XCEL FINAL EXAM|COMPREHENSIVE QUESTIONS
WITH CORRECT/ VERIFIED ANSWERS|(frequently most
tested question)GET IT 100% ACCURATE | ALREADY
GRADED A+
____________ is NOT an element of a valid contract. -
✔✔ANSW✔✔..Taxable income.
Disability insurance benefits from a group policy paid for by an employer is
considered taxable income.
"maximum benefits" refers to the - ✔✔ANSW✔✔..upper limit of the total
lifetime benefits the insurance company will pay
A business will typically use which type of life insurance to cover their
employees? - ✔✔ANSW✔✔..Group policy
A clause that allows an insurer the right to terminate coverage at any
anniversary date is called a(n) - ✔✔ANSW✔✔..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.
A common exclusion with Vision plans is - ✔✔ANSW✔✔..lasik surgery
INCLUDED: eyeglass frames, the examination, contact lenses
a form of medical health insurance covering the treatment and care of gum
disease is called - ✔✔ANSW✔✔..Dental expense insurance
,a group disability income plan that pays tax free benefits to cover
employees is considered - ✔✔ANSW✔✔..fully contributory
a guaranteed issue life insurance policy has no - ✔✔ANSW✔✔..medical
underwriting
a health insurance policy that allows an insurer to change the policy owners
premiums, but NOT cancel the policy is called - ✔✔ANSW✔✔..guaranteed
renewable policy
A licensee can disclose a consumer's policy account number to all of the
following EXCEPT a - ✔✔ANSW✔✔..nonaffiliated third party
CORRECT: member in an affinity program that was identified to the
consumer upon entering the program, service provider marketing on behalf
of licensee, consumer reporting agency.
A licensee who informs an insured of inaccurate terms, benefits, or
advantages of any policy is committing which of the following violations? -
✔✔ANSW✔✔..Misrepresention
A licensee who is required to take continuing education MUST include how
many ethics coursework hours? - ✔✔ANSW✔✔..3
A licensee is required to take 24 hours of continuing education every two
years. Of the 24 hours, 3 must be in ethics
a life insurance policy normally contains a provision that restricts coverage
in the event of death under all of the following situations EXCEPT -
✔✔ANSW✔✔..fare-paying passenger
CORRECT: pilot of personal airplane, suicide, War
the above may not be covered or have restrictions.
A life insurance policy that contains a guaranteed interest rate with the
chance to earn a rate that is higher than the guaranteed rate is called -
✔✔ANSW✔✔..universal life
,A life insurance rider that allows an individual to purchase insurance as
they grow older, regardless of insurability, is called a(n) -
✔✔ANSW✔✔..guaranteed insurability rider
a Medicare supplement basic benefit is - ✔✔ANSW✔✔..the first 3 pints of
blood per year
A Modified Endowment Contract (MEC) is best described as -
✔✔ANSW✔✔..a life insurance contract which accumulates cash value is
higher than the IRS will allow
A non-contributory health insurance plan helps the insurer avoid -
✔✔ANSW✔✔..adverse selection
because all eligible employees are usually covered, non-contributory plans
are desirable from an underwriting standpoint because adverse selection is
minimized.
A notice of cash surrender value must be sent to a Universal Life
policyowner - ✔✔ANSW✔✔..at least annually
A policyholder has a major medical plan with a 80%/20% coinsurance and
a deductible of $75. If the insured has previously met her deductible and
receives a bill for $175, how much will the insurer pay? -
✔✔ANSW✔✔..$140
because the insured has previously met her deductible, the eligible
expenses for a claim is the entire $175. The insurance company pays 80%
of $175, or $140.
A policyholder's unmarried child is incapable of self support due to physical
disability. the child is provided medical care coverage under the parent's
policy - ✔✔ANSW✔✔..until policy term with proof of incapacity
written proof of disability and dependcy is required to prove a mental or
physical handicap for a dependent child.
, A policyowner may change two policy features on what type of life
insurance? - ✔✔ANSW✔✔..adjustable life
adjustable life allows the policyowner to change to policy features: premium
and face amount.
A producer MUST be appointed by the insurer within how many days from
the date the agency contract application is submitted? - ✔✔ANSW✔✔..15
a producer who knowingly submits a FALSE statement in support of a
claim.may be found guilty of - ✔✔ANSW✔✔..fraud
a producer's fiduciary responsibility includes which of the following
activities? - ✔✔ANSW✔✔..recording the receipt and distribution of
premiums due to an insurer
an agent show use reasonable accounting methods to record funds
received in his or her fiduciary capacity including the receipt and
distribution of all premiums do each of his or her insurers.
a proposed insured for a health insurance policy was treated for heart
disease within the past year. When applying for health insurance, the heart
disease treatment - ✔✔ANSW✔✔..indicates a pre-existing condition
a provision in a whole life policy that allows a policy owner to terminate the
policy in return for a reduced paid-up policy of the same time is called a -
✔✔ANSW✔✔..nonforfeiture provision
A rehabilitation benefit is intended to - ✔✔ANSW✔✔..prepare the insured
to return to employment
a renewable term life insurance policy allows the policyowner the right to
renew the policy - ✔✔ANSW✔✔..without producing proof of insurability
a renewable term life insurance policy can be renewed - ✔✔ANSW✔✔..at
a predetermined date or age, regardless of the insurance health
WITH CORRECT/ VERIFIED ANSWERS|(frequently most
tested question)GET IT 100% ACCURATE | ALREADY
GRADED A+
____________ is NOT an element of a valid contract. -
✔✔ANSW✔✔..Taxable income.
Disability insurance benefits from a group policy paid for by an employer is
considered taxable income.
"maximum benefits" refers to the - ✔✔ANSW✔✔..upper limit of the total
lifetime benefits the insurance company will pay
A business will typically use which type of life insurance to cover their
employees? - ✔✔ANSW✔✔..Group policy
A clause that allows an insurer the right to terminate coverage at any
anniversary date is called a(n) - ✔✔ANSW✔✔..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.
A common exclusion with Vision plans is - ✔✔ANSW✔✔..lasik surgery
INCLUDED: eyeglass frames, the examination, contact lenses
a form of medical health insurance covering the treatment and care of gum
disease is called - ✔✔ANSW✔✔..Dental expense insurance
,a group disability income plan that pays tax free benefits to cover
employees is considered - ✔✔ANSW✔✔..fully contributory
a guaranteed issue life insurance policy has no - ✔✔ANSW✔✔..medical
underwriting
a health insurance policy that allows an insurer to change the policy owners
premiums, but NOT cancel the policy is called - ✔✔ANSW✔✔..guaranteed
renewable policy
A licensee can disclose a consumer's policy account number to all of the
following EXCEPT a - ✔✔ANSW✔✔..nonaffiliated third party
CORRECT: member in an affinity program that was identified to the
consumer upon entering the program, service provider marketing on behalf
of licensee, consumer reporting agency.
A licensee who informs an insured of inaccurate terms, benefits, or
advantages of any policy is committing which of the following violations? -
✔✔ANSW✔✔..Misrepresention
A licensee who is required to take continuing education MUST include how
many ethics coursework hours? - ✔✔ANSW✔✔..3
A licensee is required to take 24 hours of continuing education every two
years. Of the 24 hours, 3 must be in ethics
a life insurance policy normally contains a provision that restricts coverage
in the event of death under all of the following situations EXCEPT -
✔✔ANSW✔✔..fare-paying passenger
CORRECT: pilot of personal airplane, suicide, War
the above may not be covered or have restrictions.
A life insurance policy that contains a guaranteed interest rate with the
chance to earn a rate that is higher than the guaranteed rate is called -
✔✔ANSW✔✔..universal life
,A life insurance rider that allows an individual to purchase insurance as
they grow older, regardless of insurability, is called a(n) -
✔✔ANSW✔✔..guaranteed insurability rider
a Medicare supplement basic benefit is - ✔✔ANSW✔✔..the first 3 pints of
blood per year
A Modified Endowment Contract (MEC) is best described as -
✔✔ANSW✔✔..a life insurance contract which accumulates cash value is
higher than the IRS will allow
A non-contributory health insurance plan helps the insurer avoid -
✔✔ANSW✔✔..adverse selection
because all eligible employees are usually covered, non-contributory plans
are desirable from an underwriting standpoint because adverse selection is
minimized.
A notice of cash surrender value must be sent to a Universal Life
policyowner - ✔✔ANSW✔✔..at least annually
A policyholder has a major medical plan with a 80%/20% coinsurance and
a deductible of $75. If the insured has previously met her deductible and
receives a bill for $175, how much will the insurer pay? -
✔✔ANSW✔✔..$140
because the insured has previously met her deductible, the eligible
expenses for a claim is the entire $175. The insurance company pays 80%
of $175, or $140.
A policyholder's unmarried child is incapable of self support due to physical
disability. the child is provided medical care coverage under the parent's
policy - ✔✔ANSW✔✔..until policy term with proof of incapacity
written proof of disability and dependcy is required to prove a mental or
physical handicap for a dependent child.
, A policyowner may change two policy features on what type of life
insurance? - ✔✔ANSW✔✔..adjustable life
adjustable life allows the policyowner to change to policy features: premium
and face amount.
A producer MUST be appointed by the insurer within how many days from
the date the agency contract application is submitted? - ✔✔ANSW✔✔..15
a producer who knowingly submits a FALSE statement in support of a
claim.may be found guilty of - ✔✔ANSW✔✔..fraud
a producer's fiduciary responsibility includes which of the following
activities? - ✔✔ANSW✔✔..recording the receipt and distribution of
premiums due to an insurer
an agent show use reasonable accounting methods to record funds
received in his or her fiduciary capacity including the receipt and
distribution of all premiums do each of his or her insurers.
a proposed insured for a health insurance policy was treated for heart
disease within the past year. When applying for health insurance, the heart
disease treatment - ✔✔ANSW✔✔..indicates a pre-existing condition
a provision in a whole life policy that allows a policy owner to terminate the
policy in return for a reduced paid-up policy of the same time is called a -
✔✔ANSW✔✔..nonforfeiture provision
A rehabilitation benefit is intended to - ✔✔ANSW✔✔..prepare the insured
to return to employment
a renewable term life insurance policy allows the policyowner the right to
renew the policy - ✔✔ANSW✔✔..without producing proof of insurability
a renewable term life insurance policy can be renewed - ✔✔ANSW✔✔..at
a predetermined date or age, regardless of the insurance health
