Louisiana Life & Health Xcel Testing Solutions Exam
Simulator Questions with Correct Answers Verified by
Expert
Which dividend option would an insurer invest the policy owner's money and add any interest earnings
as the dividends accrue?
-Accumulation at Interest Option
-Cash Dividend Option
-Paid-Up Additions Option
-One-Year Term Dividend Option - Answer The Accumulation at Interest Option -
invests the policy owner's money and adds interest earnings to the initial amount of the dividends.
Decreasing term life insurance is often used to?
-provide retirement funds
-provide coverage for a home mortgage
-accumulate cash value
-provide coverage for estate taxes - Answer Provide coverage for a home mortgage-
A common use for decreasing term life insurance is to cover a home mortgage.
Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss.
-10-20-31-60 - Answer 20
Written notice for a health claim must be given to the insurer 20 days after the occurrence of the loss.
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST
- remit all past-due premiums within the grace period
- provide evidence of insurability to the insurer
- resubmit a new life insurance application
-provide a valid reason for the lapse - Answer provide evidence of insurability to the insurer
,The suicide clause of a life insurance policy states that if an insured commits suicide within a stated
period from the policy's inception, the insurer will only be liable for a return of premiums paid
- minus indebtedness and with interest
- during the last 12 months
-minus indebtedness and without interest
- during the last 6 months - Answer minus indebtedness and without interest
The suicide clause of a life insurance policy states that if an insured commits suicide within a stated
period from the policy's inception, the insurer will only be liable for a return of premiums paid minus
indebtedness and without interest.
What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured?
- Policy Dividend
- Specified amount of money
- Policy's cash value
- Funeral expense fund - Answer Specified amount of money
Life insurance guarantees to the beneficiary a specified sum of money in the event of the insured's
death.
An insurance producer is often responsible for field underwriting during the application process. All of
these are possible field underwriting roles EXCEPT
- providing disclosure information to the applicant
- collecting initial premium
- policy delivery
- providing commission information to the applicant - Answer providing commission information to the
applicant
All of these are field underwriting roles an insurance producer may perform EXCEPT "providing
commission information to the applicant".
Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of
these statements is true?
- The policy automatically converts to whole life after the 10-year period
,- The face amount will remain constant and the premium will increase over the 10-year period
The premium will remain constant and the face amount will increase over the 10-year period
The face amount and premium will remain constant over the 10-year period - Answer The premium will
remain constant and the face amount will increase over the 10-year period
"The face amount and premium will remain constant over the 10-year period". In this situation, the
premium and the face amount will remain constant for the 10-year period.
When can a group health policy renewal be denied according to the Health Insurance Portability and
Accountability Act (HIPAA)?
- When a change of management has occurred within the group
- When the annual number of claims has increased by 25%
- When contribution or participation rules have been violated
-When group participation has increased by 25% - Answer When contribution or participation rules
have been violated
According to HIPAA, a group health policy renewal can be denied when participation or contribution
rules have been violated.
Which of the following is Medicare Part B also known as?
- Hospital insurance
-Medical insurance
-Long- Term Care Insurance
-Medigap - Answer Medical Insurance
Medicare Part B covers most medically necessary doctors' services, preventive care, durable medical
equipment, hospital outpatient services, laboratory tests, x-rays, mental health care, and some home
health and ambulance services. You pay a monthly premium for this coverage.
A group life policy terminates a class of participants. To qualify for an individual policy, an employee
must do which of the following?
- Prove that he is insurable
- Have been insured at least 5 years
- Apply for the new policy within 30 days
- Pay at least two premiums in advance - Answer Have been insured at least 5 years
, To qualify for an individual policy, an employee must have been insured at least 5 years.
A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n)
- conditionally renewability clause
- optional renewability clause
-selective renewability clause
- cancelable clause - Answer optional renewability clause
An optional renewability clause allows an insurer the unrestricted right to terminate coverage at any
anniversary or at any premium due date.
Coordination of Benefits regulation applies to all of the following plans EXCEPT
-Group Health Plans
-Preferred Provider Organization Plans
-Self- Funded group plans
-Group Health Plans - Answer Preferred Provider Organization Plan
Coordination of Benefits regulation on group health policies does not apply to individual health
insurance policies.
A policyowner suffers an injury that renders him incapable of performing one or more important job
duties. Any decrease in income resulting from this injury would make him eligible for benefits under
which provision?
- Partial disability
-Nondisabling injury
-Presumptive disability
- Flat amount disability - Answer Partial Disability
In this situation, the policyowner would be eligible for benefits under a partial disability provision.
A type of insurer that is owned by its policyowners is called
-Domestic
-Mutual
Simulator Questions with Correct Answers Verified by
Expert
Which dividend option would an insurer invest the policy owner's money and add any interest earnings
as the dividends accrue?
-Accumulation at Interest Option
-Cash Dividend Option
-Paid-Up Additions Option
-One-Year Term Dividend Option - Answer The Accumulation at Interest Option -
invests the policy owner's money and adds interest earnings to the initial amount of the dividends.
Decreasing term life insurance is often used to?
-provide retirement funds
-provide coverage for a home mortgage
-accumulate cash value
-provide coverage for estate taxes - Answer Provide coverage for a home mortgage-
A common use for decreasing term life insurance is to cover a home mortgage.
Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss.
-10-20-31-60 - Answer 20
Written notice for a health claim must be given to the insurer 20 days after the occurrence of the loss.
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST
- remit all past-due premiums within the grace period
- provide evidence of insurability to the insurer
- resubmit a new life insurance application
-provide a valid reason for the lapse - Answer provide evidence of insurability to the insurer
,The suicide clause of a life insurance policy states that if an insured commits suicide within a stated
period from the policy's inception, the insurer will only be liable for a return of premiums paid
- minus indebtedness and with interest
- during the last 12 months
-minus indebtedness and without interest
- during the last 6 months - Answer minus indebtedness and without interest
The suicide clause of a life insurance policy states that if an insured commits suicide within a stated
period from the policy's inception, the insurer will only be liable for a return of premiums paid minus
indebtedness and without interest.
What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured?
- Policy Dividend
- Specified amount of money
- Policy's cash value
- Funeral expense fund - Answer Specified amount of money
Life insurance guarantees to the beneficiary a specified sum of money in the event of the insured's
death.
An insurance producer is often responsible for field underwriting during the application process. All of
these are possible field underwriting roles EXCEPT
- providing disclosure information to the applicant
- collecting initial premium
- policy delivery
- providing commission information to the applicant - Answer providing commission information to the
applicant
All of these are field underwriting roles an insurance producer may perform EXCEPT "providing
commission information to the applicant".
Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of
these statements is true?
- The policy automatically converts to whole life after the 10-year period
,- The face amount will remain constant and the premium will increase over the 10-year period
The premium will remain constant and the face amount will increase over the 10-year period
The face amount and premium will remain constant over the 10-year period - Answer The premium will
remain constant and the face amount will increase over the 10-year period
"The face amount and premium will remain constant over the 10-year period". In this situation, the
premium and the face amount will remain constant for the 10-year period.
When can a group health policy renewal be denied according to the Health Insurance Portability and
Accountability Act (HIPAA)?
- When a change of management has occurred within the group
- When the annual number of claims has increased by 25%
- When contribution or participation rules have been violated
-When group participation has increased by 25% - Answer When contribution or participation rules
have been violated
According to HIPAA, a group health policy renewal can be denied when participation or contribution
rules have been violated.
Which of the following is Medicare Part B also known as?
- Hospital insurance
-Medical insurance
-Long- Term Care Insurance
-Medigap - Answer Medical Insurance
Medicare Part B covers most medically necessary doctors' services, preventive care, durable medical
equipment, hospital outpatient services, laboratory tests, x-rays, mental health care, and some home
health and ambulance services. You pay a monthly premium for this coverage.
A group life policy terminates a class of participants. To qualify for an individual policy, an employee
must do which of the following?
- Prove that he is insurable
- Have been insured at least 5 years
- Apply for the new policy within 30 days
- Pay at least two premiums in advance - Answer Have been insured at least 5 years
, To qualify for an individual policy, an employee must have been insured at least 5 years.
A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n)
- conditionally renewability clause
- optional renewability clause
-selective renewability clause
- cancelable clause - Answer optional renewability clause
An optional renewability clause allows an insurer the unrestricted right to terminate coverage at any
anniversary or at any premium due date.
Coordination of Benefits regulation applies to all of the following plans EXCEPT
-Group Health Plans
-Preferred Provider Organization Plans
-Self- Funded group plans
-Group Health Plans - Answer Preferred Provider Organization Plan
Coordination of Benefits regulation on group health policies does not apply to individual health
insurance policies.
A policyowner suffers an injury that renders him incapable of performing one or more important job
duties. Any decrease in income resulting from this injury would make him eligible for benefits under
which provision?
- Partial disability
-Nondisabling injury
-Presumptive disability
- Flat amount disability - Answer Partial Disability
In this situation, the policyowner would be eligible for benefits under a partial disability provision.
A type of insurer that is owned by its policyowners is called
-Domestic
-Mutual
