Xcel Testing Solutions-Louisiana Life
and Health Exam Simulator - 200
Questions and Answers Latest Version
Already Passed
What happens if an insured lies on an application but the policy is in force for more than two
years?
A. The policy is voided automatically
B. Premiums increase
✔✔C. The insurer cannot contest the claim
D. Coverage switches to term only
Which of the following is an example of moral hazard?
A. Slippery floors
B. High blood pressure
✔✔C. Lying about smoking
D. Working at a construction site
What is the purpose of the entire contract clause?
1
,✔✔A. To ensure the policy and application form the full agreement
B. To allow future changes without consent
C. To give the insurer extra time to pay claims
D. To allow the agent to revise benefits
An insurer may delay loan payments from a life policy’s cash value for up to:
A. 15 days
✔✔B. 6 months
C. 1 year
D. 2 years
Which nonforfeiture option continues coverage with reduced death benefit?
A. Extended term
B. Paid-up additions
✔✔C. Reduced paid-up insurance
D. Automatic premium loan
Which of these allows a policy to remain active if premiums are missed?
2
,✔✔A. Grace period
B. Policy loan
C. Waiver of premium
D. Reinstatement
In health insurance, which of these helps cover lost income due to illness or injury?
A. Medical expense insurance
✔✔B. Disability income insurance
C. Accidental death benefit
D. Long-term care
What is a typical reason someone would buy term life insurance?
A. To generate long-term investment gains
✔✔B. To protect a temporary need
C. To receive policy dividends
D. To earn interest on premiums
A group plan requires minimum participation. Why?
3
, ✔✔A. To prevent adverse selection
B. To reduce agent commissions
C. To cover dependents
D. To qualify for Medicaid
Which rider provides additional insurance if the insured dies in an accident?
✔✔A. Accidental death benefit
B. Waiver of premium
C. Long-term care
D. Disability income
Who can make changes to a life policy contract?
✔✔A. An executive officer of the insurer
B. The agent
C. The insured
D. Any beneficiary
What does the misstatement of age provision allow the insurer to do?
4
and Health Exam Simulator - 200
Questions and Answers Latest Version
Already Passed
What happens if an insured lies on an application but the policy is in force for more than two
years?
A. The policy is voided automatically
B. Premiums increase
✔✔C. The insurer cannot contest the claim
D. Coverage switches to term only
Which of the following is an example of moral hazard?
A. Slippery floors
B. High blood pressure
✔✔C. Lying about smoking
D. Working at a construction site
What is the purpose of the entire contract clause?
1
,✔✔A. To ensure the policy and application form the full agreement
B. To allow future changes without consent
C. To give the insurer extra time to pay claims
D. To allow the agent to revise benefits
An insurer may delay loan payments from a life policy’s cash value for up to:
A. 15 days
✔✔B. 6 months
C. 1 year
D. 2 years
Which nonforfeiture option continues coverage with reduced death benefit?
A. Extended term
B. Paid-up additions
✔✔C. Reduced paid-up insurance
D. Automatic premium loan
Which of these allows a policy to remain active if premiums are missed?
2
,✔✔A. Grace period
B. Policy loan
C. Waiver of premium
D. Reinstatement
In health insurance, which of these helps cover lost income due to illness or injury?
A. Medical expense insurance
✔✔B. Disability income insurance
C. Accidental death benefit
D. Long-term care
What is a typical reason someone would buy term life insurance?
A. To generate long-term investment gains
✔✔B. To protect a temporary need
C. To receive policy dividends
D. To earn interest on premiums
A group plan requires minimum participation. Why?
3
, ✔✔A. To prevent adverse selection
B. To reduce agent commissions
C. To cover dependents
D. To qualify for Medicaid
Which rider provides additional insurance if the insured dies in an accident?
✔✔A. Accidental death benefit
B. Waiver of premium
C. Long-term care
D. Disability income
Who can make changes to a life policy contract?
✔✔A. An executive officer of the insurer
B. The agent
C. The insured
D. Any beneficiary
What does the misstatement of age provision allow the insurer to do?
4
