Xcel Testing Solutions-Louisiana Life and Health Exam
Simulator - 200 Questions WITH Complete Solutions
Which dividend option would an insurer invest the policy owner's money and add any
interest earnings as the dividends accrue?
-Accumulation at Interest Option
-Cash Dividend Option
-Paid-Up Additions Option
-One-Year Term Dividend Option - Correct AnswersThe Accumulation at Interest Option -
invests the policy owner's money and adds interest earnings to the initial amount of the
dividends.
Decreasing term life insurance is often used to?
-provide retirement funds
-provide coverage for a home mortgage
-accumulate cash value
-provide coverage for estate taxes - Correct AnswersProvide coverage for a home
mortgage-
A common use for decreasing term life insurance is to cover a home mortgage.
Written notice for a health claim must be given to the insurer ___ days after the occurrence
of the loss.
,-10-20-31-60 - Correct Answers20
Written notice for a health claim must be given to the insurer 20 days after the occurrence
of the loss.
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured
MUST
- remit all past-due premiums within the grace period
- provide evidence of insurability to the insurer
- resubmit a new life insurance application
-provide a valid reason for the lapse - Correct Answersprovide evidence of insurability to
the insurer
The suicide clause of a life insurance policy states that if an insured commits suicide within
a stated period from the policy's inception, the insurer will only be liable for a return of
premiums paid
- minus indebtedness and with interest
- during the last 12 months
-minus indebtedness and without interest
- during the last 6 months - Correct Answersminus indebtedness and without interest
The suicide clause of a life insurance policy states that if an insured commits suicide within
a stated period from the policy's inception, the insurer will only be liable for a return of
premiums paid minus indebtedness and without interest.
What does a life insurance policy guarantee to the stated beneficiary upon the death of the
insured?
- Policy Dividend
- Specified amount of money
- Policy's cash value
- Funeral expense fund - Correct AnswersSpecified amount of money
,Life insurance guarantees to the beneficiary a specified sum of money in the event of the
insured's death.
An insurance producer is often responsible for field underwriting during the application
process. All of these are possible field underwriting roles EXCEPT
- providing disclosure information to the applicant
- collecting initial premium
- policy delivery
- providing commission information to the applicant - Correct Answersproviding
commission information to the applicant
All of these are field underwriting roles an insurance producer may perform EXCEPT
"providing commission information to the applicant".
Krissa purchases a 10-year level term life insurance policy that has a death benefit of
$200,000. Which of these statements is true?
- The policy automatically converts to whole life after the 10-year period
- The face amount will remain constant and the premium will increase over the 10-year
period
The premium will remain constant and the face amount will increase over the 10-year
period
The face amount and premium will remain constant over the 10-year period - Correct
AnswersThe premium will remain constant and the face amount will increase over the 10-
year period
"The face amount and premium will remain constant over the 10-year period". In this
situation, the premium and the face amount will remain constant for the 10-year period.
When can a group health policy renewal be denied according to the Health Insurance
Portability and Accountability Act (HIPAA)?
- When a change of management has occurred within the group
- When the annual number of claims has increased by 25%
- When contribution or participation rules have been violated
, -When group participation has increased by 25% - Correct AnswersWhen contribution or
participation rules have been violated
According to HIPAA, a group health policy renewal can be denied when participation or
contribution rules have been violated.
Which of the following is Medicare Part B also known as?
- Hospital insurance
-Medical insurance
-Long- Term Care Insurance
-Medigap - Correct AnswersMedical Insurance
Medicare Part B covers most medically necessary doctors' services, preventive care,
durable medical equipment, hospital outpatient services, laboratory tests, x-rays, mental
health care, and some home health and ambulance services. You pay a monthly premium
for this coverage.
A group life policy terminates a class of participants. To qualify for an individual policy, an
employee must do which of the following?
- Prove that he is insurable
- Have been insured at least 5 years
- Apply for the new policy within 30 days
- Pay at least two premiums in advance - Correct AnswersHave been insured at least 5
years
To qualify for an individual policy, an employee must have been insured at least 5 years.
A clause that allows an insurer the right to terminate coverage at any anniversary date is
called a(n)
- conditionally renewability clause
- optional renewability clause
-selective renewability clause
- cancelable clause - Correct Answersoptional renewability clause
Simulator - 200 Questions WITH Complete Solutions
Which dividend option would an insurer invest the policy owner's money and add any
interest earnings as the dividends accrue?
-Accumulation at Interest Option
-Cash Dividend Option
-Paid-Up Additions Option
-One-Year Term Dividend Option - Correct AnswersThe Accumulation at Interest Option -
invests the policy owner's money and adds interest earnings to the initial amount of the
dividends.
Decreasing term life insurance is often used to?
-provide retirement funds
-provide coverage for a home mortgage
-accumulate cash value
-provide coverage for estate taxes - Correct AnswersProvide coverage for a home
mortgage-
A common use for decreasing term life insurance is to cover a home mortgage.
Written notice for a health claim must be given to the insurer ___ days after the occurrence
of the loss.
,-10-20-31-60 - Correct Answers20
Written notice for a health claim must be given to the insurer 20 days after the occurrence
of the loss.
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured
MUST
- remit all past-due premiums within the grace period
- provide evidence of insurability to the insurer
- resubmit a new life insurance application
-provide a valid reason for the lapse - Correct Answersprovide evidence of insurability to
the insurer
The suicide clause of a life insurance policy states that if an insured commits suicide within
a stated period from the policy's inception, the insurer will only be liable for a return of
premiums paid
- minus indebtedness and with interest
- during the last 12 months
-minus indebtedness and without interest
- during the last 6 months - Correct Answersminus indebtedness and without interest
The suicide clause of a life insurance policy states that if an insured commits suicide within
a stated period from the policy's inception, the insurer will only be liable for a return of
premiums paid minus indebtedness and without interest.
What does a life insurance policy guarantee to the stated beneficiary upon the death of the
insured?
- Policy Dividend
- Specified amount of money
- Policy's cash value
- Funeral expense fund - Correct AnswersSpecified amount of money
,Life insurance guarantees to the beneficiary a specified sum of money in the event of the
insured's death.
An insurance producer is often responsible for field underwriting during the application
process. All of these are possible field underwriting roles EXCEPT
- providing disclosure information to the applicant
- collecting initial premium
- policy delivery
- providing commission information to the applicant - Correct Answersproviding
commission information to the applicant
All of these are field underwriting roles an insurance producer may perform EXCEPT
"providing commission information to the applicant".
Krissa purchases a 10-year level term life insurance policy that has a death benefit of
$200,000. Which of these statements is true?
- The policy automatically converts to whole life after the 10-year period
- The face amount will remain constant and the premium will increase over the 10-year
period
The premium will remain constant and the face amount will increase over the 10-year
period
The face amount and premium will remain constant over the 10-year period - Correct
AnswersThe premium will remain constant and the face amount will increase over the 10-
year period
"The face amount and premium will remain constant over the 10-year period". In this
situation, the premium and the face amount will remain constant for the 10-year period.
When can a group health policy renewal be denied according to the Health Insurance
Portability and Accountability Act (HIPAA)?
- When a change of management has occurred within the group
- When the annual number of claims has increased by 25%
- When contribution or participation rules have been violated
, -When group participation has increased by 25% - Correct AnswersWhen contribution or
participation rules have been violated
According to HIPAA, a group health policy renewal can be denied when participation or
contribution rules have been violated.
Which of the following is Medicare Part B also known as?
- Hospital insurance
-Medical insurance
-Long- Term Care Insurance
-Medigap - Correct AnswersMedical Insurance
Medicare Part B covers most medically necessary doctors' services, preventive care,
durable medical equipment, hospital outpatient services, laboratory tests, x-rays, mental
health care, and some home health and ambulance services. You pay a monthly premium
for this coverage.
A group life policy terminates a class of participants. To qualify for an individual policy, an
employee must do which of the following?
- Prove that he is insurable
- Have been insured at least 5 years
- Apply for the new policy within 30 days
- Pay at least two premiums in advance - Correct AnswersHave been insured at least 5
years
To qualify for an individual policy, an employee must have been insured at least 5 years.
A clause that allows an insurer the right to terminate coverage at any anniversary date is
called a(n)
- conditionally renewability clause
- optional renewability clause
-selective renewability clause
- cancelable clause - Correct Answersoptional renewability clause
