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XCEL CHAPTER Newest Actual / EXAMS UPDATED QUESTIONS AND CORRECT ANSWERS Verified/Graded A+
Which of these is the automatic mode of settlement for life insurance policy proceeds? - ----Answers---lump sum
The probability of death, listed by year, is demonstrated in - -- --Answers---Mortality tables
Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose? - ----Answers---Interest option
Which of the following describes the number of deaths in a year compared to the number of people in the selected group?
- ----Answers---Mortality rate
What is the price of insurance for each exposure unit? - ---- Answers---rate
Which of the following is NOT an insurance policy expense? - - ---Answers---Premiums
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When calculating life insurance premium rates, which component is affected by insureds age and gender? - ---- Answers---Mortality
A spendthrift clause in a life insurance policy - ----Answers-- -restricts the ability of the beneficiary to assign benefits
A creditor would be allowed rights to life insurance policy proceeds if which of the following beneficiaries is chosen? - -- --Answers---The insured's estate
How are death benefits that are received by a beneficiary normally treated for a tax purpose? - ----Answers---Exempt from federal income taxes
When calculating life insurance premium rates, which component would an agent commission fall under? - ---- Answers---Insurers expenses
Which of the following is NOT a life insurance settlement option? - ----Answers---Extended term option
Where would a policy proceeds to be paid if both the insured and primary beneficiary were killed in the same accident? - -- --Answers---contingent beneficiary
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Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n) - ----Answers---1035 exchange
What is the primary feature of a viatical settlement? - ---- Answers---Reduced death benefit prepayment
The objective of underwriting is to - ----Answers---Avoid selecting a disproportionate number of bad risks
Which of the following types of information is NOT required for a life insurance application? - ----Answers---ethnicity
What are members of the medical information bureau required to report? - ----Answers---Medical ailments discovered during the underwriting process
The medical information bureau consists of - ----Answers--- life and health insurance companies
Which of the following risk classifications charges the lowest premium? - ----Answers---Preferred
Most U.S. life insurance companies belong to the - ---- Answers---Medical Information Bureau
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