XCEL FINAL EXAM (COMPREHENSIVE OF LIFE AND HEALTH INSURANCE) EXPERT VERIFIED ACTUAL QUESTIONS & ANSWERS FOR
GUARANTEED PASS
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? ✔️Daughter
When is a Group Health policy required to provide coverage for a newborn child? ✔️At the moment of birth
What is the required renewability status of all Medicare supplement policies? ✔️Guaranteed renewable
Who issues Medicare Supplement policies? ✔️insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to disability? ✔️P will still receive declared
dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? ✔️20-pay life
The Nevada Insurance Guaranty Association ✔️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: ✔️the cost
A Medicare Supplement policy may be cancelled for which of the following reasons? ✔️The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: ✔️The entire cost of the plan is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: ✔️Insurer's corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? ✔️Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which of these reports? ✔️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? ✔️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? ✔️Family Maintenance
Policy
Basic Medical Expense insurance: ✔️has lower benefit limits than Major Medical Insurance
What is the requirement for maintaining an individual Nevada producer license? ✔️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? ✔️Twisting
Which of these is considered a mandatory provision? ✔️payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? ✔️payor benefit rider
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? ✔️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? ✔️$7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100% premium refund? ✔️30
Which of the following is an example of defamation? ✔️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? ✔️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. ✔️30
, The health insurance program which is administered by each state and funded by both the federal and state governments is called: ✔️Medicaid
Which of these is NOT considered to be a cost connected with an individual's death? ✔️Business expenses
Group life insurance policies are generally written as ✔️annually renewable term
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue
had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?
✔️The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
According to the Affordable Care Act (ACA), a dependent child's eligibility status is determined by ✔️age
A Long-Term Care policy sold in Nevada MUST be ✔️guaranteed renewable
A health insurance policyholder has ___ days to return the policy and receive a full refund ✔️10
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the
beneficiary designation at anytime. What type of beneficiary is his son? ✔️revocable
On a life insurance policy, who is qualified to change the beneficiary designation? ✔️Policyowner
Which is true concerning a Variable Universal Life policy? ✔️Policyowner controls where the investment will go and selects the amount of the
premium payment
N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision
is known as ✔️coinsurance
Which health policy clause specifies the amount of benefits to be paid? ✔️Insuring
According to Nevada law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? ✔️At the time application
Which of the following is considered to be misrepresentation? ✔️A producer guaranteeing a policy's dividends
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance
company take if T requests a change of beneficiary? ✔️Request of the change will be refused
A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical
Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed
on the application. Which of the following actions would the insurance company NOT take? ✔️Send a notice to the MIB that the applicant was
declined
A person who is insured within a group contract will be given a ✔️certificate
Which of thee contracts are affected by replacement regulations? ✔️Ordinary Life insurance
Which of the following actions is NOT required when a producer is replacing a Medicare Supplement policy? ✔️Producer must notify the
Commissioner of replacement
Which statement regarding the Change of Beneficiary provision is true? ✔️The policyowner can change the beneficiary
A group life insurance policy can be converted to an individual whole life policy under which circumstance? ✔️employment termination
Pre-existing conditions may be excluded on a Medicare Supplement policy for up to ✔️6 months
M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability
Income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her estate? ✔️Earned, but unpaid
benefits
An insurance producer could be found guilty of rebating by ✔️sharing commissions with a client who purchased insurance
C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What
factor would affect her decision the most? ✔️the cost
What type of policy would offer a 40-year old the quickest accumulation of cash value? ✔️20-pay life
GUARANTEED PASS
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? ✔️Daughter
When is a Group Health policy required to provide coverage for a newborn child? ✔️At the moment of birth
What is the required renewability status of all Medicare supplement policies? ✔️Guaranteed renewable
Who issues Medicare Supplement policies? ✔️insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to disability? ✔️P will still receive declared
dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? ✔️20-pay life
The Nevada Insurance Guaranty Association ✔️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: ✔️the cost
A Medicare Supplement policy may be cancelled for which of the following reasons? ✔️The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: ✔️The entire cost of the plan is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: ✔️Insurer's corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? ✔️Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which of these reports? ✔️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? ✔️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? ✔️Family Maintenance
Policy
Basic Medical Expense insurance: ✔️has lower benefit limits than Major Medical Insurance
What is the requirement for maintaining an individual Nevada producer license? ✔️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? ✔️Twisting
Which of these is considered a mandatory provision? ✔️payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? ✔️payor benefit rider
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? ✔️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? ✔️$7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100% premium refund? ✔️30
Which of the following is an example of defamation? ✔️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? ✔️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. ✔️30
, The health insurance program which is administered by each state and funded by both the federal and state governments is called: ✔️Medicaid
Which of these is NOT considered to be a cost connected with an individual's death? ✔️Business expenses
Group life insurance policies are generally written as ✔️annually renewable term
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue
had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?
✔️The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
According to the Affordable Care Act (ACA), a dependent child's eligibility status is determined by ✔️age
A Long-Term Care policy sold in Nevada MUST be ✔️guaranteed renewable
A health insurance policyholder has ___ days to return the policy and receive a full refund ✔️10
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the
beneficiary designation at anytime. What type of beneficiary is his son? ✔️revocable
On a life insurance policy, who is qualified to change the beneficiary designation? ✔️Policyowner
Which is true concerning a Variable Universal Life policy? ✔️Policyowner controls where the investment will go and selects the amount of the
premium payment
N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision
is known as ✔️coinsurance
Which health policy clause specifies the amount of benefits to be paid? ✔️Insuring
According to Nevada law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? ✔️At the time application
Which of the following is considered to be misrepresentation? ✔️A producer guaranteeing a policy's dividends
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance
company take if T requests a change of beneficiary? ✔️Request of the change will be refused
A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical
Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed
on the application. Which of the following actions would the insurance company NOT take? ✔️Send a notice to the MIB that the applicant was
declined
A person who is insured within a group contract will be given a ✔️certificate
Which of thee contracts are affected by replacement regulations? ✔️Ordinary Life insurance
Which of the following actions is NOT required when a producer is replacing a Medicare Supplement policy? ✔️Producer must notify the
Commissioner of replacement
Which statement regarding the Change of Beneficiary provision is true? ✔️The policyowner can change the beneficiary
A group life insurance policy can be converted to an individual whole life policy under which circumstance? ✔️employment termination
Pre-existing conditions may be excluded on a Medicare Supplement policy for up to ✔️6 months
M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability
Income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her estate? ✔️Earned, but unpaid
benefits
An insurance producer could be found guilty of rebating by ✔️sharing commissions with a client who purchased insurance
C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What
factor would affect her decision the most? ✔️the cost
What type of policy would offer a 40-year old the quickest accumulation of cash value? ✔️20-pay life
