Xcel Solutions Final Exam Prep (2024/ 2025) Questions
and Verified Answers| 100% Correct| Grade A
John's health plan benefits of 90% for in-network providers and 70% for out-of-
netword providers. What kind of plan is this. - ANSWERPPO - Preferred Provider
Organization
MRMIP is a - ANSWERState program that offers health coverage to California
residents who are not able to obtain coverage due to pre- existing conditions.
When intentional concealment is involved, what course of action is the injured party
entitled to? - ANSWERRescission of the Contract
In a renewable term life insurance policy , the contract will usually - ANSWERrequire
a higher premium payable at each renewal
What area of group health insurance is regulated under the Employee Retirement
Security Act of 1974 (ERISA)? - ANSWERDisclosure and reporting
At what age is a surviving spouse without dependents eligible for social security
survivor benefits ? - ANSWER60
A life insurance policy where the insured can choose where the cash value can be
invested is called - ANSWERVariable life
Cindy buys a 10-year certain annuity with an installment refund. After receiving
monthly payments for 5 years, Cindy dies. How many remaining payments will the
insurer make to her beneficiary? - ANSWER60 payments
potential for loss - ANSWERloss exposure
Major medical expense plans typically use a cost containment measure for
emergency hospital care. This is referred to as a(n) - ANSWERdeductible
where must you specifically reside to qualify for MRMIP? - ANSWERCalifornia
statement is NOT true regarding Social Security benefits ? - ANSWERBenefits are
designed to replace the entire amount of the workers earnings
Medicare Part A covers what type of care? - ANSWERSkilled nursing facility care
Christine has a health insurance policy that has been in force beyond the
incontestable period. The insurer has discovered that a fraudulent statement was
made on the application. What would the insurer have to pay on a claim, assuming
this wasn't a guaranteed renewable policy? - ANSWERNothing will be paid because
of fraud
, Which type of worker has Social Security benefits available to them? - ANSWERFully
insured
An insurance policy written after 1988 that fails to pass the seven-pay test is know as
- ANSWERa modified endowment contract
Not a valid reason to replace an existing long-term care policy? - ANSWERNew policy
has higher premium with fewer benefits
statement that is true about Medicare - ANSWERBenefits for diagnostic tests and X-
rays performed on an outpatient basis are provided by part B
In California , an insurer organized under the state laws of Oregon is Called a(n) -
ANSWERforeign insurer
The conditions, times, and circumstances under which an insured is NOT covered by
a health policy are called? - ANSWERExclusions
Which of the following does the California insurance code Not require an insurance
policy to specify? - ANSWERInsurer's financial rating
Which of the following services are health maintenance organizations (HMO's) Not
required to provide? - ANSWERPrescription Drugs
Not covered under vision care insurance - ANSWEReye surgery
How does a conditional receipt differ from a binding receipt? - ANSWERBinding
receipts always provide insurance which starts from the date of receipt
John owns an insurance policy that gives him the right to share in the insurer's
surplus. What kind of policy is this? - ANSWERParticipating policy , gives rights to
share the insurers surplus
employer-provided group term life insurance is exempt from income taxation up to -
ANSWER$50,000
According to California code governing claim settlement practices what can not be
considered to be an act of unfair discrimination? - ANSWERDenial of a claim based
on reckless behavior
When calculating life insurance premium rates , which component would an agents
commission fall under ? - ANSWERInsurer's expenses
What does the term coinsurance refer to ? - ANSWERAfter the deductible is satisfied,
the percentage paid by the insured for the remaining covered expenses
and Verified Answers| 100% Correct| Grade A
John's health plan benefits of 90% for in-network providers and 70% for out-of-
netword providers. What kind of plan is this. - ANSWERPPO - Preferred Provider
Organization
MRMIP is a - ANSWERState program that offers health coverage to California
residents who are not able to obtain coverage due to pre- existing conditions.
When intentional concealment is involved, what course of action is the injured party
entitled to? - ANSWERRescission of the Contract
In a renewable term life insurance policy , the contract will usually - ANSWERrequire
a higher premium payable at each renewal
What area of group health insurance is regulated under the Employee Retirement
Security Act of 1974 (ERISA)? - ANSWERDisclosure and reporting
At what age is a surviving spouse without dependents eligible for social security
survivor benefits ? - ANSWER60
A life insurance policy where the insured can choose where the cash value can be
invested is called - ANSWERVariable life
Cindy buys a 10-year certain annuity with an installment refund. After receiving
monthly payments for 5 years, Cindy dies. How many remaining payments will the
insurer make to her beneficiary? - ANSWER60 payments
potential for loss - ANSWERloss exposure
Major medical expense plans typically use a cost containment measure for
emergency hospital care. This is referred to as a(n) - ANSWERdeductible
where must you specifically reside to qualify for MRMIP? - ANSWERCalifornia
statement is NOT true regarding Social Security benefits ? - ANSWERBenefits are
designed to replace the entire amount of the workers earnings
Medicare Part A covers what type of care? - ANSWERSkilled nursing facility care
Christine has a health insurance policy that has been in force beyond the
incontestable period. The insurer has discovered that a fraudulent statement was
made on the application. What would the insurer have to pay on a claim, assuming
this wasn't a guaranteed renewable policy? - ANSWERNothing will be paid because
of fraud
, Which type of worker has Social Security benefits available to them? - ANSWERFully
insured
An insurance policy written after 1988 that fails to pass the seven-pay test is know as
- ANSWERa modified endowment contract
Not a valid reason to replace an existing long-term care policy? - ANSWERNew policy
has higher premium with fewer benefits
statement that is true about Medicare - ANSWERBenefits for diagnostic tests and X-
rays performed on an outpatient basis are provided by part B
In California , an insurer organized under the state laws of Oregon is Called a(n) -
ANSWERforeign insurer
The conditions, times, and circumstances under which an insured is NOT covered by
a health policy are called? - ANSWERExclusions
Which of the following does the California insurance code Not require an insurance
policy to specify? - ANSWERInsurer's financial rating
Which of the following services are health maintenance organizations (HMO's) Not
required to provide? - ANSWERPrescription Drugs
Not covered under vision care insurance - ANSWEReye surgery
How does a conditional receipt differ from a binding receipt? - ANSWERBinding
receipts always provide insurance which starts from the date of receipt
John owns an insurance policy that gives him the right to share in the insurer's
surplus. What kind of policy is this? - ANSWERParticipating policy , gives rights to
share the insurers surplus
employer-provided group term life insurance is exempt from income taxation up to -
ANSWER$50,000
According to California code governing claim settlement practices what can not be
considered to be an act of unfair discrimination? - ANSWERDenial of a claim based
on reckless behavior
When calculating life insurance premium rates , which component would an agents
commission fall under ? - ANSWERInsurer's expenses
What does the term coinsurance refer to ? - ANSWERAfter the deductible is satisfied,
the percentage paid by the insured for the remaining covered expenses
