XCEL SOLUTIONS QUIZ GUIDE
QUESTIONS AND ANSWERS
What type of policy would only provide coverage for specific types of illnesses
(cancer, stroke, etc)? - ANSWER-dread disease insurance
An error was made on Mary's life insurance application. Which of the following areas
do errors commonly occur on applications and for which the incontestable clause
does NOT apply? - ANSWER-Age
An agent's appointment may only be terminated by the - ANSWER-Insurer
Under a Modified Endowment Contract, what are the likely tax consequences? -
ANSWER-Pre-death distributions will become taxable
Which of the following is typically NOT eligible for coverage in a group health policy?
- ANSWER-Temporary employee
When does an immediate annuity begin making payments? - ANSWER-After the first
premium has been paid
Under non-qualified annuity, interest is taxed after the - ANSWER-
Which of these is a method of determining the level of funds required for ongoing
support in the event of the breadwinner's death? - ANSWER-
Which disability policy provision would address any concerns of the value of the
benefits decreasing over time? - ANSWER-Cost of living benefit
A whole life policy option where extended term insurance is selected is called a(n) -
ANSWER-nonforfeiture option
A life insurance policyowner is allowed days upon policy delivery to return the policy
for a full premium refund - ANSWER-10 days
Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - ANSWER-10 days
A spouse and child can be added to the primary insured's coverage as what kind of
rider? - ANSWER-family term
With a scheduled dental policy, how are covered expenses paid? - ANSWER-
Benefits are limited to a specific maximum dollar amount per procedure
Which type of clause describes the following statement: "We have issued the policy
in consideration of the representations in your applications and payment of the first-
term premium". - ANSWER-
, What guarantees that the statements supplied by an insurance applicant are true -
ANSWER-
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this
situation? - ANSWER-Unpaid premiums
A beneficiary has just received a claim payment for a life insurance policy. Which of
the following is TRUE regarding the federal income tax liability owed? - ANSWER-No
federal income tax is owed on life insurance proceeds
A life insurance applicant in Ohio may backdate the application for up to - ANSWER-
3 months
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their
adjusted gross income is tax deductible. Which of the following may be considered a
medical expense under this rule? - ANSWER-Long Term Care Insurance premiums
Term insurance is appropriate for someone who - ANSWER-seeks temporary
protection and lower premiums
Who is required to notify the agent in the event of appointment termination? -
ANSWER-Insurer
Which of the following statements regarding Group Disability Income is TRUE? -
ANSWER-It provides benefits for nonoccupational illnesses and injuries
An insurer may refuse to renew an employer's small group health plan due to -
ANSWER-Nonpayment of premium
The open enrollment period for Medicare Supplements begins at age - ANSWER-
An order issued by the superintendent that prohibits a specific practice listed in the
order is called a(n) - ANSWER-cease and desist order
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated
employee's benefits must - ANSWER-
A disability income policy can prevent an insured from earning a higher income than
if he/she were working by utilizing - ANSWER-benefit limits
A beneficiary change can occur: - ANSWER-Normally at any time during the policy
term
Maria is a PPO (preferred provider organization subscriber and received care from
an out of networks provider. Which of the following is the likely result? - ANSWER-
Care is covered
Benefits provided by a Medicare Supplement policy must NOT - ANSWER-Duplicate
Medicare benefits
QUESTIONS AND ANSWERS
What type of policy would only provide coverage for specific types of illnesses
(cancer, stroke, etc)? - ANSWER-dread disease insurance
An error was made on Mary's life insurance application. Which of the following areas
do errors commonly occur on applications and for which the incontestable clause
does NOT apply? - ANSWER-Age
An agent's appointment may only be terminated by the - ANSWER-Insurer
Under a Modified Endowment Contract, what are the likely tax consequences? -
ANSWER-Pre-death distributions will become taxable
Which of the following is typically NOT eligible for coverage in a group health policy?
- ANSWER-Temporary employee
When does an immediate annuity begin making payments? - ANSWER-After the first
premium has been paid
Under non-qualified annuity, interest is taxed after the - ANSWER-
Which of these is a method of determining the level of funds required for ongoing
support in the event of the breadwinner's death? - ANSWER-
Which disability policy provision would address any concerns of the value of the
benefits decreasing over time? - ANSWER-Cost of living benefit
A whole life policy option where extended term insurance is selected is called a(n) -
ANSWER-nonforfeiture option
A life insurance policyowner is allowed days upon policy delivery to return the policy
for a full premium refund - ANSWER-10 days
Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - ANSWER-10 days
A spouse and child can be added to the primary insured's coverage as what kind of
rider? - ANSWER-family term
With a scheduled dental policy, how are covered expenses paid? - ANSWER-
Benefits are limited to a specific maximum dollar amount per procedure
Which type of clause describes the following statement: "We have issued the policy
in consideration of the representations in your applications and payment of the first-
term premium". - ANSWER-
, What guarantees that the statements supplied by an insurance applicant are true -
ANSWER-
Craig submits a $500 claim for medical expenses. With a past due premium of $100,
the insurer pays $400. Which of the Uniform Optional Provisions covers this
situation? - ANSWER-Unpaid premiums
A beneficiary has just received a claim payment for a life insurance policy. Which of
the following is TRUE regarding the federal income tax liability owed? - ANSWER-No
federal income tax is owed on life insurance proceeds
A life insurance applicant in Ohio may backdate the application for up to - ANSWER-
3 months
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their
adjusted gross income is tax deductible. Which of the following may be considered a
medical expense under this rule? - ANSWER-Long Term Care Insurance premiums
Term insurance is appropriate for someone who - ANSWER-seeks temporary
protection and lower premiums
Who is required to notify the agent in the event of appointment termination? -
ANSWER-Insurer
Which of the following statements regarding Group Disability Income is TRUE? -
ANSWER-It provides benefits for nonoccupational illnesses and injuries
An insurer may refuse to renew an employer's small group health plan due to -
ANSWER-Nonpayment of premium
The open enrollment period for Medicare Supplements begins at age - ANSWER-
An order issued by the superintendent that prohibits a specific practice listed in the
order is called a(n) - ANSWER-cease and desist order
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated
employee's benefits must - ANSWER-
A disability income policy can prevent an insured from earning a higher income than
if he/she were working by utilizing - ANSWER-benefit limits
A beneficiary change can occur: - ANSWER-Normally at any time during the policy
term
Maria is a PPO (preferred provider organization subscriber and received care from
an out of networks provider. Which of the following is the likely result? - ANSWER-
Care is covered
Benefits provided by a Medicare Supplement policy must NOT - ANSWER-Duplicate
Medicare benefits
