XCEL SOLUTIONS EXAM SET
QUESTIONS WITH VERIFIED
ANSWERS
What should an insured do if the insurer does not send claims forms within the time
period set forth in a health policy's claims forms provision - ANSWER-Submit a claim
in any form
Which of the following provisions specifies how long a policy owners health coverage
will remain in effect if the policy owner does not pay the premium when it is due -
ANSWER-Grace period
According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options? - ANSWER-
monthly
An applicants medical information received from the MIB may be furnished to the -
ANSWER-Applicants physician
Insurers may request a hearing within ____ if their policy is rejected - ANSWER-20
days
B, an insurance agent tells his clients that their rights may be impaired if they fail to
complete a release from within a given period of time. B may be found guilty of -
ANSWER-Coercion
Which of these are not an example of a non forfeiture option - ANSWER-Life Income
An insurance company would most likely pay benefits under an ADD policy for which
if the following losses - ANSWER-Loss of eyesight due to an accidental injury
M's insurance company denied a reinstatement application for her lapsed insurance
policy. The company did not notify M of this denial. How many days from the
reinstatement application date does the insurance company have to notify M of
denial before the policy will be automatically placed back in force - ANSWER-45
days
Which of these is not considered to be an element of an insurance contract -
ANSWER-negotiating
K has a life insurance policy where her husband is beneficiary and her daughter is
contingent beneficiary. Under the Common Disaster clause, if K and her husband
are both killed in an automobile accident, where would the death proceeds be
directed? - ANSWER-The contingent - their daughter
Which of the following life insurance policies combine term insurance with an
investment element - ANSWER-universal life
, Which type of contract liquidates an estate through recurrent payments - ANSWER-
Annuity
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The
annuity will then pay P retirement payments after the 15 years. Which type of annuity
did P purchase? - ANSWER-deferred
Term life policies that have the ability to be converted to permanent coverage may
do so during a specific time period. This conversion period - ANSWER-varies
according to the contract
Credit life insurance is - ANSWER-insurance issued on a debtor to cover outstanding
loan balances
M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the - ANSWER-
Policy proceeds
What action will an insurer take if an interest payment on a policy loan is not made
on time - ANSWER-automatically add the amount of interest due to the loan balance
In Texas, an individual life insurance policy is REQUIRED to have a grace period of -
ANSWER-31 days
Which factors are taken into consideration when an insurance company determines
the premium rate for a whole life policy on an applicant - ANSWER-Risk
classification
Q purchases a $500,000 life insurance policy and pays a $900 in premiums over the
first 6 months. Q dies suddenly and the beneficiary is paid $500,000. This exchange
of unequal values reflects which of the following insurance contract features -
ANSWER-Aleatory
Which of these types of life insurance allows the policy owner to have level
premiums and to also choose from a selection of investment options - ANSWER-
Variable Life
R becomes disabled and owns an individual disability income policy. When is R
eligible to receive disability benefits - ANSWER-Upon satisfying the elimination
period requirement
Many small business owners worry her their business would survive financially if the
owner becomes disabled. The policy best addresses this concern is - ANSWER-
Business overhead expense
A life insurance arrangement which circumvents insurance interest statutes is called
- ANSWER-Investor-Originated Life Insurance
QUESTIONS WITH VERIFIED
ANSWERS
What should an insured do if the insurer does not send claims forms within the time
period set forth in a health policy's claims forms provision - ANSWER-Submit a claim
in any form
Which of the following provisions specifies how long a policy owners health coverage
will remain in effect if the policy owner does not pay the premium when it is due -
ANSWER-Grace period
According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options? - ANSWER-
monthly
An applicants medical information received from the MIB may be furnished to the -
ANSWER-Applicants physician
Insurers may request a hearing within ____ if their policy is rejected - ANSWER-20
days
B, an insurance agent tells his clients that their rights may be impaired if they fail to
complete a release from within a given period of time. B may be found guilty of -
ANSWER-Coercion
Which of these are not an example of a non forfeiture option - ANSWER-Life Income
An insurance company would most likely pay benefits under an ADD policy for which
if the following losses - ANSWER-Loss of eyesight due to an accidental injury
M's insurance company denied a reinstatement application for her lapsed insurance
policy. The company did not notify M of this denial. How many days from the
reinstatement application date does the insurance company have to notify M of
denial before the policy will be automatically placed back in force - ANSWER-45
days
Which of these is not considered to be an element of an insurance contract -
ANSWER-negotiating
K has a life insurance policy where her husband is beneficiary and her daughter is
contingent beneficiary. Under the Common Disaster clause, if K and her husband
are both killed in an automobile accident, where would the death proceeds be
directed? - ANSWER-The contingent - their daughter
Which of the following life insurance policies combine term insurance with an
investment element - ANSWER-universal life
, Which type of contract liquidates an estate through recurrent payments - ANSWER-
Annuity
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The
annuity will then pay P retirement payments after the 15 years. Which type of annuity
did P purchase? - ANSWER-deferred
Term life policies that have the ability to be converted to permanent coverage may
do so during a specific time period. This conversion period - ANSWER-varies
according to the contract
Credit life insurance is - ANSWER-insurance issued on a debtor to cover outstanding
loan balances
M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the - ANSWER-
Policy proceeds
What action will an insurer take if an interest payment on a policy loan is not made
on time - ANSWER-automatically add the amount of interest due to the loan balance
In Texas, an individual life insurance policy is REQUIRED to have a grace period of -
ANSWER-31 days
Which factors are taken into consideration when an insurance company determines
the premium rate for a whole life policy on an applicant - ANSWER-Risk
classification
Q purchases a $500,000 life insurance policy and pays a $900 in premiums over the
first 6 months. Q dies suddenly and the beneficiary is paid $500,000. This exchange
of unequal values reflects which of the following insurance contract features -
ANSWER-Aleatory
Which of these types of life insurance allows the policy owner to have level
premiums and to also choose from a selection of investment options - ANSWER-
Variable Life
R becomes disabled and owns an individual disability income policy. When is R
eligible to receive disability benefits - ANSWER-Upon satisfying the elimination
period requirement
Many small business owners worry her their business would survive financially if the
owner becomes disabled. The policy best addresses this concern is - ANSWER-
Business overhead expense
A life insurance arrangement which circumvents insurance interest statutes is called
- ANSWER-Investor-Originated Life Insurance
