Texas Life and Health Exam – Xcel questions with verified detailed solutions

Texas Life and Health Exam – Xcel questions with verified detailed
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solutions


The Coordination of Benefits Provision: - ✔✔prevents an insured covered by two health
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plans from making a profit on a covered loss
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Which Unfair Trade Practice involves an agent telling a prospective client that a policy's
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dividends are guaranteed? - ✔✔Misrepresentation || || || ||




Which is || ||




NOT required in life insurance policies? - ✔✔Extended Term
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Which statement about noncontributory employee group life insurance is FALSE? - ✔✔A
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minimum number of employees is required to participate || || || || || || ||




How long is a benefit period for a Major Medical Expense Plan? - ✔✔One year
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NOT a required provision in group life policies - ✔✔Right to Loan
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Q and R die. P is the primary beneficiary on Q's AD&D claim. R (Q's sister) is the
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contingent beneficiary. Who will the AD&D benefits be paid to? - ✔✔P only
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A Life insurance policy owner would like to take out a policy loan against the cash value in
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his Whole Life policy. The interest rate applied to this loan may vary over time. What rate
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loan is this referred to? - ✔✔Variable
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,What is the purpose of the Time of Payment of Claims provision? - ✔✔Prevents delayed
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claim payments made by the insurer || || || || ||




Which of the following actions does the Commissioner of Insurance NOT have the power to
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conduct? - ✔✔Activate insurance companies' financial reserves
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The entity whose sole purpose is sharing medical data among its member companies is
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called the - ✔✔Medical Information Bureau (MIB)
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A domestic insurance company in Texas is considered a company that - ✔✔is incorporated
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and formed in Texas || || ||




P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from
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participating in a carjacking. How will the insurer most likely handle this claim? - || || || || || || || || || || || || || ||




✔✔Claim will be denied || || ||




Which Accident and Health policy provision addresses preexisting conditions? - ✔✔Time
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Limit on Certain Defenses || || ||




Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
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✔✔Fair Credit Reporting Act
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ABC Insurance Company has accepted a life insurance application which contains
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unanswered questions. The company then makes the application part of the life contract. In || || || || || || || || || || || || ||




this situation, the insurer has - ✔✔waived one of its legal rights.
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How long can a cash surrender value payment be differed by the insurance company under
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the Nonforteiture Law? - ✔✔6 months
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, R becomes disabled and owns an individual Disability Income policy. When is R eligible to
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receive disability benefits? - ✔✔Upon satisfying the elimination period requirement
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Which of the following actions is required by an insured who leaves the primary area of
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medical coverage and seeks medical care? - ✔✔Obtain prior approval from the insurer for
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the medical service
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Which of these types of life insurance allows the policyowner to have level premiums and to
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also choose from a selection of investment options? - ✔✔Variable Life
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Which of the following consists of an offer, acceptance, and consideration? - ✔✔Contract
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A plan through the Marketplace may be purchased by - ✔✔Any legal resident (except those
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imprisoned)



Which of the following is a valid reason for an enrollee to be cancelled by a Health
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Maintenance Organization (HMO) plan? - ✔✔Nonpayment of coverage || || || || || || ||




Which statement is TRUE in regards to a policy loan? - ✔✔Past due interest on a policy
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loan is added to the total debt
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The underwriting process involves all of those, EXCEPT for: - ✔✔Policy loan
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A 15 year mortgage is best protected by what kind of life policy? - ✔✔15 year decreasing
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term



K is shopping for a permanent life insurance policy that will offer her the MOST protection
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per dollar of annual premium. Which of these policies best fits her needs? - ✔✔Straight Life
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