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Insurance license practice XCEL
solutions 100 FINAL EXAM
Question 8 taking receipt of premiums and holding them for the insurance company is an example of? - โ โ Fiduciary responsibility Question 9 How does an indexed annuity differ from a fixed annuity? - โ โ Indexed annuity owners receive crediting interest time to the fluctuation of the linked index Question 10 which of the following policies combines investment choices with a form of Term coverage? - โ โ Variable universal life Question 11 How long does an insurance company appointment remain in force? - โ โ Until terminated Question 12 in Texas an individual life insurance policy is REQUIRED to have a grace period of? - โ โ 31 days Question 13 Which statement is TRUE regarding a variable whole life policy? - โ โ A minimum guaranteed death benefit is provided
Question 14 in an insurance contract the insurer is the only party who makes a - โ โ Unilateral Question 15 which of these is NOT considered to be an element of an insurance contract? - โ โ Negotiating Question 16 What does a 401(k) plan generally provide its participants? - โ โ Salary-deferral contributions Question 17 All these statements concerning Settlement Options are true, EXCEPT? - โ โ Only the beneficiary may select Question 18 A domestic insurance company in Texas is considered a company that?
- โ โ Is incorporated and formed in Texas Question 19 Which of the following statements about non-contributory employee group life insurance is FALSE? - โ โ A minimum number of employees is required to participate Question 20 when a misrepresentation on a life insurance policy application is discovered what action may an insurance company take? - โ โ
would be? - โ โ an amount that the premiums paid would have purchased at the current age Question 27 what provision in a life insurance policy states that the application is considered part of the contract? - โ โ Entire contract provision Question 28 M has an insurance policy that also has an outstanding policy loan at a time of M's death. The insurer will deduct the outstanding loan balance from the? - โ โ Policy proceeds Question 29 Under the USA Patriot act, insurers are required to report receipt of cash payments in excess of? - โ โ $10, Question 30 Credit life insurance is? - โ โ insurance issued on a debtor to cover outstanding loan balance Question 31 The phrase "transacting business" includes - โ โ Collecting premiums Question 32 What is the purpose of the USA Patriot act? - โ โ Detect and deter terrorism Question 33
an insurer is NOT required to provide information on fraudulent claims if requested by? - โ โ An insured Question 34 Which of the following is Not included in a life insurance illustration? - โ โ Companies mortality table Question 35 Employee is covered under a group life plan with a $50,000 death benefit. What is the maximum amount a spouse may be insured for under this program? - โ โ $25, Question 36 which life insurance rider typically appears on a Juvenile life insurance policy - โ โ Payor benefit rider Question 37 Which of these retirement plans can be started by an employee, even if another plan is in existence? - โ โ Individual retirement account (IRA) Question 38 What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? - โ โ Family maintenance policy Question 39
Question 46 L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They purchase a family policy that covers L's spouse at age 65. A death benefit will NOT be paid in which of the following? - โ โ L's spouse dies at age 66 Question 47 A policy owner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fill this need? - โ โ Irrevocable Question 48 the type of annuity that can be purchased with one monetary deposit is called a(n)? - โ โ Immediate annuity Question 49 An example of an unfair claims settlement practice is? - โ โ turn down a claim without providing the basis of denial Question 50 What type of life insurance are credit issued as? - โ โ Term Question 51 Which of the following best describes a contingent beneficiary? - โ โ person designated by the insurance receive policy proceeds in the event that the primary beneficiary dies before the insured Question 52
What is an organization that solicits insurance only to its members? - โ โ Fraternal benefit society Question 53 All of these statements about the Commissioner of Insurance are true EXCEPT? - โ โ The commissioner must be elected Question 54 a life insurance policy that provides a policy owner with cash value along with face value amount is called? - โ โ Whole life Question 55 An insurance company may NOT reject a prospective insured life application on the basis of which of the following factors? - โ โ Gender or Marital status Question 56 How often must an insurance agent license normally be renewed? - โ โ Every two years Question 57 Group life insurance policies are generally written as? - โ โ Annually renewable term Question 58 On August 6, Submitted an application for a $50,000 life insurance policy and did not pay the initial premium. On August 18, D went to the doctor complaining of chest pain, and some tests were given by the doctor. the life policy was delivered by the producer on August 20th
who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in Texas? - โ โ The agent and the company Question 65 Traditional individual retirement annuity (IRA) distributions must start by? - โ โ April 1st of the year following the year the participant attains age 70 ยฝ Question 66 Which of the following groups may NOT be insured by a group life insurance policy? - โ โ Individuals who are related by blood Question 67 Q applied for life insurance and submitted the initial premium on January 1. Policy was issued February 1, but it was not delivered by the agent until February 7. Q is disqualified and returns the policy February
- How will the insurer handle this situation? - โ โ Policy was returned within the free look period, premium will be fully refunded Questions 68 A license may be denied, suspended, or revoked if the license - โ โ Is found guilty of misrepresentation in obtaining the license Question 69 one becomes eligible for social security disability benefits after having been disabled for? - โ โ 5 months Question 70
which of these factors do NOT play a role in the underwriting of a life insurance policy? - โ โ Marital status Question 71 if father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision? - โ โ Payor provision Question 72 Q would like to purchase a $100,000 a permanent protection on his wife in 50,000 of term coverage on himself and it's the same policy. what kind of policy should Q purchase? - โ โ A whole life policy with other insured rider Question 73 how long can a cash surrender value payment be deferred by the insurance company under the nonforfeiture law? - โ โ 6 months Question 74 which provision prevents an insurer from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself? - โ โ Entire contract provision Question 75 Why would the Insurance Commissioner examine the records of an insurance company? - โ โ To determine the solvency of the company Question 76
It certificate of ____ commence an insurance company to transact business in Texas - โ โ Authority Question 83 an insurance company organized under New York laws and licensed to do business in Texas is considered a(n)? - โ โ Foreign company Question 84 P is blinded in an accident. which provision of his life insurance policy will pay a stated benefit amount? - โ โ Accidental death and dismemberment clause Question 85 Life and health insurance policies are? - โ โ Unilateral contracts Question 86 As a condition for a loan, a bank requires the borrower to purchase credit Insurance from a specific company. What is the bank guilty of? - โ โ Coercion Question 87 at what time must a policy owner have insurable interest on the insured in order for the life policy to be valid? - โ โ At the time of application Question 88 which of the following is not required provision in group life policies? - โ โ Right to loan
Question 89 In a life insurance policy, which provision States who may select policy options,designate and name a beneficiary and be the recipient of any financial benefits from the policy? - โ โ Owner's rights Question 90 which of these statements is INCORRECT regarding the federal income tax treatment of Life Insurance? - โ โ Entire cast surrender value is taxable Question 91 N is a student pilot with a large life insurance policy. which of these features would limit the insurers obligation in the event N was killed while flying as a student pilot? - โ โ Exclusion Question 92 Two partners own equal shares in a business where the total $1,000,000. if they both commit to the purchase of the life insurance policy that will fund a Buy-sell Agreement, which of the following is TRUE? - โ โ Each partner owns a $500,000 policy on their partner's life Question 93 which of the following actions does the Commissioner of Insurance not have the power to conduct? - โ โ Activate insurance companies' financial reserve Question 94
Question 100 which type of life policy contains a monthly mortality charge as well as a self-directed investment choices? - โ โ Variable universal life Question 1 Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - โ โ Life income Question 2 A new agent must complete at least _____ hours of continuing education within 24 months of initial license? - โ โ 24 hours Question 3 L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L has understated range on the application. Under the misstatement of age provision the insurer will? - โ โ Adjust the death benefits to a reduced amount Question 4 An example of false advertising would be? - โ โ And insurer exaggerating in dividends in a magazine advertisement Question 5 With whom an agent legally share commissions? - โ โ Another agent with the same line of insurance Question 6
Insurance agent as a fiduciary responsibility to all of the following EXCEPT? - โ โ Other agents Question 7 Which of these is not an example of doing insurance business? - โ โ Selling shares of stock
