XCEL TESTING SOLUTIONS (LIFE &
HEALTH) FINAL 150 QUESTION
PRACTICE EXAM QUESTIONS AND
ANSWERS
The part of a life insurance policy guaranteed to be true is called a(n) - ANSWER-
warranty
A Business Overhead Expense policy would cover which of the following if a
business owner becomes disabled? - ANSWER-Utilities and office rent
Which statement is TRUE regarding a group accident & health policy issued to an
employer? - ANSWER-The employer is the policyowner and each employee
receives a certificate of coverage
T is covered by two health insurance plans: a group plan through his employer and
his spouse's plan as a dependent. When T submits a claim, his employer's plan is
considered what type of carrier under the Model Group Coordination of Benefits
provision? - ANSWER-Primary carrier
J has an Accidental Death and Dismemberment policy with a principal sum of
$50,000. While trimming the hedges, J cuts off one of his fingers. What is the
MAXIMUM J will receive from his policy? - ANSWER-$25,000
When an employee is required to pay a portion of the premium for an
employer/employee group health plan, the employee is covered under which of the
following plans? - ANSWER-Contributory
Which contract permits the remaining partners to buy-out the interest of a disabled
business partner? - ANSWER-Disability Buy-Sell
Which of the following statements does NOT accurately describe the tax treatment of
premiums and benefits of individual Accident and Health insurance? - ANSWER-
Disability income policy premiums are tax-deductible
An insurance company would MOST likely pay benefits under an Accidental Death
and Dismemberment policy for which of the following losses? - ANSWER-Loss of
eyesight due to an accidental injury
The situation in which a group of physicians are salaried employees and conduct
business in an HMO facility is called a(n) - ANSWER-closed panel
The health insurance program which is administered by each state and funded by
both the federal and state governments is called - ANSWER-Medicaid
, J is a subscriber to a plan which contracts with doctors and hospitals to provide
medical benefits at a preset price. What type of plan does J belong to? - ANSWER-
Health Maintenance Organization
Which of these is considered a true statement regarding Medicaid? - ANSWER-
Funded by both state and federal governments
M is insured under a basic Hospital/Surgical Expense policy. A physician performs
surgery on M. What determines the claim M is eligible for? - ANSWER-Determined
by the terms of the policy
Which of the following types of health coverage frequently uses a deductible? -
ANSWER-Major Medical Policy
S wants to open a tax-exempt Health Savings Account. To qualify for this type of
account, Federal law dictates that S must be enrolled in a - ANSWER-High-
deductible health plan
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay if a total of $15,000 in
covered medical expenses are incurred? - ANSWER-$7,000
Which of the following policy features allows an insured to defer current health
charges to the following year's deductible instead of the current year's deducitble? -
ANSWER-Carryover provision
With a Basic Medical Expense policy, what does the hospitalization expense cover?
- ANSWER-hospital room and board
N has a Major Medical policy that only pays a portion of N's medical expenses. N is
responsible for paying the remaining balance. This provision is known as -
ANSWER-coinsurance
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what
would it require? - ANSWER-Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - ANSWER-
policyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? - ANSWER-at future dates specified in the contract with no evidence of
insurability required
S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT - ANSWER-beneficiary's age
HEALTH) FINAL 150 QUESTION
PRACTICE EXAM QUESTIONS AND
ANSWERS
The part of a life insurance policy guaranteed to be true is called a(n) - ANSWER-
warranty
A Business Overhead Expense policy would cover which of the following if a
business owner becomes disabled? - ANSWER-Utilities and office rent
Which statement is TRUE regarding a group accident & health policy issued to an
employer? - ANSWER-The employer is the policyowner and each employee
receives a certificate of coverage
T is covered by two health insurance plans: a group plan through his employer and
his spouse's plan as a dependent. When T submits a claim, his employer's plan is
considered what type of carrier under the Model Group Coordination of Benefits
provision? - ANSWER-Primary carrier
J has an Accidental Death and Dismemberment policy with a principal sum of
$50,000. While trimming the hedges, J cuts off one of his fingers. What is the
MAXIMUM J will receive from his policy? - ANSWER-$25,000
When an employee is required to pay a portion of the premium for an
employer/employee group health plan, the employee is covered under which of the
following plans? - ANSWER-Contributory
Which contract permits the remaining partners to buy-out the interest of a disabled
business partner? - ANSWER-Disability Buy-Sell
Which of the following statements does NOT accurately describe the tax treatment of
premiums and benefits of individual Accident and Health insurance? - ANSWER-
Disability income policy premiums are tax-deductible
An insurance company would MOST likely pay benefits under an Accidental Death
and Dismemberment policy for which of the following losses? - ANSWER-Loss of
eyesight due to an accidental injury
The situation in which a group of physicians are salaried employees and conduct
business in an HMO facility is called a(n) - ANSWER-closed panel
The health insurance program which is administered by each state and funded by
both the federal and state governments is called - ANSWER-Medicaid
, J is a subscriber to a plan which contracts with doctors and hospitals to provide
medical benefits at a preset price. What type of plan does J belong to? - ANSWER-
Health Maintenance Organization
Which of these is considered a true statement regarding Medicaid? - ANSWER-
Funded by both state and federal governments
M is insured under a basic Hospital/Surgical Expense policy. A physician performs
surgery on M. What determines the claim M is eligible for? - ANSWER-Determined
by the terms of the policy
Which of the following types of health coverage frequently uses a deductible? -
ANSWER-Major Medical Policy
S wants to open a tax-exempt Health Savings Account. To qualify for this type of
account, Federal law dictates that S must be enrolled in a - ANSWER-High-
deductible health plan
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay if a total of $15,000 in
covered medical expenses are incurred? - ANSWER-$7,000
Which of the following policy features allows an insured to defer current health
charges to the following year's deductible instead of the current year's deducitble? -
ANSWER-Carryover provision
With a Basic Medical Expense policy, what does the hospitalization expense cover?
- ANSWER-hospital room and board
N has a Major Medical policy that only pays a portion of N's medical expenses. N is
responsible for paying the remaining balance. This provision is known as -
ANSWER-coinsurance
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three
founding partners. If the agreement is funded with individual life insurance, what
would it require? - ANSWER-Each partner must own a policy on the other partners
Who elects the governing body of a mutual insurance company? - ANSWER-
policyholders
When does a Guaranteed Insurability Rider allow the insured to buy additional
coverage? - ANSWER-at future dates specified in the contract with no evidence of
insurability required
S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT - ANSWER-beneficiary's age
