Xcel Life Insurance Exam 2023-2024 Xcel
Solutions Life Insurance Exam Update
2023-2024 Life Insurance Xcel Exam
Questions and Correct Answers Rated
A+
What does the Group Life underwriting risk selection process help protect insurance
companies from? - ANSWER-Adverse selection is the tendency of less favorable
insurance risks to seek or continue insurance to a greater extent than others.
All of the following are exempt from the 10% tax penalty for early qualified plan
withdrawals EXCEPT - ANSWER-Withdrawing funds from a qualified plan for the
purpose of purchasing stocks or other securities would trigger a 10% tax penalty.
Julie has a $100,000 30-year mortgage on her new home. What type of life insurance
could she purchase that is designed to pay off the loan balance if she dies within the 30-
year period? - ANSWER-Decreasing term insurance is normally used to pay off a
mortgage balance in the event of death of the insured.
Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the
beneficiary. If Sharon MUST obtain Mike's signature in order to change the beneficiary,
what kind of beneficiary designation is this? - ANSWER-An irrevocable beneficiary
designation requires the beneficiary's signature.
Matt is applying for life insurance and requests a double indemnity rider. A double
indemnity benefit will be payable to Matt's beneficiary if Matt - ANSWER-Matt's
beneficiary will be provided with the double indemnity ride if Matt dies instantly from a
car accident.
Which type of policy combines the flexibility of a Universal Life Policy with investment
choices? - ANSWER-When the structure and flexibility of a universal life policy are
combined with investment choices, the result is a variable universal life policy.
Which situation accurately describes a reduced paid-up nonforfeiture option? -
ANSWER-Policy has a decreased face amount. With a reduced paid-up nonforfeiture
option, the policy will have a decreased face amount.
Interest on benefits of a life insurance policy shall begin to accrue ____ days from the
date of receipt of proof of death by the insurer. - ANSWER-30. Interest on benefits of a
life insurance policy shall begin to accrue 30 days from the date of receipt of proof of
death by the insurer.
, A life insurance claim which involves a per capita distribution of policy proceeds would
be payable to the - ANSWER-named living primary beneficiaries. "Per capita" is a
method of life insurance distribution using total number of individuals.
Which of the following describes a person who is NOT acceptable by an insurer at
standard rates because of health history, occupation or hobbies? - ANSWER-An
individual who is not acceptable by an insurer at standard rates because of health
history, occupation or hobbies is called substandard risk.
All of these are standard exclusions found in a life insurance policy EXCEPT -
ANSWER-Disability is not one of the standard exclusions found in life insurance
policies.
Field underwriting performed by the producer involved - ANSWER-Field underwriting
performed by the producer involves completing the application and collecting the initial
premium. Other duties include, but are not limited to providing disclosure information to
the applicant and policy delivery.
What happens to the total amount of premium paid for an insurance policy when the
payment frequency increases? - ANSWER-As the premium payment frequency
increases, the total amount of premium paid for an insurance policy increases.
Which type of life insurance is normally associated with Payor Benefit rider? -
ANSWER-A Payor Benefit rider waived the premium ONLY in connection with juvenile
insurance.
When a qualified plan starts making payments to its recipient, which portion of the
distributions is taxable? - ANSWER-Gains
A certificate of authority is issued by the - ANSWER-Department of insurance
A life insurance policy which contains cash values that vary according to its investment
performance of stocks is called? - ANSWER-Variable Whole Life
An immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payment? - ANSWER-1 month
An insurer's claim settlement practices are regulated by the - ANSWER-State insurance
departments
Which of the following annuity payout options makes no additional payments regardless
of when the annuitant dies? - ANSWER-Life only
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