COMPREHENSIVE FINAL
CERTIFICATION EXAM ILLINOIS
HEALTH INSURANCE (XCEL
SOLUTIONS) QUESTIONS AND
ANSWERS
Which of the following policy provisions prohibits an insurance company from
incorporation external documents into an insurance policy? - ANSWER-entire
contract
Stating that dividends are guaranteed is considered to be - ANSWER-
misrepresentation
An HMO that involves a partnership of physicians and other providers who practice
out of a central facility is called a(n) - ANSWER-group HMO
Tom has a home health care benefit and is confined to his home. Which of these
benefits is NOT typically covered? - ANSWER-full-time nursing care
This MANDATORY health policy provision states that the policy, including
endorsements and attached papers, constitutes - ANSWER-the entire insurance
contract between the parties
Under group health insurance, a certificate of coverage is issued to the - ANSWER-
employee
Health Maintenance Organization (HMO) - ANSWER-provides prepaid health care
Lorenzo is self employed with an S corporation. He is unmarried and had a net profit
for the tax year. What are the tax ramifications of his health insurance premiums paid
for the year? - ANSWER-100% of his health insurance costs can be deducted from
his gross income
What is the required renewability status of all medicare supplement policies -
ANSWER-guaranteed renewable
Which of the following typically does NOT provide a form of managed care? -
ANSWER-Major medical indemnity plan
A business entity wishes to become approved as a producer for soliciting insurance
business. Before doing so, the business entity is required to submit to the Director
a(n) - ANSWER-designated producer assigned for compliance with Illinois insurance
laws
, Long-Term Care policies may provide coverage for claims arising from - ANSWER-
senile dementia
Which type of renewability best describes a Disability Income policy that covers an
individual until the age of 65, but the insurer has the right to change the premium
rate? - ANSWER-guaranteed renewable
The Director MUST be notified of a producer's change of home address within ___
days - ANSWER-30
It is acceptable to discriminate the amount of benefits for life and health policies
between individuals of - ANSWER-different classes
How does one qualify as a fully-insured individual under Social Security disability
coverage? - ANSWER-individual has been credited with the appropriate number of
quarters of coverage
All of the following are included as part of a contract in the entire contract provision
EXCEPT the - ANSWER-changes made by the producer
What is medicare part b also known as - ANSWER-supplementary medical
insurance
in a group health care what is the purpose of the coordination of benefits provision? -
ANSWER-determines what is paid by the primary and secondary insurers in the
event of a claim
An applicant's character and personal habits can be obtained for underwriting
purposes from which source? - ANSWER-investigative consumer report
Which of the following actions may an insurance company NOT do in a health policy
that contains a guaranteed renewable premium benefit? - ANSWER-increase the
premiums on an individual basis
what is the purpose of the medical information bureau (MIB) - ANSWER-to help
underwriters evaluate risk
Long-term care policies sold in Illinois are required to contain cost disclosure
information in bold print. Where does the law require this information to be located? -
ANSWER-outline of coverage
J has been issued a temporary insurance producer license. How many of these
licenses may J hold in a lifetime? - ANSWER-one
An insurer has the right to recover payment made to the insured from the negligent
party. These rights are called? - ANSWER-subrogation
To be classified as a small employer in Illinois, an employer, an emloyer must
employ - ANSWER-between 2 and 50 employees
CERTIFICATION EXAM ILLINOIS
HEALTH INSURANCE (XCEL
SOLUTIONS) QUESTIONS AND
ANSWERS
Which of the following policy provisions prohibits an insurance company from
incorporation external documents into an insurance policy? - ANSWER-entire
contract
Stating that dividends are guaranteed is considered to be - ANSWER-
misrepresentation
An HMO that involves a partnership of physicians and other providers who practice
out of a central facility is called a(n) - ANSWER-group HMO
Tom has a home health care benefit and is confined to his home. Which of these
benefits is NOT typically covered? - ANSWER-full-time nursing care
This MANDATORY health policy provision states that the policy, including
endorsements and attached papers, constitutes - ANSWER-the entire insurance
contract between the parties
Under group health insurance, a certificate of coverage is issued to the - ANSWER-
employee
Health Maintenance Organization (HMO) - ANSWER-provides prepaid health care
Lorenzo is self employed with an S corporation. He is unmarried and had a net profit
for the tax year. What are the tax ramifications of his health insurance premiums paid
for the year? - ANSWER-100% of his health insurance costs can be deducted from
his gross income
What is the required renewability status of all medicare supplement policies -
ANSWER-guaranteed renewable
Which of the following typically does NOT provide a form of managed care? -
ANSWER-Major medical indemnity plan
A business entity wishes to become approved as a producer for soliciting insurance
business. Before doing so, the business entity is required to submit to the Director
a(n) - ANSWER-designated producer assigned for compliance with Illinois insurance
laws
, Long-Term Care policies may provide coverage for claims arising from - ANSWER-
senile dementia
Which type of renewability best describes a Disability Income policy that covers an
individual until the age of 65, but the insurer has the right to change the premium
rate? - ANSWER-guaranteed renewable
The Director MUST be notified of a producer's change of home address within ___
days - ANSWER-30
It is acceptable to discriminate the amount of benefits for life and health policies
between individuals of - ANSWER-different classes
How does one qualify as a fully-insured individual under Social Security disability
coverage? - ANSWER-individual has been credited with the appropriate number of
quarters of coverage
All of the following are included as part of a contract in the entire contract provision
EXCEPT the - ANSWER-changes made by the producer
What is medicare part b also known as - ANSWER-supplementary medical
insurance
in a group health care what is the purpose of the coordination of benefits provision? -
ANSWER-determines what is paid by the primary and secondary insurers in the
event of a claim
An applicant's character and personal habits can be obtained for underwriting
purposes from which source? - ANSWER-investigative consumer report
Which of the following actions may an insurance company NOT do in a health policy
that contains a guaranteed renewable premium benefit? - ANSWER-increase the
premiums on an individual basis
what is the purpose of the medical information bureau (MIB) - ANSWER-to help
underwriters evaluate risk
Long-term care policies sold in Illinois are required to contain cost disclosure
information in bold print. Where does the law require this information to be located? -
ANSWER-outline of coverage
J has been issued a temporary insurance producer license. How many of these
licenses may J hold in a lifetime? - ANSWER-one
An insurer has the right to recover payment made to the insured from the negligent
party. These rights are called? - ANSWER-subrogation
To be classified as a small employer in Illinois, an employer, an emloyer must
employ - ANSWER-between 2 and 50 employees
