Xcel Solutions Comprehensive Exam (New
2024/ 2025 Update) Questions and Verified
Answers| 100% Correct| A Grade
QUESTION
Amy has a group medical policy through her employer with a $500 deductible and a 90%
coinsurance provision. She incurs $1,500 in covered health care services. How much will her
group insurance carrier pay?
Answer:
$900
In this situation, the group insurance carrier will pay 90% of the covered loss after the deductible
has been applied.
QUESTION
In order to save on premiums, a Life Insurance policy can legally be backdated up to
Answer:
6 months
QUESTION
Statements made by an insurance applicant on an application are considered to be
Answer:
representations
QUESTION
To receive proceeds from a death benefit, a minor
Answer:
,must have an appointed guardian
In the interest of protecting the assets of a minor, state law requires that a guardian be appointed
to administer the proceeds payable to the minor child.
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees?
(A) Portion of death proceeds are taxable to bene
(B) Portion of premiums paid for by employer may be a tax deduction
(C) Portion of death proceeds are taxable to estate
(D) Portion of premiums paid for by employee may be a tax deduction
Portion of premiums paid by employer may be a tax deduction (In a contributory plan for its
share of premium costs)
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term
coverage on himself under the same policy. What kind of policy should Q purchase?
(A) Joint policy
(B) Joint survivor policy
(C) Whole life policy with a guaranteed insurab9ility option
(D) Whole life policy with other insured rider
Whole life policy with other insured rider
All of the following are examples of insurance advertisement EXCEPT
(A) A newspaper notice announcing free insurance advice
(B) An employer newsletter announcing the availability of coverage for employees
(C) A direct mail brochure announcing specific insurance plans
(D) A tv spot announcing an insurance company's new product
An employer newsletter announcing the availability of coverage for employee
QUESTION
Which of the following services MUST be provided by HMO plans?
Answer:
Home health care
Home health services is an HMO mandatory benefit in Michigan.
QUESTION
,The unfair trade practice of replacing an insurance policy from one insurer to another based on
misrepresentation is called
Answer: twisting
QUESTION
In determining whether a pre-existing condition applies, the enrollee CANNOT have more than
how many days' gap in health insurance?
Answer:
63
QUESTION
A business will typically use which type of life insurance to cover their employees?
Answer:
Group policy
QUESTION
Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid
tax consequences?
Answer:
60
QUESTION
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the
consumer price index has gone up 4%, how much may Ron increase the face value of the policy?
, Answer:
$4,000
In this situation, Ron may increase the face value of his policy by $4,000. $100,000 X .04 =
$4,000.
QUESTION
When an accident and health policy requires payment of an additional premium to provide
coverage for a newborn, how many days after the birth is the first payment due?
Answer:
31
QUESTION
Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income
securities and the remainder of the premium is invested in contracts tied to a stipulated stock
index. What kind of policy is this?
Answer:
Equity index whole life
QUESTION
A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that
is higher than the guaranteed rate is called
Answer:
universal life
QUESTION
What is issued to each employee of an employer health plan?
Answer:
Certificate
2024/ 2025 Update) Questions and Verified
Answers| 100% Correct| A Grade
QUESTION
Amy has a group medical policy through her employer with a $500 deductible and a 90%
coinsurance provision. She incurs $1,500 in covered health care services. How much will her
group insurance carrier pay?
Answer:
$900
In this situation, the group insurance carrier will pay 90% of the covered loss after the deductible
has been applied.
QUESTION
In order to save on premiums, a Life Insurance policy can legally be backdated up to
Answer:
6 months
QUESTION
Statements made by an insurance applicant on an application are considered to be
Answer:
representations
QUESTION
To receive proceeds from a death benefit, a minor
Answer:
,must have an appointed guardian
In the interest of protecting the assets of a minor, state law requires that a guardian be appointed
to administer the proceeds payable to the minor child.
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees?
(A) Portion of death proceeds are taxable to bene
(B) Portion of premiums paid for by employer may be a tax deduction
(C) Portion of death proceeds are taxable to estate
(D) Portion of premiums paid for by employee may be a tax deduction
Portion of premiums paid by employer may be a tax deduction (In a contributory plan for its
share of premium costs)
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term
coverage on himself under the same policy. What kind of policy should Q purchase?
(A) Joint policy
(B) Joint survivor policy
(C) Whole life policy with a guaranteed insurab9ility option
(D) Whole life policy with other insured rider
Whole life policy with other insured rider
All of the following are examples of insurance advertisement EXCEPT
(A) A newspaper notice announcing free insurance advice
(B) An employer newsletter announcing the availability of coverage for employees
(C) A direct mail brochure announcing specific insurance plans
(D) A tv spot announcing an insurance company's new product
An employer newsletter announcing the availability of coverage for employee
QUESTION
Which of the following services MUST be provided by HMO plans?
Answer:
Home health care
Home health services is an HMO mandatory benefit in Michigan.
QUESTION
,The unfair trade practice of replacing an insurance policy from one insurer to another based on
misrepresentation is called
Answer: twisting
QUESTION
In determining whether a pre-existing condition applies, the enrollee CANNOT have more than
how many days' gap in health insurance?
Answer:
63
QUESTION
A business will typically use which type of life insurance to cover their employees?
Answer:
Group policy
QUESTION
Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid
tax consequences?
Answer:
60
QUESTION
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the
consumer price index has gone up 4%, how much may Ron increase the face value of the policy?
, Answer:
$4,000
In this situation, Ron may increase the face value of his policy by $4,000. $100,000 X .04 =
$4,000.
QUESTION
When an accident and health policy requires payment of an additional premium to provide
coverage for a newborn, how many days after the birth is the first payment due?
Answer:
31
QUESTION
Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income
securities and the remainder of the premium is invested in contracts tied to a stipulated stock
index. What kind of policy is this?
Answer:
Equity index whole life
QUESTION
A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that
is higher than the guaranteed rate is called
Answer:
universal life
QUESTION
What is issued to each employee of an employer health plan?
Answer:
Certificate
