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XCEL 2023 TEXAS LIFE AND HEALTH FINAL EXAM EXAM
QUESTIONS
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?
Answer:
Misrepresentation An agent who tells a client that dividends are guaranteed may be guily of misrepresentation.Question 2: In health insurance policies, a waiver of premium provision keeps the coverage in
force without premium payments:
Answer:
after an insured has become totally disabled as defined in the policy
Question 3: To terminate an agent's appointment, an insurance company must
Answer:
send termination notice to the Texas Department of Insurance Question 4: An insurance agent has a fiduciary responsibility to all of the following EXCEPT
Answer:
other agents
Question 5: What is being delivered during a policy delivery?
Answer:
Insurance contract to the proposed insured Policy delivery refers to the delivery of the insurance contract to the applicant.Question 6: 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?
Answer:
The agent If an agent places insurance with an insurer that is not authorized by a certificate of authority (local to their state), the agent may be held personally liable for any claims amounts that the unauthorized insurer does not pay.Question 7: Q applied for life insurance and submitted the initial premium on January
- The policy was issued February 1, but it was not delivered by the agent until February 7. Q is
dissatisfied and returns the policy February 13. How will the insurer handle this situation?
Answer:
Policy was returned within the free-look period, premium will be fully refunded The free-look period begins when the policy is delivered to the policyowner.In Texas, life insurance policies must provide a minimum free-look period of 10 days upon policy delivery. A delivery receipt is a signed document that starts the free-look period.Question 8: P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?
Answer:
Accidental Death and Dismemberment clause An AD&D clause provides benefits for death due to an accident or for the loss of one or more hands, feet, arms, legs, or loss of sight.Question 9: Under a Long Term Care policy, which benefit would be typically excluded or limited?
Answer:
Alcohol rehabilitation Addictive behavior rehabilitation is normally excluded or limited under a Long Term Care policy.
Question 10: Quarterly premium payments increase the annual cost of insurance because
Answer:
Interest to the insurer is decreased while the administrative costs are increased
Question 11: automatically add the amount of interest due to the loan balance
Answer:
Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits?Question 12: J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?
Answer:
A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following?Question 13: An insurer is NOT required to provide information on fraudulent claims if requested by
Answer:
an insured On the written request of an authorized government entity (such as the Commissioner, Attorney General, or a local law enforcement agency), an insurer will provide to that entity any relevant information or material relating to a fraudulent matter under investigation.Question 14: Every 12-months after the initial enrollment period, an HMO must hold an open enrollment period of
Answer:
31 days
Question 15: What is required for an agent whose license was revoked?
Answer:
Wait at least five years before applying for a new license Question 16: Which of these options can an individual use their medical flexible spending account to pay for?
Answer:
Prescription drugs Prescription drugs are an allowable expense when paid for by a medical flexible spending account.
Question 17: Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical policy with a $100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this claim?
Answer:
$2,100
SUBTRACT THE DEDUCTIBLE FROM THE TOTAL BILL AND MULTIPLY THAT NUMBER BY THE
COINSURANCE THE INSURED HAS. In this case 20%. So $10,100 - $100, then $10,000 x .20 =
$2,000, and then add the DEDUCTIBLE BACK TO THE FINAL TOTAL: $2,100.
Question 18: T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Answer:
Request of the change will be refused Question 19: A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value?
Answer:
Life settlement contract Question 20: An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
Answer:
When the conditions of the receipt are met Question 21: A "reimbursement policy" pays what amount of covered Long-Term Care expenses?
Answer:
Actual covered expenses up to the daily maximum Traditional reimbursement long-term care insurance policies pay benefits based upon the actual expenses that are incurred, subject to policy limits Question 22: A(n) ___ term life policy is normally used when covering an insured's mortgage balance.
Answer:
decreasing A decreasing term life policy is normally used when covering an insured's mortgage balance.
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