XCEL SOLUTIONS PRACTICE REVIEW
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
Long-Term care polices or certificated issued in Ohio are required to have -
ANSWER-a nonforfeiture value
Which market index is normally associated with an indexed annuity's rate of return -
ANSWER-S&P 500
If an insured dies during the grace period with no premiums paid - ANSWER-the
policy would be payable, minus the premium amount
Pete the agent recently had his license suspended because he was found to be in
violation of state insurance law. Due to this suspension, Pete - ANSWER-May be
assessed the administrative costs sustained by the Department
All of the following are included as part of a contract in the entire contract provision -
ANSWER-Changes made by the producer
Major medical insurance will typically cover medical expenses that result from -
ANSWER-A negative reaction to prescribed medication
Ken is a producer who has obtained Consumer Information Reports under false
pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that
may be imposed on Ken? - ANSWER-$5,000
The free-look provision gives the policy owner - ANSWER-the right to return the
policy for a full refund within a specified number of days
People with higher loss exposure have the tendency to purchase insurance more
often than those at average risk. This is called - ANSWER-Adverse selection
Which policy feature makes a universal life policy different from a whole life policy? -
ANSWER-A flexible premium income
Which type of life insurance is normally associated with a Payor Benefit rider? -
ANSWER-Juvenile insurance
A long-term care policy typically provides all of the following levels of care EXCEPT -
ANSWER-Acute care
What type of policy would only provide coverage for specific types of illnesses
(cancer, stroke, etc)? - ANSWER-dread disease insurance
, An error was made on Mary's life insurance application. Which of the following areas
do errors commonly occur on applications and for which the incontestable clause
does NOT apply? - ANSWER-Age
An agent's appointment may only be terminated by the - ANSWER-Insurer
Under a Modified Endowment Contract, what are the likely tax consequences? -
ANSWER-Pre-death distributions will become taxable
Which of the following is typically NOT eligible for coverage in a group health policy?
- ANSWER-Temporary employee
When does an immediate annuity begin making payments? - ANSWER-After the first
premium has been paid
Under non-qualified annuity, interest is taxed after the - ANSWER-
Which of these is a method of determining the level of funds required for ongoing
support in the event of the breadwinner's death? - ANSWER-
Which disability policy provision would address any concerns of the value of the
benefits decreasing over time? - ANSWER-Cost of living benefit
A whole life policy option where extended term insurance is selected is called a(n) -
ANSWER-nonforfeiture option
A life insurance policyowner is allowed days upon policy delivery to return the policy
for a full premium refund - ANSWER-10 days
Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - ANSWER-10 days
A spouse and child can be added to the primary insured's coverage as what kind of
rider? - ANSWER-family term
With a scheduled dental policy, how are covered expenses paid? - ANSWER-
Benefits are limited to a specific maximum dollar amount per procedure
Which type of clause describes the following statement: "We have issued the policy
in consideration of the representations in your applications and payment of the first-
term premium". - ANSWER-
What guarantees that the statements supplied by an insurance applicant are true -
ANSWER-
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this
situation? - ANSWER-Unpaid premiums
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
Long-Term care polices or certificated issued in Ohio are required to have -
ANSWER-a nonforfeiture value
Which market index is normally associated with an indexed annuity's rate of return -
ANSWER-S&P 500
If an insured dies during the grace period with no premiums paid - ANSWER-the
policy would be payable, minus the premium amount
Pete the agent recently had his license suspended because he was found to be in
violation of state insurance law. Due to this suspension, Pete - ANSWER-May be
assessed the administrative costs sustained by the Department
All of the following are included as part of a contract in the entire contract provision -
ANSWER-Changes made by the producer
Major medical insurance will typically cover medical expenses that result from -
ANSWER-A negative reaction to prescribed medication
Ken is a producer who has obtained Consumer Information Reports under false
pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that
may be imposed on Ken? - ANSWER-$5,000
The free-look provision gives the policy owner - ANSWER-the right to return the
policy for a full refund within a specified number of days
People with higher loss exposure have the tendency to purchase insurance more
often than those at average risk. This is called - ANSWER-Adverse selection
Which policy feature makes a universal life policy different from a whole life policy? -
ANSWER-A flexible premium income
Which type of life insurance is normally associated with a Payor Benefit rider? -
ANSWER-Juvenile insurance
A long-term care policy typically provides all of the following levels of care EXCEPT -
ANSWER-Acute care
What type of policy would only provide coverage for specific types of illnesses
(cancer, stroke, etc)? - ANSWER-dread disease insurance
, An error was made on Mary's life insurance application. Which of the following areas
do errors commonly occur on applications and for which the incontestable clause
does NOT apply? - ANSWER-Age
An agent's appointment may only be terminated by the - ANSWER-Insurer
Under a Modified Endowment Contract, what are the likely tax consequences? -
ANSWER-Pre-death distributions will become taxable
Which of the following is typically NOT eligible for coverage in a group health policy?
- ANSWER-Temporary employee
When does an immediate annuity begin making payments? - ANSWER-After the first
premium has been paid
Under non-qualified annuity, interest is taxed after the - ANSWER-
Which of these is a method of determining the level of funds required for ongoing
support in the event of the breadwinner's death? - ANSWER-
Which disability policy provision would address any concerns of the value of the
benefits decreasing over time? - ANSWER-Cost of living benefit
A whole life policy option where extended term insurance is selected is called a(n) -
ANSWER-nonforfeiture option
A life insurance policyowner is allowed days upon policy delivery to return the policy
for a full premium refund - ANSWER-10 days
Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - ANSWER-10 days
A spouse and child can be added to the primary insured's coverage as what kind of
rider? - ANSWER-family term
With a scheduled dental policy, how are covered expenses paid? - ANSWER-
Benefits are limited to a specific maximum dollar amount per procedure
Which type of clause describes the following statement: "We have issued the policy
in consideration of the representations in your applications and payment of the first-
term premium". - ANSWER-
What guarantees that the statements supplied by an insurance applicant are true -
ANSWER-
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this
situation? - ANSWER-Unpaid premiums
