Xcel Nevada Final Exam Questions and
Answers 100% Solved
Which of the following is NOT an example of a producer's breach of
contract under fiduciary duty?
Misappropriation of premiums
commingling premiums
improper withholding of premiums
allowing premiums to be submitted electronically - ✔✔allowing premiums to
be submitted electronically
Nevada Requires that coverage for newborns begins "from the moment of
birth" and a premium must be paid within:
31 days
90 days
6 months
12 months - ✔✔31 days
A foreign insurance company doing business in Nevada:
Is not subject to Florida insurance laws
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,is a company that was formed under the laws of another state
Is a company that was formed under the laws of another country
is only authorized to write business outside the United States - ✔✔Is a
company that was formed under the laws of another state
All of the following statements about Major Medical benefits are true,
EXCEPT:
The deductible can be expressed as a fixed dollar amount
The benefit period begins only after a specified amount of expenses have
accrued
Benefits are generally expressed as a percentage of eligible expenses
Benefits have no maximum limit - ✔✔Benefits have no maximum limit
M is insured under a basic Hospital/Surgical Expense policy. A physician
performs surgery on M. What determines the claim M is eligible for?
Claim payment is equal to physician's actual charges
Claim payment is negotiated between physician and patient
Determined by the schedule of benefits from the hospital
Determined by the terms of the policy - ✔✔Determined by the terms of the
policy
P received Disability income benefits for 3 months then returns to work.
She is able to work one month before her condition returns, leaving her
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,disabled once again. What would the insurance company most likely regard
this second period of disability as?
A presumptive disability
An occupational disability
A residual disability
A recurrent disability - ✔✔A recurrent disability
Which of these arrangements allows one to bypass insurable interest laws?
Concealment
Indemnity contract
Contract of adhesion
Investor-Originated Life Insurance - ✔✔Investor-Originated Life Insurance
Sometimes called IOLI, stranger-originated life insurance
What determines the full amount of Social Security retirement benefits a
qualified individual is entitled to receive?
Primary Insurance Amount (PIA)
Total taxes paid paid into FICA
Number of dependents
State of residence - ✔✔Primary Insurance Amount (PIA)
Which statement regarding the Misstatement of Age provision is
considered to be true?
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, Coverage will be adjusted to reflect the insured's true age if a misstatement
of age is discovered
Requires that a new policy must be applied for if a misstatement of age is
found on the current policy
Misstatement of Age provision is valid only during the contestable period
Insurer may void the policy if a misstatement of age is discovered -
✔✔Coverage will be adjusted to reflect the insured's true age if a
misstatement of age is discovered
A written agreement to provide a Life insurance Policy holder immediate
cash in exchange for the sale and transfer of a Life Insurance Policy is a:
Variable Life Policy
Viatical Settlement
Equity Index Annuity
Health Care Savings Account - ✔✔Viatical Settlement
A potential client, age 40, would like to purchase a Whole Life policy that
will accumulate cash value at a faster rate in the early years of the policy.
Which of these statements made by the producer would be correct?
Straight life accumulates faster than Limited-Pay Life
20-Pay Life accumulates cash value faster than Straight Life
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Answers 100% Solved
Which of the following is NOT an example of a producer's breach of
contract under fiduciary duty?
Misappropriation of premiums
commingling premiums
improper withholding of premiums
allowing premiums to be submitted electronically - ✔✔allowing premiums to
be submitted electronically
Nevada Requires that coverage for newborns begins "from the moment of
birth" and a premium must be paid within:
31 days
90 days
6 months
12 months - ✔✔31 days
A foreign insurance company doing business in Nevada:
Is not subject to Florida insurance laws
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,is a company that was formed under the laws of another state
Is a company that was formed under the laws of another country
is only authorized to write business outside the United States - ✔✔Is a
company that was formed under the laws of another state
All of the following statements about Major Medical benefits are true,
EXCEPT:
The deductible can be expressed as a fixed dollar amount
The benefit period begins only after a specified amount of expenses have
accrued
Benefits are generally expressed as a percentage of eligible expenses
Benefits have no maximum limit - ✔✔Benefits have no maximum limit
M is insured under a basic Hospital/Surgical Expense policy. A physician
performs surgery on M. What determines the claim M is eligible for?
Claim payment is equal to physician's actual charges
Claim payment is negotiated between physician and patient
Determined by the schedule of benefits from the hospital
Determined by the terms of the policy - ✔✔Determined by the terms of the
policy
P received Disability income benefits for 3 months then returns to work.
She is able to work one month before her condition returns, leaving her
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,disabled once again. What would the insurance company most likely regard
this second period of disability as?
A presumptive disability
An occupational disability
A residual disability
A recurrent disability - ✔✔A recurrent disability
Which of these arrangements allows one to bypass insurable interest laws?
Concealment
Indemnity contract
Contract of adhesion
Investor-Originated Life Insurance - ✔✔Investor-Originated Life Insurance
Sometimes called IOLI, stranger-originated life insurance
What determines the full amount of Social Security retirement benefits a
qualified individual is entitled to receive?
Primary Insurance Amount (PIA)
Total taxes paid paid into FICA
Number of dependents
State of residence - ✔✔Primary Insurance Amount (PIA)
Which statement regarding the Misstatement of Age provision is
considered to be true?
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, Coverage will be adjusted to reflect the insured's true age if a misstatement
of age is discovered
Requires that a new policy must be applied for if a misstatement of age is
found on the current policy
Misstatement of Age provision is valid only during the contestable period
Insurer may void the policy if a misstatement of age is discovered -
✔✔Coverage will be adjusted to reflect the insured's true age if a
misstatement of age is discovered
A written agreement to provide a Life insurance Policy holder immediate
cash in exchange for the sale and transfer of a Life Insurance Policy is a:
Variable Life Policy
Viatical Settlement
Equity Index Annuity
Health Care Savings Account - ✔✔Viatical Settlement
A potential client, age 40, would like to purchase a Whole Life policy that
will accumulate cash value at a faster rate in the early years of the policy.
Which of these statements made by the producer would be correct?
Straight life accumulates faster than Limited-Pay Life
20-Pay Life accumulates cash value faster than Straight Life
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
