Xcell Testing Solutions (Life & Health) Final 150
Question Practice Exam
$1,600 - ANS-M has a Major Medical insurance policy with a $200 flat deductible and an 80%
Coinsurance clause. If M incurs a $2,200 claim for an eligible medical expense, how much will
M receive in payment for this claim?
$25,000 - ANS-J has an Accidental Death and Dismemberment policy with a principal sum of
$50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will
receive from his policy?
$7,000 - ANS-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?
10 days - ANS-In Arkansas, how long is the "free look" period?
15 days - ANS-An insurer must provide an insured with claim forms within __ days after
receiving notice of a loss.
20-Pay Life accumulates cash value faster than Straight Life - ANS-A potential client, age 40,
would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the
early years of the policy. Which of these statements made by the producer would be correct?
30 days - ANS-How long is the typical free look period for Long Term care insurance policies?
30 days - ANS-In Arkansas, a producer who moves to a new address must notify the
Commissioner of the address change within how many days?
31 - ANS-An insured pays premiums on an annual basis for an individual health insurance
policy. What is the MINIMUM number of days for the Grace Period provision?
5 months - ANS-One becomes eligible for Social Security disability benefits after having been
disabled for
A blanket policy - ANS-All students attending a large university could be covered by
A recurrent disability - ANS-P received Disability income benefits for 3 months then returns to
work. She is able to work one month before her condition returns, leaving her disabled once
again. What would the insurance company most likely regard this second period of disability as?
, Accidental Death and Dismemberment provision - ANS-P is blinded in an industrial accident.
Which provision of his life insurance policy will pay a stated benefit amount?
Accidental Death and Dismemberment rider (AD&D) - ANS-The option that provides an
additional death benefit for a limited amount of time at the lowest possible cost is called a(n)
Actual covered expenses up to the daily maximum - ANS-A "reimbursement policy" pays what
amount of covered Long-Term Care expenses?
adjust the death benefit to a reduced amount - ANS-L takes out a life insurance policy and dies
10 years later. During the claim process, the insurer discovers that L had understated her age
on the application. Under the Misstatement of Age provision, the insurer will
Annuity - ANS-Which product would best serve a retired individual looking to invest a lump-sum
of money through an insurance company?
Anytime - ANS-When can a policy owner change a revocable beneficiary?
Applicant - ANS-Any changes made on an insurance application requires the initials of whom?
at future dates specified in the contract with no evidence of insurability required - ANS-When
does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
At the time of theApplicatioin - ANS-At what time must a policyowner have insurable interest on
the insured in order for the life policy to be valid?
beneficiary - ANS-A life insurance application must be signed by all of these EXCEPT
beneficiary's age - ANS-S would like to use dividends from her life insurance policy to purchase
paid-up additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT
Benefits are taxable to T - ANS-T is receiving $3,000/month from a Disability Income policy in
which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?
Carryover provision - ANS-Which of the following policy features allows an insured to defer
current health charges to the following year's deductible instead of the current year's
deducitble?
Cash value may be borrowed against - ANS-Which statement about a whole life policy is
correct?
cash value provision - ANS-A policy loan is made possible by which of these life insurance
policy features?
Question Practice Exam
$1,600 - ANS-M has a Major Medical insurance policy with a $200 flat deductible and an 80%
Coinsurance clause. If M incurs a $2,200 claim for an eligible medical expense, how much will
M receive in payment for this claim?
$25,000 - ANS-J has an Accidental Death and Dismemberment policy with a principal sum of
$50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will
receive from his policy?
$7,000 - ANS-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?
10 days - ANS-In Arkansas, how long is the "free look" period?
15 days - ANS-An insurer must provide an insured with claim forms within __ days after
receiving notice of a loss.
20-Pay Life accumulates cash value faster than Straight Life - ANS-A potential client, age 40,
would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the
early years of the policy. Which of these statements made by the producer would be correct?
30 days - ANS-How long is the typical free look period for Long Term care insurance policies?
30 days - ANS-In Arkansas, a producer who moves to a new address must notify the
Commissioner of the address change within how many days?
31 - ANS-An insured pays premiums on an annual basis for an individual health insurance
policy. What is the MINIMUM number of days for the Grace Period provision?
5 months - ANS-One becomes eligible for Social Security disability benefits after having been
disabled for
A blanket policy - ANS-All students attending a large university could be covered by
A recurrent disability - ANS-P received Disability income benefits for 3 months then returns to
work. She is able to work one month before her condition returns, leaving her disabled once
again. What would the insurance company most likely regard this second period of disability as?
, Accidental Death and Dismemberment provision - ANS-P is blinded in an industrial accident.
Which provision of his life insurance policy will pay a stated benefit amount?
Accidental Death and Dismemberment rider (AD&D) - ANS-The option that provides an
additional death benefit for a limited amount of time at the lowest possible cost is called a(n)
Actual covered expenses up to the daily maximum - ANS-A "reimbursement policy" pays what
amount of covered Long-Term Care expenses?
adjust the death benefit to a reduced amount - ANS-L takes out a life insurance policy and dies
10 years later. During the claim process, the insurer discovers that L had understated her age
on the application. Under the Misstatement of Age provision, the insurer will
Annuity - ANS-Which product would best serve a retired individual looking to invest a lump-sum
of money through an insurance company?
Anytime - ANS-When can a policy owner change a revocable beneficiary?
Applicant - ANS-Any changes made on an insurance application requires the initials of whom?
at future dates specified in the contract with no evidence of insurability required - ANS-When
does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
At the time of theApplicatioin - ANS-At what time must a policyowner have insurable interest on
the insured in order for the life policy to be valid?
beneficiary - ANS-A life insurance application must be signed by all of these EXCEPT
beneficiary's age - ANS-S would like to use dividends from her life insurance policy to purchase
paid-up additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT
Benefits are taxable to T - ANS-T is receiving $3,000/month from a Disability Income policy in
which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?
Carryover provision - ANS-Which of the following policy features allows an insured to defer
current health charges to the following year's deductible instead of the current year's
deducitble?
Cash value may be borrowed against - ANS-Which statement about a whole life policy is
correct?
cash value provision - ANS-A policy loan is made possible by which of these life insurance
policy features?
