XCEL 3

Under Pennsylvania statute, first year commission for long-term care insurance may not be greater than

50% of the first year premium

The Medicare Supplement open enrollment period is the

6 month period that begins with the month in which enrollment in Part B Medicare occurred, typically at age 65

HIPAA considers which of the following as "individually identifiable health information"?

A person's health claim information

What is the nonforfeiture value of an annuity before annuitization?

All premiums paid, plus interest, minus any withdrawals and surrender charges

Which of the following does Coordination of Benefits allow?

Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid

Which of the following is INELIGIBLE to participate in a Section 125 Plan?

An S-Corp Owner with a greater than 2% share

Which of the following is considered to be the period when the accumulated value in an annuity is paid out?

Annuitization phase

An attending physician's statement would be appropriate for which life insurance purpose?

At the request of the insurer to assist in the underwriting decision

What are the levels of coverage as defined by the Affordable Care Act

Bronze, Silver, Gold, and Platinum

Which of the following is a requirement for ANY change in an insurance application?

Change must be initialed by the applicant

Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called?

Estate conservation

Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?

Incontestable clause

Which type of beneficiary should be named if the insured wants to give explicit directions on how the policy proceeds should be paid?

Individual

Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?

Life annuity certain

What would be an expense factor in an insurance program?

Mortality costs

All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT

National Association of Insurance Underwriters

When an insured has a major medical plan with first dollar coverage, how does this impact the benefits paid

No deductible payment is required

Which type of disability would be less than total impairment and equal to permanent impairment?

Permanent partial disability

Which of these factors is NOT taken into consideration when determining the cost of a long-term care policy?

Personal income

Which accident and health policy provision allows the policyowner a stated amount of time to return a newly-delivered policy for a full refund of premiums if not satisfied for any reason?

Right to examine

Which market index is normally associated with an indexed annuity's rate of return?

S&P 500

Which type of multiple protection policy pays on the death of the last person?

Survivorship life policy

When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach?

The family's financial objectives if the income earner were to die or become disabled

In which of the following situations would the insurer be liable for a loss?

The insured suffered an injury as an innocent bystander during a bank robbery

A single premium cash value policy can be described as

a policy that is paid up after only one payment

A non-contributory health insurance plan helps the insurer avoid

adverse selection

All of the following are elements of an insurance policy except

claim forms

An employee under a group insurance policy has the right to name a beneficiary and the right to

convert to an individual policy in the event of employment termination

An example of a presumptive disability would be

deafness

A hospital or medical expense policy will typically cover dental treatment expenses under which circumstance?

dental treatment is needed to repaid an inury

An example of an Unfair Claim Settlement Practice is

failing to provide a reasonable basis for the denial of a claim upon request

When collecting insurance premiums from a client, a producer MUST

forward premiums to the insurer on a timely basis

Ambiguities in an insurance policy are always resolved in favor of the

insured

Which of the following statements is TRUE about Medicaid?

it is funded by federal, state, and local taxes

Commissions may be shared by

licensed and appointed producers

Producer commissions may not be paid to

licensed producers not appointed by an insurer

Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies

life only

In contrast to a guaranteed renewable policy, a noncancellable policy

may never raise premiums

A producer who sells insurance in Pennsylvania but resides in another state is called a(n)

nonresident producer

A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n)

optional renewability clause

Mortality is calculated by using a large risk pool of

people and time

What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as?

representation

Health insurance involves two perils, accident and

sickness

This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes

the entire insurance contract between the parties

A life insurance policy that is subject to a contract interest rate is referred to as

universal life

Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation?

unpaid premium

Pennsylvania law requires that an insurer must notify the Commissioner of a producer appointment termination

within 30 days of termination

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?

$200

The free look period provided in a life insurance policy is usually

10 days

An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon receiving a notice of claim.

15