Health & Accident Insurance Exam - XCEL Solutions

P is insured under a basic cancer plan. Which of the following conditions would be covered under this plan?

Operation for a malignant tumor

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

P only

Group/voluntary long-term care policy premiums are typically deducted from the employee's income and

are less costly as compared to the premiums for individual long term care coverage

The COB provision

prevents an insured covered by two health plans from making a profit on a covered loss

Which type of policy would pay an employee's salary if the employee was injured in a bicycle accident and out of work for six weeks?

Business overhead Expense

P loses an arm in a farm accident and is paid $10,000 from his Accidental Death and Dismemberment policy. This benefit is known as the

Capital Sum

Which of the following would be a likely candidate for disability income insurance on a key employee?

Company executive

Which contract permits the remaining partners to buy-out the interest of a disabled business partner?

Disability Buy-Sell

Which of the following statements does not accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?

Disability income policy premiums are tax-deductible

A policyowner would like to change the beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy and make the change permanent. Which type of designation would fulfill this need?

Irrevocable

Which of the following best describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition?

Less restrictive

An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?

Loss of eyesight due to an accidental injury

B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's beneficiary?

$300K

S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?

36

Which of the following medical expenses does cancer insurance NOT cover?

Arthritis

Group health plans typically contain a coordination of benefits (COB) provision. This provision's purpose is to

Avoid the duplication of benefit payments

Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies?

Blanket Accident policy

G is an accountant who has ten employees and is concerned about how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is

Business Overhead Expense

Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is

Business Overhead Expense

T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. When T submits a claim, his employer's plan is considered what type of carrier under the Model Group Coordination of Benefits provision?

Primary carrier

An insured covered by Accidental Death and Dismemberment (AD&D) insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary?

Proceeds will go to the contingent beneficiary

A business overhead expense policy would cover which of the following if a business owner becomes disabled?

Utilities and office rent

The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the

Waiting Period

An accident policy will most likely pay a benefit for a(n)

off-the-job accident