Xcel Solutions Final Exam with 100% correct answers

Who does a life settlement broker represent? - Correct answer-Individual wanting to sell their life policy to a third party What is the insurance term the State of California uses for an insurer that is eligible to transact business in this state? - Correct answer-Admitted Most U.S. life insurance companies belong to the - Correct answer-Medical Information Bureau Which of the following healthcare providers provide both the healthcare services and healthcare coverage? - Correct answer-Health Maintenance Organization (HMO) Which of the following is NOT covered by the Family and Medical Leave Act (FMLA)? - Correct answer-Traveling overseas with a spouse Which word implies permissiveness according to the California Insurance Code? - Correct answer-may When found in California Insurance Code, the word "may" implies permissiveness. Under a long-term care insurance policy, adult day care coverage will provide for - Correct answer-part time care at a facility for elderly individuals who live at home Major medical expense plans typically use a cost containment measure for emergency hospital care. This is referred to as a - Correct answer-Deductible Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose? - Correct answer-Interest Option Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's - Correct answer-Implied authority Kim is insured under a disability income insurance policy with an "own occupation" clause. She was recently injured in an automobile accident and can no longer perform the tasks of her job. Kim is now considered to be - Correct answer-Totally Disabled What is a common reason people purchase an annuity - Correct answer-To protect against the risk of outliving their financial resources Why is a life insurance policy's delivery date important? - Correct answer-The free-look period begins on the policy delivery date Periodic increases in policy benefits are allowed in which long-term care policy provision? - Correct answer-Inflation Protection What is the term used to describe the frequency and severity of certain illnesses and accidents? - Correct answer-Morbidity Key person insurance is intended to - Correct answer-cover business losses due to death of key employee Minimum participation standards exist for group health insurance plans in order to - Correct answer-prevent adverse selection Which of the following is NOT included under long-term care insurance? - Correct answer-Hospital acute care When calculating life insurance premium rates, which component would an agent's commission fall under? - Correct answer-Insurer's expenses The reason for social insurance is to - Correct answer-protect certain vulnerable segments of the population Jon's health plan pays benefits of 90% for in-network providers and 70% for out-ofnetwork providers. What kind of plan is this? - Correct answer-PPO Which of the following acts is NOT a Federal offense committed by an insurance agent? - Correct answer-Misrepresentation on an insurance application An insurer having a large number of similar exposure units is considered important because - Correct answer-the greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums Medical expense policies will typically cover which of the following ? - Correct answerinjuries caused by accidents Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? - Correct answer-60 payments (10 years annuity received 5 years worth so had 5 years left , multiply the 5 years by 12 months in a year=60) When does a life insurance policy's waiver of premium take effect? - Correct answerinsured becomes totally disabled Which of the following is NOT an important reason for a life insurance application? - Correct answer-The beneficiary must sign the application before the insurer will issue the policy All of the these are examples of cost sharing in a health insurance policy EXCEPT - Correct answer-Coordination Retirement plans cannot favor highly compensated employs. The government regulation that prevents this from happening is called - Correct answerNondiscrimination In regards to a group health insurance plan, which statement is CORRECT? - Correct answer-a non-contributory group health plan must cover all eligible members What is considered the most common type of specified disease insurance policy? - Correct answer-cancer Tom is shopping for a policy that covers two people and would pay the face amount ONLY when the first person dies. The type of life policy he is looking for is called a - Correct answer-Joint life policy A life insurance policy can be surrendered for its cash value under which policy provision? - Correct answer-Nonforfeiture option When an insurance company requests an attending physician's report, the request must be accompanied by a - Correct answer-copy of the signed authorization Buy-sell plans are typically funded by which two types of insurance? - Correct answerLife insurance and disability insurance Which of the following is NOT considered a definition of risk? - Correct answer-The cause of a loss Lynn owns a life policy that guarantees the right to renew the policy each year, regardless of health, but at an increased premium. What kind of policy is this? - Correct answer-renewable term What does the grace period allow a life insurance policy owner to do> - Correct answermake a premium payment after the due date without any loss AAA Insurance Company has transferred a portion of its loss exposure to BBB Insurance Company. In this reinsurance transaction, what is AAA Insurance Company called? - Correct answer-Primary insurer An annuitant would like to determine the amount of an annuity distribution that is exempt from taxation. What is used to calculate this? - Correct answer-Exclusion ratio Which of the following best describes the statement. "The more times an event is repeated, the more predictable the outcome becomes"? - Correct answer-Law of Large numbers A hazard can be best described as - Correct answer-a condition that may increase the likelihood of a loss occurring What does ESOP stand for? - Correct answer-Employee Stock Ownership Plan At what age is a surviving spouse without dependents eligible for Social Security survivor benefits? - Correct answer-50 Which of the following risk classification charges the lowest premium? - Correct answerpreferred Express power given to an agent in an agency agreement is - Correct answer-the authority to represent the insurer Which Social Security status does a worker with 6 quarters of coverage during the last 13-quarter period have> - Correct answer-currently insured According to the California Insurance Code, which of the following is NOT an example of an insurable event? - Correct answer-an insured suffers a financial loss in the state lottery Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy Program (HiCAP) counselors? - Correct answer-charge a fee The elimination period in a disability income policy serves the same purpose as a _____ in a medical policy. - Correct answer-deductible Mark, age 45, has a Modified Endowment Contract (MEC). What is the tax penalty for taking a loan against this policy prior to age 59 1/2? - Correct answer-10% Under a health insurance policy, the provision that states the kind of benefits provided and the circumstances under which they will be paid is called the? - Correct answerinsuring clause Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? - Correct answer-rescinding the contract What must an applicant do in order to authorize the release of an attending physician report? - Correct answer-sign a consent form