XCEL Exam Simulator FL Questions and
Answers
1. S recently received a $500,000 lump sum retirement buyout
from her em- ployer. 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?
ANS Single Premium.
Immediate Annuities are purchased with a single lump sum payment and will start providing income
payments within the first year, but usually starting 30 days from the purchase date.
2. What type of group plan involves employees sharing the cost?
ANS contributory plan.
3. Which of these circumstances is a Business Disability Buy-Sell policy
designed to help in the sale of a business?
ANS Business owner becoming disabled.
A business Disability Buy-Sell policy is signed to assist in the sale of a business when one of the owners
becomes disabled.
4. On August 6, D submitted an application for a $50,000 Life
Insurance policy
,and did not pay the initial premium. On August 18, D went to his
doctor complaining of chest pains and some tests were given by the
doctor. The life policy was delivered by the producer on August 20
and D explains what had recently taken place with the doctor. What
action should the producer then take?
ANS Collect initial premium along with a signed health statement.
in this situation, the producer should deliver the policy and obtain the premium payment along with a
signed health statement.
5. On a life insurance policy, who is qualified to change the beneficiary
designa-
tion?
ANS Policyowner.
However, consent may be needed by the current beneficiary if designated as irrevocable.
6. Generally, how long is a benefit period for a major medical expense
plan?
ANS One year.
7. Which of these life products is NOT considered interest-sensitive?
-Variable universal life
,-Modified whole life
-Interest sensitive whole life
-Variable life
ANS Modified Whole Life.
The following ARE interest sensitive
-Variable universal life
-Interest sensitive whole life
-Variable life
8. How does an indexed annuity differ from a fixed annuity?
ANS indexed annuity owners receive credited interest tied to the fluctuations of the linked
index.
9. Which mode of payment is NOT used by health insurance policies?
ANS Single premium
10. A Disability Income policyowner suffers a disability
which was due to the same cause as a previous disability. Both
disabilities occurred within a
five-month period. The insurer may cover the second disability
without a new elimination period under the
ANS Recurrent Disability provision.
, In this situation, the insurer will provide the same benefits without a new elimination period under the
recurrent disability provision.
11. In Major Medical Expense policies, what is the intent of a Stop
Loss provi-
sion?
ANS limits an insured's out-of-pocket medical expenses
12. What must an insurer obtain to conduct an HIV test?
ANS written consent
13. All the following are Nonforfeiture options EXCEPT
a) Reduced paid-up
b) Automatic Premium loan option
c)Cash surrender
d) Extended term
ANS Automatic Premium loan option
14. Which of these is NOT considered to be a right given to a
policyowner?
-Surrendering the policy's cash value
-Modify a provision in the insurance contract
Answers
1. S recently received a $500,000 lump sum retirement buyout
from her em- ployer. 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?
ANS Single Premium.
Immediate Annuities are purchased with a single lump sum payment and will start providing income
payments within the first year, but usually starting 30 days from the purchase date.
2. What type of group plan involves employees sharing the cost?
ANS contributory plan.
3. Which of these circumstances is a Business Disability Buy-Sell policy
designed to help in the sale of a business?
ANS Business owner becoming disabled.
A business Disability Buy-Sell policy is signed to assist in the sale of a business when one of the owners
becomes disabled.
4. On August 6, D submitted an application for a $50,000 Life
Insurance policy
,and did not pay the initial premium. On August 18, D went to his
doctor complaining of chest pains and some tests were given by the
doctor. The life policy was delivered by the producer on August 20
and D explains what had recently taken place with the doctor. What
action should the producer then take?
ANS Collect initial premium along with a signed health statement.
in this situation, the producer should deliver the policy and obtain the premium payment along with a
signed health statement.
5. On a life insurance policy, who is qualified to change the beneficiary
designa-
tion?
ANS Policyowner.
However, consent may be needed by the current beneficiary if designated as irrevocable.
6. Generally, how long is a benefit period for a major medical expense
plan?
ANS One year.
7. Which of these life products is NOT considered interest-sensitive?
-Variable universal life
,-Modified whole life
-Interest sensitive whole life
-Variable life
ANS Modified Whole Life.
The following ARE interest sensitive
-Variable universal life
-Interest sensitive whole life
-Variable life
8. How does an indexed annuity differ from a fixed annuity?
ANS indexed annuity owners receive credited interest tied to the fluctuations of the linked
index.
9. Which mode of payment is NOT used by health insurance policies?
ANS Single premium
10. A Disability Income policyowner suffers a disability
which was due to the same cause as a previous disability. Both
disabilities occurred within a
five-month period. The insurer may cover the second disability
without a new elimination period under the
ANS Recurrent Disability provision.
, In this situation, the insurer will provide the same benefits without a new elimination period under the
recurrent disability provision.
11. In Major Medical Expense policies, what is the intent of a Stop
Loss provi-
sion?
ANS limits an insured's out-of-pocket medical expenses
12. What must an insurer obtain to conduct an HIV test?
ANS written consent
13. All the following are Nonforfeiture options EXCEPT
a) Reduced paid-up
b) Automatic Premium loan option
c)Cash surrender
d) Extended term
ANS Automatic Premium loan option
14. Which of these is NOT considered to be a right given to a
policyowner?
-Surrendering the policy's cash value
-Modify a provision in the insurance contract
