XCEL SOLUTIONS - FINAL EXAM
QUESTIONS AND ANSWERS
What kind of insurance policy supplies an income stream over a set period of time
that starts when the insured dies? - ANSWER-Family Maintenance policy
What is the requirement for maintaining an Individual Nevada producer license? -
ANSWER-completing 30 hours of continuing education every 3 years
An insured is past due on his life insurance premium, but is still within the Grace
Period. What will the beneficiary receive if the insured dies during this Grace Period?
- ANSWER-Full face amount minus any past due premiums
Pre-hospitalization authorization is considered an example - ANSWER-managed
care
The first portion of a covered Major Medical Insurance expense that the insured is
required to pay is called the: - ANSWER-initial deductible
What does a Medicare Supplement policy cover? - ANSWER-allowable amounts
under Medicare Part B
An employee with $25,000 group life coverage was recently fired. This employee's
group coverage may be converted to a: - ANSWER-$25,000 individual whole life
policy
P is self-employed and owns an Individual Disability Income policy. He becomes
totally disabled on June 1 and receives $2,000 a month for the next 10 months. How
much of this income is subject to federal income tax? - ANSWER-$0 (Disability
income benefits that derive from an individual policy which was paid entirely by the
policy owner is not subject to federal income tax.)
The investment gains from a Universal Life Policy usually go toward: - ANSWER-the
cash value
A domestic insurance company in Nevada MUST - ANSWER-be incorporated and
formed in Nevada
A non-disabled individual is first eligible for a Medicare Supplement policy at age -
ANSWER-65
The Consideration clause of an insurance contract includes: - ANSWER-the
schedule and amount of premium payments
Which of the following is NOT included in an annuity contract? - ANSWER-AD&D
rider
, What type of life policy covers 2 lives and pays the face amount after the first one
dies? - ANSWER-Joint Life Policy
The Notice of Claims provision requires a policy owner to: - ANSWER-notify an
insurer of a claim within a specified time
Many small business owners worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is: -
ANSWER-Business Overhead Expense
Credit life insurance is typically issued with which of the following types of coverage?
- ANSWER-Decreasing Term
Which type of policy is considered to be overfunded, as stated by IRS guidelines? -
ANSWER-Modified Endowment Contract
The required free-look period in a Medicare Supplement policy is ___days -
ANSWER-30
Which of the following is included under newborn child health coverage? - ANSWER-
birth abnormalities
What is the primary factor that determines the benefits paid under a disability income
policy? - ANSWER-Wages
Non-occupational disability coverage is designed for - ANSWER-employees who
suffer non-work related disabilities, since work-related disabilities are covered by
Worker's Compensation
Which of the following is a requirement to attain a nonresident producer license? -
ANSWER-Be licensed as a producer in the person's state of domicile
G purchased a Family Income policy at age 40, The policy has a 20-year rider
period. If G were to die at age 50, how long would G's family receive an income? -
ANSWER-10 years
Replacement can be defined as - ANSWER-exchanging an existing policy for a new
policy
A producer is attempting to replace an existing life insurance policy with a new one.
What must this producer submit as part of the application? - ANSWER-A signed
statement by the applicant regarding the replacement
After selling an individual life insurance policy, a Nevada producer MUST deliver to
the policy owner a(n) - ANSWER-policy summary an buyer's guide
M's insurance company denied a reinstatement application for her lapsed health
insurance policy. The company did not notify M of this denial. How many days from
the reinstatement application date does the insurance company have to notify M of
QUESTIONS AND ANSWERS
What kind of insurance policy supplies an income stream over a set period of time
that starts when the insured dies? - ANSWER-Family Maintenance policy
What is the requirement for maintaining an Individual Nevada producer license? -
ANSWER-completing 30 hours of continuing education every 3 years
An insured is past due on his life insurance premium, but is still within the Grace
Period. What will the beneficiary receive if the insured dies during this Grace Period?
- ANSWER-Full face amount minus any past due premiums
Pre-hospitalization authorization is considered an example - ANSWER-managed
care
The first portion of a covered Major Medical Insurance expense that the insured is
required to pay is called the: - ANSWER-initial deductible
What does a Medicare Supplement policy cover? - ANSWER-allowable amounts
under Medicare Part B
An employee with $25,000 group life coverage was recently fired. This employee's
group coverage may be converted to a: - ANSWER-$25,000 individual whole life
policy
P is self-employed and owns an Individual Disability Income policy. He becomes
totally disabled on June 1 and receives $2,000 a month for the next 10 months. How
much of this income is subject to federal income tax? - ANSWER-$0 (Disability
income benefits that derive from an individual policy which was paid entirely by the
policy owner is not subject to federal income tax.)
The investment gains from a Universal Life Policy usually go toward: - ANSWER-the
cash value
A domestic insurance company in Nevada MUST - ANSWER-be incorporated and
formed in Nevada
A non-disabled individual is first eligible for a Medicare Supplement policy at age -
ANSWER-65
The Consideration clause of an insurance contract includes: - ANSWER-the
schedule and amount of premium payments
Which of the following is NOT included in an annuity contract? - ANSWER-AD&D
rider
, What type of life policy covers 2 lives and pays the face amount after the first one
dies? - ANSWER-Joint Life Policy
The Notice of Claims provision requires a policy owner to: - ANSWER-notify an
insurer of a claim within a specified time
Many small business owners worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is: -
ANSWER-Business Overhead Expense
Credit life insurance is typically issued with which of the following types of coverage?
- ANSWER-Decreasing Term
Which type of policy is considered to be overfunded, as stated by IRS guidelines? -
ANSWER-Modified Endowment Contract
The required free-look period in a Medicare Supplement policy is ___days -
ANSWER-30
Which of the following is included under newborn child health coverage? - ANSWER-
birth abnormalities
What is the primary factor that determines the benefits paid under a disability income
policy? - ANSWER-Wages
Non-occupational disability coverage is designed for - ANSWER-employees who
suffer non-work related disabilities, since work-related disabilities are covered by
Worker's Compensation
Which of the following is a requirement to attain a nonresident producer license? -
ANSWER-Be licensed as a producer in the person's state of domicile
G purchased a Family Income policy at age 40, The policy has a 20-year rider
period. If G were to die at age 50, how long would G's family receive an income? -
ANSWER-10 years
Replacement can be defined as - ANSWER-exchanging an existing policy for a new
policy
A producer is attempting to replace an existing life insurance policy with a new one.
What must this producer submit as part of the application? - ANSWER-A signed
statement by the applicant regarding the replacement
After selling an individual life insurance policy, a Nevada producer MUST deliver to
the policy owner a(n) - ANSWER-policy summary an buyer's guide
M's insurance company denied a reinstatement application for her lapsed health
insurance policy. The company did not notify M of this denial. How many days from
the reinstatement application date does the insurance company have to notify M of
