Xcel solutions final exam UPDATED Exam
Questions and CORRECT Answers
Insuring Which health policy clause specifies the amount of benefits to be paid - CORRECT
ANSWER - Insuring
The investment gains from a universal life policy usually go to - CORRECT ANSWER -
The cash value
L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer
finds out that the applicant misstated their age. What will the insurer do? - CORRECT
ANSWER - Adjust the death benefit to a reduced amount
An employee is covered under a company group life plan with a $50,000 death benefit. What is
the Maximum amount a spouse may be insured for under this program - CORRECT
ANSWER - $25,000
M is insured under a basic hospital/surgical expense policy. A physician performs surgery on M.
What determines the claim M is eligible for - CORRECT ANSWER - Determined by the
terms of the policy
A(n)__-_-_-_-_-_-_-_ beneficiary may be changed by the policy owner without the consent of
the beneficiary - CORRECT ANSWER - Revocable
What is the MINIMUM benefit period that must be offered by a long term care policy -
CORRECT ANSWER - 12 months
To terminate an agent's appointment, an insurance company must - CORRECT
ANSWER - Send termination notice to the Texas Department of Insurance
,An agent gives a conditional receipt to a client for an insurance policy after collecting the initial
premium. When will the policy become effective? - CORRECT ANSWER - When the
conditions of the receipt are met
Which of the following costs would a Basic Hospital/Surgical policy cover? - CORRECT
ANSWER - Surgically removing a facial birthmark
Which of the following statements is CORRECT about an agent who is taking an insurance
application - CORRECT ANSWER - The agent should have the applicant initial any
changes made on the application
Which statement is true about a whole life policy - CORRECT ANSWER - Cash value
may be borrowed against
How long does an insurance company appointment remain in force - CORRECT
ANSWER - Until terminated
Which of the following statements about health coverage for newborns is NOT true? -
CORRECT ANSWER - Coverage is LIMITED to only congenital defects
Medicare Part A and Part B do NOT pay for - CORRECT ANSWER - Dental care
An insurance company receives E's application for an individual health policy. E did not
complete all of the medical history questions because she could not remember the exact dates. E
signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers
a heart attack and is hospitalized without completing the medical history questions and paying
the initial premium. E is not insured. Which of the following clauses details the conditions that E
did not meet? - CORRECT ANSWER - Consideration clause
The percentage of an individuals primary insurance amount determines the benefits paid in
which of the following programs - CORRECT ANSWER - Social Security Disability
Income
, Q is severely injured in an automobile accident and becomes totally disabled. How many months
must Q be disabled before being able to apply for Social Security disability benefits? -
CORRECT ANSWER - 5 months
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms -
CORRECT ANSWER - File written proof of loss
Which of the following types of care is typically not covered in a long term care policy -
CORRECT ANSWER - acupuncture
Which of these does not constitute policy delivery - CORRECT ANSWER - Policy issued
with a rating
Which type of plan normally includes hospice benefits - CORRECT ANSWER - Managed
care plans
Non-occupational disability coverage is designed for - CORRECT ANSWER - Employees
who suffer non work related disabilities, since work related disabilities are covered by workers
compensation
A policy of adhesion can only be modified by whom - CORRECT ANSWER - The
insurance company
G is an accountant who has ten employees and is concerned about how the business would
survive financially if G became disabled. The type of policy which best addresses this concern is:
- CORRECT ANSWER - Business overhead expense
An architecture firm would stand to lose a lot of money in the event of the death of its project
manager. Which type of policy should the firm purchase - CORRECT ANSWER - Key
person life policy
Questions and CORRECT Answers
Insuring Which health policy clause specifies the amount of benefits to be paid - CORRECT
ANSWER - Insuring
The investment gains from a universal life policy usually go to - CORRECT ANSWER -
The cash value
L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer
finds out that the applicant misstated their age. What will the insurer do? - CORRECT
ANSWER - Adjust the death benefit to a reduced amount
An employee is covered under a company group life plan with a $50,000 death benefit. What is
the Maximum amount a spouse may be insured for under this program - CORRECT
ANSWER - $25,000
M is insured under a basic hospital/surgical expense policy. A physician performs surgery on M.
What determines the claim M is eligible for - CORRECT ANSWER - Determined by the
terms of the policy
A(n)__-_-_-_-_-_-_-_ beneficiary may be changed by the policy owner without the consent of
the beneficiary - CORRECT ANSWER - Revocable
What is the MINIMUM benefit period that must be offered by a long term care policy -
CORRECT ANSWER - 12 months
To terminate an agent's appointment, an insurance company must - CORRECT
ANSWER - Send termination notice to the Texas Department of Insurance
,An agent gives a conditional receipt to a client for an insurance policy after collecting the initial
premium. When will the policy become effective? - CORRECT ANSWER - When the
conditions of the receipt are met
Which of the following costs would a Basic Hospital/Surgical policy cover? - CORRECT
ANSWER - Surgically removing a facial birthmark
Which of the following statements is CORRECT about an agent who is taking an insurance
application - CORRECT ANSWER - The agent should have the applicant initial any
changes made on the application
Which statement is true about a whole life policy - CORRECT ANSWER - Cash value
may be borrowed against
How long does an insurance company appointment remain in force - CORRECT
ANSWER - Until terminated
Which of the following statements about health coverage for newborns is NOT true? -
CORRECT ANSWER - Coverage is LIMITED to only congenital defects
Medicare Part A and Part B do NOT pay for - CORRECT ANSWER - Dental care
An insurance company receives E's application for an individual health policy. E did not
complete all of the medical history questions because she could not remember the exact dates. E
signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers
a heart attack and is hospitalized without completing the medical history questions and paying
the initial premium. E is not insured. Which of the following clauses details the conditions that E
did not meet? - CORRECT ANSWER - Consideration clause
The percentage of an individuals primary insurance amount determines the benefits paid in
which of the following programs - CORRECT ANSWER - Social Security Disability
Income
, Q is severely injured in an automobile accident and becomes totally disabled. How many months
must Q be disabled before being able to apply for Social Security disability benefits? -
CORRECT ANSWER - 5 months
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms -
CORRECT ANSWER - File written proof of loss
Which of the following types of care is typically not covered in a long term care policy -
CORRECT ANSWER - acupuncture
Which of these does not constitute policy delivery - CORRECT ANSWER - Policy issued
with a rating
Which type of plan normally includes hospice benefits - CORRECT ANSWER - Managed
care plans
Non-occupational disability coverage is designed for - CORRECT ANSWER - Employees
who suffer non work related disabilities, since work related disabilities are covered by workers
compensation
A policy of adhesion can only be modified by whom - CORRECT ANSWER - The
insurance company
G is an accountant who has ten employees and is concerned about how the business would
survive financially if G became disabled. The type of policy which best addresses this concern is:
- CORRECT ANSWER - Business overhead expense
An architecture firm would stand to lose a lot of money in the event of the death of its project
manager. Which type of policy should the firm purchase - CORRECT ANSWER - Key
person life policy
