Xcel Testing Solutions - Life and Health Insurance Weighted Exam Questions With Answers Latest Updated 2024 (Graded A+)

Xcel Testing Solutions - Life and Health Insurance Weighted Exam Questions With Answers Latest Updated 2024 (Graded A+) The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT Answersinsurance sales calls Charities, political organizations, and surveys are all offered exemptions from The Do Not Call Registry The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called Answerscancelable The renewability provision in a cancelable policy allows the insurer to cancel or terminate the policy at any time, simply by providing written notification to the insured and refunding any advance premium that has been paid. 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) AnswersGuaranteed 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 AnswersNoncancellable 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? AnswersDeclarations 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? AnswersBenefits 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? AnswersInjury due to accident Accidental injury is typically a covered peril in health insurance. A viatical settlement contract is an agreement between AnswersA 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? AnswersThe 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? AnswersRisk 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? AnswersAssisted 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 Answersan 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? AnswersLoss 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 AnswersTwo 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? AnswersAssisted 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 Answers65 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? AnswersMedicare 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) Answersnonforfeiture 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? Answers5 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 Answersthe 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? AnswersIncrease 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: AnswersTake 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 Answerslimited 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? AnswersExclusion Ratio The Exclusion Ratio is used to determine the taxable portion of each annuity payment. How are annuities given favorable tax treatment? AnswersGains are taxed at distribution Annuity gains are typically tax deferred until distribution. All _____ policies must be guaranteed renewable. Answerslong-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? AnswersBusiness 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? AnswersThe 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? AnswersPre-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 Answersnonresident 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. Answers1 Long-term care insurance in any insurance policy is designed to provide coverage for a minimum benefit period of 1 year