Xcel Life Insurance Exam
have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for $125? Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will she
$50.00
the policy equals $250,000. Rob recently died at age 60. The death benefit would be insurance agent told him the policy would be paid up if he reached age 100. The present cash value of Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His
$500,000
The typical long-term care insurance policy is designed to provide a minimum of__________ year(s) of coverage
1
A disability policy where the premiums are due monthly require a grace period of
10 days
Kathy pays a monthly premium on her health insurance policy. How long is her grace period?
10 days
The free look period provided in a life insurance policy is usually
10 days
Group accident and health insurance policies issued in New York must generally include an unmarried dependent child who is_____ years old or younger.
19
After year(s) from date of issue, an individual health insurance policy can no longer be cancelled by the insurer for misstatements (except for fraud).
2
An individual life insurance policy becomes incontestable after it has been in force for
2 years
Employees are required to work at least _________hours per week to become eligible for a small employer health plan
20
An employer may qualify for health care tax credits through SHOP Marketplace if that employer has fewer than how many employees?
25
Which of the following is NOT an eligible dependent on an Accident and Health policy?
27 year old married child
Upon meeting company requirements, a lapsed life insurance policy may be reinstated within_______ year(s).
3
Which of the following is considered to be an alternative to a life settlement?
Accelered death benefit rider
How does life insurance create an immediate estate?
After first premium is paid, the face amount may be available to the beneficiary
When does an immediate annuity begin making payments?
After multiple premiums have been paid
The is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant.
Agent
Which of the following is INELIGIBLE to participate in a Section 125 Plan?
An S-Corp Owner with a greater than 2% share
A disability policyowner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called?
Benefit period
With a scheduled dental policy, how are covered expense paid?
Benefits are limited to a specific maximum dollar amount per procedure
How are health plans classified according to the Affordable Care Act?
Bronze, Silver, Gold, Platinum
The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
Certificate of coverage and benefits
Which of the following is included in the entire contract according ti the entire contract provison?
Clauses
with the same insurer Tim is covered under a group plan and would like to change his group coverage to an individual policy because of employment termination. Which of these describes the change that will take place?
Conversion
Which of the following statements is NOT true regarding a Critical Illness Plan?
Coverage is limited to a single devastating disease
In group health care, what is the purpose of the coordination of benefits provision?
Determines what is paid by the primary and secondary insurers in the event of a claim
Which of the following is NOT a duty of the Superintendent?
Establish rates for the insurers
Which of these would limit a company's liability to provide insurance coverage?
Exclusion
All of these are characteristics of a universal life insurance policy EXCEPT
Fixed surrender value
Which of these statements about Medicaid is CORRECT?
Funded by federal, state, and local taxes
Under the Affordable Care Act, which of these plans is designed to provide coverage that is actuarially equivalent to 80% of the full actuarial value of the benefits provided under the plan?
Gold
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
Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death?
Human life value
Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?
Human life value approach
Which of these is considered a major tax advantage of life insurance?
Income tax is typically not owed on proceeds paid directly to a beneficiary
Health insurance will typically cover which of the following perils?
Injury due to accident
In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest?
Insurable interest can be established sufficiently by sentimental attachment alone
Which type of annuity stops all payments upon the death of the annuitant?
Life annuity
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Life income
The purpose of Medicare Supplement Insurance is to address gaps in Medicare coverage, which can include
Medicare in-hospital deductible
All of the following are typically included in a life insurance policy illustration EXCEPT
Names of the beneficiaries
How are contributions made to a Roth IRA handled for tax purposes?
Not tax deductible
Within how many days must a rollover be completed in order to avoid being taxed as current income?
O 60
Which of the following is NOT covered by New York workers compensation laws?
OOn-the-job injury that was both intentional and self-inflicted
Which of the following is NOT covered under Workers' Compensation?
Pain and suffering
A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?
Partial disability
Replacement regulation is designed to protect
Policyowners from mirepresentation and loss of benefits
An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in
Risk avoidance
Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence?
Section 1035 exchange
What does "SHOP" stand in SHOP Exchange?
Small Business Health Options Program
What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured?
Specified amount of money
Which of these will have the highest monthly payout upon annuitization
Straight life
In a Long-Term Care policy, activities of daily living (ADL's) can be each of the following EXCEPT
Talking
Which of the following policies does NOT build cash value?
Term
What is a corridor in relation to a Universal Life insurance policy?
The gap between the total death benefit and the policy's cash value
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
Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status?
The insurer significantly raises co-insurance charges, deductibles, or co-payment charges
What happens when an insurance policy is backdated?
The policy's effective date is earlier than the present
Which of the following pertains to the analysis of an applicant's personal information and determining whether insurance should be issued or declined?
Underwriting
When does a life insurance policy typically become effective?
When initial premium is collected and policy is issued
When are group disability benefits considered to be tax-free to the insured?
When the recipient pays the premiums
Major Medical expense plans provide coverage for each of the following EXCEPT
Work-related injuries
Major medical insurance will typically cover medical expenses that result from
a negative reaction to prescribed medication
The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n)
accident
All of these are valid policy dividend options for a life insurance policyowner EXCEPT
accumulate without interest
An insurance consultant is BEST defined as a(n)
agent who charges fees for advice
A life settlement intermediary is a(n)
association which maintains a facility that displays offers and counteroffers for purchasers or sellers of life settlement contracts
The purpose of the Coordination of Benefits provision in group accident and health plans is to
avoid overpayment of claims
A domestic insurance company in New York MUST
be formed under the laws of New York
A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing
benefit limits
An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before
bringing legal action agaínst the insurer
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)
collateral assignment
Life insurance policies will normally pay for losses arising from
commercial aviation
John the agent made public statements that falsely portrayed an insurer as insolvent. John would be likely found guilty of
defamation
An example of a tax-qualified retirement plan would be a(n)
defined contribution plan
Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt
dies instantly from a car accident
A Medicare Supplement policy must NOT contain benefits which
duplicate Medicare benefits
Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called
estate conservation
Under a non-qualified annuity, interest is taxed after the
exclusion ratio has been calculated
Premium mode is a term used to describe the
frequency of the premium payment
due date where she can still make payment and avoid Janice forgot to make her insurance premium payment by the due date. The specified period after the discontinuance of her coverage is called the
grace period
The amount received for a life insurance policy in a life settlement is _________ than the death benefit.
less
A life settlement broker is someone who is
licensed to negotiate a life settlement contract
A limited payment whole life policy provides
lifetime protection
An employer is issued a group medical insurance policy. This single contract is known as a(n)
master policy
Prior to conducting an HIV test, the insurer is required to
obtain a written authorization from the proposed insured
Medicaid is intended for
poverty stricken people
The Federal Employees Benefit Program consists of two types of health plans for federal civilian employees. The two plans are fee-for-service and
prepaid
A health insurance policy will typically cover
preventative health services
Decreasing term life insurance is often used to
provide coverage for a home mortgage
An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT
providing commission information to the applicant
An example of misrepresentation is
providing incorrect, misleading, incomplete, or materially untrue information in the license application
This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes
the entire insurance contract between the parties
Legal purpose is a term used in contract law meaning
there must be legal reasons for entering into the contract
Tom the agent replaced a client's insurance policy when it was not in the client's best interest. Tom could be found guilty of
twisting
An annuitant dies during the distribution period. What kind of annunity will return to a beneficiary the difference between the annunity value and the income payment already made?
Refund annuity
Coordination of benefits regulation applies to all of the following plans EXCEPT
Preferred provider Organization plan
All Health Benefit Plans issued after January 1, 2014 must provide
Preventative health services
Which of the following provides Medicare supplement policies?
Private insurance companies
What is the purpose of a Disability Income Benefit?
Provide money for living expenses