XCEL MAIN EXAM SET QUESTIONS AND ANSWERS
GRADED A+
✔✔Manuel is considered to be a disabled person as defined by the Americans with
Disabilities Act (ADA). As such, he is unable to perform any of the following life activities
EXCEPT
a) Communicating
b) Breathing
c) Driving
d) Hearing - ✔✔c)
✔✔An individual covered under a disability income policy may be eligible for a partial
disability benefit if
a) the insured can perform some of their job activities on a part-time basis
b) the insured cannot perform any of their jobs activities
c) the cause of disability was from an accident only
d) the insured is enrolled in a rehabilitation program - ✔✔a)
✔✔Allen has a disability income policy with a $2,500 monthly benefit and a 30-day
elimination period. He is unable work 90 days following an automobile accident. What
will the policy pay ?
a) 0
b) 2500
c) 5000
d) 7500 - ✔✔c)
✔✔Which of the following is a characteristic of the disability elimination period ?
a) Benefits are optionally payable
b) Benefits are conditionally payable
c) Benefits are unconditionally payable
d) Benefits are not payable - ✔✔d)
✔✔Under a disability income policy, which provision would be payable if the cause of an
injury is unexpected and accidental?
a) only the result need be of natural cause
b) only the cause need be accidental
c) both the injury and the cause need be accidental
,d) the cause may be intentional, but the result must be accidental - ✔✔d)
✔✔Kim is insured under a disability income insurance policy with an "own-occupation"
clause. She was recently injured in an automobile accident and can no longer perform
the tasks of her jobs. Kim is now considered to be
a) short-term disabled
b) temporarily disabled
c) partially disabled
d) totally disabled - ✔✔d)
✔✔Which of the following is Not a provision in disability income policy ?
a) Change of occupation provision
b) Recurrent disability provision
c) Deductible and coinsurance provision
d) Elimination period provision - ✔✔c)
✔✔Business Overhead Expense Insurance pays for
a) business expenses when a business owner becomes disabled
b) a business owner's salary in the event of the owner's disability
c) any loss in value of a business if the owner becomes disabled
d) business expenses during an economic downturn - ✔✔a)
✔✔Who is financially liable for the payment of covered claims in a fully insured group
health plan?
a) Insurer
b) Group member
c) Health provider
d) Guaranty Association - ✔✔a)
✔✔The problem of overinsurance is addressed in which health insurance provision?
a) Entire contract
b) Suitability
c) Reinstatement
d) Coordination of benefits - ✔✔d)
✔✔What percentage of eligible employees must participate in a noncontributory group
health plan before it can be put in effect ?
, a) 0%
b) 25%
c) 50 %
d) 100 % - ✔✔d)
✔✔Minimum participation standards exist for group health insurance plans in order to
a) cover the agent's commission
b) prevent adverse selection
c) avoid treating benefits as taxable income
d) meet state requirements - ✔✔b)
✔✔A health insurance policy paid on a quarterly basis has a grace period of
a) 7 days
b) 10 days
c) 31 days
d) 60 days - ✔✔c)
✔✔The misstatement of age provision in a health policy states that if an insured gives
the wrong age at the time of application, what action can the insurance company take ?
a) Reissue the policy
b) Policy cancellation
c) Benefits can be adjusted
d) Premiums can be adjusted - ✔✔c)
✔✔Which type of health insurance policy cannot be canceled by the insurer nor
increase the premiums?
a) Renewable
b) Noncancellable
c) Guaranteed renewable
d) Conditionally renewable - ✔✔b)
✔✔Christine has a health insurance policy that has been in force beyond the
incontestable period. The insurer has discovered that a fraudulent statement was made
on the application. What would the insurer have to pay on a claim, assuming this wasn't
a guaranteed renewable policy ?
a) nothing
b) 50 % of the claim's amount
c) 75 % of the claim's amount
d) 100 % of the claim's amount - ✔✔a)
GRADED A+
✔✔Manuel is considered to be a disabled person as defined by the Americans with
Disabilities Act (ADA). As such, he is unable to perform any of the following life activities
EXCEPT
a) Communicating
b) Breathing
c) Driving
d) Hearing - ✔✔c)
✔✔An individual covered under a disability income policy may be eligible for a partial
disability benefit if
a) the insured can perform some of their job activities on a part-time basis
b) the insured cannot perform any of their jobs activities
c) the cause of disability was from an accident only
d) the insured is enrolled in a rehabilitation program - ✔✔a)
✔✔Allen has a disability income policy with a $2,500 monthly benefit and a 30-day
elimination period. He is unable work 90 days following an automobile accident. What
will the policy pay ?
a) 0
b) 2500
c) 5000
d) 7500 - ✔✔c)
✔✔Which of the following is a characteristic of the disability elimination period ?
a) Benefits are optionally payable
b) Benefits are conditionally payable
c) Benefits are unconditionally payable
d) Benefits are not payable - ✔✔d)
✔✔Under a disability income policy, which provision would be payable if the cause of an
injury is unexpected and accidental?
a) only the result need be of natural cause
b) only the cause need be accidental
c) both the injury and the cause need be accidental
,d) the cause may be intentional, but the result must be accidental - ✔✔d)
✔✔Kim is insured under a disability income insurance policy with an "own-occupation"
clause. She was recently injured in an automobile accident and can no longer perform
the tasks of her jobs. Kim is now considered to be
a) short-term disabled
b) temporarily disabled
c) partially disabled
d) totally disabled - ✔✔d)
✔✔Which of the following is Not a provision in disability income policy ?
a) Change of occupation provision
b) Recurrent disability provision
c) Deductible and coinsurance provision
d) Elimination period provision - ✔✔c)
✔✔Business Overhead Expense Insurance pays for
a) business expenses when a business owner becomes disabled
b) a business owner's salary in the event of the owner's disability
c) any loss in value of a business if the owner becomes disabled
d) business expenses during an economic downturn - ✔✔a)
✔✔Who is financially liable for the payment of covered claims in a fully insured group
health plan?
a) Insurer
b) Group member
c) Health provider
d) Guaranty Association - ✔✔a)
✔✔The problem of overinsurance is addressed in which health insurance provision?
a) Entire contract
b) Suitability
c) Reinstatement
d) Coordination of benefits - ✔✔d)
✔✔What percentage of eligible employees must participate in a noncontributory group
health plan before it can be put in effect ?
, a) 0%
b) 25%
c) 50 %
d) 100 % - ✔✔d)
✔✔Minimum participation standards exist for group health insurance plans in order to
a) cover the agent's commission
b) prevent adverse selection
c) avoid treating benefits as taxable income
d) meet state requirements - ✔✔b)
✔✔A health insurance policy paid on a quarterly basis has a grace period of
a) 7 days
b) 10 days
c) 31 days
d) 60 days - ✔✔c)
✔✔The misstatement of age provision in a health policy states that if an insured gives
the wrong age at the time of application, what action can the insurance company take ?
a) Reissue the policy
b) Policy cancellation
c) Benefits can be adjusted
d) Premiums can be adjusted - ✔✔c)
✔✔Which type of health insurance policy cannot be canceled by the insurer nor
increase the premiums?
a) Renewable
b) Noncancellable
c) Guaranteed renewable
d) Conditionally renewable - ✔✔b)
✔✔Christine has a health insurance policy that has been in force beyond the
incontestable period. The insurer has discovered that a fraudulent statement was made
on the application. What would the insurer have to pay on a claim, assuming this wasn't
a guaranteed renewable policy ?
a) nothing
b) 50 % of the claim's amount
c) 75 % of the claim's amount
d) 100 % of the claim's amount - ✔✔a)
