XCEL TESTING SOLUTIONS- LIFE AND HEALTH INSURANCE-

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XCEL TESTING SOLUTIONS- LIFE AND HEALTH INSURANCE-

WEIGHTED EXAM- 150 QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: In order to qualify for a company convention, an insurance producer agrees to pay the first quarterly premium for the applicant for new insurance. This is called a

Answer:

rebate This situation is considered a rebate, which is illegal.

Question 2: A viatical settlement contract is an agreement between

Answer:

A life insurance policyowner and a viatical settlement provider A viatical settlement contract is an agreement between a life insurance policyowner and a viatical settlement provider.Question 3: What amount will be paid under a policy where the insured misstated his/her age?

Answer:

An amount the premium would have purchased at the correct age The misstatement of age provision allows the insurer to adjust the benefit payable if the age of the insured was misstated when application for the policy was made.

Question 4: How are annuities given favorable tax treatment?

Answer:

Gains are taxed at distribution Annuity gains are typically tax deferred until distribution.

Question 5: A producer is required to give an applicant for long-term care

Answer:

An outline of coverage An outline of coverage must be delivered to a prospective applicant for long-term care insurance at the time of initial solicitation.Question 6: Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss.

Answer:

20 Written notice for a health claim must be given to the insurer 20 days after the occurrence of the loss.Question 7: Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him?

Answer:

Assisted living An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time care.Question 8: What is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date of an individual long-term care policy?

Answer:

Pre-existing condition In an individual long-term care policy, a pre-existing condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date.Question 9: What types of life insurance are normally used for key employee indemnification?

Answer:

term, whole, and universal life insurance The types of life insurance generally used to cover key employee indemnification are term, whole, and universal life insurance.

Question 10: A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. Which rider would pay a monthly amount because of this disability?

Answer:

Disability income rider The rider which pays a life insurance policyowner a monthly amount in the event of total and permanent disability is called a disability income rider.

Question 11: The waiting period for a disability insurance policy

Answer:

excludes payments for a short-term illness or injury With regard to disability insurance, the waiting (elimination) period is to exclude payments for a short-term illness or injury.Question 12: Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled?

Answer:

Business overhead expense policy A form of business disability insurance that is designed to cover the actual costs of continuing to do business while an insured business owner is disabled is called a business overhead expense policy.Question 13: Which of the following is a requirement for ANY change in an insurance application?

Answer:

Change must be initialed by the applicant Any changes in an insurance application MUST be initialed by the applicant.Question 14: Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have?

Answer:

Calendar-year deductible Question 15: All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT

Answer:

Reduction of Premium All of these are nonforfeiture options EXCEPT Reduction of Premium.

Question 16: Which of these would NOT be considered a presumptive disability?

Answer:

Loss of a leg or arm The loss of ONE arm or a leg is NOT considered a presumptive disability.Question 17: Which is true about the licensing of business entities in Louisiana?

Answer:

A licensed producer must be designated as responsible for compliance with state insurance laws and regulations A licensed producer must be designated as responsible for compliance with state insurance laws and regulations.Question 18: A whole life policy option where extended term insurance is selected is called a(n)

Answer:

nonforfeiture option A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to the existing amount of life insurance is called the extended term option.Question 19: A licensed producer who changes a residential or business address must notify the Commissioner within how many days?

Answer:

30 A licensed producer who changes a residential or business address must notify the Commissioner within 30 days.Question 20: The Commissioner may suspend a producer's license for all of the following reasons EXCEPT

Answer:

Sharing commissions with other licensed producers Sharing commissions with other licensed producers is allowed.

Question 21: Which of these statements concerning Traditional IRAs is CORRECT?

Answer:

Earnings are taxable when withdrawn Traditional IRA earnings are taxable when withdrawn.