XCEL Health & Life Insurance PART 2 -
Comprehensive Exam Review (Alabama)
T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what
can he likely expect? ANS: Less than $5000 per month benefit regardless of the cause
At certain ages, an insured can increase the stated benefit under their disability income policy,
regardless of health. Which policy rider does this describe? ANS: Cost of Living Adjustment (COLA)
When a person returns to work after a period of total disability but cannot earn as much as he or she did
before the disability, this situation is called which of the following? ANS: Residual disability
R had received full disability income benefits for 6 months. When he returns to work, he is only able to
resume half his normal daily workload. Which provision pays reduced benefits to R while he is not
working at full capacity? ANS: Residual disability
With Disability Income insurance, an insurance company may limit the monthly benefit amount a
prospective policy holder may obtain because of the insured's: ANS: Gross income at the time of
purchase
Mary and Paul have individual disability income policies that both pay a $5,000/month benefit. Mary's
policy has a 30-day elimination period, and Paul's policy has a five month elimination period. Which of
the following statements is true? ANS: Paul's premium is probably less than Mary's
An individual Disability Income insurance applicant may be required to submit all of the following
information EXCEPT:
A. Medical history
B. Gross income
C. Occupation
,D. Spouse's occupation ANS: Spouse's occupation
P received Disability income benefits for 3 months then returns to work. She is able to work one month
before her condition returns, leaving her disabled once again. What would the insurance company most
likely regard this second period of disability as? ANS: A recurrent disability
A Long Term Care insured must be unable to perform a minimum of ____ Activities of Daily Living (ADLs)
to receive benefits. ANS: 2
A Long Term Care (LTC) policy has a minimum renewability level of: ANS: Guaranteed renewable
Katherine is a retiree and was recently hospitalized for 10 days. Which type of insurance policy would
best cover her for excess hospital expenses? ANS: Medicare supplement
Extended residence in a nursing home is covered by a(n): ANS: Long-term care policy
Long Term Care policies normally provide benefits for: ANS: Home health care
The Long Term Care Partnership program is designed to allow seniors to: ANS: Shelter assets from the
spend-down requirements of Medicaid
Who would most likely own a Medicare Supplement policy? ANS: 69-year old female covered by
Medicare
An individual unable to perform two or more Activities of Daily Living (ADLs) will trigger coverage from a
___________ policy. ANS: Long Term Care (LTC)
, Jackie has just enrolled in Medicare Part B for the first time. He cannot be refused or rated for a
Medicare supplement policy as long as he applies for coverage within 6 months of enrolling in Part B
what is this requirement called: ANS: Guaranteed issue
Which is NOT true regarding Medicare Supplement policies?
A. Designed fo individuals who are enrolled in Medicare
B. Must define all terms the same as the federal Medicare program
C. Must include a minimum 20-day Free Look provision
D. Must not duplicate Medicare benefits ANS: Must include a minimum 20-day Free Look provision
Eligibile participants are required to make premium payments for which part of Medicare? ANS: Part B
Medicare Advantage (Medicare Part C) allows the utilization of benefits through a(n): ANS: HMO, PPO,
or traditional insurer
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating
in a carjacking. How will the insurer most likely handle this claim? ANS: Claim will be denied
K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment
which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored
in this situation? ANS: Reinstatement
The policy provision that entitles the insurer to establish conditions the insured must meet while a claim
is pending is: ANS: Time limit on certain defenses
An insured pays premiums on an annual basis for an individual health insurance policy. What is the
MINIMUM number of days for the Grace Period provision? ANS: 31
Comprehensive Exam Review (Alabama)
T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what
can he likely expect? ANS: Less than $5000 per month benefit regardless of the cause
At certain ages, an insured can increase the stated benefit under their disability income policy,
regardless of health. Which policy rider does this describe? ANS: Cost of Living Adjustment (COLA)
When a person returns to work after a period of total disability but cannot earn as much as he or she did
before the disability, this situation is called which of the following? ANS: Residual disability
R had received full disability income benefits for 6 months. When he returns to work, he is only able to
resume half his normal daily workload. Which provision pays reduced benefits to R while he is not
working at full capacity? ANS: Residual disability
With Disability Income insurance, an insurance company may limit the monthly benefit amount a
prospective policy holder may obtain because of the insured's: ANS: Gross income at the time of
purchase
Mary and Paul have individual disability income policies that both pay a $5,000/month benefit. Mary's
policy has a 30-day elimination period, and Paul's policy has a five month elimination period. Which of
the following statements is true? ANS: Paul's premium is probably less than Mary's
An individual Disability Income insurance applicant may be required to submit all of the following
information EXCEPT:
A. Medical history
B. Gross income
C. Occupation
,D. Spouse's occupation ANS: Spouse's occupation
P received Disability income benefits for 3 months then returns to work. She is able to work one month
before her condition returns, leaving her disabled once again. What would the insurance company most
likely regard this second period of disability as? ANS: A recurrent disability
A Long Term Care insured must be unable to perform a minimum of ____ Activities of Daily Living (ADLs)
to receive benefits. ANS: 2
A Long Term Care (LTC) policy has a minimum renewability level of: ANS: Guaranteed renewable
Katherine is a retiree and was recently hospitalized for 10 days. Which type of insurance policy would
best cover her for excess hospital expenses? ANS: Medicare supplement
Extended residence in a nursing home is covered by a(n): ANS: Long-term care policy
Long Term Care policies normally provide benefits for: ANS: Home health care
The Long Term Care Partnership program is designed to allow seniors to: ANS: Shelter assets from the
spend-down requirements of Medicaid
Who would most likely own a Medicare Supplement policy? ANS: 69-year old female covered by
Medicare
An individual unable to perform two or more Activities of Daily Living (ADLs) will trigger coverage from a
___________ policy. ANS: Long Term Care (LTC)
, Jackie has just enrolled in Medicare Part B for the first time. He cannot be refused or rated for a
Medicare supplement policy as long as he applies for coverage within 6 months of enrolling in Part B
what is this requirement called: ANS: Guaranteed issue
Which is NOT true regarding Medicare Supplement policies?
A. Designed fo individuals who are enrolled in Medicare
B. Must define all terms the same as the federal Medicare program
C. Must include a minimum 20-day Free Look provision
D. Must not duplicate Medicare benefits ANS: Must include a minimum 20-day Free Look provision
Eligibile participants are required to make premium payments for which part of Medicare? ANS: Part B
Medicare Advantage (Medicare Part C) allows the utilization of benefits through a(n): ANS: HMO, PPO,
or traditional insurer
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating
in a carjacking. How will the insurer most likely handle this claim? ANS: Claim will be denied
K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment
which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored
in this situation? ANS: Reinstatement
The policy provision that entitles the insurer to establish conditions the insured must meet while a claim
is pending is: ANS: Time limit on certain defenses
An insured pays premiums on an annual basis for an individual health insurance policy. What is the
MINIMUM number of days for the Grace Period provision? ANS: 31
