,Xcel Final Exam QUESTIONS AND
ANSWERS 100% CORRECT!
Typically, Long-Term Disability benefits are coordinated with which benefit plan? -
ANSWER Social Security
The focus of major medical insurance is providing coverage for - ANSWER medical and
hospitalization expenses
An insured under a Major Medical expense plan with a zero deductible and 80/20
coinsurance provision files a $1,000 claim. How much of this claim is the insured
responsible for? - ANSWER $200
because this policy has a zero deductible, the insures is only responsible for the 20%
coinsurance on this claim, or $200
An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured incurs
$25,000 of covered losses. How much will the insured pay? - ANSWER $5,000
Which type of plan would be the most appropriate for an individual on Medicare and
concerned that Medicare will NOT pay for charges exceeding the approved amount? -
ANSWER Medicare supplement Plan F
When can a group health policy renewal be denied according to the Health Insurance
Portability and Accountability Act (HIPAA)? - ANSWER when contribution or
participation rules have been violated
What does the word "level: in Level Term describe? - ANSWER the face amount
A non-contributory health insurance plan helps the insurer avoid - ANSWER adverse
selection
because all eligible employees are usually covered, non-contributory plans are
desirable from an underwriting standpoint because adverse selection is minimized.
To qualify for a resident producer license in the state of Michigan, an individual -
ANSWER must complete the required pre-licensing education within 12 months of
license application
, Who is the individual paid on a fee-for-service basis? - ANSWER Provider
Which of the following is NOT an illegal inducement? - ANSWER Giving the insured an
article of merchandise printed with the producer's name costing $5
$5 or less of tokens or merchandise to applicants is allowed.
Making a statement that is false or maliciously critical of the financial condition of an
insurer is known as - ANSWER defamation
Which of the following is NOT a required provision in an accident and health insurance
policy? - ANSWER change of occupation
the change of occupation provision is considered an OPTIONAL provision
Which of these statements about Medicaid is CORRECT? - ANSWER Funded by
federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered by each state.
All of these are considered key factors in underwriting life insurance EXCEPT -
ANSWER Marital Status
Correct: tobacco use, health history, age
The time limit for filing claim disputes is addressed in which provision of an accident and
health policy? - ANSWER legal actions
All of the following plans allow for employee contributions to be taken on a pre-tax basis
EXCEPT - ANSWER Health reimbursement Arrangement plan
employers contribute to health reimbursement Arrangement planz (HRA's), not
employees.
Which of the following gifts from a producer would NOT be considered rebating? -
ANSWER $5 pen
A producer quoting life insurance may give an applicant an article of merchandise
having an invoice value of $5.00 or less.
ANSWERS 100% CORRECT!
Typically, Long-Term Disability benefits are coordinated with which benefit plan? -
ANSWER Social Security
The focus of major medical insurance is providing coverage for - ANSWER medical and
hospitalization expenses
An insured under a Major Medical expense plan with a zero deductible and 80/20
coinsurance provision files a $1,000 claim. How much of this claim is the insured
responsible for? - ANSWER $200
because this policy has a zero deductible, the insures is only responsible for the 20%
coinsurance on this claim, or $200
An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured incurs
$25,000 of covered losses. How much will the insured pay? - ANSWER $5,000
Which type of plan would be the most appropriate for an individual on Medicare and
concerned that Medicare will NOT pay for charges exceeding the approved amount? -
ANSWER Medicare supplement Plan F
When can a group health policy renewal be denied according to the Health Insurance
Portability and Accountability Act (HIPAA)? - ANSWER when contribution or
participation rules have been violated
What does the word "level: in Level Term describe? - ANSWER the face amount
A non-contributory health insurance plan helps the insurer avoid - ANSWER adverse
selection
because all eligible employees are usually covered, non-contributory plans are
desirable from an underwriting standpoint because adverse selection is minimized.
To qualify for a resident producer license in the state of Michigan, an individual -
ANSWER must complete the required pre-licensing education within 12 months of
license application
, Who is the individual paid on a fee-for-service basis? - ANSWER Provider
Which of the following is NOT an illegal inducement? - ANSWER Giving the insured an
article of merchandise printed with the producer's name costing $5
$5 or less of tokens or merchandise to applicants is allowed.
Making a statement that is false or maliciously critical of the financial condition of an
insurer is known as - ANSWER defamation
Which of the following is NOT a required provision in an accident and health insurance
policy? - ANSWER change of occupation
the change of occupation provision is considered an OPTIONAL provision
Which of these statements about Medicaid is CORRECT? - ANSWER Funded by
federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered by each state.
All of these are considered key factors in underwriting life insurance EXCEPT -
ANSWER Marital Status
Correct: tobacco use, health history, age
The time limit for filing claim disputes is addressed in which provision of an accident and
health policy? - ANSWER legal actions
All of the following plans allow for employee contributions to be taken on a pre-tax basis
EXCEPT - ANSWER Health reimbursement Arrangement plan
employers contribute to health reimbursement Arrangement planz (HRA's), not
employees.
Which of the following gifts from a producer would NOT be considered rebating? -
ANSWER $5 pen
A producer quoting life insurance may give an applicant an article of merchandise
having an invoice value of $5.00 or less.
