Xcel Testing Solutions- Life and Health Insurance- Weighted Exam- 150 Questions

Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500?

$700 In this situation, the insured will pay $500 deductible plus $200 coinsurance = $700.

The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage.

1 Long-term care insurance in any insurance policy is designed to provide coverage for a minimum benefit period of 1 year.

An appointing insurer has how many days to file a notice of appointment with the Commissioner?

15 An appointing insurer has 15 days to file a notice of appointment with the Commissioner.

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

15 Upon receipt of notice of claim, the insurance company will furnish to the claimant forms for filing proof of loss within 15 days.

A temporary producer's license is effective for

180 days A temporary producer's license is effective for 180 days.

Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss.

20 Written notice for a health claim must be given to the insurer 20 days after the occurrence of the loss.

An insurer need NOT pay interest on death benefits if the proceeds of the life policy are paid within

20 days after the date of the death of the insured An insurer need not pay interest on benefits if the proceeds of the policy are paid within 20 days after the date of death of the insured.

A licensed producer who changes a residential or business address must notify the Commissioner within how many days?

30 A licensed producer who changes a residential or business address must notify the Commissioner within 30 days.

G had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy?

31 days A person covered by a group policy also has the right to convert such coverage to an individual policy within the conversion period (31 days) without proving insurability. If this right is exercised, the employee is responsible for the payment of premium.

The Commissioner must examine the financial affairs of each admitted insurer operating in Louisiana at least once every how many years?

5 At the very least, an admitted company shall be examined once every 5 years by the Commissioner.

In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at

60% of the benefit 60% of an income benefit is taxed to the employee because 60% of the premiums paid come from the employer.

The open enrollment period for Medicare Supplements begins at age

65 Open enrollment for Medicare Supplements begins at the age the individual becomes eligible for Medicare, which is typically age 65.

The Louisiana Health Plan is best described as

A health insurance plan for individuals who have been denied coverage elsewhere The Louisiana Health Plan is best described as a health insurance plan for individuals who have been denied coverage elsewhere.

Which is true about the licensing of business entities in Louisiana?

A licensed producer must be designated as responsible for compliance with state insurance laws and regulations A licensed producer must be designated as responsible for compliance with state insurance laws and regulations.

A viatical settlement contract is an agreement between

A life insurance policyowner and a viatical settlement provider A viatical settlement contract is an agreement between a life insurance policyowner and a viatical settlement provider.

Which of the following is considered to be an alternative to a life settlement?

Accelerated death benefit rider An alternative to a life settlement is an accelerated death benefit rider.

Of the following dividend options, which of these is taxable?

Accumulation at interest The accumulation at interest is a taxable dividend option.

Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in?

Accumulation period Kathy's annuity is in the accumulation period.

What amount will be paid under a policy where the insured misstated his/her age?

An amount the premium would have purchased at the correct age The misstatement of age provision allows the insurer to adjust the benefit payable if the age of the insured was misstated when application for the policy was made.

A producer is required to give an applicant for long-term care

An outline of coverage An outline of coverage must be delivered to a prospective applicant for long-term care insurance at the time of initial solicitation.

To receive an insurance license an applicant must

Apply for the license after passing the appropriate examination An applicant must apply for the license after passing the appropriate examination in order to receive an insurance license.

Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home options would best serve him?

Assisted living An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time care.

Which of the following nursing home options would BEST suit an individual who needs some nursing care and supervision but NOT full-time care?

Assisted living facilities An assisted living facility would best suit an individual who needs some nursing care and supervision but not full-time care.

Which situation would qualify an individual for receiving benefits from a qualified long-term care policy?

Becoming cognitively impaired (mentally ill) A qualified long-term care policy must pay benefits when an individual is cognitively impaired.

With a scheduled dental policy, how are covered expenses paid?

Benefits are limited to a specific maximum dollar amount per procedure Benefits will be limited to a specific maximum dollar amount per procedure in a scheduled dental policy.

What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual life insurance policy?

Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age.

Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled?

Business overhead expense policy A form of business disability insurance that is designed to cover the actual costs of continuing to do business while an insured business owner is disabled is called a business overhead expense policy.

Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have?

Calendar-year deductible

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

Change must be initialed by the applicant Any changes in an insurance application MUST be initialed by the applicant.

In what part of an insurance policy are policy benefits found?

Declarations Essentially, the insurance declaration page is like a quick guide to the insurance policy, providing all of the basic information the policyholder needs to know.

A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. Which rider would pay a monthly amount because of this disability?

Disability income rider The rider which pays a life insurance policyowner a monthly amount in the event of total and permanent disability is called a disability income rider.

Which of these statements concerning Traditional IRAs is CORRECT?

Earnings are taxable when withdrawn Traditional IRA earnings are taxable when withdrawn.

The taxable portion of each annuity payment is calculated using which method?

Exclusion Ratio The Exclusion Ratio is used to determine the taxable portion of each annuity payment.

When replacing individual health insurance, a producer should compare existing benefits with the proposed new policy to determine if:

Existing benefits would be maintained under the new plan When replacing individual health insurance, a producer should compare existing benefits with the proposed new policy to determine if existing benefits would be maintained under the new plan.

How are annuities given favorable tax treatment?

Gains are taxed at distribution Annuity gains are typically tax deferred until distribution.

Which type of Medicare Supplement information can be used without prior state approval?

Government publications Insurers can use government publications for communicating Medicare Supplement information without prior state approval.

Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. This rider is called a(n)

Guaranteed insurability rider A guaranteed insurability rider allows for the insured to purchase additional insurance at specific dates or events without evidence of insurability.

Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit?

Increase the premiums on an individual basis A guaranteed renewable policy CANNOT increase the premiums on an individual basis, only on the basis of an entire classification.

Health insurance will typically cover which of the following perils?

Injury due to accident Accidental injury is typically a covered peril in health insurance.

Which of the following types of deductibles would apply a single deductible to both medical and dental insurance coverage?

Integrated deductible A single deductible applied to both medical and dental insurance coverage is referred to as an integrated deductible.

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 A life annuity certain provides a guaranteed minimum number of benefit payments, whether the annuitant live or dies.

Which of these would NOT be considered a presumptive disability?

Loss of a leg or arm The loss of ONE arm or a leg is NOT considered a presumptive disability.

What is the contract called that is issued to an employer for a Group Medical Insurance plan?

Master policy A single contract for Group Medical Insurance issued to an employer is known as a master policy.

Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective date being May 30. On which date would Sonya have coverage?

May 30 The "effective date" is the health insurance coverage start date.

Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the following statements is TRUE?

Medicare is the secondary payer If an individual continues to work after the age of 65 and keeps the group plan, primary coverage comes from the group insurance plan and Medicare is considered the secondary payer.

Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered

Noncancellable A noncancellable policy cannot be cancelled nor can its premium rates be increased under any circumstances.

In order to act as an insurance producer, a business entity must do which of the following?

Obtain an insurance producer license A business entity must obtain an insurance producer license in order to act as an insurance producer.

Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies?

Payor benefit A payor benefit will waive the premium on a juvenile life insurance policy if the parent paying the premium dies.

Which of the following is NOT a common exclusion for a medical expense policy?

Physical Therapy

Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks?

Risk avoidance Risk avoidance could eliminate the risk of losing money in the stock market by never investing in stocks.

The Commissioner may suspend a producer's license for all of the following reasons EXCEPT

Sharing commissions with other licensed producers Sharing commissions with other licensed producers is allowed.

Typically, Long-Term Disability benefits are coordinated with which benefit plan?

Social Security In most cases, Long-Term Disability benefits are coordinated with Social Security benefits.

Claims settlement practices of insurers are regulated by:

State insurance departments Claims settlement practices of insurers are regulated by state insurance departments.

A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and who wishes to sell that line of insurance in Louisiana, must meet all of the following requirements EXCEPT:

Take the appropriate Louisiana licensing examination A nonresident licensee from another state is not required to take a licensing examination if they are already in good standing with their state of residence.

In a Long-Term Care policy, activities of daily living (ADL's) can be each of the following EXCEPT

Talking Talking is not considered an activity of daily living (ADL) for Long-Term Care insurance purposes. Activities of daily living (ADLs) include bathing, dressing, eating, mobility, transferring, toileting, and continence.

Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?

Taxable income Disability insurance benefits from a group policy paid for by an employer is considered taxable income.

Which of these is NOT a characteristic of the Accelerated Death Benefit option?

The benefit can be offered as a rider at a specific extra cost or may be at no cost Accelerated Death Benefit options are offered with NO increase in premium.

James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount?

The death benefit paid will be what the premium would have purchased at the correct age Under the Misstatement of Age provision, the amount paid will be what the premium would have purchased at the correct age.

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 According to the Affordable Care Act, grandfathered health plans may lose their grandfathered status if the insurer significantly raises co-insurance charges, deductibles, or co-payment charges

A producer's license in Louisiana must be renewed every

Two years Producer licenses are issued for periods of 2 years.

When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)?

When contribution or participation rules have been violated According to HIPAA, a group health policy renewal can be denied when participation or contribution rules have been violated.

How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company?

With a usual, customary, and reasonable fee

An insurance producer is BEST defined as

a person who has a contract with an insurance company to represent it "Insurance producer" or "producer" is a person required to be licensed pursuant to the laws of this state to sell, solicit, or negotiate insurance.

Under Louisiana law, the agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is defined as

an appointment The agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is called an appointment.

An insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. This is considered to be

an unfair claim settlement practice Failing to promptly provide a reasonable explanation for the denial of a claim is considered to be an unfair claim settlement practice.

The factor used most often when underwriting a disability income policy is

annual earnings

A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing

benefit limits To prevent an insured from earning a higher income than if he or she were working, disability income policies utilize benefit limits.

The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called

cancelable The renewability provision in a cancelable policy allows the insurer to cancel or terminate the policy at any time, simply by providing written notification to the insured and refunding any advance premium that has been paid.

Which of the following is NOT a required provision in an accident and health insurance policy?

change of occupation The change of occupation provision is considered an OPTIONAL provision.

A waiver of premium rider allows an insured to waive premium payments if the insured is

completely and permanently disabled Under a waiver of premium rider, the company waives the right to receive a premium if the insured individual is permanently and completely disabled.

Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health policy most likely contains a(n)

deductible A deductible is a stated initial dollar amount that the individual insured is required to pay before insurance benefits are paid.

A Medicare Supplement Policy is

designed to fill in the gaps of Part A and Part B Medicare A Medicare Supplement policy is designed to fill in the gaps of Part A and Part B Medicare.

In small group accident and health plans, a late enrollee is an individual who

elects coverage after the initial eligibility period In small group accident and health plans, a late enrollee is an individual who elects coverage after the initial eligibility period. The late enrollee may be required to provide evidence of insurability.

Under group health insurance, a certificate of coverage is issued to the

employee Under group health insurance, a certificate of coverage is issued to the employee. The employer is issued the master contract.

The limited period of time given to all members to sign up for a group health plan is called the

enrollment period The enrollment period is a limited period of time during which all members may sign up for a group plan.

The life insurance and annuity replacement regulation defines replacement as

exchanging an existing policy for a new policy Replacement regulation defines replacement as exchanging (or altering) an existing policy for a new policy.

The waiting period for a disability insurance policy

excludes payments for a short-term illness or injury With regard to disability insurance, the waiting (elimination) period is to exclude payments for a short-term illness or injury.

A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT

fare-paying passenger A policy may contain provisions excluding or restricting coverage as specified in the event of death under all of these situations EXCEPT a fare-paying passenger.

A Medicare supplement plan can be canceled by the insurer

for nonpayment of premiums An insurer can cancel a Medicare supplement plan after nonpayment of premiums.

A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a(n)

guaranteed renewable policy An insurer has the right to change the premium for policyowners with a guaranteed renewable policy, but CANNOT cancel the policy.

Life insurance policies can refuse to pay benefits for death from all of the following causes of death EXCEPT

heart attack

Credit Accident and Health plans are designed to

help pay off existing loans during periods of disability Credit Accident and Health plans are designed to help pay off existing loans during periods of disability.

The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT

insurance sales calls Charities, political organizations, and surveys are all offered exemptions from The Do Not Call Registry

A limited payment whole life policy provides

lifetime protection Premiums on limited payment whole life insurance are paid for a limited number of years, but the benefits last a lifetime.

A life insurance policy that has premiums fully paid up within a stated time period is called

limited payment insurance Limited payment insurance is characterized by premiums that are fully paid up within a stated period, after which no further premiums are required.

All _____ policies must be guaranteed renewable.

long-term care All long-term care policies must be guaranteed renewable.

A guaranteed issue insurance policy has no

medical underwriting A guaranteed issue policy refers to an insurance policy with no medical underwriting.

A whole life policy option where extended term insurance is selected is called a(n)

nonforfeiture option A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to the existing amount of life insurance is called the extended term option.

A producer who is licensed in Louisiana but resident in another state is called a

nonresident producer A producer licensed in Louisiana but a resident in another state is called a nonresident producer.

Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?

period certain An annuity where the policyowner chooses a pre-determined number of benefit payments is called period certain.

A health insurance policy will typically cover

preventative health services Preventative health services are normally covered under a health insurance policy.

In order to qualify for a company convention, an insurance producer agrees to pay the first quarterly premium for the applicant for new insurance. This is called a

rebate This situation is considered a rebate, which is illegal.

All of the following actions are considered rebating EXCEPT

sharing commissions with other licensed and appointed agents

What types of life insurance are normally used for key employee indemnification?

term, whole, and universal life insurance The types of life insurance generally used to cover key employee indemnification are term, whole, and universal life insurance.

When a Medicare supplement policy is purchased during the open enrollment period

the policy must be issued regardless of health status During open enrollment for Medicare supplements, policies will be issued regardless of health status.

If the annuitant dies before the annuity start date,

the premiums paid plus interest earned will be given to the beneficiary If the annuitant dies before the annuity start date, the beneficiary receives the premiums paid plus interest earned.

All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT

Reduction of Premium All of these are nonforfeiture options EXCEPT Reduction of Premium.

What is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date of an individual long-term care policy?

Pre-existing condition In an individual long-term care policy, a pre-existing condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date.

A cease and desist order issued against a producer

Prohibits a specific practice listed in the order A cease and desist order issued against a producer prohibits a specific practice listed in the order.

How are survivorship life insurance policies helpful in estate planning?

Provide funds to help pay taxes Survivorship life insurance policies are useful in estate planning because they can provide money to pay taxes on assets.