Maryland Life & health Xcel Solutions Exam
Practice Questions with Reliable Answers
What is normally the consequence for NOT obtaining preadmission certification prior to receiving
inpatient medical care? - Answer A reduction in benefits
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - Answer Risk retention group
During the application process, a statement made by an applicant that becomes part of the contract is
considered to be a(n) - Answer Warranty
What is taken into consideration when defining "total disability" in a disability income insurance policy?
- Answer The insured's education, training and experience
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional
benefit payments will be derived primarily from funds that were - Answer not distributed to life
annuitants who died before life expectancy
Which type of policy can group term life insurance normally be converted to? - Answer An individual
permanent life insurance policy
Impatient psychiatric care is covered under Part A Medicare insurance for 190 days per - Answer
Lifetime
A source of supplemental income for a life insurance policyowner can be derived from the - Answer
Cash value
The absolute assignment of a life insurance policy results in - Answer all incidents of ownership
transferred to the assignee
All of these statements concerning group credit life insurance are false EXCEPT - Answer The face
amount is based on the outstanding loan balance
, Which statement concerning adjustable life insurance is accurate? - Answer The face amount and
premiums can be changed simultaneously by the policyowner
Which settlement option makes minimum guaranteed dollar payments over a stated number of years? -
Answer Fixed-Period
Insurance is NOT characterized as which of the following? - Answer As the number of insureds increase
the number of losses decrease
All of these statements correctly describe an aleatory contract EXCEPT - Answer Only one party makes
any kind of legally enforceable offer
Which of these policies is considered to be a comprehensive health policy? - Answer Major medical
policy
Which of the following is true regarding a person receiving a waiver of premium benefit? - Answer The
insured must be disabled for a period of time
Karen is a health maintenance organization (HMO) subscriber. Who provides all of her preventative and
routine care? - Answer Primary care physician
How would preventative care be encouraged in a dental plan? - Answer No deductible on routine
examinations
Which of the following financial products creates an instant estate, no matter when the date of death? -
Answer Life insurance
What happens to the death benefit of a life insurance policy if the insured elects a partial payment from
the accelerated (living) benefit provision? - Answer Reduced
An insured may be required to sign which document at policy delivery to endure there has not been any
adverse medical conditions since the time of the application? - Answer Good health statement
Practice Questions with Reliable Answers
What is normally the consequence for NOT obtaining preadmission certification prior to receiving
inpatient medical care? - Answer A reduction in benefits
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - Answer Risk retention group
During the application process, a statement made by an applicant that becomes part of the contract is
considered to be a(n) - Answer Warranty
What is taken into consideration when defining "total disability" in a disability income insurance policy?
- Answer The insured's education, training and experience
Sarah, age 88, is a life annuitant who has lived beyond her life expectancy. The funds for additional
benefit payments will be derived primarily from funds that were - Answer not distributed to life
annuitants who died before life expectancy
Which type of policy can group term life insurance normally be converted to? - Answer An individual
permanent life insurance policy
Impatient psychiatric care is covered under Part A Medicare insurance for 190 days per - Answer
Lifetime
A source of supplemental income for a life insurance policyowner can be derived from the - Answer
Cash value
The absolute assignment of a life insurance policy results in - Answer all incidents of ownership
transferred to the assignee
All of these statements concerning group credit life insurance are false EXCEPT - Answer The face
amount is based on the outstanding loan balance
, Which statement concerning adjustable life insurance is accurate? - Answer The face amount and
premiums can be changed simultaneously by the policyowner
Which settlement option makes minimum guaranteed dollar payments over a stated number of years? -
Answer Fixed-Period
Insurance is NOT characterized as which of the following? - Answer As the number of insureds increase
the number of losses decrease
All of these statements correctly describe an aleatory contract EXCEPT - Answer Only one party makes
any kind of legally enforceable offer
Which of these policies is considered to be a comprehensive health policy? - Answer Major medical
policy
Which of the following is true regarding a person receiving a waiver of premium benefit? - Answer The
insured must be disabled for a period of time
Karen is a health maintenance organization (HMO) subscriber. Who provides all of her preventative and
routine care? - Answer Primary care physician
How would preventative care be encouraged in a dental plan? - Answer No deductible on routine
examinations
Which of the following financial products creates an instant estate, no matter when the date of death? -
Answer Life insurance
What happens to the death benefit of a life insurance policy if the insured elects a partial payment from
the accelerated (living) benefit provision? - Answer Reduced
An insured may be required to sign which document at policy delivery to endure there has not been any
adverse medical conditions since the time of the application? - Answer Good health statement
