1|Page
XCEL all chapter final exams/
insurance part 2 Questions and
Answers 100% Pass
A policyholder has a major medical plan with a 80%/20% coinsurance and a deductible of $75. If the
insured has previously met her deductible and receives a bill for $175, how much will the insurer pay? -
✔✔$140
The conversion privilege under a group life plan allows an employee to convert to a(n) - ✔✔individual
plan upon employment termination
The suicide clause of a life insurance policy states that if an insured commits suicide within a stated
period form the policy's inception, the insurer will only be liable for a return of premiums paid -
✔✔minus indebtedness and without interest
An insured individual and the policy's beneficiary die from the same accident. The common disaster
provision states the insurer will continue as if - ✔✔the insured outlived the beneficiary
Which of the following typically does Not provide a form of managed care? - ✔✔Major medical
indemnity plan
When are group disability benefits considered to be tax-free to the insured? - ✔✔when the recipient pays
the premiums
Filed Underwriting performed by the producer involves - ✔✔completing the application and collecting
initial premium
Emily Charlene © 2025, All Rights Reserved.
,2|Page
Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than
other life insurance policies because - ✔✔the MEC tends to be an investment vehicle
A producer found to have engaged in unfair method of competition may be - ✔✔Subject to license
suspension or revocation
The waiver of premium dose Not include which provision? - ✔✔All future premiums are waived if the
insured recovers form the disability
Which of the following Correct regarding disclosure regulations - ✔✔it requires the delivery of the
buyer's guide and a disclosure document to applicants
Part A Hospital expense coverage provided under Medicare is automatically made available to each of
the following EXCEPT - ✔✔A 70-year old Not eligible for Social Security
level premiums permanent insurance accumulates a reserve that will eventually - ✔✔equal the face
amount of the policy
Coordination of benefits regulation applies to all of the following plans EXCEPT - ✔✔Preferred Provider
Organization plan
Long-term care policies sold in Washington must provide coverage for at least - ✔✔12 months
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit
options would he choose? - ✔✔Guaranteed lifetime withdrawal benefit
A disability income policy can prevent an insured form earning a higher income than if he/sh were
working by utilizing - ✔✔benefit limits
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - ✔✔During periods of inflation, annuitants will experience a decrease in purchasing
power of their payments
Emily Charlene © 2025, All Rights Reserved.
, 3|Page
Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which
military service exclusion clause would pay upon his death? - ✔✔Results
No legal action can be initiated after 5 years form the - ✔✔Initial time written proof of loss has been
provided
Someone needing custodial care at home would require which type of coverage? - ✔✔Long-term care
The primary purpose of replacement regulation is to - ✔✔protect policy owners form misrepresentations
and loss of benefits
Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. -
✔✔20
An insurer must furnish to a claimant form for filing proof of loss within ___ days upon receiving a notice
of claim. - ✔✔15 days
decreasing term life insurance is often used to - ✔✔provide coverage for a home mortgage
The gatekeeper's role when used by an HMO is - ✔✔obtaining referrals to specialists from primary care
physicians
Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value
has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life
insurance policy is this? - ✔✔Universal life
The open enrollment period for Medicare and Medicare Supplements begins ___ before an individual's
65Th birthday. - ✔✔3 months
What is the contract called that is issued to an employer for a group Medical insurance plan? - ✔✔Master
policy
Life insurance policies will normally pay fro losses arising from - ✔✔commercial aviation
Emily Charlene © 2025, All Rights Reserved.
XCEL all chapter final exams/
insurance part 2 Questions and
Answers 100% Pass
A policyholder has a major medical plan with a 80%/20% coinsurance and a deductible of $75. If the
insured has previously met her deductible and receives a bill for $175, how much will the insurer pay? -
✔✔$140
The conversion privilege under a group life plan allows an employee to convert to a(n) - ✔✔individual
plan upon employment termination
The suicide clause of a life insurance policy states that if an insured commits suicide within a stated
period form the policy's inception, the insurer will only be liable for a return of premiums paid -
✔✔minus indebtedness and without interest
An insured individual and the policy's beneficiary die from the same accident. The common disaster
provision states the insurer will continue as if - ✔✔the insured outlived the beneficiary
Which of the following typically does Not provide a form of managed care? - ✔✔Major medical
indemnity plan
When are group disability benefits considered to be tax-free to the insured? - ✔✔when the recipient pays
the premiums
Filed Underwriting performed by the producer involves - ✔✔completing the application and collecting
initial premium
Emily Charlene © 2025, All Rights Reserved.
,2|Page
Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than
other life insurance policies because - ✔✔the MEC tends to be an investment vehicle
A producer found to have engaged in unfair method of competition may be - ✔✔Subject to license
suspension or revocation
The waiver of premium dose Not include which provision? - ✔✔All future premiums are waived if the
insured recovers form the disability
Which of the following Correct regarding disclosure regulations - ✔✔it requires the delivery of the
buyer's guide and a disclosure document to applicants
Part A Hospital expense coverage provided under Medicare is automatically made available to each of
the following EXCEPT - ✔✔A 70-year old Not eligible for Social Security
level premiums permanent insurance accumulates a reserve that will eventually - ✔✔equal the face
amount of the policy
Coordination of benefits regulation applies to all of the following plans EXCEPT - ✔✔Preferred Provider
Organization plan
Long-term care policies sold in Washington must provide coverage for at least - ✔✔12 months
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit
options would he choose? - ✔✔Guaranteed lifetime withdrawal benefit
A disability income policy can prevent an insured form earning a higher income than if he/sh were
working by utilizing - ✔✔benefit limits
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning
this type of annuity? - ✔✔During periods of inflation, annuitants will experience a decrease in purchasing
power of their payments
Emily Charlene © 2025, All Rights Reserved.
, 3|Page
Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which
military service exclusion clause would pay upon his death? - ✔✔Results
No legal action can be initiated after 5 years form the - ✔✔Initial time written proof of loss has been
provided
Someone needing custodial care at home would require which type of coverage? - ✔✔Long-term care
The primary purpose of replacement regulation is to - ✔✔protect policy owners form misrepresentations
and loss of benefits
Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. -
✔✔20
An insurer must furnish to a claimant form for filing proof of loss within ___ days upon receiving a notice
of claim. - ✔✔15 days
decreasing term life insurance is often used to - ✔✔provide coverage for a home mortgage
The gatekeeper's role when used by an HMO is - ✔✔obtaining referrals to specialists from primary care
physicians
Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value
has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life
insurance policy is this? - ✔✔Universal life
The open enrollment period for Medicare and Medicare Supplements begins ___ before an individual's
65Th birthday. - ✔✔3 months
What is the contract called that is issued to an employer for a group Medical insurance plan? - ✔✔Master
policy
Life insurance policies will normally pay fro losses arising from - ✔✔commercial aviation
Emily Charlene © 2025, All Rights Reserved.
