Xcel Laws and Rules Pertinent to Insurance Exam
1. What must an agent sign when an existing Life Insurance policy is
being reissued with a reduction in cash value?
Policy
Summary
Buyer's Guide
Affidavit
Notice Regarding Replacement of Life Insurance or Annuity: answer- Notice
Regarding Replacement of Life Insurance or Annuity
2. Which of these circumstances requires an agent to make reasonable
efforts to obtain information concerning the suitability of an annuity?
Agent helps a client with the purchase of an
annuity Agent sets up sales appointment
Agent purchases advertisement regarding a new annuity product
Agent helps a client with the purchase of an annuity: answer- Agent helps a
client with the purchase of an annuity
1/9
,3. Life Insurance coverage will frequently contain an Accelerated Benefits
rider attached to the policy. What would be considered a "qualifying event
" under these riders?
Seasonal
unemployment Short-
term Disability
Medical condition resulting in a significantly- shortened lifespan
Divorce: answer- Medical condition resulting in a significantly-
shortened lifespan
4. J the agent makes false statements to a perspective client about the
project- ed dividends for a policy. J may be found guilty of:
Defamation
Misrepresentation
Subrogation
Twisting: answer- Misrepresentation
5. Which of the following is the requirement for an individual to perform
the duties of an insurance agent?
2/9
, Be bonded and insured
Reside in the state for 1
year Be duly licensed
Keep an annual sales quota: answer- Be duly licensed
6. Which of the following is a valid reason for suspending our revoking
an insurance agent's license?
Not meeting a sales quota
Filed for bankruptcy
Participating in the act of twisting
Convicted of misdemeanor: Participating in the act of twisting
3/9
1. What must an agent sign when an existing Life Insurance policy is
being reissued with a reduction in cash value?
Policy
Summary
Buyer's Guide
Affidavit
Notice Regarding Replacement of Life Insurance or Annuity: answer- Notice
Regarding Replacement of Life Insurance or Annuity
2. Which of these circumstances requires an agent to make reasonable
efforts to obtain information concerning the suitability of an annuity?
Agent helps a client with the purchase of an
annuity Agent sets up sales appointment
Agent purchases advertisement regarding a new annuity product
Agent helps a client with the purchase of an annuity: answer- Agent helps a
client with the purchase of an annuity
1/9
,3. Life Insurance coverage will frequently contain an Accelerated Benefits
rider attached to the policy. What would be considered a "qualifying event
" under these riders?
Seasonal
unemployment Short-
term Disability
Medical condition resulting in a significantly- shortened lifespan
Divorce: answer- Medical condition resulting in a significantly-
shortened lifespan
4. J the agent makes false statements to a perspective client about the
project- ed dividends for a policy. J may be found guilty of:
Defamation
Misrepresentation
Subrogation
Twisting: answer- Misrepresentation
5. Which of the following is the requirement for an individual to perform
the duties of an insurance agent?
2/9
, Be bonded and insured
Reside in the state for 1
year Be duly licensed
Keep an annual sales quota: answer- Be duly licensed
6. Which of the following is a valid reason for suspending our revoking
an insurance agent's license?
Not meeting a sales quota
Filed for bankruptcy
Participating in the act of twisting
Convicted of misdemeanor: Participating in the act of twisting
3/9
