XCEL CHAPTER 4 EXAM 2025
QUESTIONS AND ANSWERS
Donald is the primary insured of a life insurance policy and adds a children's term rider. What is
the advantage of adding this rider?
A. Can be converted to permanent coverage without evidence of insurability
B. Coverage can be different for each child
C. Premiums on this rider are not required until the limiting age is reached
D. Increases the policy's overall cash value - ANS Can be converted to permanent coverage
without evidence of insurability
A renewable Term Life insurance policy allows the policyowner the right to renew the policy?
A. at anytime the policyowner chooses
B. as many times as the policyowner chooses
C. paying the same premium as before the renewal
D. without producing proof of insurability - ANS without producing proof of insurability
1 @COPYRIGHT THEBRIGHT 2025/2026
,Which type of life insurance is normally associated with a Payor Benefit rider?
A. Juvenile insurance
B. Family income insurance
C. Spouse insurance
D. Term rider - ANS Juvenile insurance
A life insurance policy that has premiums fully paid up within a stated time period is called?
A. stated payment insurance
B. limited universal insurance
C. stated modified insurance
D. limited payment insurance - ANS limited payment insurance
Which of these describes the result of a modified endowment contract that failed to meet the
seven-pay test?
A. Policy loans are disallowed
B. The premium payments will be tax deductible
C. Pre-death distributions are typically taxable
2 @COPYRIGHT THEBRIGHT 2025/2026
, D. Withdrawals will be prohibited - ANS Pre-death distributions are typically taxable
How are survivorship life insurance policies helpful in estate planning?
A. Provide funds to help fund retirement
B. Provide funds to help pay taxes
C. Provide funds for funeral expenses
D. Provide tax deductions for premium payments - ANS Provide funds to help pay taxes
A limited payment whole life policy provides?
A. protection for 20 years
B. lifetime protection
C. protection for more than one person
D. discounted premiums - ANS lifetime protection
A Renewable Term Life insurance policy can be renewed?
A. at a predetermined date or age, regardless of the insured's health
B. only if the insured provides evidence of insurability
3 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
Donald is the primary insured of a life insurance policy and adds a children's term rider. What is
the advantage of adding this rider?
A. Can be converted to permanent coverage without evidence of insurability
B. Coverage can be different for each child
C. Premiums on this rider are not required until the limiting age is reached
D. Increases the policy's overall cash value - ANS Can be converted to permanent coverage
without evidence of insurability
A renewable Term Life insurance policy allows the policyowner the right to renew the policy?
A. at anytime the policyowner chooses
B. as many times as the policyowner chooses
C. paying the same premium as before the renewal
D. without producing proof of insurability - ANS without producing proof of insurability
1 @COPYRIGHT THEBRIGHT 2025/2026
,Which type of life insurance is normally associated with a Payor Benefit rider?
A. Juvenile insurance
B. Family income insurance
C. Spouse insurance
D. Term rider - ANS Juvenile insurance
A life insurance policy that has premiums fully paid up within a stated time period is called?
A. stated payment insurance
B. limited universal insurance
C. stated modified insurance
D. limited payment insurance - ANS limited payment insurance
Which of these describes the result of a modified endowment contract that failed to meet the
seven-pay test?
A. Policy loans are disallowed
B. The premium payments will be tax deductible
C. Pre-death distributions are typically taxable
2 @COPYRIGHT THEBRIGHT 2025/2026
, D. Withdrawals will be prohibited - ANS Pre-death distributions are typically taxable
How are survivorship life insurance policies helpful in estate planning?
A. Provide funds to help fund retirement
B. Provide funds to help pay taxes
C. Provide funds for funeral expenses
D. Provide tax deductions for premium payments - ANS Provide funds to help pay taxes
A limited payment whole life policy provides?
A. protection for 20 years
B. lifetime protection
C. protection for more than one person
D. discounted premiums - ANS lifetime protection
A Renewable Term Life insurance policy can be renewed?
A. at a predetermined date or age, regardless of the insured's health
B. only if the insured provides evidence of insurability
3 @COPYRIGHT THEBRIGHT 2025/2026
