Xcel Testing Solutions- Life and Health
Insurance- Weighted Exam- 330 ACTUAL
EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
The focus of major medical insurance is providing coverage for - CORRECT
ANSWER medical and hospitalization expenses
An insured under a Major Medical expense plan with a zero deductible and 80/20
coinsurance provision files a $1,000 claim. How much of this claim is the insured
responsible for? - CORRECT ANSWER $200
because this policy has a zero deductible, the insures is only responsible for the
20% coinsurance on this claim, or $200
An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured
incurs $25,000 of covered losses. How much will the insured pay? - CORRECT
ANSWER $5,000
Which type of plan would be the most appropriate for an individual on Medicare
and concerned that Medicare will NOT pay for charges exceeding the approved
amount? - CORRECT ANSWER Medicare supplement Plan F
When can a group health policy renewal be denied according to the Health
Insurance Portability and Accountability Act (HIPAA)? - CORRECT ANSWER when
contribution or participation rules have been violated
,What does the word "level: in Level Term describe? - CORRECT ANSWER the face
amount
A non-contributory health insurance plan helps the insurer avoid - CORRECT
ANSWER adverse selection
because all eligible employees are usually covered, non-contributory plans are
desirable from an underwriting standpoint because adverse selection is
minimized.
To qualify for a resident producer license in the state of Michigan, an individual -
CORRECT ANSWER must complete the required pre-licensing education within
12 months of license application
Under an expense-incurred individual health policy, what is the MAXIMUM length
of time after issuance of the policy that an insurer can exclude coverage for a pre-
existing condition? - CORRECT ANSWER 12 months
pre-existing conditions may be excluded for a maximum of 12 months from the
date of enrollment.
An insured has a health plan that pays established amounts in accordance with a
list of injuries, surgical procedures, or other losses. This list is called a - CORRECT
ANSWER benefit schedule
benefits schedule set predetermined limits or maximums on how much money
and insured can be reimbursed for a covered loss.
,Who is the individual paid on a fee-for-service basis? - CORRECT ANSWER
Provider
Which of the following is NOT an illegal inducement? - CORRECT ANSWER Giving
the insured an article of merchandise printed with the producer's name costing $5
$5 or less of tokens or merchandise to applicants is allowed.
Making a statement that is false or maliciously critical of the financial condition of
an insurer is known as - CORRECT ANSWER defamation
Which of these statements about Medicaid is CORRECT? - CORRECT ANSWER
Funded by federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered by each
state.
All of these are considered key factors in underwriting life insurance EXCEPT -
CORRECT ANSWER Marital Status
Correct: tobacco use, health history, age
All of the following plans allow for employee contributions to be taken on a pre-
tax basis EXCEPT - CORRECT ANSWER Health reimbursement Arrangement plan
employers contribute to health reimbursement Arrangement planz (HRA's), not
employees.
, Which of the following gifts from a producer would NOT be considered rebating? -
CORRECT ANSWER $5 pen
A producer quoting life insurance may give an applicant an article of merchandise
having an invoice value of $5.00 or less.
Chris is an insured bricklayer who severed his left hand in an automobile accident.
Although his primary duty cannot be performed, Chris is also a substitute high
school teacher. He collects a full disability income check every month. How does
his policy define total disability? - CORRECT ANSWER own occupation
the "own occupation" definition of total disability requires that the insured be
unable to perform the insured's current occupation as a result of an accident or
sickness.
Which approach predicts a person's earning potential and determines how much
of that amount would be devoted to dependents? - CORRECT ANSWER Human
life value approach
The human life value approach predicts an individual's future earning potential
and determines how much of that amount would be devoted to dependents.
Index whole life insurance contains a securities component that acts as a(n) -
CORRECT ANSWER hedge against inflation
Insurance- Weighted Exam- 330 ACTUAL
EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
The focus of major medical insurance is providing coverage for - CORRECT
ANSWER medical and hospitalization expenses
An insured under a Major Medical expense plan with a zero deductible and 80/20
coinsurance provision files a $1,000 claim. How much of this claim is the insured
responsible for? - CORRECT ANSWER $200
because this policy has a zero deductible, the insures is only responsible for the
20% coinsurance on this claim, or $200
An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured
incurs $25,000 of covered losses. How much will the insured pay? - CORRECT
ANSWER $5,000
Which type of plan would be the most appropriate for an individual on Medicare
and concerned that Medicare will NOT pay for charges exceeding the approved
amount? - CORRECT ANSWER Medicare supplement Plan F
When can a group health policy renewal be denied according to the Health
Insurance Portability and Accountability Act (HIPAA)? - CORRECT ANSWER when
contribution or participation rules have been violated
,What does the word "level: in Level Term describe? - CORRECT ANSWER the face
amount
A non-contributory health insurance plan helps the insurer avoid - CORRECT
ANSWER adverse selection
because all eligible employees are usually covered, non-contributory plans are
desirable from an underwriting standpoint because adverse selection is
minimized.
To qualify for a resident producer license in the state of Michigan, an individual -
CORRECT ANSWER must complete the required pre-licensing education within
12 months of license application
Under an expense-incurred individual health policy, what is the MAXIMUM length
of time after issuance of the policy that an insurer can exclude coverage for a pre-
existing condition? - CORRECT ANSWER 12 months
pre-existing conditions may be excluded for a maximum of 12 months from the
date of enrollment.
An insured has a health plan that pays established amounts in accordance with a
list of injuries, surgical procedures, or other losses. This list is called a - CORRECT
ANSWER benefit schedule
benefits schedule set predetermined limits or maximums on how much money
and insured can be reimbursed for a covered loss.
,Who is the individual paid on a fee-for-service basis? - CORRECT ANSWER
Provider
Which of the following is NOT an illegal inducement? - CORRECT ANSWER Giving
the insured an article of merchandise printed with the producer's name costing $5
$5 or less of tokens or merchandise to applicants is allowed.
Making a statement that is false or maliciously critical of the financial condition of
an insurer is known as - CORRECT ANSWER defamation
Which of these statements about Medicaid is CORRECT? - CORRECT ANSWER
Funded by federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered by each
state.
All of these are considered key factors in underwriting life insurance EXCEPT -
CORRECT ANSWER Marital Status
Correct: tobacco use, health history, age
All of the following plans allow for employee contributions to be taken on a pre-
tax basis EXCEPT - CORRECT ANSWER Health reimbursement Arrangement plan
employers contribute to health reimbursement Arrangement planz (HRA's), not
employees.
, Which of the following gifts from a producer would NOT be considered rebating? -
CORRECT ANSWER $5 pen
A producer quoting life insurance may give an applicant an article of merchandise
having an invoice value of $5.00 or less.
Chris is an insured bricklayer who severed his left hand in an automobile accident.
Although his primary duty cannot be performed, Chris is also a substitute high
school teacher. He collects a full disability income check every month. How does
his policy define total disability? - CORRECT ANSWER own occupation
the "own occupation" definition of total disability requires that the insured be
unable to perform the insured's current occupation as a result of an accident or
sickness.
Which approach predicts a person's earning potential and determines how much
of that amount would be devoted to dependents? - CORRECT ANSWER Human
life value approach
The human life value approach predicts an individual's future earning potential
and determines how much of that amount would be devoted to dependents.
Index whole life insurance contains a securities component that acts as a(n) -
CORRECT ANSWER hedge against inflation
