XCEL TESTING SOLUTIONS - LOUISIANA
LIFE
and Health Exam Simulator
200 Questions & Answers
1.Which dividend option would an insurer invest the policy owner's
money and add any interest earnings as the dividends accrue?
-Accumulation at Interest Option
-Cash Dividend Option
-Paid-Up Additions Option
-One-Year Term Dividend Option
Answer The Accumulation at Interest Option -
invests the policy owner's money and adds interest earnings to the initia
amount of the dividends.
2.Decreasing term life insurance is often used to?
-provide retirement funds
-provide coverage for a home mortgage
-accumulate cash value
-provide coverage for estate taxes
Answer Provide coverage for a home mortgage- A common use for
,decreasing term life insurance is to cover a home mortgage.
3.Written notice for a health claim must be given to the insurer days
after the occurrence of the loss.
-10-20-31-60
Answer 20
Written notice for a health claim must be given to the insurer 20 days
after the occurrence of the loss.
4.In order to activate the reinstatement clause of a lapsed life insurance
policy, the insured MUST
- remit all past-due premiums within the grace period
- provide evidence of insurability to the insurer
- resubmit a new life insurance application
-provide a valid reason for the lapse
Answer provide evidence of insurability to the insurer
5.The suicide clause of a life insurance policy states that if an insured com-
mits suicide within a stated period from the policy's inception, the insurer
will only be liable for a return of premiums paid
- minus indebtedness and with interest
- during the last 12 months
-minus indebtedness and without interest
- during the last 6 months
Answer minus indebtedness and without interest
,The suicide clause of a life insurance policy states that if an insured
commits suicide within a stated period from the policy's inception, the
insurer will only be liable for a return of premiums paid minus
indebtedness and without interest.
6.What does a life insurance policy guarantee to the stated beneficiary
upon the death of the insured?
- Policy Dividend
- Specified amount of money
- Policy's cash value
- Funeral expense fund
Answer Specified amount of money
Life insurance guarantees to the beneficiary a specified sum of money
in the event of the insured's death.
7.An insurance producer is often responsible for field underwriting during
the application process. All of these are possible field underwriting roles
EXCEPT
- providing disclosure information to the applicant
- collecting initial premium
- policy delivery
- providing commission information to the applicant
Answer providing commission information to the applicant
All of these are field underwriting roles an insurance producer may
, perform EXCEPT "providing commission information to the applicant".
8.Krissa purchases a 10-year level term life insurance policy that has a
death benefit of $200,000. Which of these statements is true?
- The policy automatically converts to whole life after the 10-year period
- The face amount will remain constant and the premium will increase over
the 10-year period
The premium will remain constant and the face amount will increase over
the 10-year period
The face amount and premium will remain constant over the 10-year period
Answer - The premium will remain constant and the face amount will
increase over the 10-year period
"The face amount and premium will remain constant over the 10-year
period". In this situation, the premium and the face amount will remain
constant for the 10-year period.
9.When can a group health policy renewal be denied according to the
Health Insurance Portability and Accountability Act (HIPAA)?
- When a change of management has occurred within the group
- When the annual number of claims has increased by 25%
- When contribution or participation rules have been violated
-When group participation has increased by 25%
Answer When contribution or partici- pation rules have been violated
According to HIPAA, a group health policy renewal can be denied when
LIFE
and Health Exam Simulator
200 Questions & Answers
1.Which dividend option would an insurer invest the policy owner's
money and add any interest earnings as the dividends accrue?
-Accumulation at Interest Option
-Cash Dividend Option
-Paid-Up Additions Option
-One-Year Term Dividend Option
Answer The Accumulation at Interest Option -
invests the policy owner's money and adds interest earnings to the initia
amount of the dividends.
2.Decreasing term life insurance is often used to?
-provide retirement funds
-provide coverage for a home mortgage
-accumulate cash value
-provide coverage for estate taxes
Answer Provide coverage for a home mortgage- A common use for
,decreasing term life insurance is to cover a home mortgage.
3.Written notice for a health claim must be given to the insurer days
after the occurrence of the loss.
-10-20-31-60
Answer 20
Written notice for a health claim must be given to the insurer 20 days
after the occurrence of the loss.
4.In order to activate the reinstatement clause of a lapsed life insurance
policy, the insured MUST
- remit all past-due premiums within the grace period
- provide evidence of insurability to the insurer
- resubmit a new life insurance application
-provide a valid reason for the lapse
Answer provide evidence of insurability to the insurer
5.The suicide clause of a life insurance policy states that if an insured com-
mits suicide within a stated period from the policy's inception, the insurer
will only be liable for a return of premiums paid
- minus indebtedness and with interest
- during the last 12 months
-minus indebtedness and without interest
- during the last 6 months
Answer minus indebtedness and without interest
,The suicide clause of a life insurance policy states that if an insured
commits suicide within a stated period from the policy's inception, the
insurer will only be liable for a return of premiums paid minus
indebtedness and without interest.
6.What does a life insurance policy guarantee to the stated beneficiary
upon the death of the insured?
- Policy Dividend
- Specified amount of money
- Policy's cash value
- Funeral expense fund
Answer Specified amount of money
Life insurance guarantees to the beneficiary a specified sum of money
in the event of the insured's death.
7.An insurance producer is often responsible for field underwriting during
the application process. All of these are possible field underwriting roles
EXCEPT
- providing disclosure information to the applicant
- collecting initial premium
- policy delivery
- providing commission information to the applicant
Answer providing commission information to the applicant
All of these are field underwriting roles an insurance producer may
, perform EXCEPT "providing commission information to the applicant".
8.Krissa purchases a 10-year level term life insurance policy that has a
death benefit of $200,000. Which of these statements is true?
- The policy automatically converts to whole life after the 10-year period
- The face amount will remain constant and the premium will increase over
the 10-year period
The premium will remain constant and the face amount will increase over
the 10-year period
The face amount and premium will remain constant over the 10-year period
Answer - The premium will remain constant and the face amount will
increase over the 10-year period
"The face amount and premium will remain constant over the 10-year
period". In this situation, the premium and the face amount will remain
constant for the 10-year period.
9.When can a group health policy renewal be denied according to the
Health Insurance Portability and Accountability Act (HIPAA)?
- When a change of management has occurred within the group
- When the annual number of claims has increased by 25%
- When contribution or participation rules have been violated
-When group participation has increased by 25%
Answer When contribution or partici- pation rules have been violated
According to HIPAA, a group health policy renewal can be denied when
