CT Life & Health Insurance Exam XCEL Solutions &
Prometric Questions With Complete Solutions
A 55 year old recently received a $30,000 distribution from a
previous employer's 401k plan, minus $6,000 for income tax
withholding. Which federal taxes apply if none of the funds
were rolled over? Correct Answers Income taxes plus a 10%
penalty tax on $30,000
A certificate of coverage for a group health policy is best
described as Correct Answers Proof of coverage for the
employee
A characteristic of preferred provider organizations (PPO) is
Correct Answers If service is obtained outside the PPO, benefits
are reduced and costs increase
A comprehensive group policy also covers expenses related to
vision care. Which of the following is not typically covered
under a vision plan? Correct Answers Cataract surgery
(Routine eye exam, corrective vision glasses, corrective contact
lenses)
A comprehensive major medical health insurance policy
contains an Eligible Expenses provision which identifies the
types of health care services that are covered. All of the
following health care services are typically covered EXCEPT
for Correct Answers Experimental and investigative services
(Hospital charges, physician fees, nursing services)
,A consumer who has been recently denied insurance, credit, or
employment based on an unfavorable consumer report MUST be
advised as such. Which of the following does this statute
originate from? Correct Answers Fair Credit Reporting Act
A group health certificate for coverage issued in Connecticut
MUST contain a(n) Correct Answers Summary of policy
features and benefits
A group health plan covers employees in CT, MA, and RI. The
state regulatory jurisdiction established for this plan does NOT
affect which plan aspect? Correct Answers COBRA
continuation of coverage
(Required contract provisions, qualifications for eligibility,
minimum enrollment percentages)
A Guaranteed Renewable provision allows Correct Answers
Premiums which can only be increased per rate class
A handicapped child is covered under an individual health
policy. If continuation of coverage is needed beyond the policy's
age limit, which of the following is required? Correct Answers
Proof of incapacity and dependency upon reaching the age limit
A licensee whose name or address changes must notify the
Commissioner within _______ days. Correct Answers 30
A life insurance beneficiary died after receiving only six
payments under the policy's life income settlement option. What
,happens with the remaining balance of the death proceeds?
Correct Answers Kept by the insurance company
A life insurance company just paid a $100,000 death benefit to a
beneficiary. When the insured died, the cash value was $15,000
and the total premiums-paid equaled $10,000. How much of the
proceeds will be added to the beneficiary's gross income for
federal income tax purposes? Correct Answers Nothing
A life insurance policyowner sells her policy to a third party in a
life settlement. Under this transaction, the policyowner Correct
Answers Receives an amount less than the policy's death
benefit
A life insurance policyowner would like a dividend option that
results in a limited current outlay of funds. Which dividend
option would be chosen? Correct Answers Reduction of
premium payment
A life insurance producer is required to give a disclosure notice
about information practices to an applicant or proposed insured
Correct Answers Prior to or at the time of signing the
application
A life insurance producer's underwriting duties may include
Correct Answers Seeking additional information requested by
the insurance company
A life settlement _______ negotiates a life settlement between a
policyowner and a life settlement provider. Correct Answers
Broker
, A major medical expense policy typically does NOT Correct
Answers Pay surgeon fees on a first-dollar basis
(Contain a deductible, have a high limit of coverage, contain a
coinsurance provision)
A medical fee schedule shows the amount an insurer will pay for
a given procedure. This amount is considered to be the Correct
Answers Highest amount payable
A policyowner fell behind on the premium payments of a whole
life policy and is now in the grace period. How much will the
beneficiary receive if the insured dies during this grace period
and the policy also contains an outstanding policy loan? Correct
Answers Face amount minus the loan balance and past-due
premium
A policyowner has just borrowed from a life insurance policy's
cash value. Which of these statements is true? Correct Answers
In the event of death, the loan amount is deducted from the
policy proceeds
A policyowner pays the first annual premium for a $50,000 life
insurance policy and dies one month after the policy effective
date. Which of these statements is normally true? Correct
Answers Beneficiary receives $50,000 income tax-free
A prepaid dental plan has an agreement in place with a network
of dentists which Correct Answers Accepts an established
amount as payment in full for the dental services rendered
Prometric Questions With Complete Solutions
A 55 year old recently received a $30,000 distribution from a
previous employer's 401k plan, minus $6,000 for income tax
withholding. Which federal taxes apply if none of the funds
were rolled over? Correct Answers Income taxes plus a 10%
penalty tax on $30,000
A certificate of coverage for a group health policy is best
described as Correct Answers Proof of coverage for the
employee
A characteristic of preferred provider organizations (PPO) is
Correct Answers If service is obtained outside the PPO, benefits
are reduced and costs increase
A comprehensive group policy also covers expenses related to
vision care. Which of the following is not typically covered
under a vision plan? Correct Answers Cataract surgery
(Routine eye exam, corrective vision glasses, corrective contact
lenses)
A comprehensive major medical health insurance policy
contains an Eligible Expenses provision which identifies the
types of health care services that are covered. All of the
following health care services are typically covered EXCEPT
for Correct Answers Experimental and investigative services
(Hospital charges, physician fees, nursing services)
,A consumer who has been recently denied insurance, credit, or
employment based on an unfavorable consumer report MUST be
advised as such. Which of the following does this statute
originate from? Correct Answers Fair Credit Reporting Act
A group health certificate for coverage issued in Connecticut
MUST contain a(n) Correct Answers Summary of policy
features and benefits
A group health plan covers employees in CT, MA, and RI. The
state regulatory jurisdiction established for this plan does NOT
affect which plan aspect? Correct Answers COBRA
continuation of coverage
(Required contract provisions, qualifications for eligibility,
minimum enrollment percentages)
A Guaranteed Renewable provision allows Correct Answers
Premiums which can only be increased per rate class
A handicapped child is covered under an individual health
policy. If continuation of coverage is needed beyond the policy's
age limit, which of the following is required? Correct Answers
Proof of incapacity and dependency upon reaching the age limit
A licensee whose name or address changes must notify the
Commissioner within _______ days. Correct Answers 30
A life insurance beneficiary died after receiving only six
payments under the policy's life income settlement option. What
,happens with the remaining balance of the death proceeds?
Correct Answers Kept by the insurance company
A life insurance company just paid a $100,000 death benefit to a
beneficiary. When the insured died, the cash value was $15,000
and the total premiums-paid equaled $10,000. How much of the
proceeds will be added to the beneficiary's gross income for
federal income tax purposes? Correct Answers Nothing
A life insurance policyowner sells her policy to a third party in a
life settlement. Under this transaction, the policyowner Correct
Answers Receives an amount less than the policy's death
benefit
A life insurance policyowner would like a dividend option that
results in a limited current outlay of funds. Which dividend
option would be chosen? Correct Answers Reduction of
premium payment
A life insurance producer is required to give a disclosure notice
about information practices to an applicant or proposed insured
Correct Answers Prior to or at the time of signing the
application
A life insurance producer's underwriting duties may include
Correct Answers Seeking additional information requested by
the insurance company
A life settlement _______ negotiates a life settlement between a
policyowner and a life settlement provider. Correct Answers
Broker
, A major medical expense policy typically does NOT Correct
Answers Pay surgeon fees on a first-dollar basis
(Contain a deductible, have a high limit of coverage, contain a
coinsurance provision)
A medical fee schedule shows the amount an insurer will pay for
a given procedure. This amount is considered to be the Correct
Answers Highest amount payable
A policyowner fell behind on the premium payments of a whole
life policy and is now in the grace period. How much will the
beneficiary receive if the insured dies during this grace period
and the policy also contains an outstanding policy loan? Correct
Answers Face amount minus the loan balance and past-due
premium
A policyowner has just borrowed from a life insurance policy's
cash value. Which of these statements is true? Correct Answers
In the event of death, the loan amount is deducted from the
policy proceeds
A policyowner pays the first annual premium for a $50,000 life
insurance policy and dies one month after the policy effective
date. Which of these statements is normally true? Correct
Answers Beneficiary receives $50,000 income tax-free
A prepaid dental plan has an agreement in place with a network
of dentists which Correct Answers Accepts an established
amount as payment in full for the dental services rendered
