XCEL Chapter 4 Exam Review (2)
Questions With Answers 2025.
Extended term - ANSWER- NOT considered a life insurance rider.
A whole life insurance policy accumulates cash value that becomes - ANSWER- The
policy loan value which the insured may borrow against
The two major actions required for a policyholder to comply with the Reinstatement
Clause - ANSWER- Provide evidence of insurability, agree to a new incontestable
period
Free-look provision - ANSWER- Gives the right to return the policy for a full refund
within a specified number of days
Suicide clause - ANSWER- Protects the insurer against possible adverse selection
Dies instantly in a car accident - ANSWER- Matt is applying for life insurance and
requests a double indemnity rider. A double indemnity benefit will be payable to Matt's
beneficiary if Matt
The death benefit paid will be what the premium would have purchased at the correct
age - ANSWER- James is the insured on a life insurance policy where his age was
misstated on the application. Which of the following is CORRECT regarding the death
benefit amount?
Accelerated death benefit rider - ANSWER- An alternative to a life settlement
Entire contract - ANSWER- The provision that the policy and a copy of an application is
endorsed upon or attached to the policy when issued is the entire contract provision
The policy may be paid up early by using policy dividends - ANSWER- Pat owns a 20-
pay life policy with a paid-up dividend option. Which of the following statements is true?
Past due premiums that have not been paid by the end of the grace period - ANSWER-
The automatic premium loan provision authorizes an insurer to withdraw from a policy's
cash value the amount of
Reduced paid nonforfeiture option - ANSWER- Policy has a decreased face amount
Exclusion - ANSWER- A condition which limits the company's liability to provide
coverage
Questions With Answers 2025.
Extended term - ANSWER- NOT considered a life insurance rider.
A whole life insurance policy accumulates cash value that becomes - ANSWER- The
policy loan value which the insured may borrow against
The two major actions required for a policyholder to comply with the Reinstatement
Clause - ANSWER- Provide evidence of insurability, agree to a new incontestable
period
Free-look provision - ANSWER- Gives the right to return the policy for a full refund
within a specified number of days
Suicide clause - ANSWER- Protects the insurer against possible adverse selection
Dies instantly in a car accident - ANSWER- Matt is applying for life insurance and
requests a double indemnity rider. A double indemnity benefit will be payable to Matt's
beneficiary if Matt
The death benefit paid will be what the premium would have purchased at the correct
age - ANSWER- James is the insured on a life insurance policy where his age was
misstated on the application. Which of the following is CORRECT regarding the death
benefit amount?
Accelerated death benefit rider - ANSWER- An alternative to a life settlement
Entire contract - ANSWER- The provision that the policy and a copy of an application is
endorsed upon or attached to the policy when issued is the entire contract provision
The policy may be paid up early by using policy dividends - ANSWER- Pat owns a 20-
pay life policy with a paid-up dividend option. Which of the following statements is true?
Past due premiums that have not been paid by the end of the grace period - ANSWER-
The automatic premium loan provision authorizes an insurer to withdraw from a policy's
cash value the amount of
Reduced paid nonforfeiture option - ANSWER- Policy has a decreased face amount
Exclusion - ANSWER- A condition which limits the company's liability to provide
coverage
