XCEL ARIZONA LIFE AND HEALTH
INSURANCE STATE EXAM QUESTIONS
WITH CORRECT ANSWERS
Tim is confined to a nursing home but doesn't have a terminal illness. Which life
insurance rider is designed to help pay for this type of expense? - ANSWER-Long-
term care benefit rider
Which of the following statements about the instalments for a fixed period settlement
option in life insurance policies is NOT true? - ANSWER-The periodic payment
amount is determined by the beneficiary's age
Which life insurance settlement option pays a stated monthly benefit until both
principal and interest are exhausted? - ANSWER-Fixed amount instalment option
Which statement concerning an adjustable life insurance policy is FALSE? -
ANSWER-Evidence of insurability is required when there is a change in premium
Which of the following is NOT a valid reason for an insurer to contest a life insurance
policy during the policy's first two years of existence? - ANSWER-Misstatement of
age
Which of the following is NOT subject to the promise to pay in an insuring clause? -
ANSWER-How the premium is calculated
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No
further payments are permitted and the income stream begins in 15 years. This
contract is a(n) - ANSWER-single premium deferred annuity
How long does one premium payment cover in a single premium whole life policy? -
ANSWER-Full life of the policy
Dan has a major medical expense policy with a $200 deductible and an 80/20
coinsurance provision. He incurs covered medical expenses of $100 in November
and $400 in January. Under the carryover provision, what will the insurer pay? -
ANSWER-$240
An insured is covered under a group long-term disability policy. Under this type of
policy, the definition of disability based on any occupation typically applies -
ANSWER-after two years of disability
The powers directly given to a producer in an agency contract are called - ANSWER-
express
What is the name of the period of time during which a new employee is ineligible for
group Health insurance coverage? - ANSWER-Probationary period
, An annuity's accumulation period may - ANSWER-continue after the purchase
payments stop
What is the guaranteed cash value of a whole life insurance policy when the insured
turns 65 years old? - ANSWER-Less than the policy's face amount
To protect information systems, producers, brokers, and insurance companies must
implement and maintain a(n): - ANSWER-cybersecurity policy
An advantage of owning a flexible premium life insurance policy would be -
ANSWER-The policyowner can make policy changes without difficulty
Which of the following accurately describes a participating insurance policy? -
ANSWER-Policyowners may be entitled to receive dividends
Which of the following best describes the presumptive disability provision? -
ANSWER-Waives the typical total disability requirements
Emily is disabled. In order to become eligible for Social Security disability income
benefits, she must be - ANSWER-fully insured, according to Social Security
According to HIPAA regulations, which of the following may reduce a medical plan's
pre-existing conditions exclusion? - ANSWER-Any period of prior coverage
Tim is covered by Policy A with a $4,000 limit and by Policy B with a $2,000 limit.
Policy A is primary. If a $6,000 loss is incurred, what will each policy pay? -
ANSWER-Policy A will pay $4,000 and Policy B will pay $2,000
A source of supplemental income for a life insurance policyowner can be derived
from the - ANSWER-cash value
If a life insurance applicant is shown future premiums are to be paid out of non-
guaranteed values, the illustration used in the sales presentation MUST - ANSWER-
disclose that premium payments may need to be resumed depending on actual
results
Bryce purchased a disability income policy with a rider that guarantees him the
option of purchasing additional amounts of coverage at predetermined times without
requiring to provide evidence of insurability. What kind of rider is this? - ANSWER-
Guaranteed insurability rider
A physician who accepts assignment on all Medicare claims is called a(n) -
ANSWER-participating provider
Straight whole life insurance can be accurately described in all of these statements
EXCEPT - ANSWER-Policy protection normally expires at age 65
An agent whose actions exceed the authority granted by contract is - ANSWER-not
backed by the insurer
INSURANCE STATE EXAM QUESTIONS
WITH CORRECT ANSWERS
Tim is confined to a nursing home but doesn't have a terminal illness. Which life
insurance rider is designed to help pay for this type of expense? - ANSWER-Long-
term care benefit rider
Which of the following statements about the instalments for a fixed period settlement
option in life insurance policies is NOT true? - ANSWER-The periodic payment
amount is determined by the beneficiary's age
Which life insurance settlement option pays a stated monthly benefit until both
principal and interest are exhausted? - ANSWER-Fixed amount instalment option
Which statement concerning an adjustable life insurance policy is FALSE? -
ANSWER-Evidence of insurability is required when there is a change in premium
Which of the following is NOT a valid reason for an insurer to contest a life insurance
policy during the policy's first two years of existence? - ANSWER-Misstatement of
age
Which of the following is NOT subject to the promise to pay in an insuring clause? -
ANSWER-How the premium is calculated
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No
further payments are permitted and the income stream begins in 15 years. This
contract is a(n) - ANSWER-single premium deferred annuity
How long does one premium payment cover in a single premium whole life policy? -
ANSWER-Full life of the policy
Dan has a major medical expense policy with a $200 deductible and an 80/20
coinsurance provision. He incurs covered medical expenses of $100 in November
and $400 in January. Under the carryover provision, what will the insurer pay? -
ANSWER-$240
An insured is covered under a group long-term disability policy. Under this type of
policy, the definition of disability based on any occupation typically applies -
ANSWER-after two years of disability
The powers directly given to a producer in an agency contract are called - ANSWER-
express
What is the name of the period of time during which a new employee is ineligible for
group Health insurance coverage? - ANSWER-Probationary period
, An annuity's accumulation period may - ANSWER-continue after the purchase
payments stop
What is the guaranteed cash value of a whole life insurance policy when the insured
turns 65 years old? - ANSWER-Less than the policy's face amount
To protect information systems, producers, brokers, and insurance companies must
implement and maintain a(n): - ANSWER-cybersecurity policy
An advantage of owning a flexible premium life insurance policy would be -
ANSWER-The policyowner can make policy changes without difficulty
Which of the following accurately describes a participating insurance policy? -
ANSWER-Policyowners may be entitled to receive dividends
Which of the following best describes the presumptive disability provision? -
ANSWER-Waives the typical total disability requirements
Emily is disabled. In order to become eligible for Social Security disability income
benefits, she must be - ANSWER-fully insured, according to Social Security
According to HIPAA regulations, which of the following may reduce a medical plan's
pre-existing conditions exclusion? - ANSWER-Any period of prior coverage
Tim is covered by Policy A with a $4,000 limit and by Policy B with a $2,000 limit.
Policy A is primary. If a $6,000 loss is incurred, what will each policy pay? -
ANSWER-Policy A will pay $4,000 and Policy B will pay $2,000
A source of supplemental income for a life insurance policyowner can be derived
from the - ANSWER-cash value
If a life insurance applicant is shown future premiums are to be paid out of non-
guaranteed values, the illustration used in the sales presentation MUST - ANSWER-
disclose that premium payments may need to be resumed depending on actual
results
Bryce purchased a disability income policy with a rider that guarantees him the
option of purchasing additional amounts of coverage at predetermined times without
requiring to provide evidence of insurability. What kind of rider is this? - ANSWER-
Guaranteed insurability rider
A physician who accepts assignment on all Medicare claims is called a(n) -
ANSWER-participating provider
Straight whole life insurance can be accurately described in all of these statements
EXCEPT - ANSWER-Policy protection normally expires at age 65
An agent whose actions exceed the authority granted by contract is - ANSWER-not
backed by the insurer
