VA LIFE INSURANCE PRACTICE EXAM 90 XCEL

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VA LIFE INSURANCE PRACTICE EXAM (90 XCEL)

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -90 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The

Accidental Death benefits will be paid to:

Answer:

P only Question 2: S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

Answer:

$50,000

Question 3: Life insurance that covers an insured's whole life with level premiums paid over a

limited time is called:

Answer:

Limited Pay Life Question 4: An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)

Answer:

exclusion for the medical condition

Question 5: How are policyowner dividends treated in regards to income tax?

Answer:

Interest on accumulations is taxed Question 6: The USA Patriot Act was enacted in:

Answer:

2001 Question 7: Credit life insurance is typically issued with which of the following types of coverage?

Answer:

Decreasing Term Question 8: The Rules Governing Life Insurance and Annuity Replacement were created to

Answer:

reduce the opportunity for misrepresentation and incomplete disclosure Question 9: Traditional individual retirement annuity (IRA) distribution must start by:

Answer:

April 1st of the year following the year the participant attains age 70 1/2 Question 10: Which of these retirement plans can be started by an employee, even if another plan is in existence?

Answer:

Individual Retirement Account (IRA) Question 11: Which of these actions by a licensee would NOT likely result in license suspension or revocation?

Answer:

Sharing a commission with another similarity-licensed agent Question 12: Which type of policy is considered to be overfunded, as stated by IRS guidelines?

Answer:

Modified Endowment Contract

Question 13: Quarterly premium payments increase the annual cost of insurance because

Answer:

interest to the insurer is decreased while the administrative costs are increased Question 14: Who is normally considered to be the owner of a 403(b) tax-sheltered annuity?

Answer:

The employee

Question 15: An insurance consultant's license MUST be renewed every

Answer:

year Question 16: Which of the following would be a valid reason for suspending or revoking an insurance agent's license?

Answer:

Participating in the act of twisting Question 17: An individual received a quote from an insurance company that is a different rate from individuals in the same risk class. The insurance company may be accused of

Answer:

unfair discrimination Question 18: If X wants to buy $50,000 worth of permanent protection on his/her spouse and $25,000 worth of 10-year Term coverage on X under the same policy, the applicant should

purchase:

Answer:

A Whole Life Policy with an Other Insured Rider Question 19: A life insurance application must signed by all of these, EXCEPT:

Answer:

beneficiary Question 20: When must an agent report a felony conviction to the Bureau of Insurance?

Answer:

Within 30 calendar days

Question 21: During a sales transaction, which of the following forms must be completed by an agent if the customer has existing insurance coverage?

Answer:

Notice Regarding Replacement of Life Insurance or Annuity Question 22: An agent offers an applicant something of value not mentioned in the contract as an inducement to purchase an insurance policy. This illegal act is called

Answer:

rebating Question 23: All of the following are examples of insurance advertisement EXCEPT

Answer:

An employer newsletter announcing the availability of coverage for employees

Question 24: Which of these is an element of a Variable Life policy?

Answer:

A fixed, level premium Question 25: 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 Question 26: If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of?

Answer:

Insured Question 27: An individual who purchases a Life annuity is given protection against:

Answer:

the risk of living longer than expected Question 28: Which of these factors do NOT play a role in the underwriting of a life insurance policy?

Answer:

Marital status