XCEL Comprehensive Exam
Questions and Answers16
Which word implies permissiveness according to the California Insurance Code? - ANSWERS-
May
What effect did the Pregnancy Discrimination Act have on the health industry? - ANSWERS-
Pregnancy must be treated as any other medical condition
An agent's attempt to stop the replacement of an existing life insurance policy is known as -
ANSWERS-conservation
When selling a long term care insurance rider to an applicant, a life agent must take into
consideration all of these factors, EXCEPT - ANSWERS-Attending physician's statement
Paul has an existing annuity and is sold a new one, in which the new policy holds no greater
financial benefit to him than the existing contract. This is considered a(n) - ANSWERS-
unnecessary replacement
Which entity has jurisdiction over health care coverage providers? - ANSWERS-Department of
Insurance
The California Insurance Code allows an individual how many days to cancel a life policy for a
full-refund? - ANSWERS-Between 10 and 30 days
Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy
Program (HICAP) counselors? - ANSWERS-Charge a fee
,The free-look period for life insurance policyowners age 60 or older is - ANSWERS-30 days
What does the term "illustration" mean when used in the phrase "life insurance policy
illustration", according to the California Insurance Code? - ANSWERS-Presentation of policy
features that includes non-guaranteed elements
Which of the following does NOT have to be included on life insurance policy illustrations? -
ANSWERS-Statement that all values and benefits are guaranteed
According to the California Insurance Code, who is responsible for submitting a life agent's
appointment? - ANSWERS-Insurer
Who does a life settlement broker represent? - ANSWERS-Individual wanting to sell their life
policy to a third party
Why is a life insurance policy's delivery date important? - ANSWERS-The free-look period begins
on the policy delivery date
An insurance company entitled to transact business in California is called a(n) - ANSWERS-
admitted carrier
An insurer that has been found using higher rates based on race, religion, or ethnicity is said to
be engaging in - ANSWERS-unfair discrimination
Any changes in background information that occur after a producer application has been
submitted or a license has been issued MUST be reported to the Insurance Commissioner within
- ANSWERS-30 days
Anyone employed in California to assist an insurance agent in transacting insurance is called an
insurance - ANSWERS-solicitor
, Before an insurer is allowed to test an individual for HIV, what must be completed? - ANSWERS-
Consent form
Failure to report background changes within 30 days as required under section 1729.2 of the
California insurance code could subject a license or applicant to - ANSWERS-All of these:
Suspension, Denial, Fine
How long must life agents keep their transaction records? - ANSWERS-5 years
In California, an insurer organized under the state laws of Oregon is called a(n) - ANSWERS-
foreign insurer
Jim is applying to become an insurance agent and has a past misdemeanor conviction that was
later expunged due to California Penal Code 1203.4. Which of the following statements is
correct? - ANSWERS-Jim must still disclose the conviction on his insurance license application
ABC Insurance Company paid an insured $30,000 in lost wages, $35,000 for hospital costs, and
$20,000 for physical therapy treatments. ABC later discovers this was a fraudulent claim. How
much may the insured be fined? - ANSWERS-$170,000
What is an insurance solicitor authorized to do? - ANSWERS-Help an agent or broker sell
insurance
According to the PPACA, an adult can be covered by a parent's health care plan until what age? -
ANSWERS-Age 26
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer? - ANSWERS-Notice of appointment must be submitted to the
Commissioner
Questions and Answers16
Which word implies permissiveness according to the California Insurance Code? - ANSWERS-
May
What effect did the Pregnancy Discrimination Act have on the health industry? - ANSWERS-
Pregnancy must be treated as any other medical condition
An agent's attempt to stop the replacement of an existing life insurance policy is known as -
ANSWERS-conservation
When selling a long term care insurance rider to an applicant, a life agent must take into
consideration all of these factors, EXCEPT - ANSWERS-Attending physician's statement
Paul has an existing annuity and is sold a new one, in which the new policy holds no greater
financial benefit to him than the existing contract. This is considered a(n) - ANSWERS-
unnecessary replacement
Which entity has jurisdiction over health care coverage providers? - ANSWERS-Department of
Insurance
The California Insurance Code allows an individual how many days to cancel a life policy for a
full-refund? - ANSWERS-Between 10 and 30 days
Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy
Program (HICAP) counselors? - ANSWERS-Charge a fee
,The free-look period for life insurance policyowners age 60 or older is - ANSWERS-30 days
What does the term "illustration" mean when used in the phrase "life insurance policy
illustration", according to the California Insurance Code? - ANSWERS-Presentation of policy
features that includes non-guaranteed elements
Which of the following does NOT have to be included on life insurance policy illustrations? -
ANSWERS-Statement that all values and benefits are guaranteed
According to the California Insurance Code, who is responsible for submitting a life agent's
appointment? - ANSWERS-Insurer
Who does a life settlement broker represent? - ANSWERS-Individual wanting to sell their life
policy to a third party
Why is a life insurance policy's delivery date important? - ANSWERS-The free-look period begins
on the policy delivery date
An insurance company entitled to transact business in California is called a(n) - ANSWERS-
admitted carrier
An insurer that has been found using higher rates based on race, religion, or ethnicity is said to
be engaging in - ANSWERS-unfair discrimination
Any changes in background information that occur after a producer application has been
submitted or a license has been issued MUST be reported to the Insurance Commissioner within
- ANSWERS-30 days
Anyone employed in California to assist an insurance agent in transacting insurance is called an
insurance - ANSWERS-solicitor
, Before an insurer is allowed to test an individual for HIV, what must be completed? - ANSWERS-
Consent form
Failure to report background changes within 30 days as required under section 1729.2 of the
California insurance code could subject a license or applicant to - ANSWERS-All of these:
Suspension, Denial, Fine
How long must life agents keep their transaction records? - ANSWERS-5 years
In California, an insurer organized under the state laws of Oregon is called a(n) - ANSWERS-
foreign insurer
Jim is applying to become an insurance agent and has a past misdemeanor conviction that was
later expunged due to California Penal Code 1203.4. Which of the following statements is
correct? - ANSWERS-Jim must still disclose the conviction on his insurance license application
ABC Insurance Company paid an insured $30,000 in lost wages, $35,000 for hospital costs, and
$20,000 for physical therapy treatments. ABC later discovers this was a fraudulent claim. How
much may the insured be fined? - ANSWERS-$170,000
What is an insurance solicitor authorized to do? - ANSWERS-Help an agent or broker sell
insurance
According to the PPACA, an adult can be covered by a parent's health care plan until what age? -
ANSWERS-Age 26
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer? - ANSWERS-Notice of appointment must be submitted to the
Commissioner
