XCEL solutions UPDATED Exam
Questions and CORRECT Answers
John's health plan benefits of 90% for in-network providers and 70% for out-of-netword
providers. What kind of plan is this. - CORRECT ANSWER - PPO - Preferred Provider
Organization
MRMIP is a - CORRECT ANSWER - State program that offers health coverage to
California residents who are not able to obtain coverage due to pre- existing conditions.
When intentional concealment is involved, what course of action is the injured party entitled to?
- CORRECT ANSWER - Rescission of the Contract
In a renewable term life insurance policy , the contract will usually - CORRECT
ANSWER - require a higher premium payable at each renewal
What area of group health insurance is regulated under the Employee Retirement Security Act of
1974 (ERISA)? - CORRECT ANSWER - Disclosure and reporting
At what age is a surviving spouse without dependents eligible for social security survivor
benefits ? - CORRECT ANSWER - 60
A life insurance policy where the insured can choose where the cash value can be invested is
called - CORRECT ANSWER - Variable life
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
potential for loss - CORRECT ANSWER - loss exposure
,Major medical expense plans typically use a cost containment measure for emergency hospital
care. This is referred to as a(n) - CORRECT ANSWER - deductible
where must you specifically reside to qualify for MRMIP? - CORRECT ANSWER -
California
statement is NOT true regarding Social Security benefits ? - CORRECT ANSWER -
Benefits are designed to replace the entire amount of the workers earnings
Medicare Part A covers what type of care? - CORRECT ANSWER - Skilled nursing
facility care
Christine has a health insurance policy that has been in force beyond the incontestable period.
The insurer has discovered that a fraudulent statement was made on the application. What would
the insurer have to pay on a claim, assuming this wasn't a guaranteed renewable policy? -
CORRECT ANSWER - Nothing will be paid because of fraud
Which type of worker has Social Security benefits available to them? - CORRECT
ANSWER - Fully insured
An insurance policy written after 1988 that fails to pass the seven-pay test is know as -
CORRECT ANSWER - a modified endowment contract
Not a valid reason to replace an existing long-term care policy? - CORRECT ANSWER -
New policy has higher premium with fewer benefits
statement that is true about Medicare - CORRECT ANSWER - Benefits for diagnostic
tests and X-rays performed on an outpatient basis are provided by part B
In California , an insurer organized under the state laws of Oregon is Called a(n) - CORRECT
ANSWER - foreign insurer
, The conditions, times, and circumstances under which an insured is NOT covered by a health
policy are called? - CORRECT ANSWER - Exclusions
Which of the following does the California insurance code Not require an insurance policy to
specify? - CORRECT ANSWER - Insurer's financial rating
Which of the following services are health maintenance organizations (HMO's) Not required to
provide? - CORRECT ANSWER - Prescription Drugs
Not covered under vision care insurance - CORRECT ANSWER - eye surgery
How does a conditional receipt differ from a binding receipt? - CORRECT ANSWER -
Binding receipts always provide insurance which starts from the date of receipt
John owns an insurance policy that gives him the right to share in the insurer's surplus. What
kind of policy is this? - CORRECT ANSWER - Participating policy , gives rights to share
the insurers surplus
employer-provided group term life insurance is exempt from income taxation up to - CORRECT
ANSWER - $50,000
According to California code governing claim settlement practices what can not be considered to
be an act of unfair discrimination? - CORRECT ANSWER - Denial of a claim based on
reckless behavior
When calculating life insurance premium rates , which component would an agents commission
fall under ? - CORRECT ANSWER - Insurer's expenses
What does the term coinsurance refer to ? - CORRECT ANSWER - After the deductible is
satisfied, the percentage paid by the insured for the remaining covered expenses
Questions and CORRECT Answers
John's health plan benefits of 90% for in-network providers and 70% for out-of-netword
providers. What kind of plan is this. - CORRECT ANSWER - PPO - Preferred Provider
Organization
MRMIP is a - CORRECT ANSWER - State program that offers health coverage to
California residents who are not able to obtain coverage due to pre- existing conditions.
When intentional concealment is involved, what course of action is the injured party entitled to?
- CORRECT ANSWER - Rescission of the Contract
In a renewable term life insurance policy , the contract will usually - CORRECT
ANSWER - require a higher premium payable at each renewal
What area of group health insurance is regulated under the Employee Retirement Security Act of
1974 (ERISA)? - CORRECT ANSWER - Disclosure and reporting
At what age is a surviving spouse without dependents eligible for social security survivor
benefits ? - CORRECT ANSWER - 60
A life insurance policy where the insured can choose where the cash value can be invested is
called - CORRECT ANSWER - Variable life
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
potential for loss - CORRECT ANSWER - loss exposure
,Major medical expense plans typically use a cost containment measure for emergency hospital
care. This is referred to as a(n) - CORRECT ANSWER - deductible
where must you specifically reside to qualify for MRMIP? - CORRECT ANSWER -
California
statement is NOT true regarding Social Security benefits ? - CORRECT ANSWER -
Benefits are designed to replace the entire amount of the workers earnings
Medicare Part A covers what type of care? - CORRECT ANSWER - Skilled nursing
facility care
Christine has a health insurance policy that has been in force beyond the incontestable period.
The insurer has discovered that a fraudulent statement was made on the application. What would
the insurer have to pay on a claim, assuming this wasn't a guaranteed renewable policy? -
CORRECT ANSWER - Nothing will be paid because of fraud
Which type of worker has Social Security benefits available to them? - CORRECT
ANSWER - Fully insured
An insurance policy written after 1988 that fails to pass the seven-pay test is know as -
CORRECT ANSWER - a modified endowment contract
Not a valid reason to replace an existing long-term care policy? - CORRECT ANSWER -
New policy has higher premium with fewer benefits
statement that is true about Medicare - CORRECT ANSWER - Benefits for diagnostic
tests and X-rays performed on an outpatient basis are provided by part B
In California , an insurer organized under the state laws of Oregon is Called a(n) - CORRECT
ANSWER - foreign insurer
, The conditions, times, and circumstances under which an insured is NOT covered by a health
policy are called? - CORRECT ANSWER - Exclusions
Which of the following does the California insurance code Not require an insurance policy to
specify? - CORRECT ANSWER - Insurer's financial rating
Which of the following services are health maintenance organizations (HMO's) Not required to
provide? - CORRECT ANSWER - Prescription Drugs
Not covered under vision care insurance - CORRECT ANSWER - eye surgery
How does a conditional receipt differ from a binding receipt? - CORRECT ANSWER -
Binding receipts always provide insurance which starts from the date of receipt
John owns an insurance policy that gives him the right to share in the insurer's surplus. What
kind of policy is this? - CORRECT ANSWER - Participating policy , gives rights to share
the insurers surplus
employer-provided group term life insurance is exempt from income taxation up to - CORRECT
ANSWER - $50,000
According to California code governing claim settlement practices what can not be considered to
be an act of unfair discrimination? - CORRECT ANSWER - Denial of a claim based on
reckless behavior
When calculating life insurance premium rates , which component would an agents commission
fall under ? - CORRECT ANSWER - Insurer's expenses
What does the term coinsurance refer to ? - CORRECT ANSWER - After the deductible is
satisfied, the percentage paid by the insured for the remaining covered expenses
