XCEL Chapter 4 questions with complete solutions 2023

XCEL Chapter 4 questions with complete solutions 2023John and Mary have a handicapped child that is financially dependent upon them. The death of one of the parents would not be financially disastrous, however the death of both likely would be. Which policy would be best suited for them? Second-to-die policy An insurance policy written after 1988 that fails to pass the seven-pay test is known as a modified endowment contract What is the proper order of initial life insurance premiums, from lowest to highest? Modified premium, ordinary life, single premium In a renewable term life insurance policy, the contract will usually require a higher premium payable at each renewal Which of the following is NOT a true description of non-medical life insurance? Applicants are not required to answer medical questions on the application A life insurance policy's limit of liability would be a policy's face amount Which of the following is NOT true regarding a family policy that covers children? Conversion of child's coverage to permanent insurance requires evidence of insurability A life insurance policy where the insured can choose where the cash value can be invested is called variable life A life insurance policy that pays the face amount if the insured survives to a specified period of time is called endowment insurance Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax penalty for taking a loan against this policy prior to age 59 1/2? 10% In a modified endowment contract, the penalty tax imposed on withdrawals is 10% Which of the following types of life insurance combines a savings element along with a flexible premium option? Universal life Which of the following is a life insurance policy that does NOT require a physical exam? Non-medical Which of the following statements do NOT apply to child coverage in a family policy Only children born prior to policy's issue date may be included