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Alabama Life & Health Insurance XCEL Testing Solutions 2023 - 2024 (Verified) 1.The life and health insurance marketing system utilizing non-employee agents that represent just one insurance company and are often paid an allowance to cover office expense and staffing is known as what? ANS the general agency system.
2.Dividends payable to a policyowner are declared by? ANS the insurance company 3.A nonprofit incorporated society that doesn't have capital stock and oper- ates for the sole benefit of its members is known as what? ANS fraternal benefit society 4.Insurance policies issued by companies which are owned by stockholders and do not pay policy dividends are known as what? ANS non- participating policies 5.Insurance policies issued by companies which allow their policyowners to participate in the favorable experience of the company through payment 1 / 4 Download at gaviki.comDownload at gaviki.com
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of dividends are known as what? ANS participating policies 6.A life insurance producer's agency agreement normally authorizes the li- censee to do what? ANS Solicit and sell insurance, collect premiums 7.Who issues policies? ANS the insurer 8.People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called? ANS adverse selection 9.With respect to an insurance application.... ANS a representation is valid as long as its true.
10.Pat the producer just sold an insurance policy to a client, explaining that he has authority to issue the policy. Pat was not specifically granted this power from the insurance company. Pat is exercising what? ANS implied authority 11.Why are insurance contracts said to be contracts of adhesion? ANS One party writes the contract, and the other party must accept the contract as written.
12.The agreement between a producer and the insurance company specifies the authority given to a producer to act on behalf of the insurer. 2 / 4 Download at gaviki.comDownload at gaviki.com
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What is this called? ANS Expressed authority 13.How do term life insurance and whole life insurance differ? ANS Term insurance does not build cash value.
14.Who can collect the face amount on an endowment policy? ANS the policyown- er.
15.A policyowner can collect the face amount on what kind of policy? ANS endow- ment policy 16.What life insurance policy would build up cash value the fastest? ANS single premium 17.Mortgage protection is typically covered with? ANS decreasing term life insur- ance 3 / 4 Download at gaviki.comDownload at gaviki.com
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18.With an initial face amount of $50,000, and a value of $5,000, the actual death benefit would be? ANS $55,000 19.Which option would the beneficiary receive the death benefit plus the accumulated cash value? ANS increasing death benefit option 20.At what age does a whole life policy endow? ANS 100 21.Tim has a Universal Life policy. What is the cash value growth in his policy? ANS interest sensitive 22.In an adjustable life policy, what may be adjusted to meet the policyholder's needs? ANS frequency of premium payments, amount of payment, policy's face amount 23.What can NOT be adjusted in an adjustable life policy? ANS the insured 24.Which of the following combines insurance protection with a cash accu- mulation? ANS permanent insurance 25.With term life insurance, what remains the same throughout the policy period? ANS a level premium
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