PENNSYLVANIA XCEL FINAL EXAM
QUESTIONS WITH VERIFIED
ANSWERS
All of the following are functions of an insuring clause except - ANSWER-Primarily
describes the free-look period
Lisa has recently bought a fixed annuity. Which of these is considered to be a
disadvantage of owning this type of annuity? - ANSWER-During periods of inflation,
annuitants will experience a decrease in purchasing power of their payments
Which of these is considered to be a Living Benefit option in a life insurance policy? -
ANSWER-Accelerated death benefit
Barbara's policy includes a rider which allows her to purchase additional insurance at
specific dates or events without evidence of insurability. This rider is called a -
ANSWER-Guaranteed insurability rider
Under a group life policy, the insurer will issue an individual _____ to the policyowner
for delivery to each person insured. - ANSWER-certificate
A Modified Endowment Contract (MEC) is best described as - ANSWER-A life
insurance contract which accumulates cash values higher than the IRS will allow
What is the automatic continuance of insurance coverage referred to as? -
ANSWER-renewal
Which prohibited act involves a producer spending a client's insurance premiums for
his/her own personal use? - ANSWER-Embezzlement
A life insurance rider that allows an individual to purchase insurance as they grow
older, regardless of insurability, is called a - ANSWER-Guaranteed insurability rider
Who assumes the investment risk with a fixed annuity contract? - ANSWER-insurer
What is the primary reason for buying an annuity? - ANSWER-Provide future
economic security
An insurer would be committing Unfair Discrimination if coverage was denied based
upon - ANSWER-marital status
Which of the following is considered to be a point of service (POS) plan) - ANSWER-
managed care plan
Bill requires some nursing care and supervision but NOT full-time care. Which of
these nursing home options would best serve him? - ANSWER-assisted living
, Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - ANSWER-10 days
The federal employees benefit program consists of two types of health plans for
federal civilian employees. The two plans are fee-for-service and - ANSWER-prepaid
A life insurance policy written on one contract for two people in which it is payable
upon the first death is called - ANSWER-joint
Which of the following is not an example of utilization review? - ANSWER-ongoing
inspection of accident prone individuals
A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called - ANSWER-errors and omissions
Sharing 50% of a producer's commission with the insured is an example of -
ANSWER-illegal inducement
What does the word "level" in level term describe? - ANSWER-The face amount
Who can receive an insurance commission? - ANSWER-producer
A type of group that has a constitution and bylaws and has been organized for
purposes other than obtaining insurance is called a - ANSWER-association or labor
group
What is the required Renewability status of all Medicare supplement policies? -
ANSWER-Guaranteed renewable
What is know as the immediate specific event causing loss and giving rise to risk? -
ANSWER-Peril
During the accumulation period, who can surrender an annuity? - ANSWER-
Policyowner
The authority granted to a licensed producer is provided via the - ANSWER-Law of
Agency
A policyowner suffers an injury that renders him incapable of performing one or more
important job duties. Any decrease in income resulting from this injury would make
him eligible for benefits under which provision? - ANSWER-partial disability
Health insurance involves two perils, accident and? - ANSWER-sickness
Which clause defines total disability as being unable to perform the major duties of
the insured's regular occupation? - ANSWER-Own occupation clause
A producer is meeting with a client to determine whether an annuity would be
suitable for purchase. Which of the following topics needs to be discussed with this
client? - ANSWER-financial objectives
QUESTIONS WITH VERIFIED
ANSWERS
All of the following are functions of an insuring clause except - ANSWER-Primarily
describes the free-look period
Lisa has recently bought a fixed annuity. Which of these is considered to be a
disadvantage of owning this type of annuity? - ANSWER-During periods of inflation,
annuitants will experience a decrease in purchasing power of their payments
Which of these is considered to be a Living Benefit option in a life insurance policy? -
ANSWER-Accelerated death benefit
Barbara's policy includes a rider which allows her to purchase additional insurance at
specific dates or events without evidence of insurability. This rider is called a -
ANSWER-Guaranteed insurability rider
Under a group life policy, the insurer will issue an individual _____ to the policyowner
for delivery to each person insured. - ANSWER-certificate
A Modified Endowment Contract (MEC) is best described as - ANSWER-A life
insurance contract which accumulates cash values higher than the IRS will allow
What is the automatic continuance of insurance coverage referred to as? -
ANSWER-renewal
Which prohibited act involves a producer spending a client's insurance premiums for
his/her own personal use? - ANSWER-Embezzlement
A life insurance rider that allows an individual to purchase insurance as they grow
older, regardless of insurability, is called a - ANSWER-Guaranteed insurability rider
Who assumes the investment risk with a fixed annuity contract? - ANSWER-insurer
What is the primary reason for buying an annuity? - ANSWER-Provide future
economic security
An insurer would be committing Unfair Discrimination if coverage was denied based
upon - ANSWER-marital status
Which of the following is considered to be a point of service (POS) plan) - ANSWER-
managed care plan
Bill requires some nursing care and supervision but NOT full-time care. Which of
these nursing home options would best serve him? - ANSWER-assisted living
, Kathy pays a monthly premium on her health insurance policy. How long is her grace
period? - ANSWER-10 days
The federal employees benefit program consists of two types of health plans for
federal civilian employees. The two plans are fee-for-service and - ANSWER-prepaid
A life insurance policy written on one contract for two people in which it is payable
upon the first death is called - ANSWER-joint
Which of the following is not an example of utilization review? - ANSWER-ongoing
inspection of accident prone individuals
A professional liability for which producers can be sued for mistakes of putting a
policy into effect is called - ANSWER-errors and omissions
Sharing 50% of a producer's commission with the insured is an example of -
ANSWER-illegal inducement
What does the word "level" in level term describe? - ANSWER-The face amount
Who can receive an insurance commission? - ANSWER-producer
A type of group that has a constitution and bylaws and has been organized for
purposes other than obtaining insurance is called a - ANSWER-association or labor
group
What is the required Renewability status of all Medicare supplement policies? -
ANSWER-Guaranteed renewable
What is know as the immediate specific event causing loss and giving rise to risk? -
ANSWER-Peril
During the accumulation period, who can surrender an annuity? - ANSWER-
Policyowner
The authority granted to a licensed producer is provided via the - ANSWER-Law of
Agency
A policyowner suffers an injury that renders him incapable of performing one or more
important job duties. Any decrease in income resulting from this injury would make
him eligible for benefits under which provision? - ANSWER-partial disability
Health insurance involves two perils, accident and? - ANSWER-sickness
Which clause defines total disability as being unable to perform the major duties of
the insured's regular occupation? - ANSWER-Own occupation clause
A producer is meeting with a client to determine whether an annuity would be
suitable for purchase. Which of the following topics needs to be discussed with this
client? - ANSWER-financial objectives
