Xcel Testing Solutions- Life and Health
Insurance- Weighted Exam- 150
Questions & Answers!!!
The Do Not Call Registry offers exemptions for calls placed from all of the following
EXCEPT - ANSWER insurance 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 - ANSWER cancelable
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) -
ANSWER Guaranteed 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 - ANSWER Noncancellable
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? - ANSWER Declarations
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.
What happens if the insurer discovers that the insured's age was accidentally misstated
on an application for an individual life insurance policy? - ANSWER Benefits 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? - ANSWER Injury due
to accident
Accidental injury is typically a covered peril in health insurance.
A viatical settlement contract is an agreement between - ANSWER A 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? - ANSWER The insurer significantly raises co-insurance charges,
deductibles, or co-payment 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? - ANSWER Risk avoidance
Risk avoidance could eliminate the risk of losing money in the stock market by never
investing in stocks.
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: - ANSWER Take 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 - ANSWER limited 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? -
ANSWER Exclusion Ratio
The Exclusion Ratio is used to determine the taxable portion of each annuity payment.
How are annuities given favorable tax treatment? - ANSWER Gains are taxed at
distribution
Annuity gains are typically tax deferred until distribution.
All _____ policies must be guaranteed renewable. - ANSWER long-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? - ANSWER Business 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? -
ANSWER The 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? - ANSWER Pre-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 -
ANSWER nonresident 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. - ANSWER 1
Long-term care insurance in any insurance policy is designed to provide coverage for a
minimum benefit period of 1 year.
To receive an insurance license an applicant must - ANSWER Apply for the license
after passing the appropriate examination
An applicant must apply for the license after passing the appropriate examination in
order to receive an insurance license.
A cease and desist order issued against a producer - ANSWER Prohibits a specific
practice listed in the order
A cease and desist order issued against a producer prohibits a specific practice listed
in the order.
How are survivorship life insurance policies helpful in estate planning? - ANSWER
Provide funds to help pay taxes
Survivorship life insurance policies are useful in estate planning because they can
provide money to pay taxes on assets.
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
According to HIPAA, a group health policy renewal can be denied when participation or
contribution rules have been violated.
Credit Accident and Health plans are designed to - ANSWER help pay off existing loans
during periods of disability
Insurance- Weighted Exam- 150
Questions & Answers!!!
The Do Not Call Registry offers exemptions for calls placed from all of the following
EXCEPT - ANSWER insurance 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 - ANSWER cancelable
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) -
ANSWER Guaranteed 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 - ANSWER Noncancellable
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? - ANSWER Declarations
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.
What happens if the insurer discovers that the insured's age was accidentally misstated
on an application for an individual life insurance policy? - ANSWER Benefits 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? - ANSWER Injury due
to accident
Accidental injury is typically a covered peril in health insurance.
A viatical settlement contract is an agreement between - ANSWER A 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? - ANSWER The insurer significantly raises co-insurance charges,
deductibles, or co-payment 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? - ANSWER Risk avoidance
Risk avoidance could eliminate the risk of losing money in the stock market by never
investing in stocks.
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: - ANSWER Take 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 - ANSWER limited 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? -
ANSWER Exclusion Ratio
The Exclusion Ratio is used to determine the taxable portion of each annuity payment.
How are annuities given favorable tax treatment? - ANSWER Gains are taxed at
distribution
Annuity gains are typically tax deferred until distribution.
All _____ policies must be guaranteed renewable. - ANSWER long-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? - ANSWER Business 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? -
ANSWER The 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? - ANSWER Pre-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 -
ANSWER nonresident 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. - ANSWER 1
Long-term care insurance in any insurance policy is designed to provide coverage for a
minimum benefit period of 1 year.
To receive an insurance license an applicant must - ANSWER Apply for the license
after passing the appropriate examination
An applicant must apply for the license after passing the appropriate examination in
order to receive an insurance license.
A cease and desist order issued against a producer - ANSWER Prohibits a specific
practice listed in the order
A cease and desist order issued against a producer prohibits a specific practice listed
in the order.
How are survivorship life insurance policies helpful in estate planning? - ANSWER
Provide funds to help pay taxes
Survivorship life insurance policies are useful in estate planning because they can
provide money to pay taxes on assets.
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
According to HIPAA, a group health policy renewal can be denied when participation or
contribution rules have been violated.
Credit Accident and Health plans are designed to - ANSWER help pay off existing loans
during periods of disability
