XCEL FL TEST STUDY GUIDE
QUESTIONS AND ANSWERS
A Disability Income policyowner recently submitted a claim for a chronic neck
problem that has now resulted in total disability. The original neck injury occurred
before the application was taken 5 years prior. The neck injury was never disclosed
to the insurer at the time of application. How will the insurer handle this claim? -
ANSWER-Claim will be paid and coverage will remain in force
Which of the following policies is characterized by a flexible premium and death
benefit and allows the policyowner control of the investment aspect of the plan? -
ANSWER-Variable universal life
A sole proprietor may use this plan ONLY if the employees of this business are
included. - ANSWER-Keogh Pension Plan
Which type of provider is known for stressing preventative medical care and routine
physical examinations? - ANSWER-Health Maintenance Organizations (HMO's)
M completes an application for life insurance but does not pay the initial premium. All
of these actions must occur before M's policy goes into effect, EXCEPT: - ANSWER-
free-look period has expired
The fundamental reason for regulation of insurance is to: - ANSWER-protect
consumers
Which of the following MUST be included in a Medicare Supplement policy's Outline
of Coverage? - ANSWER-The policy's limitations and exceptions
When is the face amount of a Whole Life policy paid? - ANSWER-When the insured
dies or at the policy's maturity date, whichever happens first
Which statement regarding third-party ownership of a life insurance policy is true? -
ANSWER-It is used extensively in estate-planning as well as business
circumstances
A contract where one party either accepts or rejects the terms of a contract written
by another party is called a contract of - ANSWER-adhesion
Group life insurance policies are generally written as: - ANSWER-annually
renewable term
S is the policyowner of a Major Medical policy. The premiums are paid monthly and
due on the 1st of each month. S fails to make September's payment and is
hospitalized October 15th. When S files the claim for this hospitalization, the insurer
will likely: - ANSWER-deny the claim
, B owns a Whole Life policy with a guaranteed insurability option that allows him to
purchase, without evidence of insurability, stated amounts of - ANSWER-additional
Whole Life coverage at specified times
The ______ has the right to change a life insurance policy's beneficiary. - ANSWER-
policyowner
Which of the following policy provisions prohibits an insurance company from
incorporating external documents into an insurance policy? - ANSWER-Entire
Contract
When does a life insurance contract become effective if the initial premium is not
collected during the application process? - ANSWER-When producer delivers policy
and collects initial premium
B recently died and was insured with a life insurance policy for over five years.
During the claims process, the insurer discovered that B had understated his age by
5 years at the time of application. In this situation, the insurer will - ANSWER-pay the
amount that the premium would have purchased at the correct age
D is an architect receiving Disability Income benefits who is not able to return to work
full time, but can work on a part-time basis. Which of these features would allow D to
continue receiving benefits? - ANSWER-Residual Benefit clause
V is insured under an individual Disability Income policy with a 30-day Elimination
period. On July 1, he is involved in an accident and temporarily disabled. He returns
to work on December 1. How many months of benefit are payable? - ANSWER-4
months
A 66 year-old is covered under a group health plan while employed with a business
that has 40 employees. If she injures herself while walking in the park, what
coverage would be considered primary? - ANSWER-Her group health plan
Group Life policies in Florida are required to contain a conversion privilege that
allows for conversion - ANSWER-to an individual policy for a stated period of time
Which of the following features of a group Term Life policy enables an individual to
leave the group and continue his or her insurance without providing evidence of
insurability? - ANSWER-Conversion privilege
Which settlement option pays a stated amount to an annuitant, but no residual value
to a beneficiary? - ANSWER-Life Income
Company XYZ offers a group Term Life insurance plan to its employees. What does
each employee covered under this plan receive? - ANSWER-Certificate of insurance
X is insured with a Disability Income policy that provides coverage until age 65. This
policy allows the insurer to change the premium rate for the overall risk class
assigned. Which of these renewability features does this policy contain? - ANSWER-
Guaranteed Renewable
QUESTIONS AND ANSWERS
A Disability Income policyowner recently submitted a claim for a chronic neck
problem that has now resulted in total disability. The original neck injury occurred
before the application was taken 5 years prior. The neck injury was never disclosed
to the insurer at the time of application. How will the insurer handle this claim? -
ANSWER-Claim will be paid and coverage will remain in force
Which of the following policies is characterized by a flexible premium and death
benefit and allows the policyowner control of the investment aspect of the plan? -
ANSWER-Variable universal life
A sole proprietor may use this plan ONLY if the employees of this business are
included. - ANSWER-Keogh Pension Plan
Which type of provider is known for stressing preventative medical care and routine
physical examinations? - ANSWER-Health Maintenance Organizations (HMO's)
M completes an application for life insurance but does not pay the initial premium. All
of these actions must occur before M's policy goes into effect, EXCEPT: - ANSWER-
free-look period has expired
The fundamental reason for regulation of insurance is to: - ANSWER-protect
consumers
Which of the following MUST be included in a Medicare Supplement policy's Outline
of Coverage? - ANSWER-The policy's limitations and exceptions
When is the face amount of a Whole Life policy paid? - ANSWER-When the insured
dies or at the policy's maturity date, whichever happens first
Which statement regarding third-party ownership of a life insurance policy is true? -
ANSWER-It is used extensively in estate-planning as well as business
circumstances
A contract where one party either accepts or rejects the terms of a contract written
by another party is called a contract of - ANSWER-adhesion
Group life insurance policies are generally written as: - ANSWER-annually
renewable term
S is the policyowner of a Major Medical policy. The premiums are paid monthly and
due on the 1st of each month. S fails to make September's payment and is
hospitalized October 15th. When S files the claim for this hospitalization, the insurer
will likely: - ANSWER-deny the claim
, B owns a Whole Life policy with a guaranteed insurability option that allows him to
purchase, without evidence of insurability, stated amounts of - ANSWER-additional
Whole Life coverage at specified times
The ______ has the right to change a life insurance policy's beneficiary. - ANSWER-
policyowner
Which of the following policy provisions prohibits an insurance company from
incorporating external documents into an insurance policy? - ANSWER-Entire
Contract
When does a life insurance contract become effective if the initial premium is not
collected during the application process? - ANSWER-When producer delivers policy
and collects initial premium
B recently died and was insured with a life insurance policy for over five years.
During the claims process, the insurer discovered that B had understated his age by
5 years at the time of application. In this situation, the insurer will - ANSWER-pay the
amount that the premium would have purchased at the correct age
D is an architect receiving Disability Income benefits who is not able to return to work
full time, but can work on a part-time basis. Which of these features would allow D to
continue receiving benefits? - ANSWER-Residual Benefit clause
V is insured under an individual Disability Income policy with a 30-day Elimination
period. On July 1, he is involved in an accident and temporarily disabled. He returns
to work on December 1. How many months of benefit are payable? - ANSWER-4
months
A 66 year-old is covered under a group health plan while employed with a business
that has 40 employees. If she injures herself while walking in the park, what
coverage would be considered primary? - ANSWER-Her group health plan
Group Life policies in Florida are required to contain a conversion privilege that
allows for conversion - ANSWER-to an individual policy for a stated period of time
Which of the following features of a group Term Life policy enables an individual to
leave the group and continue his or her insurance without providing evidence of
insurability? - ANSWER-Conversion privilege
Which settlement option pays a stated amount to an annuitant, but no residual value
to a beneficiary? - ANSWER-Life Income
Company XYZ offers a group Term Life insurance plan to its employees. What does
each employee covered under this plan receive? - ANSWER-Certificate of insurance
X is insured with a Disability Income policy that provides coverage until age 65. This
policy allows the insurer to change the premium rate for the overall risk class
assigned. Which of these renewability features does this policy contain? - ANSWER-
Guaranteed Renewable
