XCEL - NY - Exam Simulator 1 questions with verified
answers
"Maximum benefits" refers to the Ans✓✓✓ upper limit of the total lifetime
benefits the insurance company will pay
A 10% excise tax is normally applied to an early withdrawal from an IRA.
According to HIPAA, this tax will not be applied if the withdrawal is used for
medical expenses that exceed _____ of the individual's gross income. Ans✓✓✓
7.5%
A business will typically use which type of life insurance to cover their employees?
Ans✓✓✓ Group policy
A disability elimination period is best described as a Ans✓✓✓ time deductible
A disability income policy can prevent an insured from earning a higher income
than if he/she were working by utilizing Ans✓✓✓ benefit limits
A fee for service health insurance plan will normally cover Ans✓✓✓ a disease
A form of medical health insurance covering the treatment and care of gum
disease is called: Ans✓✓✓ Dental expense insurance
A health care provider claim may be settled using which of the following payment
methods? Ans✓✓✓ Fee-for-service
,A health insurance policy that allows an insurer to change the policyowner's
premiums, but NOT cancel the policy is called a(n) Ans✓✓✓ guaranteed
renewable policy
A health insurance policy where the insurer has the right to terminate the policy
for reasons other than the insured's health is called Ans✓✓✓ conditionally
renewable
A life insurance agent is required to give a disclosure notice about information
practices to an applicant or proposed insured Ans✓✓✓ prior to or at the time of
signing the application
A life insurance policy that has premiums fully paid up within a stated time period
is called Ans✓✓✓ limited payment insurance
A life settlement broker is someone who is Ans✓✓✓ licensed to negotiate a life
settlement contract
A payment system for health care in which the provider is paid for each service
given is called Ans✓✓✓ fee-for-service
A person who is a nonsmoker, of average weight, and in excellent health would
most likely be in which risk classification? Ans✓✓✓ Preferred
A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called Ans✓✓✓ errors and omissions
, A rollover from a Traditional IRA to another IRA MUST be done within ___ days to
avoid tax consequences. Ans✓✓✓ 60
A tax-free Section 1035 Exchange of a life insurance policy to a different policy is
permitted if it occurs Ans✓✓✓ from insurer to insurer and no cash is received by
the policyowner
According to the Affordable Care Act, what is the maximum allowable amount an
individual can contribute to a Flexible Savings Account (FSA)? Ans✓✓✓ $2,500
According to the Affordable Care Act, what metal tier is required to have an
actuarial value of 70% with covered individuals paying 30% through deductibles,
co-pays and other cost sharing features? Ans✓✓✓ Silver Plan
After ___ year(s) from date of issue, an individual health insurance policy can no
longer be cancelled by the insurer for misstatements (except for fraud) Ans✓✓✓
2
All of the following are characteristics of a Group Life Insurance Plan EXCEPT
Ans✓✓✓ individual underwriting
All of the following are core benefits of Medicare Supplement Plan A EXCEPT
Ans✓✓✓ Deductible payments for the first 60 days of hospitalization under
Medicare hospitalization insurance
All of the following are examples of pure risk EXCEPT Ans✓✓✓ Losing money at a
casino
answers
"Maximum benefits" refers to the Ans✓✓✓ upper limit of the total lifetime
benefits the insurance company will pay
A 10% excise tax is normally applied to an early withdrawal from an IRA.
According to HIPAA, this tax will not be applied if the withdrawal is used for
medical expenses that exceed _____ of the individual's gross income. Ans✓✓✓
7.5%
A business will typically use which type of life insurance to cover their employees?
Ans✓✓✓ Group policy
A disability elimination period is best described as a Ans✓✓✓ time deductible
A disability income policy can prevent an insured from earning a higher income
than if he/she were working by utilizing Ans✓✓✓ benefit limits
A fee for service health insurance plan will normally cover Ans✓✓✓ a disease
A form of medical health insurance covering the treatment and care of gum
disease is called: Ans✓✓✓ Dental expense insurance
A health care provider claim may be settled using which of the following payment
methods? Ans✓✓✓ Fee-for-service
,A health insurance policy that allows an insurer to change the policyowner's
premiums, but NOT cancel the policy is called a(n) Ans✓✓✓ guaranteed
renewable policy
A health insurance policy where the insurer has the right to terminate the policy
for reasons other than the insured's health is called Ans✓✓✓ conditionally
renewable
A life insurance agent is required to give a disclosure notice about information
practices to an applicant or proposed insured Ans✓✓✓ prior to or at the time of
signing the application
A life insurance policy that has premiums fully paid up within a stated time period
is called Ans✓✓✓ limited payment insurance
A life settlement broker is someone who is Ans✓✓✓ licensed to negotiate a life
settlement contract
A payment system for health care in which the provider is paid for each service
given is called Ans✓✓✓ fee-for-service
A person who is a nonsmoker, of average weight, and in excellent health would
most likely be in which risk classification? Ans✓✓✓ Preferred
A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called Ans✓✓✓ errors and omissions
, A rollover from a Traditional IRA to another IRA MUST be done within ___ days to
avoid tax consequences. Ans✓✓✓ 60
A tax-free Section 1035 Exchange of a life insurance policy to a different policy is
permitted if it occurs Ans✓✓✓ from insurer to insurer and no cash is received by
the policyowner
According to the Affordable Care Act, what is the maximum allowable amount an
individual can contribute to a Flexible Savings Account (FSA)? Ans✓✓✓ $2,500
According to the Affordable Care Act, what metal tier is required to have an
actuarial value of 70% with covered individuals paying 30% through deductibles,
co-pays and other cost sharing features? Ans✓✓✓ Silver Plan
After ___ year(s) from date of issue, an individual health insurance policy can no
longer be cancelled by the insurer for misstatements (except for fraud) Ans✓✓✓
2
All of the following are characteristics of a Group Life Insurance Plan EXCEPT
Ans✓✓✓ individual underwriting
All of the following are core benefits of Medicare Supplement Plan A EXCEPT
Ans✓✓✓ Deductible payments for the first 60 days of hospitalization under
Medicare hospitalization insurance
All of the following are examples of pure risk EXCEPT Ans✓✓✓ Losing money at a
casino
