Xcel Testing Solutions, Life and Health Insurance Exam Questions With Answers Latest Graded A+

Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. This rider is called a(n) Answers>>Guaranteed insurability rider A guaranteed insurability rider allows for the insured to purchase additional insurance at specific dates or events without evidence of insurability. Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered Answers>>Noncancellable A noncancellable policy cannot be cancelled nor can its premium rates be increased under any circumstances. In what part of an insurance policy are policy benefits found? Answers>>Declarations Essentially, the insurance declaration page is like a quick guide to the insurance policy, providing all of the basic information the policyholder needs to know. Xcel Testing Solutions- Life and Health Insurance Weighted Exam 150 Questions and Answers Latest Graded A+ What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual life insurance policy? Answers>>Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age. Health insurance will typically cover which of the following perils? Answers>>Injury due to accident Accidental injury is typically a covered peril in health insurance. A viatical settlement contract is an agreement between Answers>>A life insurance policyowner and a viatical settlement provider A viatical settlement contract is an agreement between a life insurance policyowner and a viatical settlement provider. Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status? Answers>>The insurer significantly raises co-insurance charges, deductibles, or copayment charges According to the Affordable Care Act, grandfathered health plans may lose their grandfathered status if the insurer significantly raises co-insurance charges, deductibles, or co-payment charges Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Answers>>Risk avoidance Risk avoidance could eliminate the risk of losing money in the stock market by never investing in stocks. Which of the following nursing home options would BEST suit an individual who needs some nursing care and supervision but NOT full-time care? Answers>>Assisted living facilities An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time care. Under Louisiana law, the agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is defined as Answers>>an appointment The agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is called an appointment. Which of these would NOT be considered a presumptive disability? Answers>>Loss of a leg or arm The loss of ONE arm or a leg is NOT considered a presumptive disability. A producer's license in Louisiana must be renewed every Answers>>Two years Producer licenses are issued for periods of 2 years. Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him? Answers>>Assisted living An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time care. The open enrollment period for Medicare Supplements begins at age Answers>>65 Open enrollment for Medicare Supplements begins at the age the individual becomes eligible for Medicare, which is typically age 65. Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the following statements is TRUE? Answers>>Medicare is the secondary payer If an individual continues to work after the age of 65 and keeps the group plan, primary coverage comes from the group insurance plan and Medicare is considered the secondary payer. A whole life policy option where extended term insurance is selected is called a(n) Answers>>nonforfeiture option A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to the existing amount of life insurance is called the extended term option. The Commissioner must examine the financial affairs of each admitted insurer operating in Louisiana at least once every how many years? Answers>>5 At the very least, an admitted company shall be examined once every 5 years by the Commissioner. When a Medicare supplement policy is purchased during the open enrollment period Answers>>the policy must be issued regardless of health status During open enrollment for Medicare supplements, policies will be issued regardless of health status. Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit? Answers>>Increase the premiums on an individual basis A guaranteed renewable policy CANNOT increase the premiums on an individual basis, only on the basis of an entire classification. A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and who wishes to sell that line of insurance in Louisiana, must meet all of the following requirements EXCEPT: Answers>>Take the appropriate Louisiana licensing examination A nonresident licensee from another state is not required to take a licensing examination if they are already in good standing with their state of residence. A life insurance policy that has premiums fully paid up within a stated time period is called Answers>>limited payment insurance Limited payment insurance is characterized by premiums that are fully paid up within a stated period, after which no further premiums are required. The taxable portion of each annuity payment is calculated using which method? Answers>>Exclusion Ratio The Exclusion Ratio is used to determine the taxable portion of each annuity payment. How are annuities given favorable tax treatment? Answers>>Gains are taxed at distribution Annuity gains are typically tax deferred until distribution. All _____ policies must be guaranteed renewable. Answers>>long-term care All long-term care policies must be guaranteed renewable. Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled? Answers>>Business overhead expense policy A form of business disability insurance that is designed to cover the actual costs of continuing to do business while an insured business owner is disabled is called a business overhead expense policy. Which of these is NOT a characteristic of the Accelerated Death Benefit option? Answers>>The benefit can be offered as a rider at a specific extra cost or may be at no cost Accelerated Death Benefit options are offered with NO increase in premium. What is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date of an individual long-term care policy? Answers>>Pre-existing condition In an individual long-term care policy, a pre-existing condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date. A producer who is licensed in Louisiana but resident in another state is called a Answers>>nonresident producer A producer licensed in Louisiana but a resident in another state is called a nonresident producer. The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage. Answers>>1 Long-term care insurance in any insurance policy is designed to provide coverage for a minimum benefit period of 1 year. To receive an insurance license an applicant must Answers>>Apply for the license after passing the appropriate examination An applicant must apply for the license after passing the appropriate examination in order to receive an insurance license. A cease and desist order issued against a producer Answers>>Prohibits a specific practice listed in the order A cease and desist order issued against a producer prohibits a specific practice listed in the order. How are survivorship life insurance policies helpful in estate planning? Answers>>Provide funds to help pay taxes Survivorship life insurance policies are useful in estate planning because they can provide money to pay taxes on assets. When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)? Answers>>When 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. Credit Accident and Health plans are designed to Answers>>help pay off existing loans during periods of disability Credit Accident and Health plans are designed to help pay off existing loans during periods of disability. What amount will be paid under a policy where the insured misstated his/her age? Answers>>An amount the premium would have purchased at the correct age The misstatement of age provision allows the insurer to adjust the benefit payable if the age of the insured was misstated when application for the policy was made. Of the following dividend options, which of these is taxable? Answers>>Accumulation at interest The accumulation at interest is a taxable dividend option. A health insurance policy will typically cover Answers>>preventative health services Preventative health services are normally covered under a health insurance policy. A guaranteed issue insurance policy has no Answers>>medical underwriting A guaranteed issue policy refers to an insurance policy with no medical underwriting. An insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. This is considered to be Answers>>an unfair claim settlement practice Failing to promptly provide a reasonable explanation for the denial of a claim is considered to be an unfair claim settlement practice. Which of the following is a requirement for ANY change in an insurance application? Answers>>Change must be initialed by the applicant Any changes in an insurance application MUST be initialed by the applicant. A Medicare supplement plan can be canceled by the insurer Answers>>for nonpayment of premiums An insurer can cancel a Medicare supplement plan after nonpayment of premiums. Under group health insurance, a certificate of coverage is issued to the Answers>>employee Under group health insurance, a certificate of coverage is issued to the employee. The employer is issued the master contract. James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? Answers>>The death benefit paid will be what the premium would have purchased at the correct age Under the Misstatement of Age provision, the amount paid will be what the premium would have purchased at the correct age. A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a(n) Answers>>guaranteed renewable policy An insurer has the right to change the premium for policyowners with a guaranteed renewable policy, but CANNOT cancel the policy. Which type of Medicare Supplement information can be used without prior state approval? Answers>>Government publications Insurers can use government publications for communicating Medicare Supplement information without prior state approval. Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments? Answers>>period certain An annuity where the policyowner chooses a pre-determined number of benefit payments is called period certain.