Final Exam XCEL VA Questions with
Complete Solutions17
The free-look period for a new Medicare Supplement policy is - ANSWERS-30 days
Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the
policy minus total dividends received in cash or used to offset premiums is referred to as the -
ANSWERS-cost basis
All of these are duties that a producer may be required to perform when delivering an insurance
policy EXCEPT - ANSWERS-leave a conditional receipt with client
which of these would likely be considered an Unfair Claims Settlement practice? - ANSWERS-
offering settlements that are less than the fair value to offset insurer expenses
Kelly purchases a health insurance policy issued on a conditionally renewable basis. The
insurance company has a right to refuse renewal of the policy for - ANSWERS-specific reasons
stated in the contract
The automatic premium loan provision can be accurately described as a - ANSWERS-provision
that provides a policy loan to pay any premiums by the end of the grace period
An insured files for an accident and health insurance policy claim eight days after the premium
due date. The benefit payable is $500 and the overdue premium is $200.
Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision,
how much will the insurer pay? - ANSWERS-$300
,What effect can a long-term care benefit rider have on a life insurance policy - ANSWERS-
reduced death benefit
Jerome is covered by a disability income policy that does NOT provide benefits for losses
occurring as the result of his employment. What kind of coverage is this? - ANSWERS-
nonoccupational coverage
insurable Interest in one's own life is legally considered as - ANSWERS-generally unlimited
under what circumstance does an accident and health insurer have the right to request an
autopsy - ANSWERS-when not prohibited by state law
The pre-existing conditions exclusion under a small employer medical plan - ANSWERS-may be
partially or fully satisfied by having creditable coverage with a previous employer
major medical plans typically exclude coverage for which of the following benefits - ANSWERS-
custodial care
An employee welfare plan exempt from ERISA regulations would be - ANSWERS-church plans
which of the following is not an intended use of an annuity - ANSWERS-Create new funds upon
the death of a wage-earner
Which of these statements about traditional individual retirement accounts is accurate? -
ANSWERS-10% penalty is applied to withdrawals prior to age 59 1/2
The reason for backdating a policy is - ANSWERS-to obtain a premium rate based on an earlier
age
, in a disability income contract, an insured is considered to be totally disabled under the
presumptive disability provision if he/she - ANSWERS-loses the ability to speak
Dan has a major medical expense policy with a $200 deductible and an 80/20 coinsurance
provision. He incurs covered medical expenses of $100 in November and $400 in January. Under
the carryover provision, what will the insurer pay? - ANSWERS-$240
a prepaid dental plan has an agreement in place with a network of dentists which - ANSWERS-
accepts an established amount as payment in full for the dental service rendered
which of the following best describes the presumptive disability provision? - ANSWERS-waives
the typical total disability requirements
if an existing medicare supplement policy is being replaced by a new policy, who is required to
sign the notice of replacement - ANSWERS-agent and applicant
the insurance coverage in a variable life insurance policy may vary based on the value of -
ANSWERS-its underlying investments
After an insurance application has been originated, the producer normally - ANSWERS-is the
major personal contact to the insured
a policyowner has a life insurance policy where she had listed her age on the application as 5
years younger than her actual age. If she dies and the insurer discovers the misstatement of
age, how much will the insurance company pay? - ANSWERS-less than the face amount
misrepresenting pertinent policy provisions relating to coverage after a loss - ANSWERS-is an
unfair claims settlement practice
Complete Solutions17
The free-look period for a new Medicare Supplement policy is - ANSWERS-30 days
Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the
policy minus total dividends received in cash or used to offset premiums is referred to as the -
ANSWERS-cost basis
All of these are duties that a producer may be required to perform when delivering an insurance
policy EXCEPT - ANSWERS-leave a conditional receipt with client
which of these would likely be considered an Unfair Claims Settlement practice? - ANSWERS-
offering settlements that are less than the fair value to offset insurer expenses
Kelly purchases a health insurance policy issued on a conditionally renewable basis. The
insurance company has a right to refuse renewal of the policy for - ANSWERS-specific reasons
stated in the contract
The automatic premium loan provision can be accurately described as a - ANSWERS-provision
that provides a policy loan to pay any premiums by the end of the grace period
An insured files for an accident and health insurance policy claim eight days after the premium
due date. The benefit payable is $500 and the overdue premium is $200.
Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision,
how much will the insurer pay? - ANSWERS-$300
,What effect can a long-term care benefit rider have on a life insurance policy - ANSWERS-
reduced death benefit
Jerome is covered by a disability income policy that does NOT provide benefits for losses
occurring as the result of his employment. What kind of coverage is this? - ANSWERS-
nonoccupational coverage
insurable Interest in one's own life is legally considered as - ANSWERS-generally unlimited
under what circumstance does an accident and health insurer have the right to request an
autopsy - ANSWERS-when not prohibited by state law
The pre-existing conditions exclusion under a small employer medical plan - ANSWERS-may be
partially or fully satisfied by having creditable coverage with a previous employer
major medical plans typically exclude coverage for which of the following benefits - ANSWERS-
custodial care
An employee welfare plan exempt from ERISA regulations would be - ANSWERS-church plans
which of the following is not an intended use of an annuity - ANSWERS-Create new funds upon
the death of a wage-earner
Which of these statements about traditional individual retirement accounts is accurate? -
ANSWERS-10% penalty is applied to withdrawals prior to age 59 1/2
The reason for backdating a policy is - ANSWERS-to obtain a premium rate based on an earlier
age
, in a disability income contract, an insured is considered to be totally disabled under the
presumptive disability provision if he/she - ANSWERS-loses the ability to speak
Dan has a major medical expense policy with a $200 deductible and an 80/20 coinsurance
provision. He incurs covered medical expenses of $100 in November and $400 in January. Under
the carryover provision, what will the insurer pay? - ANSWERS-$240
a prepaid dental plan has an agreement in place with a network of dentists which - ANSWERS-
accepts an established amount as payment in full for the dental service rendered
which of the following best describes the presumptive disability provision? - ANSWERS-waives
the typical total disability requirements
if an existing medicare supplement policy is being replaced by a new policy, who is required to
sign the notice of replacement - ANSWERS-agent and applicant
the insurance coverage in a variable life insurance policy may vary based on the value of -
ANSWERS-its underlying investments
After an insurance application has been originated, the producer normally - ANSWERS-is the
major personal contact to the insured
a policyowner has a life insurance policy where she had listed her age on the application as 5
years younger than her actual age. If she dies and the insurer discovers the misstatement of
age, how much will the insurance company pay? - ANSWERS-less than the face amount
misrepresenting pertinent policy provisions relating to coverage after a loss - ANSWERS-is an
unfair claims settlement practice
