XCEL practice problems

Which type of disability would be less than total impairment and equal to permanent impairment?-Partial total disability-Permanent partial disability-Residual partial disability-Temporary partial disability

"Permanent partial disability"

the premium for a modified whole life policy is

"lower than the typical whole life policy during the first few years and then higher than typical for the remainder". Modified whole life policies are distinguished by premiums that are lower than typical whole life premiums during the first few years and then higher than typical thereafter.

Which of these riders will pay a death benefit if the insured's spouse dies?

A Family Term Insurance rider provides a death benefit if the spouse of the insured dies.

Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?

The policy may be paid up early by using policy dividends

which of the following is considered to be an alternative to a life settlement?

accelerated death benefit rider

A life insurance policy written on one contract for two people in which it is payable upon the first death is called

joint

which policy feature makes a universal life policy different from a whole life policy?

a flexible premium schedule

Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)?

Death benefit

An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called

Partial Surrender

Under a MEC, what are the likely tax consequences?

Pre-death distributions will become taxable

Which settlement options involve having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary?

interest only

In contrast to a guaranteed renewable policy, a noncancellable policy

may never raise premiums

which of the following are the premium payments for a universal life policy NOT used for?

separate account investments

what does the word "level" in Level Term describe ?

the face amount

which of these will typically auhtroize treatment from specialists?

gatekeeper

Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because

modified endowment contract (MEC) receives different tax treatment on pre-death distributions than other life insurance policies because it tends to be an investment vehicle.

All of these statements concerning whole life insurance are false except

when a whole life policy is surrendered, income taxes may be owed