XCEL FINAL EXAM COMPREHENSIVE OF LIFE
AND HEALTH INSURANCE ALL QUESTIONS
AND CORRECT DETAILED ANSWERS |NEW AND
REVISED
A policy-owner is able to choose the frequency of premium payments
through what policy feature? - ANSWER- Premium Mode
A policy owner is allowed to pay premiums more than once a year under
which provision? - ANSWER- Mode of Premium
An incomplete life insurance application submitted to an insurer will
result in which of these actions? - ANSWER- Application will be
returned to the writing agent.
Any changes made on an insurance application requires the initials of
whom? - ANSWER- Applicant
P is a producer who notices 5 questions on a life application were not
answered. What actions should P take? - ANSWER- Set up a meeting
with the applicant to answer the remaining questions
Q applied for life insurance and submitted the initial premium on
January 1. The policy was issued February 1, but it was not delivered by
the agent until February 7. Q is dissatisfied and returns the policy
,February 13. How will the insurer handle this situation? - ANSWER-
Policy was returned within the free-look period, premium will be fully
refunded.
Who is NOT required to sign a life insurance application? - ANSWER-
Beneficiary
What action should a producer take if the initial premium is NOT
Submitted with the application? - ANSWER- Forward the application o
the insurer without the initial premium.
An applicant's medical information received from the Medical
Information Bureau (MIB) may be furnished to the - ANSWER-
applicant's physician
What is the purpose of the USA Patriot Act - ANSWER- To detect and
deter terrorism
Which requirement must be met for an association to be eligible for a
group life plan? - ANSWER- The group was formed for a purpose other
than acquiring insurance.
When an employee is terminated, which statement about a group term
life conversion is true? - ANSWER- The policy proceeds will be paid if
the employee dies during the conversion period.
,A person who is insured within a group contract will be given a -
ANSWER- Certificate
W is a 39-year old female who just purchased an annuity to provide
income for life starting at age 60. All of these would be acceptable
annuity choices EXCEPT a(n) - ANSWER- Immediate annuity
An immediate annuity consists of a - ANSWER- Single premium
What is Old Age and Survivors Health Insurance (OASDHI) also known
as? - ANSWER- Social Security
Which of these retirement plans can be started by an employee, even if
another plan is in existence? - ANSWER- Individual Retirement
Account (IRA)
When does a guaranteed Insurability Rider allow the insured to buy
additional coverage? - ANSWER- at future dates specified in the
contract with no evidence of insurability required.
Which of these provisions require proof of insurability after a policy has
lapsed? - ANSWER- Reinstatement
The consideration clause in a life insurance policy indicated that a policy
owner's consideration consists of a completed application and -
ANSWER- the initial premium.
, what provision in a life insurance policy states that the application is
considered part of the contract? - ANSWER- Entire contract provision
The incontestable clause allows an insurer to - ANSWER- Contest a
claim during the contestable period
What kind of life insurance beneficiary requires his/her consent when a
change of beneficiary is made? - ANSWER- Irrevocable beneficiary
When can a policy-owner change a revocable beneficiary? - ANSWER-
Anytime
K has a life insurance policy where her husband is beneficiary and her
daughter is contingent beneficiary. Under the Common Disaster clause,
if K and her husband are both killed in an automobile accident, where
would the death proceeds be directed? - ANSWER- Daughter
T and S are named co-primary beneficiaries on a $500,000 Accidental
Death and Dismemberment policy insuring their father. Their mother
was named contingent beneficiary. Five years later, S dies of natural
causes and the father is killed in a scuba accident shortly afterwards.
How much of the death benefit will the mother receive? - ANSWER- 0
How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? - ANSWER- If
the primary beneficiary dies before the insured
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