XCEL TESTING EXAM QUESTIONS WITH SOLUTIONS Latest Updated 2024 (GRADED)

XCEL TESTING EXAM QUESTIONS WITH SOLUTIONS Latest Updated 2024 (GRADED) When an insurance company requests an attending physician's report, the request must be accompanied by a Copy of the signed authorization Which of the following is NOT a required uniform provision in individual health policies? Change of occupation "Life insurance creates an immediate estate". This phrase means When the insured dies, a death benefit is paid A person who asserts a right of recovery under an insurance policy is called Claimant Before an insurer is allowed to test an individual for HIV, what must be completed? Consent Form Jim is the insured on a health insurance policy and holds 2 jobs. If "occupation" is used to classify the risk, the insurer will most likely classify Jim according to the occupation that is most hazardous XCEL TESTING SOLUTIONS - CALIFORNIA PRELICENSING EDUCATION - LIFE, ACCIDENT AND HEALTH INSURANCE VERIFIED CORRECT 2023- 2024 Under a long-term care insurance policy, adult day care coverage will provide for part time care at a facility for elderly individuals who live at home Which of the following is NOT true regarding a family policy that covers children? Conversion of child's coverage to permanent insurance requires evidence of insurability How long is a person expected to be disabled in order to receive Social Security disability benefits? 12 months Which of the following describes the number of deaths in a year compared to the number of people in a select group? Mortality rate Which of the following is NOT required in the content of a policy? Probability of loss Jim is applying to become an insurance agent and has a past misdemeanor conviction that was later expunged due to California Penal Code 1203.4. Which of the following statements is correct? Jim must still disclose the conviction on his insurance license application Which of the following is a life insurance policy that does NOT require a physical exam? Non-medical The insurer has the option of terminating a health insurance policy on a date stated in the contract. What type of policy is this? Optionally renewable An individual that has 40 quarters of coverage, for Social Security purposes, is considered to be Fully insured In a life insurance policy, the entire contract consists of the policy and attached application Which of the following is NOT considered to be an act of insurance solicitation? Publishing a magazine where one of the advertisers is an insurer All of the following circumstances must be met for loss retention to be an effective risk management technique EXCEPT Probability of loss is unknown The importance of a representation is demonstrated in what rule? Materiality of concealment Which word implies permissiveness according to the California Insurance Code? May Medical expense policies will typically cover which of the following? Injuries caused by accidents Which of the following is NOT protected under the California Life and Health Guarantee Association? Insurers Individuals become eligible for Medicare Part A benefits at what age? 65 An agent's attempt to stop the replacement of an existing life insurance policy is known as conservation Which of the following is NOT an accurate description of Access for Infants and Mothers Program (AIM)? Only women who have private insurance plans with a maternity-only deductible or copayment greater than $1,500 are eligible All of these statements concerning Medicare are true EXCEPT Long-term care is covered by Medicare Part C Which of the following is NOT considered to be an unfair claims settlement practice? Advising a claimant to hire an attorney Retirement plans are prevented from favoring highly compensated employees under which government regulation? Nondiscrimination Which statement about Health Maintenance Organizations is NOT true? When a member uses out-of-network providers, a higher monthly fee is charged What time period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date? Grace period What portion does an insured pay for covered expenses under Medicare Part B after the deductible? 20% A terminated employee that has exercised the conversion privilege is able to convert term group life coverage into permanent insurance Medicare Part B has an initial enrollment period. How many months after an individual's 65th birthday month does this enrollment period end? 3 months Which type of jurisdiction requires an insurer to have its rates accepted by the Insurance Department prior to using them? Prior approval Which of the following does the California Insurance Code NOT require an insurance policy to specify? Insurer's financial rating An agent has advertised that the insurer to which the agent is appointed with is a member of the Insurance Guarantee Association. This agent has committed a(n) unfair method of competition What is the proper order of initial life insurance premiums, from lowest to highest? Modified premium, ordinary life, single premium How is a Medicare claim submitted? Expenses are submitted to Medicare by the health provider The problem of overinsurance is addressed in which health insurance provision? Coordination of benefits When a life insurance policy is surrendered, how does the cost recovery rule apply? The policy's cost basis is exempt from taxation How are acts of war considered under a group life insurance policy? Policy exclusion Paul has an existing annuity and is sold a new one, in which the new policy holds no greater financial benefit to him than the existing contract. This is considered a(n) unnecessary replacement A life insurance policy where the insured can choose where the cash value can be invested is called variable life What does the grace period allow a life insurance policyowner to do? Make a premium payment after the due date without any loss of coverage A participating company is also referred to as which type of insurer? Mutual insurer How many "activities of daily living" must an insured be UNABLE to perform in order to meet the chronically ill requirement of a Long-Term Care policy? Minimum of two activities of daily living Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds? Reinsurance Allen has a disability income policy with a $2,500 monthly benefit and a 30-day elimination period. He is unable to work 90 days following an automobile accident. What will the policy pay? $5,000 When an accidental death benefit is added to a whole life policy, how does this affect the policy's cash value? Policy's cash value is not affected John and Mary have a handicapped child that is financially dependent upon them. The death of one of the parents would not be financially disastrous, however the death of both likely would be. Which policy would be best suited for them? Second-to-die policy The California Insurance Code allows an individual how many days to cancel a life policy for a full-refund? Between 10 and 30 days How long must life agents keep their transaction records? 5 years Restoring an insured to the same condition as before a loss is known as Principle of indemnity In what order are people on the MRMIP waiting list allowed to enroll? Based on the date an individual's application is received What is the purpose of the Pre-Existing Condition Insurance Plan (PCIP)? PCIP was created by the PPACA for people rejected by private health insurers due to pre-existing conditions The conditions, times, and circumstances under which an insured is NOT covered by a health policy are called exclusions Which of the following is NOT a feature of equity-indexed annuities? Offers a maximum interest rate that increases annually 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? 10% What is required after a life agent sells an insurance policy to an applicant without being appointed by the insurer? Notice of appointment must be submitted to the Commissioner Premiums are best described as money paid by the insured to acquire a policy's benefits Life insurance surplus must be distributed to policyowners at what frequency? Annually Which of the following types of information is NOT required for a life insurance application? Ethnicity According to the California Insurance Code, how is the word "may" interpreted? Permissive An annuity which is backed by a life insurer's separate account is called a(n) variable annuity According to PPACA, what is a health benefits exchange? An entity to which individuals and small businesses can have access to affordable health coverage What area of group health insurance is regulated under the Employee Retirement Security Act of 1974 (ERISA)? Disclosure and reporting When does a life insurance policy's waiver of premium take effect? Insured becomes totally disabled Which of the following types of life insurance combines a savings element along with a flexible premium option? Universal life Which entity has jurisdiction over health care coverage providers? Department of Insurance Which of the following is NOT a true description of non-medical life insurance? Applicants are not required to answer medical questions on the application Which of the following is NOT a common life insurance policy rider? extended term MRMIP is a state program that offers health coverage to California residents who are not able to obtain coverage due to pre-existing conditions Which of the following types of life insurance is normally associated with a mortgage loan? Decreasing term How is the cost of employer-provided group life insurance with coverage amounts above $50,000 treated for tax purposes? Taxable income to the employee A life insurance policy can be surrendered for its cash value under which policy provision? Nonforfeiture options Which statement regarding Medicare is true? Benefits for diagnostic tests and X-rays performed on an outpatient basis are provided by Part B Who is issued a certificate of insurance with a group insurance policy? Participant The Medical Information Bureau consists of life and health insurance companies A unilateral contract is one in which only one party (the insurer) makes any kind of legally enforceable promise When selling a long term care insurance rider to an applicant, a life agent must take into consideration all of these factors EXCEPT Attending physician's statement Who is eligible for retirement benefits under Social Security? Fully insured workers A creditor would be allowed rights to life insurance policy proceeds if which of the following beneficiaries is chosen? The insured's estate Which of the following is NOT a characteristic of the conversion privilege? Employer pays the premium for the converted policy Which of the following is an insurer established by a parent company for the purpose of insuring the parent company's loss exposure? Captive insurer What does the guaranteed insurability option allow an insured to do? Purchase additional coverage with no evidence of insurability required In order to be considered "currently insured" under Social Security, an individual must be credited with 6 quarters of coverage during the last 13-quarter period Which of the following would NOT be accomplished with the purchase of an insurance policy? Risk is eliminated According to the PPACA, an adult can be covered by a parent's health care plan until what age? Age 26 Medicare Part A covers what type of care? Skilled nursing facility care Kimberly is an employee on leave under the Family and Medical Leave Act (FMLA). What will happen to her group health coverage? She continues to be enrolled during the leave According to the California Insurance Code, what term is used to describe a fact so important it could affect the policy premium? Materiality Which type of worker has Social Security benefits available to them? Fully insured What percentage of eligible employees must participate in a noncontributory group health plan before it can be put in effect? 100% What type of changes can be made to a guaranteed renewable health insurance policy? The premium rates of the policyowner An employee for XYZ Corp is injured on the job. Where does coverage for the employee's injuries come from? Workers' Compensation All of the following are considered characteristics of group life insurance EXCEPT individual policies A situation in which there is ONLY a chance of loss or no loss is a pure risk Which of the following is NOT a requirement for a terminated employee that has exercised the conversion privilege? Provide proof of insurability When an applicant applies for insurance, the process by which the insurer determines whether to issue a policy is called underwriting