Page | 1
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XCEL Health & Life Insurance EXTRA
PRACTICE - Exam Review (Alabama)
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
What is the applicant's consideration in an insurance contract?
Ans: Premiums
At certain ages or dates, an insured can increase the stated benefit (within limits)
under their disability income policy, regardless of health. Which policy rider
BEST describes this?
Ans: Futre Income Option
Which of these statements regarding an insurance application is true?
Ans: A representation is valid as long as it is true
Who does a disability income policy normally cover?
Ans: Wage earners
A business owner has disability coverage that covers business expenses (other
than income, the cost of capital goods, and other specified expenses). What kind
of disability coverage is this?
Ans: Business overhead expense insurance
Trent has a permanent partial disability where he is paid 50% of his previous
income. Trent is covered by a:
Ans: Residual disability benefit
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Which of the following is a true statement?
Ans: TRUE - The withholding of information that should have been provided to an insurer is
called concealment.
The number of an insurance company's health insureds that is expected to
become sick or injured is called:
Ans: Morbidity experience
Bart is injured and provides notice of a health claim to his insurer He later
receives the required claims forms. Within how many days of the loss must Bart
file proof of loss with the insurance company?
Ans: 90
Julio, the insurance producer, has allowed his license to lapse. He would like to
reinstate his license without taking the course and passing the exam. To do this
they must reinstate the license within how many months from the renewal date?
Ans: 12
A life insurance policyowner has just exercised the policy's reduced paid-up
option. Which of these statements is true?
Ans: The amount of coverage would be less than the original coverage
An individual unable to perform two or more Activities of Daily Living (ADLs) will
trigger coverage from a _____ policy.
Ans: Long Term Care (LTC)
The notice of claim provision states that the insured notify the insurance company
within ____ days of a claim.
Ans: 20
Which is NOT true regarding Medicare Supplement policies?
Ans: Must include a minimum 20-day Free-Look provision
Which of these is NOT a reason the insurance application is important?
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Ans: When attached to the policy, the application becomes part of the insurance clause
Michael has a universal life policy with an increasing death benefit option. With
an initial face amount of $50,000, what would the actual death benefit be?
Ans: $55,000
How are employer-paid premiums for employee group health insurance
normally treated for tax purposes?
Ans: Tax deductible to the employee / Nontaxable to the employee
An insurance producer who offers a potential client something of value as an
incentive to purchase insurance is engaging in:
Ans: Rebating
Katherine is a retiree and was recently hospitalized for 10 days. Which type of
insurance policy would best cover her for excess hospital expenses?
Ans: Medicare Supplement
Which welfare program provides assistance to the needy?
Ans: Medicaid
Medicare is NOT available to a(n):
Ans: 61-year old Medicaid recipient
Who does the insurance agent legally represent?
Ans: The insurance company
Why are insurance contracts said to be contracts of adhesion?
Ans: One party writes the contract and the other party must accept the contract as written
Alabama's annuity disclosure regulation:
Ans: Requires the delivery of a buyer's guide and a disclosure document to an annuity
applicant
Click here for more: Preppass - Stuvia
XCEL Health & Life Insurance EXTRA
PRACTICE - Exam Review (Alabama)
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
What is the applicant's consideration in an insurance contract?
Ans: Premiums
At certain ages or dates, an insured can increase the stated benefit (within limits)
under their disability income policy, regardless of health. Which policy rider
BEST describes this?
Ans: Futre Income Option
Which of these statements regarding an insurance application is true?
Ans: A representation is valid as long as it is true
Who does a disability income policy normally cover?
Ans: Wage earners
A business owner has disability coverage that covers business expenses (other
than income, the cost of capital goods, and other specified expenses). What kind
of disability coverage is this?
Ans: Business overhead expense insurance
Trent has a permanent partial disability where he is paid 50% of his previous
income. Trent is covered by a:
Ans: Residual disability benefit
,Page | 2
Click here for more: Preppass - Stuvia
Which of the following is a true statement?
Ans: TRUE - The withholding of information that should have been provided to an insurer is
called concealment.
The number of an insurance company's health insureds that is expected to
become sick or injured is called:
Ans: Morbidity experience
Bart is injured and provides notice of a health claim to his insurer He later
receives the required claims forms. Within how many days of the loss must Bart
file proof of loss with the insurance company?
Ans: 90
Julio, the insurance producer, has allowed his license to lapse. He would like to
reinstate his license without taking the course and passing the exam. To do this
they must reinstate the license within how many months from the renewal date?
Ans: 12
A life insurance policyowner has just exercised the policy's reduced paid-up
option. Which of these statements is true?
Ans: The amount of coverage would be less than the original coverage
An individual unable to perform two or more Activities of Daily Living (ADLs) will
trigger coverage from a _____ policy.
Ans: Long Term Care (LTC)
The notice of claim provision states that the insured notify the insurance company
within ____ days of a claim.
Ans: 20
Which is NOT true regarding Medicare Supplement policies?
Ans: Must include a minimum 20-day Free-Look provision
Which of these is NOT a reason the insurance application is important?
, Page | 3
Click here for more: Preppass - Stuvia
Ans: When attached to the policy, the application becomes part of the insurance clause
Michael has a universal life policy with an increasing death benefit option. With
an initial face amount of $50,000, what would the actual death benefit be?
Ans: $55,000
How are employer-paid premiums for employee group health insurance
normally treated for tax purposes?
Ans: Tax deductible to the employee / Nontaxable to the employee
An insurance producer who offers a potential client something of value as an
incentive to purchase insurance is engaging in:
Ans: Rebating
Katherine is a retiree and was recently hospitalized for 10 days. Which type of
insurance policy would best cover her for excess hospital expenses?
Ans: Medicare Supplement
Which welfare program provides assistance to the needy?
Ans: Medicaid
Medicare is NOT available to a(n):
Ans: 61-year old Medicaid recipient
Who does the insurance agent legally represent?
Ans: The insurance company
Why are insurance contracts said to be contracts of adhesion?
Ans: One party writes the contract and the other party must accept the contract as written
Alabama's annuity disclosure regulation:
Ans: Requires the delivery of a buyer's guide and a disclosure document to an annuity
applicant
