XCEL STATE EXAM SIMULATOR
1
An agent that sells _____ Life insurance MUST be registered with the Financial
Industry Regulatory Authority (FINRA) - ANSWERS-Variable
The policy summary contains specific information on all of the following,
EXCEPT: - ANSWERS-Commission
K is an agent who made an improper sale of an annuity to a client. Which of the
following corrective actions would the Department of Financial Services likely
order K to take? - ANSWERS-pay the monetary restitution to the client
G purchased a Family Income policy at age 40, The policy has a 20-year rider
period. If G were to die at age 50, how long would G's family receive an
income? - ANSWERS-10 years
Which of the following policies is characterized by a flexible premium and
death benefit and allows the policyowner control of the investment aspect of the
plan - ANSWERS-variable universal life
A CEO's personal assistant suffered injuries at home and as a result, was unable
to work for four months. Which type of policy will pay a monthly benefit to the
personal assistant? - ANSWERS-disability income
How do life insurance companies handle cases where the insured commits
suicide within the contract's stated Contestable period? - ANSWERS-claims are
denied under the suicide clause of the policy
,When is it acceptable to share commissions with another agent? - ANSWERS-
as long as both agents are licensed for the same lines of insurance
K made a fraudulent statement on her health insurance policy application. In the
event of a claim on this policy, the insurance company is required to pay -
ANSWERS-nothing
An insurance company must act on an Accident and Health insurance
application for reinstatement within _____ days - ANSWERS-45
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month
at age 70 for life. What type of annuity did N purchase? - ANSWERS-Fixed
deferred
When a policyowner exchanges a term policy for a whole life policy without
providing proof of good health, which of these apply? - ANSWERS-conversion
provision
A person insured under a health policy is required to give the insurance
company a Notice of Claim within how many days after a covered loss? -
ANSWERS-twenty days
The policy provision that entitles the insurer to establish conditions the insured
must meet while a claim is pending is - ANSWERS-time limit on certain
defenses
Which of these is NOT a source of funding for Social Security benefits? -
ANSWERS-Federal government
, P is a new employee and will be obtaining non-contributory group Major
Medical insurance from her employer. Which of the following actions must she
take during the open enrollment period? - ANSWERS-sign an enrollment card
Which of these actions should a producer take when submitting an insurance
application to an insurer? - ANSWERS-inform insurer of relevant information
not included on the application
What kind of insurance policy supplies an income stream over a set period of
time that starts when the insured dies? - ANSWERS-Family Maintenance Policy
Which of the following is NOT required on every insurance application sold in
Florida? - ANSWERS-address and phone number of the agent
An insured covered by a group Major Medical plan is hospitalized after
sustaining injuries that resulted from an automobile accident. Assuming the plan
had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the
INSURED be responsible to pay with $11,000 in covered medical expenses? -
ANSWERS-3000
Which of the following is a standard provision of the conversion privileges in a
Group Life policy? - ANSWERS-Group Life coverage can be converted to an
individual policy at regular rates on an attained-age basis
All of these are characteristics of a Health Reimbursement Arrangement (HRA)
EXCEPT - ANSWERS-HRA is entirely funded by the employee
G is an accountant who has ten employees and is concerned about how the
business would survive financially if G became disabled. The type of policy
which BEST addresses this concern is - ANSWERS-Business Overhead
Expenses
1
An agent that sells _____ Life insurance MUST be registered with the Financial
Industry Regulatory Authority (FINRA) - ANSWERS-Variable
The policy summary contains specific information on all of the following,
EXCEPT: - ANSWERS-Commission
K is an agent who made an improper sale of an annuity to a client. Which of the
following corrective actions would the Department of Financial Services likely
order K to take? - ANSWERS-pay the monetary restitution to the client
G purchased a Family Income policy at age 40, The policy has a 20-year rider
period. If G were to die at age 50, how long would G's family receive an
income? - ANSWERS-10 years
Which of the following policies is characterized by a flexible premium and
death benefit and allows the policyowner control of the investment aspect of the
plan - ANSWERS-variable universal life
A CEO's personal assistant suffered injuries at home and as a result, was unable
to work for four months. Which type of policy will pay a monthly benefit to the
personal assistant? - ANSWERS-disability income
How do life insurance companies handle cases where the insured commits
suicide within the contract's stated Contestable period? - ANSWERS-claims are
denied under the suicide clause of the policy
,When is it acceptable to share commissions with another agent? - ANSWERS-
as long as both agents are licensed for the same lines of insurance
K made a fraudulent statement on her health insurance policy application. In the
event of a claim on this policy, the insurance company is required to pay -
ANSWERS-nothing
An insurance company must act on an Accident and Health insurance
application for reinstatement within _____ days - ANSWERS-45
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month
at age 70 for life. What type of annuity did N purchase? - ANSWERS-Fixed
deferred
When a policyowner exchanges a term policy for a whole life policy without
providing proof of good health, which of these apply? - ANSWERS-conversion
provision
A person insured under a health policy is required to give the insurance
company a Notice of Claim within how many days after a covered loss? -
ANSWERS-twenty days
The policy provision that entitles the insurer to establish conditions the insured
must meet while a claim is pending is - ANSWERS-time limit on certain
defenses
Which of these is NOT a source of funding for Social Security benefits? -
ANSWERS-Federal government
, P is a new employee and will be obtaining non-contributory group Major
Medical insurance from her employer. Which of the following actions must she
take during the open enrollment period? - ANSWERS-sign an enrollment card
Which of these actions should a producer take when submitting an insurance
application to an insurer? - ANSWERS-inform insurer of relevant information
not included on the application
What kind of insurance policy supplies an income stream over a set period of
time that starts when the insured dies? - ANSWERS-Family Maintenance Policy
Which of the following is NOT required on every insurance application sold in
Florida? - ANSWERS-address and phone number of the agent
An insured covered by a group Major Medical plan is hospitalized after
sustaining injuries that resulted from an automobile accident. Assuming the plan
had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the
INSURED be responsible to pay with $11,000 in covered medical expenses? -
ANSWERS-3000
Which of the following is a standard provision of the conversion privileges in a
Group Life policy? - ANSWERS-Group Life coverage can be converted to an
individual policy at regular rates on an attained-age basis
All of these are characteristics of a Health Reimbursement Arrangement (HRA)
EXCEPT - ANSWERS-HRA is entirely funded by the employee
G is an accountant who has ten employees and is concerned about how the
business would survive financially if G became disabled. The type of policy
which BEST addresses this concern is - ANSWERS-Business Overhead
Expenses
