XCEL - NY - EXAM SIMULATOR 1
QUESTIONS AND ANSWERS
A payment system for health care in which the provider is paid for each service given
is called - ANSWER-fee-for-service
An insurance company needs to obtain personal information from a third party
concerning an applicant. Which law doe insurers and their producers need to comply
with? - ANSWER-Fair Credit Reporting Act
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes
on any money withdrawn. - ANSWER-income
An insurer's ability to make unpredictable payouts to policyowners is called -
ANSWER-liquidity
"Maximum benefits" refers to the - ANSWER-upper limit of the total lifetime benefits
the insurance company will pay
Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called - ANSWER-annuity certain
A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called - ANSWER-errors and omissions
Which of the following enables a life policy to be replaced with another life policy and
results in the postponement of the tax consequence? - ANSWER-Section 1035
exchange
When the principal gives the agent authority in writing, it's referred to as - ANSWER-
express authority
An HMO that involves a partnership of physicians and other providers who practice
out of a central facility is called a(n) - ANSWER-group HMO
All of the following are core benefits of Medicare Supplement Plan A EXCEPT -
ANSWER-Deductible payments for the first 60 days of hospitalization under
Medicare hospitalization insurance
In New York, a Medicare Supplement policy must be ______ renewable. -
ANSWER-guaranteed
An agent who sells an individual life insurance policy in Washington MUST deliver to
the policyowner a(n) - ANSWER-Policy Summary and Buyer's Guide
The Fair Credit Reporting Act protects consumers - ANSWER-with guidelines
regarding credit reporting and distribution
, Health insurance will typically cover which of the following perils? - ANSWER-Injury
due to accident
How many employees must an employer have for a terminated employee to be
eligible for COBRA? - ANSWER-20
An insured under a Major Medical expense plan with a zero deductible and 80/20
coinsurance provision files a $1,000 claim. How much of this claim is the insured
responsible for? - ANSWER-$200
Medicaid is a government-funded program designed to provide health care to -
ANSWER-poor people
A rollover from a Traditional IRA to another IRA MUST be done within ___ days to
avoid tax consequences. - ANSWER-60
Jennifer is required to pay a specific sum out of pocket before any benefits are paid
in a year. Her health policy most likely contains a(n) - ANSWER-deductible
Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the
beneficiary. If Sharon MUST obtain Mike's signature in order to change the
beneficiary, what kind of beneficiary designation is this? - ANSWER-Irrevocable
What percentage of a participant's income are group long-term disability benefit
amounts typically limited to? - ANSWER-60%
Employees are required to work at least _____ hours per week to become eligible for
a small employer health plan - ANSWER-20
Which of the following statement is TRUE about Medicaid? - ANSWER-It is funded
by federal, state and local taxes
A disability elimination period is best described as a - ANSWER-time deductible
Which of the following statements regarding the Fair Credit Reporting Act is TRUE? -
ANSWER-An insurer does not need to discuss any credit history inconsistencies with
the applicant
The Fair Credit and Reporting Act's main purpose is to - ANSWER-protect
consumers with guidelines regarding credit reporting and distribution
Which of the following would be considered an underwriting duty of an agent? -
ANSWER-Completing all applications and collecting initial premiums
The conversion privilege under a group life plan allows an employee to convert to a -
ANSWER-individual plan upon employment termination
Which of the following annuity payout options makes no additional payments
regardless of when the annuitant dies? - ANSWER-Life only
QUESTIONS AND ANSWERS
A payment system for health care in which the provider is paid for each service given
is called - ANSWER-fee-for-service
An insurance company needs to obtain personal information from a third party
concerning an applicant. Which law doe insurers and their producers need to comply
with? - ANSWER-Fair Credit Reporting Act
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes
on any money withdrawn. - ANSWER-income
An insurer's ability to make unpredictable payouts to policyowners is called -
ANSWER-liquidity
"Maximum benefits" refers to the - ANSWER-upper limit of the total lifetime benefits
the insurance company will pay
Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called - ANSWER-annuity certain
A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called - ANSWER-errors and omissions
Which of the following enables a life policy to be replaced with another life policy and
results in the postponement of the tax consequence? - ANSWER-Section 1035
exchange
When the principal gives the agent authority in writing, it's referred to as - ANSWER-
express authority
An HMO that involves a partnership of physicians and other providers who practice
out of a central facility is called a(n) - ANSWER-group HMO
All of the following are core benefits of Medicare Supplement Plan A EXCEPT -
ANSWER-Deductible payments for the first 60 days of hospitalization under
Medicare hospitalization insurance
In New York, a Medicare Supplement policy must be ______ renewable. -
ANSWER-guaranteed
An agent who sells an individual life insurance policy in Washington MUST deliver to
the policyowner a(n) - ANSWER-Policy Summary and Buyer's Guide
The Fair Credit Reporting Act protects consumers - ANSWER-with guidelines
regarding credit reporting and distribution
, Health insurance will typically cover which of the following perils? - ANSWER-Injury
due to accident
How many employees must an employer have for a terminated employee to be
eligible for COBRA? - ANSWER-20
An insured under a Major Medical expense plan with a zero deductible and 80/20
coinsurance provision files a $1,000 claim. How much of this claim is the insured
responsible for? - ANSWER-$200
Medicaid is a government-funded program designed to provide health care to -
ANSWER-poor people
A rollover from a Traditional IRA to another IRA MUST be done within ___ days to
avoid tax consequences. - ANSWER-60
Jennifer is required to pay a specific sum out of pocket before any benefits are paid
in a year. Her health policy most likely contains a(n) - ANSWER-deductible
Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the
beneficiary. If Sharon MUST obtain Mike's signature in order to change the
beneficiary, what kind of beneficiary designation is this? - ANSWER-Irrevocable
What percentage of a participant's income are group long-term disability benefit
amounts typically limited to? - ANSWER-60%
Employees are required to work at least _____ hours per week to become eligible for
a small employer health plan - ANSWER-20
Which of the following statement is TRUE about Medicaid? - ANSWER-It is funded
by federal, state and local taxes
A disability elimination period is best described as a - ANSWER-time deductible
Which of the following statements regarding the Fair Credit Reporting Act is TRUE? -
ANSWER-An insurer does not need to discuss any credit history inconsistencies with
the applicant
The Fair Credit and Reporting Act's main purpose is to - ANSWER-protect
consumers with guidelines regarding credit reporting and distribution
Which of the following would be considered an underwriting duty of an agent? -
ANSWER-Completing all applications and collecting initial premiums
The conversion privilege under a group life plan allows an employee to convert to a -
ANSWER-individual plan upon employment termination
Which of the following annuity payout options makes no additional payments
regardless of when the annuitant dies? - ANSWER-Life only
