XCEL LIFE INSURANCE EXAM LATEST 2024 XCEL SOLUTIONS
LIFE INSURANCE CORRECT DETAILED ANSWERS (VERIFIED
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Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? - ANSWER ✔$5,000 An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made? - ANSWER ✔Refund annuity A beneficiary change can occur - ANSWER ✔normally at any time during the policy term An insurer's ability to make unpredictable payouts to policyowners is called - ANSWER ✔liquidity In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest? - ANSWER ✔Insurable interest can be established sufficiently by sentimental attachment alone All of the following statements correctly describe the purpose of Social Security EXCEPT - ANSWER ✔It provides a source of income for a meaningful standard of living during retirement The free look period provided in a life insurance policy is usually - ANSWER ✔10 days Under a contract of adhesion, - ANSWER ✔the terms must be accepted or rejected in full Who were Keogh plans designed to provide pension benefits for? - ANSWER ✔The self-employed The authority granted to a licensed producer is provided via the - ANSWER ✔Law of Agency A change in an insurance application requires - ANSWER ✔an initial made by the applicant An example of risk sharing would be - ANSWER ✔Doctors pooling their money to cover malpractice exposures How does life insurance create an immediate estate? - ANSWER ✔After first premium is paid, the face amount may be 1 / 3
available to the beneficiary Ambiguities in an insurance policy are always resolved in favor of the - ANSWER ✔insured Naming a contingent beneficiary as "all surviving children" is described by which term? - ANSWER ✔Class designation The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as - ANSWER ✔Aleatory All of the following are examples of pure risk EXCEPT - ANSWER ✔Losing money at a casino Insurance represents the process of risk - ANSWER ✔transference An underwriter's primary responsibility to an insurer is to protect against - ANSWER ✔adverse selection How are contributions made to a Roth IRA handled for tax purposes? - ANSWER ✔Not tax deductible How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability? - ANSWER ✔12 months The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT - ANSWER ✔insurance sales calls Which of the following statements is CORRECT regarding an individual applying for life or health insurance? - ANSWER ✔The applicant's medical history may be analyzed and reported What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? - ANSWER ✔participating life insurance policy Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence? - ANSWER ✔Section 1035 exchange A non-contributory health insurance plan helps the insurer avoid - ANSWER ✔Adverse selection The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? - ANSWER ✔implied In a life or health insurance contract, "consideration" would be the - ANSWER ✔statements made in the application and the premium Which of following provisions protects a Pennsylvania policyowner from an innocent mistake made on the application over 2 years ago? - ANSWER ✔Incontestability provision 2 / 3
All of the following are examples of a Business Continuation Plan EXCEPT - ANSWER ✔Deferred Compensation Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen? - ANSWER ✔fixed amount An insurer's claim settlement practices are regulated by the - ANSWER ✔State insurance departments A type of insurer that is owned by its policyowners is called - ANSWER ✔mutual According to life insurance contract law, insurable interest exists - ANSWER ✔at the time of application The Fair Credit and Reporting Act's main purpose is to - ANSWER ✔protect consumers with guidelines regarding credit reporting and distribution An insurance applicant with a below-average likelihood of loss is typically considered to be a - ANSWER ✔preferred risk A rollover from a Traditional IRA to another IRA MUST be done within ___ days to avoid tax consequences. - ANSWER ✔60 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 ✔dies instantly from a car accident Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences? -
ANSWER ✔60
What happens to the total amount of premium paid for an insurance policy when the payment frequency increases? - ANSWER ✔increases Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true? - ANSWER ✔The policy may be paid up early by using policy dividends According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's - ANSWER ✔promises made Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this? - ANSWER ✔$10,000 Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments? - ANSWER ✔Period certain Which of the following is NOT part of an insurance contract? - ANSWER ✔Certificate of Authority Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of these statements is
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