Xcell Testing Solutions (Life & Health) Final Practice Exam Questions And Answers Verified 100% Correct

Xcell Testing Solutions (Life & Health) Final Practice Exam Questions And Answers Verified 100% Correct In a Life insurance contract, an insurance company's promise to pay stated benefits is called the - ANSWER Insuring clause What does the ownership clause in a life insurance policy state? - ANSWER Who the policyowner is and what rights the policyowner is entitled to An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - ANSWER Full face amount minus any past due premiums When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - ANSWER Void the policy only if it is discovered during the Contestable period and proven to be material Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? - ANSWER Variable Life What kind of special need would a policyowner require with an Adjustable Life insurance policy? - ANSWER flexible premiums Credit Life insurance is - ANSWER issued in an amount not to exceed the amount of the loan Which of these would be considered a Limited-Pay Life policy? - ANSWER Life Paid-Up at Age 70 Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? - ANSWER Conversion privilege What type of life insurance incorporates flexible premiums and an adjustable death benefit? - ANSWER Universal Life A Limited-Pay Life policy has - ANSWER premium payments limited to a specified number of years Which statement about a whole life policy is correct? - ANSWER Cash value may be borrowed against Cash value may be borrowed against - ANSWER Face amount plus the policy's cash value What type of life policy covers 2 lives and pays the face amount after the first one dies? - ANSWER Joint Life Policy A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as - ANSWER Variable Life How does a typical Variable Life Policy investment account grow? - CORRECT ANSWER Through mutual funds, stocks, bonds All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for - ANSWER Modified Whole Life K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? - ANSWER Modified Whole Life What kind of premium does a Whole Life policy have? - ANSWER level What type of life policy covers two people and pays upon the death of the last insured? - ANSWER survivorship A policy of adhesion can only be modified by whom? - ANSWER The insurance company When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - ANSWER insurable interest in the proposed insured The part of a life insurance policy guaranteed to be true is called a(n) - CORRECT ANSWER warranty A Business Overhead Expense policy would cover which of the following if a business owner becomes disabled? - ANSWER Utilities and office rent Which statement is TRUE regarding a group accident & health policy issued to an employer? - ANSWER The employer is the policyowner and each employee receives a certificate of coverage T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. When T submits a claim, his employer's plan is considered what type of carrier under the Model Group Coordination of Benefits provision? - ANSWER Primary carrier J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy? - ANSWER $25,000 When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans? - ANSWER Contributory Which contract permits the remaining partners to buy-out the interest of a disabled business partner? - ANSWER Disability Buy-Sell Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance? - CORRECT ANSWER Disability income policy premiums are tax-deductible An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses? - ANSWER Loss of eyesight due to an accidental injury The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a(n) - ANSWER closed panel The health insurance program which is administered by each state and funded by both the federal and state governments is called - ANSWER Medicaid J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a preset price. What type of plan does J belong to? - ANSWER Health Maintenance Organization Which of these is considered a true statement regarding Medicaid? - CORRECT ANSWER Funded by both state and federal governments M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for? - ANSWER Determined by the terms of the policy Which of the following types of health coverage frequently uses a deductible? -