XCEL Health & Life Insurance EXTRA PRACTICE - Exam
Review (Alabama) Questions and Answers
What is the applicant's consideration in an insurance contract? - Correct
AnswersPremiums
At certain ages or dates, an insured can increase the stated benefit (within limits) under
their disability income policy, regardless of health. Which policy rider BEST describes this?
- Correct AnswersFutre Income Option
Which of these statements regarding an insurance application is true? - Correct AnswersA
representation is valid as long as it is true
Who does a disability income policy normally cover? - Correct AnswersWage earners
A business owner has disability coverage that covers business expenses (other than
income, the cost of capital goods, and other specified expenses). What kind of disability
coverage is this? - Correct AnswersBusiness overhead expense insurance
Trent has a permanent partial disability where he is paid 50% of his previous income. Trent
is covered by a: - Correct AnswersResidual disability benefit
Which of the following is a true statement? - Correct AnswersTRUE - The withholding of
information that should have been provided to an insurer is called concealment.
The number of an insurance company's health insureds that is expected to become sick or
injured is called: - Correct AnswersMorbidity experience
Bart is injured and provides notice of a health claim to his insurer He later receives the
required claims forms. Within how many days of the loss must Bart file proof of loss with the
insurance company? - Correct Answers90
,Julio, the insurance producer, has allowed his license to lapse. He would like to reinstate
his license without taking the course and passing the exam. To do this they must reinstate
the license within how many months from the renewal date? - Correct Answers12
A life insurance policyowner has just exercised the policy's reduced paid-up option. Which
of these statements is true? - Correct AnswersThe amount of coverage would be less than
the original coverage
An individual unable to perform two or more Activities of Daily Living (ADLs) will trigger
coverage from a _____ policy. - Correct AnswersLong Term Care (LTC)
The notice of claim provision states that the insured notify the insurance company within
____ days of a claim. - Correct Answers20
Which is NOT true regarding Medicare Supplement policies? - Correct AnswersMust
include a minimum 20-day Free-Look provision
Which of these is NOT a reason the insurance application is important? - Correct
AnswersWhen attached to the policy, the application becomes part of the insurance clause
Michael has a universal life policy with an increasing death benefit option. With an initial
face amount of $50,000, what would the actual death benefit be? - Correct
Answers$55,000
How are employer-paid premiums for employee group health insurance normally treated
for tax purposes? - Correct AnswersTax deductible to the employee / Nontaxable to the
employee
An insurance producer who offers a potential client something of value as an incentive to
purchase insurance is engaging in: - Correct AnswersRebating
Katherine is a retiree and was recently hospitalized for 10 days. Which type of insurance
policy would best cover her for excess hospital expenses? - Correct AnswersMedicare
Supplement
, Which welfare program provides assistance to the needy? - Correct AnswersMedicaid
Medicare is NOT available to a(n): - Correct Answers61-year old Medicaid recipient
Who does the insurance agent legally represent? - Correct AnswersThe insurance
company
Why are insurance contracts said to be contracts of adhesion? - Correct AnswersOne
party writes the contract and the other party must accept the contract as written
Alabama's annuity disclosure regulation: - Correct AnswersRequires the delivery of a
buyer's guide and a disclosure document to an annuity applicant
Who would most likely own a Medicare Supplemental policy? - Correct Answers69-year
old female covered by Medicare
Which of the following provisions may NOT be adjusted in an adjustable life policy? -
Correct AnswersThe insured
A departing employee has decided to continue his group coverage through COBRA. Who
pays the premium in this situation? - Correct AnswersEmployee
A group disability income policy will: - Correct AnswersUsually pay short-term benefits of
less than 2 years in duration
Jan is named irrevocable beneficiary of Jim's life insurance policy. Which of the following
statements is correct? - Correct AnswersJim needs jan's permission to borrow the policies
loan value
The life and health insurance marketing system utilizing non-employee agents that
represent just one insurance company and are often paid an allowance to cover office
expense and staffing is the: - Correct AnswersGeneral agency system
Review (Alabama) Questions and Answers
What is the applicant's consideration in an insurance contract? - Correct
AnswersPremiums
At certain ages or dates, an insured can increase the stated benefit (within limits) under
their disability income policy, regardless of health. Which policy rider BEST describes this?
- Correct AnswersFutre Income Option
Which of these statements regarding an insurance application is true? - Correct AnswersA
representation is valid as long as it is true
Who does a disability income policy normally cover? - Correct AnswersWage earners
A business owner has disability coverage that covers business expenses (other than
income, the cost of capital goods, and other specified expenses). What kind of disability
coverage is this? - Correct AnswersBusiness overhead expense insurance
Trent has a permanent partial disability where he is paid 50% of his previous income. Trent
is covered by a: - Correct AnswersResidual disability benefit
Which of the following is a true statement? - Correct AnswersTRUE - The withholding of
information that should have been provided to an insurer is called concealment.
The number of an insurance company's health insureds that is expected to become sick or
injured is called: - Correct AnswersMorbidity experience
Bart is injured and provides notice of a health claim to his insurer He later receives the
required claims forms. Within how many days of the loss must Bart file proof of loss with the
insurance company? - Correct Answers90
,Julio, the insurance producer, has allowed his license to lapse. He would like to reinstate
his license without taking the course and passing the exam. To do this they must reinstate
the license within how many months from the renewal date? - Correct Answers12
A life insurance policyowner has just exercised the policy's reduced paid-up option. Which
of these statements is true? - Correct AnswersThe amount of coverage would be less than
the original coverage
An individual unable to perform two or more Activities of Daily Living (ADLs) will trigger
coverage from a _____ policy. - Correct AnswersLong Term Care (LTC)
The notice of claim provision states that the insured notify the insurance company within
____ days of a claim. - Correct Answers20
Which is NOT true regarding Medicare Supplement policies? - Correct AnswersMust
include a minimum 20-day Free-Look provision
Which of these is NOT a reason the insurance application is important? - Correct
AnswersWhen attached to the policy, the application becomes part of the insurance clause
Michael has a universal life policy with an increasing death benefit option. With an initial
face amount of $50,000, what would the actual death benefit be? - Correct
Answers$55,000
How are employer-paid premiums for employee group health insurance normally treated
for tax purposes? - Correct AnswersTax deductible to the employee / Nontaxable to the
employee
An insurance producer who offers a potential client something of value as an incentive to
purchase insurance is engaging in: - Correct AnswersRebating
Katherine is a retiree and was recently hospitalized for 10 days. Which type of insurance
policy would best cover her for excess hospital expenses? - Correct AnswersMedicare
Supplement
, Which welfare program provides assistance to the needy? - Correct AnswersMedicaid
Medicare is NOT available to a(n): - Correct Answers61-year old Medicaid recipient
Who does the insurance agent legally represent? - Correct AnswersThe insurance
company
Why are insurance contracts said to be contracts of adhesion? - Correct AnswersOne
party writes the contract and the other party must accept the contract as written
Alabama's annuity disclosure regulation: - Correct AnswersRequires the delivery of a
buyer's guide and a disclosure document to an annuity applicant
Who would most likely own a Medicare Supplemental policy? - Correct Answers69-year
old female covered by Medicare
Which of the following provisions may NOT be adjusted in an adjustable life policy? -
Correct AnswersThe insured
A departing employee has decided to continue his group coverage through COBRA. Who
pays the premium in this situation? - Correct AnswersEmployee
A group disability income policy will: - Correct AnswersUsually pay short-term benefits of
less than 2 years in duration
Jan is named irrevocable beneficiary of Jim's life insurance policy. Which of the following
statements is correct? - Correct AnswersJim needs jan's permission to borrow the policies
loan value
The life and health insurance marketing system utilizing non-employee agents that
represent just one insurance company and are often paid an allowance to cover office
expense and staffing is the: - Correct AnswersGeneral agency system
