look period has expired
What action should a producer take if the initial premium is NOT submitted with
the application? ANSWER: Forward the application to the insurer without the
initial premium
Which of the following is an important underwriting principle of group life
insurance? ANSWER: Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life
plan? ANSWER: Group was formed for a purpose other than acquiring insurance
When an employee is terminated, which statement about a group term life
conversion is true? ANSWER: Policy proceeds will be paid if the employee dies
during the conversion period
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Under a trustee group life policy, who would be eligible for a certificate of
coverage? ANSWER: Corporation
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? ANSWER: Fixed 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?
ANSWER: Single Premium
Which of these is an element of a Single Premium annuity?
ANSWER: Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is
accurate?
ANSWER: Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
ANSWER: the risk of living longer than expected
An immediate annuity consists of a ANSWER: single premium
All of these are considered to be a benefit under Social Security EXCEPT for
ANSWER: unemployment
XCELL TESTING SOLUTIONS (LIFE & HEALTH)
FINAL 150 QUESTION PRACTICE EXAM LATEST
2025 REVISED EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS
When can a policy owner change a revocable beneficiary?
ANSWER: Anytime
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?
ANSWER: Revocable
How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy?
ANSWER: If the primary beneficiary dies before the insured
What is the underlying concept regarding level premiums?
ANSWER: The 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?
ANSWER: Premium Mode
,2|Page
Any changes made on an insurance application requires the initials of whom?
ANSWER: Applicant
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? ANSWER: Policy 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
ANSWER: free-look period has expired
What action should a producer take if the initial premium is NOT submitted with
the application? ANSWER: Forward the application to the insurer without the
initial premium
Which of the following is an important underwriting principle of group life
insurance? ANSWER: Everyone must be covered in the group
Which requirement must be met for an association to be eligible for a group life
plan? ANSWER: Group was formed for a purpose other than acquiring insurance
When an employee is terminated, which statement about a group term life
conversion is true? ANSWER: Policy proceeds will be paid if the employee dies
during the conversion period
, 3|Page
Under a trustee group life policy, who would be eligible for a certificate of
coverage? ANSWER: Corporation
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? ANSWER: Fixed 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?
ANSWER: Single Premium
Which of these is an element of a Single Premium annuity?
ANSWER: Lump-sum payment
Which of these statements concerning an Individual Straight Life annuity is
accurate?
ANSWER: Payments are made to an annuitant for life
An individual who purchases a Life annuity is given protection against
ANSWER: the risk of living longer than expected
An immediate annuity consists of a ANSWER: single premium
All of these are considered to be a benefit under Social Security EXCEPT for
ANSWER: unemployment
