Xcel Final Exam| Questions and Verified
Answers| 100% Correct| A Grade (New 2025/
2026)
QUESTION
How do life insurance companies handle cases where the insured commits suicide within he
contract's stated contestable period?
Answer:
Claims are denied under the suicide clause of the policy
QUESTION
B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase,
without evidence of insurabillity, stated amounts of
Answer:
additional Whole Life coverage at specific times
QUESTION
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the
application ask if P engages in scuba diving, to which P answers "No". The policy is then issued
with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident
in 2011. What will the insurer pay to P's beneficiary?
Answer:
$50,000 minus any outstanding policy loans
QUESTION
D was actively serving in the Marines when he was killed in an automobile accident while on
leave. His $100,000 Whole life policy contains a war exclusion clause. How much will D's
beneficiary's receive?
,Answer:
The full face amount
QUESTION
Which type of policy is considered to be over funded, as stated by IRS guidelines?
Answer:
A modified endowment contract
QUESTION
When a policy owner exchanges a term policy for a whole life policy providing proof of good
health, which of these apply?
Answer:
Conversion provision
QUESTION
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at retirement.
Which of these should N purchase?
Answer:
30 pay life
QUESTION
How long does the coverage normally remain on a limited-pay life policy?
Answer:
age 100
QUESTION
, A variable insurance policy
Answer:
does not guarantee a return on its investment accounts
QUESTION
Credit life insurance is
Answer:
issued in an amount not to exceed the amount of the loan
QUESTION
Term insurance has which of the following characteristics?
Answer:
Expires at the end of the policy period
QUESTION
What kind of insurance policy supplies an income stream over a set period of time that starts
when the insured dies?
Answer:
Family Maintenance Policy
QUESTION
What kind of premium does a whole life policy have?
Answer:
level
Answers| 100% Correct| A Grade (New 2025/
2026)
QUESTION
How do life insurance companies handle cases where the insured commits suicide within he
contract's stated contestable period?
Answer:
Claims are denied under the suicide clause of the policy
QUESTION
B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase,
without evidence of insurabillity, stated amounts of
Answer:
additional Whole Life coverage at specific times
QUESTION
P purchases a $50,000 term life insurance policy in 2005. One of the questions on the
application ask if P engages in scuba diving, to which P answers "No". The policy is then issued
with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident
in 2011. What will the insurer pay to P's beneficiary?
Answer:
$50,000 minus any outstanding policy loans
QUESTION
D was actively serving in the Marines when he was killed in an automobile accident while on
leave. His $100,000 Whole life policy contains a war exclusion clause. How much will D's
beneficiary's receive?
,Answer:
The full face amount
QUESTION
Which type of policy is considered to be over funded, as stated by IRS guidelines?
Answer:
A modified endowment contract
QUESTION
When a policy owner exchanges a term policy for a whole life policy providing proof of good
health, which of these apply?
Answer:
Conversion provision
QUESTION
N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life
insurance policy with level premiums, permanent protection, and be paid-up at retirement.
Which of these should N purchase?
Answer:
30 pay life
QUESTION
How long does the coverage normally remain on a limited-pay life policy?
Answer:
age 100
QUESTION
, A variable insurance policy
Answer:
does not guarantee a return on its investment accounts
QUESTION
Credit life insurance is
Answer:
issued in an amount not to exceed the amount of the loan
QUESTION
Term insurance has which of the following characteristics?
Answer:
Expires at the end of the policy period
QUESTION
What kind of insurance policy supplies an income stream over a set period of time that starts
when the insured dies?
Answer:
Family Maintenance Policy
QUESTION
What kind of premium does a whole life policy have?
Answer:
level
