XCEL TESTING SOLUTIONS-LOUISIANA LIFE AND HEALTH

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XCEL TESTING SOLUTIONS-LOUISIANA LIFE AND HEALTH

EXAM SIMULATOR - 200 QUESTIONS

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

-Format: Multiple-choice / Flashcard

Question 1: The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority?

• discreet
• apparent
• implied
• express

Answer:

implied Implied authority is the unwritten authority that is not expressly granted, but which the agent is assumed to have in order to transact the business of the principal.

Question 2: Continued coverage under COBRA would be provided to a(n)

-former dependent of employee no longer of dependent status -terminated employee -employee reaching full retirement -divorced spouse of employee

Answer:

terminated employee A terminated employee is eligible to continue health coverage under COBRA.

Question 3: When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)?

• When a change of management has occurred within the group
• When the annual number of claims has increased by 25%
• When contribution or participation rules have been violated

-When group participation has increased by 25%

Answer:

When contribution or participation rules have been violated According to HIPAA, a group health policy renewal can be denied when participation or contribution rules have been violated.Question 4: In health insurance, the insured must furnish written proof of loss to the insurer within

• 15 days of the occurrence of the loss
• 30 days of the occurrence of the loss
• 90 days of the occurrence of the loss

Answer:

90 days of the occurrence of the loss In health insurance, the insured must furnish written proof of loss to the insurer within 90 days of the occurrence of the loss.Question 5: Which of the following is typically NOT eligible for coverage in a group health policy?

• Full-time employee
• Temporary employee
• Business owner
• Partner in a partnership

Answer:

Temporary employee A temporary employee is typically NOT eligible for coverage in a group health policy.Question 6: G had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy?-30 days -31 days -45 days -60 days

Answer:

31 days A person covered by a group policy also has the right to convert such coverage to an individual policy within the conversion period (31 days) without proving insurability. If this right is exercised, the

employee is responsible for the payment of premium.

Question 7: A nonparticipating policy will

• provide a return of premium
• provide tax advantages
• not pay dividends
• give policyowners special privileges

Answer:

Not pay dividends When an insurer offers a policy that is nonparticipating, the insurer's policy does not pay dividends.Question 8: The premium payment mode that results in the highest overall cost would be -Monthly -Quarterly

• semi-annual

-annual

Answer:

Monthly A monthly premium mode will result in the highest overall cost.

Question 9: A cease and desist order issued against a producer

• Suspends the producer's certificate or broker's license
• Prevents the producer from receiving commissions
• Prohibits a specific practice listed in the order
• Terminates the producer's appointment with the insurer

Answer:

Prohibits a specific practice listed in the order A cease and desist order issued against a producer prohibits a specific practice listed in the order.Question 10: All of these statements concerning whole life insurance are false EXCEPT

• Policyowner can take out a policy loan up to the face amount
• When a whole life policy is surrendered, income taxes may be owed
• Coverage is normally temporary
• The death benefit is not affected by outstanding loans

Answer:

When a whole life policy is surrendered, income taxes may be owed Income taxes may be due when a whole life policy is surrendered.

Question 11: Under a Traditional IRA, interest earned is taxed

• only if withdrawn prior to age 59 1/2
• according to the capital gains rate
• upon distribution
• during the accumulation phase

Answer:

Upon distribution Interest earned on a Traditional IRA is taxed upon distribution at ordinary income tax rates.Question 12: The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid

• minus indebtedness and with interest
• during the last 12 months

-minus indebtedness and without interest

• during the last 6 months

Answer:

minus indebtedness and without interest The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and without interest.Question 13: All of the following are considered appropriate uses of life insurance for business purposes EXCEPT

• Attracting quality employees by offering a group life pla
• Funding an entity buy-sell agreement
• Protecting the business by covering key employees with life insurance
• Protecting the business by covering entry level employees with life insurance

Answer:

Protecting the business by covering entry level employees with life insurance Covering entry level employees with life insurance to protect the business is not an appropriate business use.Question 14: Over the course of a year, which premium payment mode is most expensive?-Monthly -Quarterly -Semi-Annually -Annually

Answer:

Monthly The monthly payment mode is the most expensive over the course of a year.