Xcell Testing Solutions (Life & Health) Final Practice Exam |167 Questions With 100% Correct Answers.

When can a policy owner change a revocable beneficiary? - 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? - Revocable How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - If the primary beneficiary dies before the insured What is the underlying concept regarding level premiums? - 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? - Premium Mode Any changes made on an insurance application requires the initials of whom? - Applicant All of these are considered sources of underwriting information about an applicant EXCEPT - Rating Services 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? - 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 - free-look period has expiredWhat action should a producer take if the initial premium is NOT submitted with the application? - Forward the application to the insurer without the initial premium Which of the following is an important underwriting principle of group life insurance? - Everyone must be covered in the group Which requirement must be met for an association to be eligible for a group life plan? - 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? - Policy proceeds will be paid if the employee dies during the conversion period Under a trustee group life policy, who would be eligible for a certificate of coverage? - 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? - Fixed Deferred