XCEL CHAPTER 10 - HEALTH
INSURANCE UNDERWRITING EXAM
2025 QUESTIONS AND ANSWERS
One of the most important considerations when replacing health insurance would be the -
ANS Exclusions on a new policy
The gatekeeper's role when used by an HMO is - ANS obtaining referrals to specialists from
primary care physicians
What happens when an insurance policy is backdated? - ANS The policy's effective date is
earlier than the present
An insurance producer is often responsible for field underwriting during the application
process. All of these are possible field underwriting roles EXCEPT - ANS providing commission
information to the applicant
Underwriters can acquire information from all of the following sources EXCEPT - ANS genetic
testing
Which of the following pertains to the analysis of an applicant's personal information and
determining whether insurance should be issued or declined? - ANS Underwriting
A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA,
this tax will not be applied if the withdrawal is used for medical expenses that exceed ____ of
the individual's adjusted gross income. - ANS C) 7.5%
1 @COPYRIGHT THEBRIGHT 2025/2026
, What is the purpose of the Medical Information Bureau (MIB)? - ANS To help underwriters
evaluate risk
Premium mode is a term used to describe the - ANS frequency of the premium payment
Field underwriting performed by the producer involves - ANS completing the application and
collecting initial premium
Which of the following is considered to be a point of service (POS) plan? - ANS Managed care
plan
Signatures for an insurance application MUST be obtained by the producer from all of the
following sources EXCEPT - ANS the beneficiary
All of the following are primary risk factors in underwriting individual health insurance policies
EXCEPT - ANS Geographical location
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the
premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under
this plan? - ANS D) $0
An insurance applicant with a below-average likelihood of loss is typically considered to be a -
ANS preferred risk
All of these are typically sources of underwriting information for life or health insurance EXCEPT
- ANS Disclosure authorization response
Statements made by an insurance applicant on an application are considered to be -
ANS representations
2 @COPYRIGHT THEBRIGHT 2025/2026
INSURANCE UNDERWRITING EXAM
2025 QUESTIONS AND ANSWERS
One of the most important considerations when replacing health insurance would be the -
ANS Exclusions on a new policy
The gatekeeper's role when used by an HMO is - ANS obtaining referrals to specialists from
primary care physicians
What happens when an insurance policy is backdated? - ANS The policy's effective date is
earlier than the present
An insurance producer is often responsible for field underwriting during the application
process. All of these are possible field underwriting roles EXCEPT - ANS providing commission
information to the applicant
Underwriters can acquire information from all of the following sources EXCEPT - ANS genetic
testing
Which of the following pertains to the analysis of an applicant's personal information and
determining whether insurance should be issued or declined? - ANS Underwriting
A 10% excise tax is normally applied to an early withdrawal from an IRA. According to HIPAA,
this tax will not be applied if the withdrawal is used for medical expenses that exceed ____ of
the individual's adjusted gross income. - ANS C) 7.5%
1 @COPYRIGHT THEBRIGHT 2025/2026
, What is the purpose of the Medical Information Bureau (MIB)? - ANS To help underwriters
evaluate risk
Premium mode is a term used to describe the - ANS frequency of the premium payment
Field underwriting performed by the producer involves - ANS completing the application and
collecting initial premium
Which of the following is considered to be a point of service (POS) plan? - ANS Managed care
plan
Signatures for an insurance application MUST be obtained by the producer from all of the
following sources EXCEPT - ANS the beneficiary
All of the following are primary risk factors in underwriting individual health insurance policies
EXCEPT - ANS Geographical location
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the
premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under
this plan? - ANS D) $0
An insurance applicant with a below-average likelihood of loss is typically considered to be a -
ANS preferred risk
All of these are typically sources of underwriting information for life or health insurance EXCEPT
- ANS Disclosure authorization response
Statements made by an insurance applicant on an application are considered to be -
ANS representations
2 @COPYRIGHT THEBRIGHT 2025/2026
