Xcel Exam Simulator Part 1 Life and Health Insurance
Questions and Answers
Which of the following is considered to be any situation that has the potential for loss? -
AnswerLoss exposure
.An example of a tax-qualified retirement plan would be a(n) - Answerdefined
contribution plan
.Without a Section 125 Plan in place, what would happen to an employee's payroll
contribution to an HSA? - AnswerIt would be considered taxable income to the
employee
.Key person insurance is intended to - Answercover business losses due to the death of
a key employee
.One of the most important considerations when replacing health insurance would be
the - AnswerExclusions on a new policy
.An annuity which is backed by a life insurer's separate account is called -
Answervariable annuity
.A fee for service health insurance plan will normally cover - Answera disease
.Which disability policy provision would address any concerns of the value of the
benefits decreasing over time? - AnswerCost of living benefit
.Life insurance surplus must be distributed to policyowners at what frequency? -
AnswerAnnually
.An interest-sensitive life insurance policyowner may be able to withdraw the policy's
cash value interest free. The provision that allows this is called - AnswerPartial
Surrender
.According to Social Security, an individual with 6 credits of coverage during the
previous 13-quarter period is considered to be - Answercurrently insured
.What is considered to be the primary reason for buying life insurance? - AnswerProvide
death benefits
.An example of elective cosmetic surgery would be - Answerremoving excess fat from
an insured's waistline
.Which of the following is an example of a third-party administrator? - AnswerOutside
organization that processes claims for an employer's self-funded group plan
, .According to the Affordable Care Act, what is the maximum amount an individual can
contribute to a Flexible Savings Account? - Answer$2,500
.Which of the following types of life insurance combines a savings element along with a
flexible premium option? - AnswerUniversal life
.The cost of services charged by the Health Insurance Counseling Advocacy Program
(HiCap) is - Answerno cost
.Which settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - Answerinterest only
.Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - Answer10 days
.All of the following are core benefits of Medicare Supplement Plan A EXCEPT -
AnswerDeductible payments for the first 60 days of hospitalization under Medicare
hospitalization insurance
.Express power given to an agent in an agency agreement is - Answerthe authority to
represent the insurer
.Which type of jurisdiction requires an insurer to have its rates accepted by the
Insurance Department prior to using them? - AnswerPrior approval
.In a life insurance policy, the entire contract consists of - Answerpolicy and attached
application
.A contract requires - Answeran offer and acceptance of the contract terms
.An insurer having a large number of similar exposure units is considered important
because - Answerthe greater the number insured, the more accurately the insurer can
predict losses and set appropriate premiums
.According to PPACA, what is a health benefits exchange? - AnswerAn entity to which
individuals and small businesses can have access to affordable health coverage
.Which of these is NOT a valid policy dividend option? - AnswerMonthly income
payments
.What is the primary reason for buying an annuity? - AnswerProvide future economic
security
.The type of multiple protection coverage that pays on the death of the last person is
called a(n) - Answersurvivorship life policy
Questions and Answers
Which of the following is considered to be any situation that has the potential for loss? -
AnswerLoss exposure
.An example of a tax-qualified retirement plan would be a(n) - Answerdefined
contribution plan
.Without a Section 125 Plan in place, what would happen to an employee's payroll
contribution to an HSA? - AnswerIt would be considered taxable income to the
employee
.Key person insurance is intended to - Answercover business losses due to the death of
a key employee
.One of the most important considerations when replacing health insurance would be
the - AnswerExclusions on a new policy
.An annuity which is backed by a life insurer's separate account is called -
Answervariable annuity
.A fee for service health insurance plan will normally cover - Answera disease
.Which disability policy provision would address any concerns of the value of the
benefits decreasing over time? - AnswerCost of living benefit
.Life insurance surplus must be distributed to policyowners at what frequency? -
AnswerAnnually
.An interest-sensitive life insurance policyowner may be able to withdraw the policy's
cash value interest free. The provision that allows this is called - AnswerPartial
Surrender
.According to Social Security, an individual with 6 credits of coverage during the
previous 13-quarter period is considered to be - Answercurrently insured
.What is considered to be the primary reason for buying life insurance? - AnswerProvide
death benefits
.An example of elective cosmetic surgery would be - Answerremoving excess fat from
an insured's waistline
.Which of the following is an example of a third-party administrator? - AnswerOutside
organization that processes claims for an employer's self-funded group plan
, .According to the Affordable Care Act, what is the maximum amount an individual can
contribute to a Flexible Savings Account? - Answer$2,500
.Which of the following types of life insurance combines a savings element along with a
flexible premium option? - AnswerUniversal life
.The cost of services charged by the Health Insurance Counseling Advocacy Program
(HiCap) is - Answerno cost
.Which settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - Answerinterest only
.Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - Answer10 days
.All of the following are core benefits of Medicare Supplement Plan A EXCEPT -
AnswerDeductible payments for the first 60 days of hospitalization under Medicare
hospitalization insurance
.Express power given to an agent in an agency agreement is - Answerthe authority to
represent the insurer
.Which type of jurisdiction requires an insurer to have its rates accepted by the
Insurance Department prior to using them? - AnswerPrior approval
.In a life insurance policy, the entire contract consists of - Answerpolicy and attached
application
.A contract requires - Answeran offer and acceptance of the contract terms
.An insurer having a large number of similar exposure units is considered important
because - Answerthe greater the number insured, the more accurately the insurer can
predict losses and set appropriate premiums
.According to PPACA, what is a health benefits exchange? - AnswerAn entity to which
individuals and small businesses can have access to affordable health coverage
.Which of these is NOT a valid policy dividend option? - AnswerMonthly income
payments
.What is the primary reason for buying an annuity? - AnswerProvide future economic
security
.The type of multiple protection coverage that pays on the death of the last person is
called a(n) - Answersurvivorship life policy
