Xcel Solutions - Final Exam With Correct
Answers.
K has a life insurance policy where her husband is beneficiary and her daughter is
contingent beneficiary. Under the Common Disaster clause, if K and her husband are
both killed in an automobile accident, where would the death proceeds be directed? -
ANSWER- Daughter
When is a Group Health policy required to provide coverage for a newborn child? -
ANSWER- At the moment of birth
What is the required renewability status of all Medicare supplement policies? -
ANSWER- Guaranteed renewable
Who issues Medicare Supplement policies? - ANSWER- insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are
waived due to disability? - ANSWER- P will still receive declared dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? -
ANSWER- 20-pay life
The Nevada Insurance Guaranty Association - ANSWER- protects Nevada insurance
policy owners in the event an insurance company becomes insolvent
The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or to the insured's original age is: - ANSWER-
the cost
A Medicare Supplement policy may be cancelled for which of the following reasons? -
ANSWER- The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: - ANSWER- The entire cost
of the plan is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: - ANSWER-
Insurer's corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? -
ANSWER- Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found
in which of these reports? - ANSWER- Inspection report
, T is receiving $3,000/month from a Disability Income policy in which T's employer has
pad the premiums. How are the $3,000 benefit payments taxable? - ANSWER- Benefits
are taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies? - ANSWER- Family Maintenance Policy
Basic Medical Expense insurance: - ANSWER- has lower benefit limits than Major
Medical Insurance
What is the requirement for maintaining an individual Nevada producer license? -
ANSWER- completing 30 hours of continuing education every 3 years
J is a producer who has induced an insured through misrepresentation to surrender an
existing insurance policy. What is J guilty of? - ANSWER- Twisting
Which of these is considered a mandatory provision? - ANSWER- payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? -
ANSWER- payor benefit rider
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do
not take the required minimum distributions from their qualified retirement plan? -
ANSWER- 50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay if a total of $15,000 in
covered medical expenses are incurred? - ANSWER- $7,000
Within how many days after policy delivery can a Long-term Care policy be returned for
a 100% premium refund? - ANSWER- 30
Which of the following is an example of defamation? - ANSWER- circulating brochures
that falsely denounce the financial condition of an insurer
T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes
partially disabled, what can he likely expect? - ANSWER- Less than $5,000 per month
benefit regardless of the cause
A Medicare Supplement policyholder has ___ days to return the policy and receive a full
premium refund. - ANSWER- 30
The health insurance program which is administered by each state and funded by both
the federal and state governments is called: - ANSWER- Medicaid
Answers.
K has a life insurance policy where her husband is beneficiary and her daughter is
contingent beneficiary. Under the Common Disaster clause, if K and her husband are
both killed in an automobile accident, where would the death proceeds be directed? -
ANSWER- Daughter
When is a Group Health policy required to provide coverage for a newborn child? -
ANSWER- At the moment of birth
What is the required renewability status of all Medicare supplement policies? -
ANSWER- Guaranteed renewable
Who issues Medicare Supplement policies? - ANSWER- insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are
waived due to disability? - ANSWER- P will still receive declared dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? -
ANSWER- 20-pay life
The Nevada Insurance Guaranty Association - ANSWER- protects Nevada insurance
policy owners in the event an insurance company becomes insolvent
The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or to the insured's original age is: - ANSWER-
the cost
A Medicare Supplement policy may be cancelled for which of the following reasons? -
ANSWER- The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: - ANSWER- The entire cost
of the plan is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: - ANSWER-
Insurer's corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? -
ANSWER- Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found
in which of these reports? - ANSWER- Inspection report
, T is receiving $3,000/month from a Disability Income policy in which T's employer has
pad the premiums. How are the $3,000 benefit payments taxable? - ANSWER- Benefits
are taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies? - ANSWER- Family Maintenance Policy
Basic Medical Expense insurance: - ANSWER- has lower benefit limits than Major
Medical Insurance
What is the requirement for maintaining an individual Nevada producer license? -
ANSWER- completing 30 hours of continuing education every 3 years
J is a producer who has induced an insured through misrepresentation to surrender an
existing insurance policy. What is J guilty of? - ANSWER- Twisting
Which of these is considered a mandatory provision? - ANSWER- payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? -
ANSWER- payor benefit rider
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do
not take the required minimum distributions from their qualified retirement plan? -
ANSWER- 50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay if a total of $15,000 in
covered medical expenses are incurred? - ANSWER- $7,000
Within how many days after policy delivery can a Long-term Care policy be returned for
a 100% premium refund? - ANSWER- 30
Which of the following is an example of defamation? - ANSWER- circulating brochures
that falsely denounce the financial condition of an insurer
T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes
partially disabled, what can he likely expect? - ANSWER- Less than $5,000 per month
benefit regardless of the cause
A Medicare Supplement policyholder has ___ days to return the policy and receive a full
premium refund. - ANSWER- 30
The health insurance program which is administered by each state and funded by both
the federal and state governments is called: - ANSWER- Medicaid
