XCEL FINAL EXAM GUIDE QUESTIONS
WITH VERIFIED ANSWERS
In order for an individual to receive commissions from an insurance company for
services as an agent, the individual MUST be:
Licensed only
Licensed and appointed
At least 21 years old
A resident of Virginia for 2 years - ANSWER-Licensed and appointed
In order to establish a Health Reimbursement Arrangement (HRA), it MUST
Be offered in conjunction with other employer provided health benefits
Limit the benefits to the prescription drugs only
Be established by the employer
Limit the amount of money the employee can contribute toward the account -
ANSWER-be established by the employer
Which of the following statements BEST defines usual, customary, and reasonable
(UCR) charges?
The maximum premium an insurer can charge for their health insurance based on
geography
The maximum amount an employer can contribute to a contributory health plan
The maximum amount considered eligible for reimbursement by an insurance
company under a health plan - ANSWER-The maximum amount considered eligible
for reimbursement by an insurance company under a health plan
What is the maximum Social Security Disability benefit amount an insured can
receive?
50% of the insured primary insurance amount (PIA)
75% of the insured primary insurance amount (PIA)
100% of the insured primary insurance amount (PIA)
100% of the insured primary insurance amount (PIA) minus any monies received
from a retirement plan - ANSWER-100% of the insured's Primary Insurance Amount
(PIA)
S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. S can take legal action against the
insurer beginning
September 21
October 16
November 1
December 1 - ANSWER-November 1
K is the insured and P is the sole beneficiary on a life insurance policy. Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision, which of these statements is true?
Proceeds will be paid to P's estate
Proceeds will be divided equally between K's and P's estate
, Proceeds will be payable to K's estate if P dies within a specified time
The courts will decide who will receive death be - ANSWER-Proceeds will be paid to
K's estate if P dies within a specified time
If an administration fee is charged by an agent, the customer written signature is
REQUIRED
Only if the fee is greater than a month's premium
Only if the fee is authorized by an officer of the insurer
Only if the fee is greater than 5% of the premium
In every occurrence - ANSWER-In every occurrence
What type of life policy covers 2 lives and pays the face amount after the first one
dies?
Group life
Joint life policy
Family income policy
Last survivor policy - ANSWER-Joint Life Policy
Which of the following statements about noncontributory employee group life
insurance is False?
A minimum number of employees is required to participate
All eligible employees must be covered
No evidence of Insurability required
Must have conversion rights - ANSWER-A minimum number of employees is
required to participate
Under a Renewable Term policy,
The face amount is automatically adjusted at the time of renewal
Evidence of Insurability must be provided at each renewal
The renewal premium is calculated on the basis of the insured's attained age
A new application must be completed at each renewal - ANSWER-the renewal
premium is calculated on the basis of the insured's attained age
Which mode of payment is NOT used by health insurance policies?
Monthly premium
Annual premium
Single premium
Semi-annual Premium - ANSWER-Single Premium
whole life insurance policy owner does not wish to continue making premium
payments. Which of the following enables the policy owner to sell the policy for more
than its cash value?
Cash surrender
Life settlement contract
Buy-sell arrangement
1031 Exchange - ANSWER-Life settlement contract
Which of these circumstances required an agent to make reasonable efforts to
obtain information concerning the suitability of an annuity?
Agent helps a client with the purchase of an annuity
WITH VERIFIED ANSWERS
In order for an individual to receive commissions from an insurance company for
services as an agent, the individual MUST be:
Licensed only
Licensed and appointed
At least 21 years old
A resident of Virginia for 2 years - ANSWER-Licensed and appointed
In order to establish a Health Reimbursement Arrangement (HRA), it MUST
Be offered in conjunction with other employer provided health benefits
Limit the benefits to the prescription drugs only
Be established by the employer
Limit the amount of money the employee can contribute toward the account -
ANSWER-be established by the employer
Which of the following statements BEST defines usual, customary, and reasonable
(UCR) charges?
The maximum premium an insurer can charge for their health insurance based on
geography
The maximum amount an employer can contribute to a contributory health plan
The maximum amount considered eligible for reimbursement by an insurance
company under a health plan - ANSWER-The maximum amount considered eligible
for reimbursement by an insurance company under a health plan
What is the maximum Social Security Disability benefit amount an insured can
receive?
50% of the insured primary insurance amount (PIA)
75% of the insured primary insurance amount (PIA)
100% of the insured primary insurance amount (PIA)
100% of the insured primary insurance amount (PIA) minus any monies received
from a retirement plan - ANSWER-100% of the insured's Primary Insurance Amount
(PIA)
S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. S can take legal action against the
insurer beginning
September 21
October 16
November 1
December 1 - ANSWER-November 1
K is the insured and P is the sole beneficiary on a life insurance policy. Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision, which of these statements is true?
Proceeds will be paid to P's estate
Proceeds will be divided equally between K's and P's estate
, Proceeds will be payable to K's estate if P dies within a specified time
The courts will decide who will receive death be - ANSWER-Proceeds will be paid to
K's estate if P dies within a specified time
If an administration fee is charged by an agent, the customer written signature is
REQUIRED
Only if the fee is greater than a month's premium
Only if the fee is authorized by an officer of the insurer
Only if the fee is greater than 5% of the premium
In every occurrence - ANSWER-In every occurrence
What type of life policy covers 2 lives and pays the face amount after the first one
dies?
Group life
Joint life policy
Family income policy
Last survivor policy - ANSWER-Joint Life Policy
Which of the following statements about noncontributory employee group life
insurance is False?
A minimum number of employees is required to participate
All eligible employees must be covered
No evidence of Insurability required
Must have conversion rights - ANSWER-A minimum number of employees is
required to participate
Under a Renewable Term policy,
The face amount is automatically adjusted at the time of renewal
Evidence of Insurability must be provided at each renewal
The renewal premium is calculated on the basis of the insured's attained age
A new application must be completed at each renewal - ANSWER-the renewal
premium is calculated on the basis of the insured's attained age
Which mode of payment is NOT used by health insurance policies?
Monthly premium
Annual premium
Single premium
Semi-annual Premium - ANSWER-Single Premium
whole life insurance policy owner does not wish to continue making premium
payments. Which of the following enables the policy owner to sell the policy for more
than its cash value?
Cash surrender
Life settlement contract
Buy-sell arrangement
1031 Exchange - ANSWER-Life settlement contract
Which of these circumstances required an agent to make reasonable efforts to
obtain information concerning the suitability of an annuity?
Agent helps a client with the purchase of an annuity
