XCEL Life and Health Insurance Test
Review
Which annuity payout option allows the policy owner to choose a pre-determined
number of benefit payments?
Period Certain
Which annuity payout option has no additional payouts regardless of when the annuitant
dies
Life only annuity
a professional liability for which producers can be sued for mistakes of putting a policy
into effect
Errors and Omissions
requires the beneficiary's signature for any change to the beneficiary
irrevocable beneficiary
statements made by an insurance applicant on an application
representations
life insurance policies guarantee the beneficiary what upon the death of the insured
a specified amount of money
common exclusion on a dental policy
Endodontics
Which type of long-term care benefit would be most appropriate for a stroke victim who
requires speech therapy administered at her home?
Home health care
According to the Affordable Care Act, any plan in existence prior to which date is
considered a grandfathered plan?
March 23, 2010
Which of the following is NOT a type of Medicare Advantage Plan?
Social Security Disability Income (SSDI)
Coordination of Benefits regulation applies to all of the following plans EXCEPT
Preferred Provider Organization plan (PPO)
Both long-term care insurance and Medicare Supplement policies may be returned by
the insured for a full refund within
30 days
00:0301:42
Which type of coverage pays an amount per day for hospitalization directly to the
insured regardless of the insured's other health insurance?
Hospital Indemnity
Low frequency diseases can be exclusively covered by what kind of health insurance
policies?
Limited Policies
What type of injury would NOT be covered under a health insurance policy?
Work-related
Without a Section 125 Plan in place, what would happen to an employee's payroll
contribution to an HSA?
,It would be considered taxable income to the employee
A single premium cash value policy can be described as
a policy that is paid up after only one payment
How does one become eligible for Part D: Prescription Drug coverage?
Must have Medicare coverage
An example of endodontic treatment is a
root canal
Under US Code 1033, crimes by or affecting persons engaged in the business of
insurance which affect interstate commerce are prosecuted by the
US Attorney General
What would be an expense factor in an insurance program?
Mortality costs
Which of the following signatures is not required on an individual insurance application?
Insurer
All of the following are defined as supplemental health insuring corporation (HIC)
services EXCEPT
outpatient medical services
"Maximum benefits" refers to the
upper limit of the total lifetime benefits the insurance company will pay
Signatures for an insurance application MUST be obtained by the producer from all of
the following sources EXCEPT
the beneficiary
What happens to the coverage under a children's term rider when that child reaches a
certain specified age?
Coverage is eliminated
Which of the following actions may an insurance company NOT do in a health policy
that contains a guaranteed renewable premium benefit?
increase the premiums on an individual basis
When the superintendent believes an agent is causing substantial and material harm,
the superintendent has the authority to
issue a cease and desist order against the agent
Upon policy delivery, which of the following must a producer have an applicant sign if no
initial premium was collected with the life insurance application?
A good health statement
Index whole life insurance contains a securities component that acts as a(n)
Hedge against inflation
Which of the following statements regarding Group Disability Income insurance is
TRUE?
It provides benefits for nonoccupational illnesses and injuries
Which of the following is NOT a federal requirement of a qualified plan?
Employee must be able to make unlimited contributions
Which clause defines total disability as being unable to perform the major duties of the
insured's regular occupation?
Own occupation clause
How are premiums paid by the insured for personally owned disability income insurance
treated for tax purposes?
, not tax deductible
A limited payment whole life policy provides
lifetime protection
When can a group health policy renewal be denied according to the Health Insurance
Portability and Accountability Act (HIPAA)?
when contribution or participation rules have been violated
Medicare Part A does not pay for medical benefits provided for treatment in a skilled
nursing facility beyond
100 days
An insurer has a right to screen applicants for HIV in which of the following ways?
blood test for HIV
A closed network plan offers a a primary physician copay of $25. If a subscriber
chooses a primary care physician outside of the network, the subscriber will likely pay
100% of the billed amount
When comparing an HIC to a PPO, the PPO
provides a greater choice of providers
Loss of income insurance provides
an individual the means to replace wages
A health insurance policy that allows an insurer to change the policyowner's premiums,
but NOT cancel the policy is called a(n)
guaranteed renewable policy
An insurer will accept a premium from the insured and continue the coverage in full
force as though it was NOT late during which time period?
grace period
A deliberate lie by an insured to the insurer to obtain a lower premium is an example of
fraud
Why are dividends from a mutual insurer not subject to taxation?
because dividends are considered to be a return of premium
A life insurance policyowner does NOT have the right to
revoke an absolute assignment
Which of the following does Coordination of Benefits allow?
allows the secondary payor to reduce their benefit payment so that no more than 100%
of the claim is paid
With the majority of companies, within how many days does the free-look provision
allow the insured the right to return the life insurance policy for full premium?
10 days
Of the following dividend options, which of these is taxable?
Accumulation at interest
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated
employee's benefits must
be the same and the premium cannot exceed 102%
An example of naming a beneficiary by class would be
"To the children born of my union with Ned Jackson"
Which of these statements about Medicaid is CORRECT?
funded by federal, state and local taxes
Review
Which annuity payout option allows the policy owner to choose a pre-determined
number of benefit payments?
Period Certain
Which annuity payout option has no additional payouts regardless of when the annuitant
dies
Life only annuity
a professional liability for which producers can be sued for mistakes of putting a policy
into effect
Errors and Omissions
requires the beneficiary's signature for any change to the beneficiary
irrevocable beneficiary
statements made by an insurance applicant on an application
representations
life insurance policies guarantee the beneficiary what upon the death of the insured
a specified amount of money
common exclusion on a dental policy
Endodontics
Which type of long-term care benefit would be most appropriate for a stroke victim who
requires speech therapy administered at her home?
Home health care
According to the Affordable Care Act, any plan in existence prior to which date is
considered a grandfathered plan?
March 23, 2010
Which of the following is NOT a type of Medicare Advantage Plan?
Social Security Disability Income (SSDI)
Coordination of Benefits regulation applies to all of the following plans EXCEPT
Preferred Provider Organization plan (PPO)
Both long-term care insurance and Medicare Supplement policies may be returned by
the insured for a full refund within
30 days
00:0301:42
Which type of coverage pays an amount per day for hospitalization directly to the
insured regardless of the insured's other health insurance?
Hospital Indemnity
Low frequency diseases can be exclusively covered by what kind of health insurance
policies?
Limited Policies
What type of injury would NOT be covered under a health insurance policy?
Work-related
Without a Section 125 Plan in place, what would happen to an employee's payroll
contribution to an HSA?
,It would be considered taxable income to the employee
A single premium cash value policy can be described as
a policy that is paid up after only one payment
How does one become eligible for Part D: Prescription Drug coverage?
Must have Medicare coverage
An example of endodontic treatment is a
root canal
Under US Code 1033, crimes by or affecting persons engaged in the business of
insurance which affect interstate commerce are prosecuted by the
US Attorney General
What would be an expense factor in an insurance program?
Mortality costs
Which of the following signatures is not required on an individual insurance application?
Insurer
All of the following are defined as supplemental health insuring corporation (HIC)
services EXCEPT
outpatient medical services
"Maximum benefits" refers to the
upper limit of the total lifetime benefits the insurance company will pay
Signatures for an insurance application MUST be obtained by the producer from all of
the following sources EXCEPT
the beneficiary
What happens to the coverage under a children's term rider when that child reaches a
certain specified age?
Coverage is eliminated
Which of the following actions may an insurance company NOT do in a health policy
that contains a guaranteed renewable premium benefit?
increase the premiums on an individual basis
When the superintendent believes an agent is causing substantial and material harm,
the superintendent has the authority to
issue a cease and desist order against the agent
Upon policy delivery, which of the following must a producer have an applicant sign if no
initial premium was collected with the life insurance application?
A good health statement
Index whole life insurance contains a securities component that acts as a(n)
Hedge against inflation
Which of the following statements regarding Group Disability Income insurance is
TRUE?
It provides benefits for nonoccupational illnesses and injuries
Which of the following is NOT a federal requirement of a qualified plan?
Employee must be able to make unlimited contributions
Which clause defines total disability as being unable to perform the major duties of the
insured's regular occupation?
Own occupation clause
How are premiums paid by the insured for personally owned disability income insurance
treated for tax purposes?
, not tax deductible
A limited payment whole life policy provides
lifetime protection
When can a group health policy renewal be denied according to the Health Insurance
Portability and Accountability Act (HIPAA)?
when contribution or participation rules have been violated
Medicare Part A does not pay for medical benefits provided for treatment in a skilled
nursing facility beyond
100 days
An insurer has a right to screen applicants for HIV in which of the following ways?
blood test for HIV
A closed network plan offers a a primary physician copay of $25. If a subscriber
chooses a primary care physician outside of the network, the subscriber will likely pay
100% of the billed amount
When comparing an HIC to a PPO, the PPO
provides a greater choice of providers
Loss of income insurance provides
an individual the means to replace wages
A health insurance policy that allows an insurer to change the policyowner's premiums,
but NOT cancel the policy is called a(n)
guaranteed renewable policy
An insurer will accept a premium from the insured and continue the coverage in full
force as though it was NOT late during which time period?
grace period
A deliberate lie by an insured to the insurer to obtain a lower premium is an example of
fraud
Why are dividends from a mutual insurer not subject to taxation?
because dividends are considered to be a return of premium
A life insurance policyowner does NOT have the right to
revoke an absolute assignment
Which of the following does Coordination of Benefits allow?
allows the secondary payor to reduce their benefit payment so that no more than 100%
of the claim is paid
With the majority of companies, within how many days does the free-look provision
allow the insured the right to return the life insurance policy for full premium?
10 days
Of the following dividend options, which of these is taxable?
Accumulation at interest
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated
employee's benefits must
be the same and the premium cannot exceed 102%
An example of naming a beneficiary by class would be
"To the children born of my union with Ned Jackson"
Which of these statements about Medicaid is CORRECT?
funded by federal, state and local taxes
