Download XCEL 101 Final Exam Quiz Questions With Answers| 100% Success Guaranteed and more Exams Insurance law in PDF only on Docsity!
XCEL 101 Final Exam Quiz Questions
With Answers
Reinstatement - โ โ Which of these provisions require proof of insurability after a policy has lapsed?
the initial premium. - โ โ The consideration clause in a life insurance policy indicated that a policy owner's consideration consists of a completed application and
Entire contract provision - โ โ what provision in a life insurance policy states that the application is considered part of the contract?
Contest a claim during the contestable period - โ โ The incontestable clause allows an insurer to
Must have a terminal illness to qualify - โ โ Which of the following statements is correct about accelerated death benefits?
payor clause - โ โ Which of the following provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled?
Assign policy ownership to the bank - โ โ What action can a policy owner take if an application for a bank loan requires collateral?
Claims are denied under the suicide clause of the policy - โ โ How do life insurance companies handle cases where the insured commits suicide within he contract's stated contestable period?
additional Whole Life coverage at specific times - โ โ B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurabillity, stated amounts of
$50,000 minus any outstanding policy loans - โ โ P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary?
The full face amount - โ โ D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a war exclusion clause. How much will D's beneficiary's receive?
A modified endowment contract - โ โ Which type of policy is considered to be over funded, as stated by IRS guidelines?
Conversion provision - โ โ When a policy owner exchanges a term policy for a whole life policy providing proof of good health, which of these apply?
30 pay life - โ โ N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase?
age 100 - โ โ How long does the coverage normally remain on a limited-pay life policy?
at future dates specified in the contract with no evidence of insurability required. - โ โ When does a guaranteed Insurability Rider allow the insured to buy additional coverage?
does not guarantee a return on its investment accounts - โ โ A variable insurance policy
issued in an amount not to exceed the amount of the loan - โ โ Credit life insurance is
Expires at the end of the policy period - โ โ Term insurance has which of the following characteristics?
Family Maintenance Policy - โ โ What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
level - โ โ What kind of premium does a whole life policy have?
Level term - โ โ D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?
20-pay life - โ โ What type of policy would offer a 40-year old the quickest accumulation of cash value?
Survivor-ship - โ โ What type of life policy covers two people and pays upon the death of the last insured?
A renewable - โ โ T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?
Investor-Originated Life Insurance - โ โ which of these arrangements allows one to bypass insurable interest laws?
Promise to pay a death benefit - โ โ What is the consideration given by an insurer in the consideration clause of a life policy?
Accidental Death and Dismemberment rider (AD&D) - โ โ The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n)
Decreasing term policy - โ โ F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?
A family maintenance policy - โ โ P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?
describing a universal life policy as a security - โ โ Which of the following is an example of a misrepresentation?
Certificates - โ โ Which of the following documents are NOT required to mention the Colorado Fraud Statute?
30 - โ โ An insurer that terminates a producer's appointment must inform the Commissioner within how many days?
100 hour pre licensing education - โ โ To be licensed to sell life, accident, and health insurance in Colorado, an applicant must complete
Limited Lines Credit - โ โ Continuing education is required of individuals licensed to sell which of the following types of insurance?
Life insurance - โ โ Continuing education requirements in Colorado apply to which of the following persons?
Resident producers - โ โ Continuing education requirements in Colorado apply to which of the following persons?
5k - โ โ If a producer knowingly violates the Unfair Trade Practices Laws of Colorado, the Office of the Insurance commissioner may fine the producer a MAXIMUM of which of the following amounts per violation?
is incorporated and formed in CO - โ โ In Colorado, a domestic insurance company is defined as a company that
2 yrs - โ โ In Colorado, a producer's license must be renewed every
an insurance company - โ โ In Colorado, an individual producer is considered to represent
enforce all laws of the state governing insurance companies and to make rules and regulations relating to the business of insurance. - โ โ The duty of the Commissioner of Insurance in Colorado is to
determine the solvency of the company - โ โ The insurance Commissioner may examine the records of an insurance company in order to
protect the public - โ โ The primary reason that Colorado requires insurance producers to be licensed is to
ensure that claims filed against insolvent companies will be paid - โ โ The purpose of Guaranty Fund is to
Collecting premiums and paying then to the insurance company - โ โ Which of the following basics is a producer's fiduciary responsibility?
Writing primarily controlled business - โ โ Which activity may result in suspension or revocation of a producer's license?
Irrevocable beneficiary - โ โ What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?
Anytime - โ โ When can a policy-owner change a revocable beneficiary?
Daughter - โ โ 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?
0 - โ โ T and S are named co-primary beneficiaries on a $500, 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?
If the primary beneficiary dies before the insured - โ โ How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?
Beneficiary - โ โ Who is NOT required to sign a life insurance application?
Forward the application o the insurer without the initial premium. - โ โ What action should a producer take if the initial premium is NOT Submitted with the application?
