XCEL SOLUTIONS - FINAL EXAM
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an
automobile accident, where would the death proceeds be directed? - Answer: Daughter
When is a Group Health policy required to provide coverage for a newborn child? - Answer: At
the moment of birth
What is the required renewability status of all Medicare supplement policies? - Answer:
Guaranteed renewable
Who issues Medicare Supplement policies? - Answer: insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived
due to disability? - Answer: P will still receive declared dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? -
Answer: 20-pay life
The Nevada Insurance Guaranty Association - Answer: protects Nevada insurance policy owners
in the event an insurance company becomes insolvent
The most important factor to consider when determining whether to convert term insurance at
the insured's attained age or to the insured's original age is: - Answer: the cost
A Medicare Supplement policy may be cancelled for which of the following reasons? - Answer:
The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: - Answer: The entire cost of the plan
is paid for by the employer
,XCEL SOLUTIONS - FINAL EXAM
Variable annuities may invest premiums in each of the following, EXCEPT: - Answer: Insurer's
corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? - Answer:
Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which
of these reports? - Answer: Inspection report
T is receiving $3,000/month from a Disability Income policy in which T's employer has pad the
premiums. How are the $3,000 benefit payments taxable? - Answer: Benefits are taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that starts
when the insured dies? - Answer: Family Maintenance Policy
Basic Medical Expense insurance: - Answer: has lower benefit limits than Major Medical
Insurance
What is the requirement for maintaining an individual Nevada producer license? - Answer:
completing 30 hours of continuing education every 3 years
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - Answer: Twisting
Which of these is considered a mandatory provision? - Answer: payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? - Answer: payor
benefit rider
, XCEL SOLUTIONS - FINAL EXAM
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take
the required minimum distributions from their qualified retirement plan? - Answer: 50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance
clause. How much will the INSURED have to pay if a total of $15,000 in covered medical
expenses are incurred? - Answer: $7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100%
premium refund? - Answer: 30
Which of the following is an example of defamation? - Answer: circulating brochures that falsely
denounce the financial condition of an insurer
T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially
disabled, what can he likely expect? - Answer: Less than $5,000 per month benefit regardless of
the cause
A Medicare Supplement policyholder has ___ days to return the policy and receive a full
premium refund. - Answer: 30
The health insurance program which is administered by each state and funded by both the
federal and state governments is called: - Answer: Medicaid
Which of these is NOT considered to be a cost connected with an individual's death? - Answer:
Business expenses
Group life insurance policies are generally written as - Answer: annually renewable term
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an
automobile accident, where would the death proceeds be directed? - Answer: Daughter
When is a Group Health policy required to provide coverage for a newborn child? - Answer: At
the moment of birth
What is the required renewability status of all Medicare supplement policies? - Answer:
Guaranteed renewable
Who issues Medicare Supplement policies? - Answer: insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived
due to disability? - Answer: P will still receive declared dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? -
Answer: 20-pay life
The Nevada Insurance Guaranty Association - Answer: protects Nevada insurance policy owners
in the event an insurance company becomes insolvent
The most important factor to consider when determining whether to convert term insurance at
the insured's attained age or to the insured's original age is: - Answer: the cost
A Medicare Supplement policy may be cancelled for which of the following reasons? - Answer:
The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: - Answer: The entire cost of the plan
is paid for by the employer
,XCEL SOLUTIONS - FINAL EXAM
Variable annuities may invest premiums in each of the following, EXCEPT: - Answer: Insurer's
corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? - Answer:
Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which
of these reports? - Answer: Inspection report
T is receiving $3,000/month from a Disability Income policy in which T's employer has pad the
premiums. How are the $3,000 benefit payments taxable? - Answer: Benefits are taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that starts
when the insured dies? - Answer: Family Maintenance Policy
Basic Medical Expense insurance: - Answer: has lower benefit limits than Major Medical
Insurance
What is the requirement for maintaining an individual Nevada producer license? - Answer:
completing 30 hours of continuing education every 3 years
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - Answer: Twisting
Which of these is considered a mandatory provision? - Answer: payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? - Answer: payor
benefit rider
, XCEL SOLUTIONS - FINAL EXAM
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take
the required minimum distributions from their qualified retirement plan? - Answer: 50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance
clause. How much will the INSURED have to pay if a total of $15,000 in covered medical
expenses are incurred? - Answer: $7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100%
premium refund? - Answer: 30
Which of the following is an example of defamation? - Answer: circulating brochures that falsely
denounce the financial condition of an insurer
T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially
disabled, what can he likely expect? - Answer: Less than $5,000 per month benefit regardless of
the cause
A Medicare Supplement policyholder has ___ days to return the policy and receive a full
premium refund. - Answer: 30
The health insurance program which is administered by each state and funded by both the
federal and state governments is called: - Answer: Medicaid
Which of these is NOT considered to be a cost connected with an individual's death? - Answer:
Business expenses
Group life insurance policies are generally written as - Answer: annually renewable term
