XCEL HEALTH & LIFE INSURANCE
EXTRA PRACTICE - EXAM REVIEW
(ALABAMA) QUESTIONS WITH
COMPLETE SOLUTIONS
Jackie has just enrolled in Medicare Part B for the first time. He cannot be refused or
rated for a Medicare supplement policy as long as he applies for coverage within 6
months of enrolling in Part B. What is this requirement called? - ANSWER-
Guaranteed issue
Rodney applies for an insurance policy and pays the first premium. The receipt given
for the first premium is called a(n): - ANSWER-Conditional receipt
A collateral assignment allows a policyowner to assign: - ANSWER-A portion of the
policy proceeds to the assignee
Mortgage protection is typically covered with: - ANSWER-Decreasing term
XYZ insurance company issued a new life policy to an insured that replaced an
existing policy. XYZ insurance company is considered to be the: - ANSWER-
Replacing insurer
What describes a level term policy? - ANSWER-The premium and the protection
remain constant for the term of the policy
Paul has a major medical policy which begins with basic first dollar coverage that
pays up to its limits, then he must pay a certain dollar amount of covered expenses
before the major medical portion steps in. The dollar amount Paul must pay is called
the: - ANSWER-Corridor deductible
Which of the following statements is NOT correct?
1. Changes in an insurance policy must be approved by an executive officer of the
insurance company
2. Changes in an insurance policy must be endorsed on the policy or attached in a
rider
3. Agents are allowed to waive policy Provisions
4. Agents are never allowed to waive certain policy provisions - ANSWER-Agents
are allowed to waive certain policy provisions
What is a disability income policy designed to do? - ANSWER-Pay benefits to
maintain the insured's current standard of living
The exclusions and conditions in an insurance contract are required to be
conspicuous, plain, and clearly stated. There should be no surprise when an
insurance company denies a claim for a hidden clause. This is called the: -
ANSWER-Doctrine of reasonable expectations
, Within how many days of a written demand must the Commissioner of Insurance
hold a hearing? - ANSWER-Upon written demand by a person aggrieved, the
Commissioner must hold a hearing within 30 days
When does "adverse" selection occur? - ANSWER-When the risks accepted for
insurance has a HIGHER likelihood of experiencing loss than an average group
Which entity is responsible for the majority of regulations imposed on the insurance
industry? - ANSWER-State government
Kris is receiving annuity payments that has not yet paid an amount which is equal to
the purchase price of the annuity. If she were to die, her beneficiary would continue
receiving annuity payments until this amount has been reached. What type of
annuity is this? - ANSWER-Refund life annuity
On November 10, Ozzies major medical policy is reinstated. He is later injured an
automobile accident on November 13 and immediately hospitalized. Ozzie is eligible
for? - ANSWER-Full benefits
John is an annuitant who has surrendered his annuity at age 55. What will he pay? -
ANSWER-Tax on the interest earned
Individual disability income policies normally have a premium that: - ANSWER-
Adjusts annually
Jackie took out a Medicare supplement insurance policy and has a preexisting
condition. In this situation a pre-existing condition is defined as a condition for which
medical advice was given or received within ____________ of the effective date of
coverage - ANSWER-6 months
Which of the following limits an insurance company's total exposure under a major
medical policy? - ANSWER-Maximum lifetime benefit and coinsurance provision
When an estate is named beneficiary to a life insurance policy, the policy proceeds
are: - ANSWER-Distributed according to state law
Policy dividends for life insurance are: - ANSWER-Not guaranteed
Required provision 3 states that the minimum grace period for all policies (except
those with monthly or weekly premium models) is: - ANSWER-31 days
The automatic premium loan provision is NOT used in which of the following
policies? - ANSWER-Increasing term policy
A policyowner with an automatic premium loan provision must: - ANSWER-Pay back
the loan amount to keep the policy's cash value at its maximum
The objective of insurance is: - ANSWER-The transfer of risk
EXTRA PRACTICE - EXAM REVIEW
(ALABAMA) QUESTIONS WITH
COMPLETE SOLUTIONS
Jackie has just enrolled in Medicare Part B for the first time. He cannot be refused or
rated for a Medicare supplement policy as long as he applies for coverage within 6
months of enrolling in Part B. What is this requirement called? - ANSWER-
Guaranteed issue
Rodney applies for an insurance policy and pays the first premium. The receipt given
for the first premium is called a(n): - ANSWER-Conditional receipt
A collateral assignment allows a policyowner to assign: - ANSWER-A portion of the
policy proceeds to the assignee
Mortgage protection is typically covered with: - ANSWER-Decreasing term
XYZ insurance company issued a new life policy to an insured that replaced an
existing policy. XYZ insurance company is considered to be the: - ANSWER-
Replacing insurer
What describes a level term policy? - ANSWER-The premium and the protection
remain constant for the term of the policy
Paul has a major medical policy which begins with basic first dollar coverage that
pays up to its limits, then he must pay a certain dollar amount of covered expenses
before the major medical portion steps in. The dollar amount Paul must pay is called
the: - ANSWER-Corridor deductible
Which of the following statements is NOT correct?
1. Changes in an insurance policy must be approved by an executive officer of the
insurance company
2. Changes in an insurance policy must be endorsed on the policy or attached in a
rider
3. Agents are allowed to waive policy Provisions
4. Agents are never allowed to waive certain policy provisions - ANSWER-Agents
are allowed to waive certain policy provisions
What is a disability income policy designed to do? - ANSWER-Pay benefits to
maintain the insured's current standard of living
The exclusions and conditions in an insurance contract are required to be
conspicuous, plain, and clearly stated. There should be no surprise when an
insurance company denies a claim for a hidden clause. This is called the: -
ANSWER-Doctrine of reasonable expectations
, Within how many days of a written demand must the Commissioner of Insurance
hold a hearing? - ANSWER-Upon written demand by a person aggrieved, the
Commissioner must hold a hearing within 30 days
When does "adverse" selection occur? - ANSWER-When the risks accepted for
insurance has a HIGHER likelihood of experiencing loss than an average group
Which entity is responsible for the majority of regulations imposed on the insurance
industry? - ANSWER-State government
Kris is receiving annuity payments that has not yet paid an amount which is equal to
the purchase price of the annuity. If she were to die, her beneficiary would continue
receiving annuity payments until this amount has been reached. What type of
annuity is this? - ANSWER-Refund life annuity
On November 10, Ozzies major medical policy is reinstated. He is later injured an
automobile accident on November 13 and immediately hospitalized. Ozzie is eligible
for? - ANSWER-Full benefits
John is an annuitant who has surrendered his annuity at age 55. What will he pay? -
ANSWER-Tax on the interest earned
Individual disability income policies normally have a premium that: - ANSWER-
Adjusts annually
Jackie took out a Medicare supplement insurance policy and has a preexisting
condition. In this situation a pre-existing condition is defined as a condition for which
medical advice was given or received within ____________ of the effective date of
coverage - ANSWER-6 months
Which of the following limits an insurance company's total exposure under a major
medical policy? - ANSWER-Maximum lifetime benefit and coinsurance provision
When an estate is named beneficiary to a life insurance policy, the policy proceeds
are: - ANSWER-Distributed according to state law
Policy dividends for life insurance are: - ANSWER-Not guaranteed
Required provision 3 states that the minimum grace period for all policies (except
those with monthly or weekly premium models) is: - ANSWER-31 days
The automatic premium loan provision is NOT used in which of the following
policies? - ANSWER-Increasing term policy
A policyowner with an automatic premium loan provision must: - ANSWER-Pay back
the loan amount to keep the policy's cash value at its maximum
The objective of insurance is: - ANSWER-The transfer of risk
