XCEL SOLUTIONS - FINAL EXAM
QUESTIONS AND ANSWERS WELL
DEFINED GRADED A+.
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile
accident, where would the death proceeds be directed? - correct answers Daughter
When is a Group Health policy required to provide coverage for a newborn child? - correct answers At
the moment of birth
What is the required renewability status of all Medicare supplement policies? - correct answers
Guaranteed renewable
Who issues Medicare Supplement policies? - correct answers insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to
disability? - correct answers P will still receive declared dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? - correct answers
20-pay life
The Nevada Insurance Guaranty Association - correct answers protects Nevada insurance policy owners
in the event an insurance company becomes insolvent
The most important factor to consider when determining whether to convert term insurance at the
insured's attained age or to the insured's original age is: - correct answers the cost
A Medicare Supplement policy may be cancelled for which of the following reasons? - correct answers
The premiums has not been paid by the insured
,A noncontributory group term life plan is characterized by: - correct answers The entire cost of the plan
is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: - correct answers Insurer's
corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? - correct answers
Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which of
these reports? - correct answers Inspection report
T is receiving $3,000/month from a Disability Income policy in which T's employer has pad the
premiums. How are the $3,000 benefit payments taxable? - correct answers Benefits are taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that starts when the
insured dies? - correct answers Family Maintenance Policy
Basic Medical Expense insurance: - correct answers has lower benefit limits than Major Medical
Insurance
What is the requirement for maintaining an individual Nevada producer license? - correct answers
completing 30 hours of continuing education every 3 years
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - correct answers Twisting
Which of these is considered a mandatory provision? - correct answers payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? - correct answers payor
benefit rider
, What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the
required minimum distributions from their qualified retirement plan? - correct answers 50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance clause.
How much will the INSURED have to pay if a total of $15,000 in covered medical expenses are incurred?
- correct answers $7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100%
premium refund? - correct answers 30
Which of the following is an example of defamation? - correct answers circulating brochures that falsely
denounce the financial condition of an insurer
T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially disabled,
what can he likely expect? - correct answers Less than $5,000 per month benefit regardless of the cause
A Medicare Supplement policyholder has ___ days to return the policy and receive a full premium
refund. - correct answers 30
The health insurance program which is administered by each state and funded by both the federal and
state governments is called: - correct answers Medicaid
Which of these is NOT considered to be a cost connected with an individual's death? - correct answers
Business expenses
Group life insurance policies are generally written as - correct answers annually renewable term
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the
company discovered W's true age at issue had been 59. What would the normal procedure be under the
misstatement of age provision in regard to the payment of the death claim? - correct answers The
proceeds would be reduced based on whatever the premium would have been if purchased at age 59
QUESTIONS AND ANSWERS WELL
DEFINED GRADED A+.
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile
accident, where would the death proceeds be directed? - correct answers Daughter
When is a Group Health policy required to provide coverage for a newborn child? - correct answers At
the moment of birth
What is the required renewability status of all Medicare supplement policies? - correct answers
Guaranteed renewable
Who issues Medicare Supplement policies? - correct answers insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to
disability? - correct answers P will still receive declared dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? - correct answers
20-pay life
The Nevada Insurance Guaranty Association - correct answers protects Nevada insurance policy owners
in the event an insurance company becomes insolvent
The most important factor to consider when determining whether to convert term insurance at the
insured's attained age or to the insured's original age is: - correct answers the cost
A Medicare Supplement policy may be cancelled for which of the following reasons? - correct answers
The premiums has not been paid by the insured
,A noncontributory group term life plan is characterized by: - correct answers The entire cost of the plan
is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: - correct answers Insurer's
corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? - correct answers
Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which of
these reports? - correct answers Inspection report
T is receiving $3,000/month from a Disability Income policy in which T's employer has pad the
premiums. How are the $3,000 benefit payments taxable? - correct answers Benefits are taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that starts when the
insured dies? - correct answers Family Maintenance Policy
Basic Medical Expense insurance: - correct answers has lower benefit limits than Major Medical
Insurance
What is the requirement for maintaining an individual Nevada producer license? - correct answers
completing 30 hours of continuing education every 3 years
J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - correct answers Twisting
Which of these is considered a mandatory provision? - correct answers payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? - correct answers payor
benefit rider
, What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the
required minimum distributions from their qualified retirement plan? - correct answers 50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance clause.
How much will the INSURED have to pay if a total of $15,000 in covered medical expenses are incurred?
- correct answers $7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100%
premium refund? - correct answers 30
Which of the following is an example of defamation? - correct answers circulating brochures that falsely
denounce the financial condition of an insurer
T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially disabled,
what can he likely expect? - correct answers Less than $5,000 per month benefit regardless of the cause
A Medicare Supplement policyholder has ___ days to return the policy and receive a full premium
refund. - correct answers 30
The health insurance program which is administered by each state and funded by both the federal and
state governments is called: - correct answers Medicaid
Which of these is NOT considered to be a cost connected with an individual's death? - correct answers
Business expenses
Group life insurance policies are generally written as - correct answers annually renewable term
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the
company discovered W's true age at issue had been 59. What would the normal procedure be under the
misstatement of age provision in regard to the payment of the death claim? - correct answers The
proceeds would be reduced based on whatever the premium would have been if purchased at age 59
