Xcel Testing Solutions-Louisiana Life and Health Exam
Simulator - 200 Questions and Answers 2023 with complete
solution
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
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
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
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
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
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
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
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
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%
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
,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
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
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
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
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
-Stock
- In-House
, Mutual
A mutual insurer is owned by its policyowners.
All of the following are included as part of a contract in the entire contract provision
EXCEPT the
- Riders
- Application
-Changes made by the producer
-The Policy
Changes made by the producer
All of these are included as part of a contract in the entire contract provision EXCEPT
the changes made by the producer.
A policyowner is prohibited from making any changes to the policy without the
beneficiary's written consent under which beneficiary designation?
- Contingent beneficiary
- Tertiary beneficiary
- Revocable beneficiary
- Irrevocable beneficiary
Irrevocable Beneficiary
An irrevocable beneficiary designation prohibits the policy owner from making any
changes to the policy without the beneficiary's written consent.
At what age will a person normally enroll with an insurance carrier under a Part C
Medicare Advantage Plan?
- Age 59 1/2
- Age 60
- Age 62
- Age 65
Age 65
Most people become eligible for Medicare (and Medicare Supplement policies) when
attaining the age of 65.
All of these statements concerning whole life insurance are false EXCEPT
- Policyowner can take out a policy loan up to the face amount
- When a whole life policy is surrendered, income taxes may be owed
- Coverage is normally temporary
- The death benefit is not affected by outstanding loans
When a whole life policy is surrendered, income taxes may be owed
Income taxes may be due when a whole life policy is surrendered.
James is the insured on a life insurance policy where his age was misstated on the
application. Which of the following is CORRECT regarding the death benefit amount?
- The original face amount will be paid to the beneficiary
- The policy will be voided with no death benefits paid
- The death benefit paid will be what the premium would have purchased at the correct
age
- The amount of premiums paid will be returned with interest
The death benefit paid will be what the premium would have purchased at the correct
age
Simulator - 200 Questions and Answers 2023 with complete
solution
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
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
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
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
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
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
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
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
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%
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
,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
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
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
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
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
-Stock
- In-House
, Mutual
A mutual insurer is owned by its policyowners.
All of the following are included as part of a contract in the entire contract provision
EXCEPT the
- Riders
- Application
-Changes made by the producer
-The Policy
Changes made by the producer
All of these are included as part of a contract in the entire contract provision EXCEPT
the changes made by the producer.
A policyowner is prohibited from making any changes to the policy without the
beneficiary's written consent under which beneficiary designation?
- Contingent beneficiary
- Tertiary beneficiary
- Revocable beneficiary
- Irrevocable beneficiary
Irrevocable Beneficiary
An irrevocable beneficiary designation prohibits the policy owner from making any
changes to the policy without the beneficiary's written consent.
At what age will a person normally enroll with an insurance carrier under a Part C
Medicare Advantage Plan?
- Age 59 1/2
- Age 60
- Age 62
- Age 65
Age 65
Most people become eligible for Medicare (and Medicare Supplement policies) when
attaining the age of 65.
All of these statements concerning whole life insurance are false EXCEPT
- Policyowner can take out a policy loan up to the face amount
- When a whole life policy is surrendered, income taxes may be owed
- Coverage is normally temporary
- The death benefit is not affected by outstanding loans
When a whole life policy is surrendered, income taxes may be owed
Income taxes may be due when a whole life policy is surrendered.
James is the insured on a life insurance policy where his age was misstated on the
application. Which of the following is CORRECT regarding the death benefit amount?
- The original face amount will be paid to the beneficiary
- The policy will be voided with no death benefits paid
- The death benefit paid will be what the premium would have purchased at the correct
age
- The amount of premiums paid will be returned with interest
The death benefit paid will be what the premium would have purchased at the correct
age
