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XCEL Chapter 4 Life Insurance Policies - Provisions, Options and Riders Exam
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XCEL Chapter 4 Life Insurance Policies - Provisions, Options and Riders Exam
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XCEL Chapter 4: Life Insurance Policies- Provisions, Options and Riders Exam
Which statement regarding whole life insurance is accurate? - Answers -Insurance
coverage can continue for life
When a ten year renewable term life insurance policy issued at age 45 is renewed, the
premium rate will be the current rate for - Answers -Ten year term insurance for a
person aged 55
When would evidence of insurability be required for a person already covered with a
variable universal life policy? - Answers -When the death benefit is increased
Assets that back the non-guaranteed values of variable life insurance products are held
in which account? - Answers -Separate account set up by the insurer
Which of these statements accurately portrays an adjustable life insurance policy? -
Answers -Policy can alternate between forms of term and whole life insurance
John received a one-time distribution of $50,000 from his modified endowment contract
(MEC). Prior to that, the contact's cash value was $150,000, the contract investment
amount was $100,000, and the death benefit was $500,000. What percentage of the
$50,000 distribution was taxable as ordinary income? - Answers -100%
How long does protection normally extend to under a limited pay whole life policy? -
Answers -Until age 100
When can a life insurance policy be issued WITHOUT the insured's consent? - Answers
-When a parent purchases a policy on the life of a minor child
Which of the following is a TRUE statement regarding universal life insurance? -
Answers -Policy indicates how much of each premium is used toward company
expenses
All of these are considered feature of whole life insurance EXCEPT - Answers -Initial
premium is lower than for an equivalent amount of term insurance
Which type of life insurance policy is best suited for paying off the outstanding balance
of a 30-year mortgage in the event of the insured's death? - Answers -30-year
decreasing term
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