Xcel Testing Solutions Life and Health
Insurance 215 ACTUAL EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Which of these statements about Medicaid is CORRECT? - CORRECT ANSWER
Funded by federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered by each
state.
All of these are considered key factors in underwriting life insurance EXCEPT -
CORRECT ANSWER Marital Status
Correct: tobacco use, health history, age
All of the following plans allow for employee contributions to be taken on a pre-
tax basis EXCEPT - CORRECT ANSWER Health reimbursement Arrangement plan
employers contribute to health reimbursement Arrangement planz (HRA's), not
employees.
Which of the following gifts from a producer would NOT be considered rebating? -
CORRECT ANSWER $5 pen
,A producer quoting life insurance may give an applicant an article of merchandise
having an invoice value of $5.00 or less.
Chris is an insured bricklayer who severed his left hand in an automobile accident.
Although his primary duty cannot be performed, Chris is also a substitute high
school teacher. He collects a full disability income check every month. How does
his policy define total disability? - CORRECT ANSWER own occupation
the "own occupation" definition of total disability requires that the insured be
unable to perform the insured's current occupation as a result of an accident or
sickness.
Which approach predicts a person's earning potential and determines how much
of that amount would be devoted to dependents? - CORRECT ANSWER Human
life value approach
The human life value approach predicts an individual's future earning potential
and determines how much of that amount would be devoted to dependents.
Index whole life insurance contains a securities component that acts as a(n) -
CORRECT ANSWER hedge against inflation
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits.
Which of these benefit options would he choose? - CORRECT ANSWER
Guaranteed lifetime withdrawal benefit
,The guaranteed lifetime withdrawal benefit normally requires a fee, but it ensures
that the income benefit will be paid for life without actually annuitizing the
contract.
Which of these factors would an insurer consider when determining whether to
accept a group life plan? - CORRECT ANSWER average age
and insurer would consider the average age when determining whether to accept
a group Life Plan.
This MANDATORY health policy provision states that the policy, including
endorsements and attached papers, constitutes - CORRECT ANSWER the entire
insurance contract between the parties
The monthly benefit for an individual disability income policy is usually limited to
a percentage of the insured's income in order to avoid - CORRECT ANSWER over
insurance
When an insurance licensee changes his or her address under the Michigan
Insurance Code, who MUST be notified? - CORRECT ANSWER the commissioner
of the Department of Insurance and financial services (DIFS)
Jonas is a whole life insurance policyowner and would like to add coverage for his
two children. Which of the following products would allow him to accomplish
this? - CORRECT ANSWER Child term rider
A child term rider is a level term insurance that can be added to an existing policy.
, How many employees must an employer have for a terminated employee to be
eligible for COBRA? - CORRECT ANSWER 20
Which of the following policies does NOT build cash value? - CORRECT ANSWER
Term
CORRECT: straight life, endowment, variable life
Which type of annuity stops all payments upon the death of the annuitant? -
CORRECT ANSWER Life annuity
The type of annuity in which all payments cease upon the death of an annuitant is
referred to as a life annuity.
Under the subrogation clause, legal action can be taken by the insurer against the
- CORRECT ANSWER responsible third party
Coordination of Benefits regulation applies to all of the following plans EXCEPT -
CORRECT ANSWER preferred provider organization plan
CORRECT: group vision plan, self-funded group health plan, group health plan
A spouse and child can be added to the primary insured's coverage as what kind
of rider? - CORRECT ANSWER Family term
Insurance 215 ACTUAL EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Which of these statements about Medicaid is CORRECT? - CORRECT ANSWER
Funded by federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered by each
state.
All of these are considered key factors in underwriting life insurance EXCEPT -
CORRECT ANSWER Marital Status
Correct: tobacco use, health history, age
All of the following plans allow for employee contributions to be taken on a pre-
tax basis EXCEPT - CORRECT ANSWER Health reimbursement Arrangement plan
employers contribute to health reimbursement Arrangement planz (HRA's), not
employees.
Which of the following gifts from a producer would NOT be considered rebating? -
CORRECT ANSWER $5 pen
,A producer quoting life insurance may give an applicant an article of merchandise
having an invoice value of $5.00 or less.
Chris is an insured bricklayer who severed his left hand in an automobile accident.
Although his primary duty cannot be performed, Chris is also a substitute high
school teacher. He collects a full disability income check every month. How does
his policy define total disability? - CORRECT ANSWER own occupation
the "own occupation" definition of total disability requires that the insured be
unable to perform the insured's current occupation as a result of an accident or
sickness.
Which approach predicts a person's earning potential and determines how much
of that amount would be devoted to dependents? - CORRECT ANSWER Human
life value approach
The human life value approach predicts an individual's future earning potential
and determines how much of that amount would be devoted to dependents.
Index whole life insurance contains a securities component that acts as a(n) -
CORRECT ANSWER hedge against inflation
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits.
Which of these benefit options would he choose? - CORRECT ANSWER
Guaranteed lifetime withdrawal benefit
,The guaranteed lifetime withdrawal benefit normally requires a fee, but it ensures
that the income benefit will be paid for life without actually annuitizing the
contract.
Which of these factors would an insurer consider when determining whether to
accept a group life plan? - CORRECT ANSWER average age
and insurer would consider the average age when determining whether to accept
a group Life Plan.
This MANDATORY health policy provision states that the policy, including
endorsements and attached papers, constitutes - CORRECT ANSWER the entire
insurance contract between the parties
The monthly benefit for an individual disability income policy is usually limited to
a percentage of the insured's income in order to avoid - CORRECT ANSWER over
insurance
When an insurance licensee changes his or her address under the Michigan
Insurance Code, who MUST be notified? - CORRECT ANSWER the commissioner
of the Department of Insurance and financial services (DIFS)
Jonas is a whole life insurance policyowner and would like to add coverage for his
two children. Which of the following products would allow him to accomplish
this? - CORRECT ANSWER Child term rider
A child term rider is a level term insurance that can be added to an existing policy.
, How many employees must an employer have for a terminated employee to be
eligible for COBRA? - CORRECT ANSWER 20
Which of the following policies does NOT build cash value? - CORRECT ANSWER
Term
CORRECT: straight life, endowment, variable life
Which type of annuity stops all payments upon the death of the annuitant? -
CORRECT ANSWER Life annuity
The type of annuity in which all payments cease upon the death of an annuitant is
referred to as a life annuity.
Under the subrogation clause, legal action can be taken by the insurer against the
- CORRECT ANSWER responsible third party
Coordination of Benefits regulation applies to all of the following plans EXCEPT -
CORRECT ANSWER preferred provider organization plan
CORRECT: group vision plan, self-funded group health plan, group health plan
A spouse and child can be added to the primary insured's coverage as what kind
of rider? - CORRECT ANSWER Family term
