Xcel Testing Solutions- Life and Health Insurance
UPDATED ACTUAL Questions and CORRECT
Answers
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT - CORRECT
Answer insurance sales calls
Charities, political organizations, and surveys are all offered exemptions from The Do Not Call Registry
The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of
the term is called - CORRECT Answer cancelable
The renewability provision in a cancelable policy allows the insurer to cancel or terminate the policy at any time, simply
by providing written notification to the insured and refunding any advance premium that has been paid.
Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without
evidence of insurability. This rider is called a(n) - CORRECT Answer Guaranteed insurability rider
A guaranteed insurability rider allows for the insured to purchase additional insurance at specific dates or events without
evidence of insurability.
Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered -
CORRECT Answer Noncancellable
A noncancellable policy cannot be cancelled nor can its premium rates be increased under any circumstances.
In what part of an insurance policy are policy benefits found? - CORRECT Answer Declarations
Essentially, the insurance declaration page is like a quick guide to the insurance policy, providing all of the basic
information the policyholder needs to know.
What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual
life insurance policy? - CORRECT Answer Benefits will be calculated according to how much coverage the
premium paid would have purchased for the correct age
Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age.
Health insurance will typically cover which of the following perils? - CORRECT Answer Injury due to accident
Accidental injury is typically a covered peril in health insurance.
A viatical settlement contract is an agreement between - CORRECT Answer A life insurance policyowner and a
viatical settlement provider
A viatical settlement contract is an agreement between a life insurance policyowner and a viatical settlement provider.
Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status? - CORRECT
Answer The insurer significantly raises co-insurance charges, deductibles, or co-payment charges
According to the Affordable Care Act, grandfathered health plans may lose their grandfathered status if the insurer
significantly raises co-insurance charges, deductibles, or co-payment charges
Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? -
CORRECT Answer Risk avoidance
Risk avoidance could eliminate the risk of losing money in the stock market by never investing in stocks.
Which of the following nursing home options would BEST suit an individual who needs some nursing care and
supervision but NOT full-time care? - CORRECT Answer Assisted living facilities
An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time
care.
Under Louisiana law, the agreement between an insurance producer and insurer under which the insurance producer, for
compensation, may sell, solicit, or negotiate policies issued by the insurer is defined as - CORRECT Answer an
appointment
The agreement between an insurance producer and insurer under which the insurance producer, for compensation, may
sell, solicit, or negotiate policies issued by the insurer is called an appointment.
, Which of these would NOT be considered a presumptive disability? - CORRECT Answer Loss of a leg or arm
The loss of ONE arm or a leg is NOT considered a presumptive disability.
A producer's license in Louisiana must be renewed every - CORRECT Answer Two years
Producer licenses are issued for periods of 2 years.
Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best
serve him? - CORRECT Answer Assisted living
An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time
care.
The open enrollment period for Medicare Supplements begins at age - CORRECT Answer 65
Open enrollment for Medicare Supplements begins at the age the individual becomes eligible for Medicare, which is
typically age 65.
Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the
following statements is TRUE? - CORRECT Answer Medicare is the secondary payer
If an individual continues to work after the age of 65 and keeps the group plan, primary coverage comes from the group
insurance plan and Medicare is considered the secondary payer.
A whole life policy option where extended term insurance is selected is called a(n) - CORRECT
Answer nonforfeiture option
A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to the existing
amount of life insurance is called the extended term option.
The Commissioner must examine the financial affairs of each admitted insurer operating in Louisiana at least once every
how many years? - CORRECT Answer 5
At the very least, an admitted company shall be examined once every 5 years by the Commissioner.
When a Medicare supplement policy is purchased during the open enrollment period - CORRECT Answer the
policy must be issued regardless of health status
During open enrollment for Medicare supplements, policies will be issued regardless of health status.
Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed
renewable premium benefit? - CORRECT Answer Increase the premiums on an individual basis
A guaranteed renewable policy CANNOT increase the premiums on an individual basis, only on the basis of an entire
classification.
A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and
who wishes to sell that line of insurance in Louisiana, must meet all of the following requirements EXCEPT: -
CORRECT Answer Take the appropriate Louisiana licensing examination
A nonresident licensee from another state is not required to take a licensing examination if they are already in good
standing with their state of residence.
A life insurance policy that has premiums fully paid up within a stated time period is called - CORRECT
Answer limited payment insurance
Limited payment insurance is characterized by premiums that are fully paid up within a stated period, after which no
further premiums are required.
The taxable portion of each annuity payment is calculated using which method? - CORRECT Answer Exclusion
Ratio
The Exclusion Ratio is used to determine the taxable portion of each annuity payment.
How are annuities given favorable tax treatment? - CORRECT Answer Gains are taxed at distribution
Annuity gains are typically tax deferred until distribution.
All _____ policies must be guaranteed renewable. - CORRECT Answer long-term care
All long-term care policies must be guaranteed renewable.
UPDATED ACTUAL Questions and CORRECT
Answers
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT - CORRECT
Answer insurance sales calls
Charities, political organizations, and surveys are all offered exemptions from The Do Not Call Registry
The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of
the term is called - CORRECT Answer cancelable
The renewability provision in a cancelable policy allows the insurer to cancel or terminate the policy at any time, simply
by providing written notification to the insured and refunding any advance premium that has been paid.
Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without
evidence of insurability. This rider is called a(n) - CORRECT Answer Guaranteed insurability rider
A guaranteed insurability rider allows for the insured to purchase additional insurance at specific dates or events without
evidence of insurability.
Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered -
CORRECT Answer Noncancellable
A noncancellable policy cannot be cancelled nor can its premium rates be increased under any circumstances.
In what part of an insurance policy are policy benefits found? - CORRECT Answer Declarations
Essentially, the insurance declaration page is like a quick guide to the insurance policy, providing all of the basic
information the policyholder needs to know.
What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual
life insurance policy? - CORRECT Answer Benefits will be calculated according to how much coverage the
premium paid would have purchased for the correct age
Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age.
Health insurance will typically cover which of the following perils? - CORRECT Answer Injury due to accident
Accidental injury is typically a covered peril in health insurance.
A viatical settlement contract is an agreement between - CORRECT Answer A life insurance policyowner and a
viatical settlement provider
A viatical settlement contract is an agreement between a life insurance policyowner and a viatical settlement provider.
Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status? - CORRECT
Answer The insurer significantly raises co-insurance charges, deductibles, or co-payment charges
According to the Affordable Care Act, grandfathered health plans may lose their grandfathered status if the insurer
significantly raises co-insurance charges, deductibles, or co-payment charges
Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? -
CORRECT Answer Risk avoidance
Risk avoidance could eliminate the risk of losing money in the stock market by never investing in stocks.
Which of the following nursing home options would BEST suit an individual who needs some nursing care and
supervision but NOT full-time care? - CORRECT Answer Assisted living facilities
An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time
care.
Under Louisiana law, the agreement between an insurance producer and insurer under which the insurance producer, for
compensation, may sell, solicit, or negotiate policies issued by the insurer is defined as - CORRECT Answer an
appointment
The agreement between an insurance producer and insurer under which the insurance producer, for compensation, may
sell, solicit, or negotiate policies issued by the insurer is called an appointment.
, Which of these would NOT be considered a presumptive disability? - CORRECT Answer Loss of a leg or arm
The loss of ONE arm or a leg is NOT considered a presumptive disability.
A producer's license in Louisiana must be renewed every - CORRECT Answer Two years
Producer licenses are issued for periods of 2 years.
Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best
serve him? - CORRECT Answer Assisted living
An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time
care.
The open enrollment period for Medicare Supplements begins at age - CORRECT Answer 65
Open enrollment for Medicare Supplements begins at the age the individual becomes eligible for Medicare, which is
typically age 65.
Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the
following statements is TRUE? - CORRECT Answer Medicare is the secondary payer
If an individual continues to work after the age of 65 and keeps the group plan, primary coverage comes from the group
insurance plan and Medicare is considered the secondary payer.
A whole life policy option where extended term insurance is selected is called a(n) - CORRECT
Answer nonforfeiture option
A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to the existing
amount of life insurance is called the extended term option.
The Commissioner must examine the financial affairs of each admitted insurer operating in Louisiana at least once every
how many years? - CORRECT Answer 5
At the very least, an admitted company shall be examined once every 5 years by the Commissioner.
When a Medicare supplement policy is purchased during the open enrollment period - CORRECT Answer the
policy must be issued regardless of health status
During open enrollment for Medicare supplements, policies will be issued regardless of health status.
Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed
renewable premium benefit? - CORRECT Answer Increase the premiums on an individual basis
A guaranteed renewable policy CANNOT increase the premiums on an individual basis, only on the basis of an entire
classification.
A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and
who wishes to sell that line of insurance in Louisiana, must meet all of the following requirements EXCEPT: -
CORRECT Answer Take the appropriate Louisiana licensing examination
A nonresident licensee from another state is not required to take a licensing examination if they are already in good
standing with their state of residence.
A life insurance policy that has premiums fully paid up within a stated time period is called - CORRECT
Answer limited payment insurance
Limited payment insurance is characterized by premiums that are fully paid up within a stated period, after which no
further premiums are required.
The taxable portion of each annuity payment is calculated using which method? - CORRECT Answer Exclusion
Ratio
The Exclusion Ratio is used to determine the taxable portion of each annuity payment.
How are annuities given favorable tax treatment? - CORRECT Answer Gains are taxed at distribution
Annuity gains are typically tax deferred until distribution.
All _____ policies must be guaranteed renewable. - CORRECT Answer long-term care
All long-term care policies must be guaranteed renewable.
