Xcell Testing Solutions (Life & Health) Final 150 Question and Answers with complete solution

Xcell Testing Solutions (Life & Health) Final 150 Question and Answers with complete solution When can a policy owner change a revocable beneficiary? ✔Ans✔ Anytime M purchased an Accidental Death and Dismemberment ...

Xcell Testing Solutions (Life & Health) Final 150 Question and Answers with complete solution When can a policy owner change a revocable beneficiary? ✔Ans✔ Anytime M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? ✔Ans✔ Revocable How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? ✔Ans✔ If the primary beneficiary dies before the insured What is the underlying concept regarding level premiums? ✔Ans✔ The early years are charged less than what is needed A policy owner is able to choose the frequency of premium payments through what policy feature? ✔Ans✔ Premium Mode Any changes made on an insurance application requires the initials of whom? ✔Ans✔ Applicant All of these are considered sources of underwriting information about an applicant EXCEPT ✔Ans✔ Rating Services 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? ✔Ans✔ Policy was returned within the free-look period, premium will be fully refunded M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT ✔Ans✔ free-look period has expired What action should a producer take if the initial premium is NOT submitted with the application? ✔Ans✔ Forward the application to the insurer without the initial premium Which of the following is an important underwriting principle of group life insurance? ✔Ans✔ Everyone must be covered in the group Which requirement must be met for an association to be eligible for a group life plan? ✔Ans✔ 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? ✔Ans✔ Policy proceeds will be paid if the employee dies during the conversion period Under a trustee group life policy, who would be eligible for a certificate of coverage? ✔Ans✔ Corporation N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase? ✔Ans✔ Fixed Deferred S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation? ✔Ans✔ Single Premium Which of these is an element of a Single Premium annuity? ✔Ans✔ Lump-sum payment Which of these statements concerning an Individual Straight Life annuity is accurate? ✔Ans✔ Payments are made to an annuitant for life An individual who purchases a Life annuity is given protection against ✔Ans✔ the risk of living longer than expected An immediate annuity consists of a ✔Ans✔ single premium All of these are considered to be a benefit under Social Security EXCEPT for ✔Ans✔ unemployment Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? ✔Ans✔ Annuity Which statement regarding third-party ownership of a life insurance policy is true? ✔Ans✔ It is used extensively in estate-planning as well as business circumstances Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require? ✔Ans✔ Each partner must own a policy on the other partners Who elects the governing body of a mutual insurance company? ✔Ans✔ policyholders When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? ✔Ans✔ at future dates specified in the contract with no evidence of insurability required S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT ✔Ans✔ beneficiary's age M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the ✔Ans✔ policy proceeds What is the Suicide provision designed to do? ✔Ans✔ safeguard the insurer from an applicant who is contemplating suicide What provision in a life insurance policy states that the application is considered part of the contract? ✔Ans✔ Entire Contract provision The incontestable clause allows an insurer to ✔Ans✔ contest a claim during the contestable period