Xcel Life insurance exam

What action should a producer take if the initial premium is NOT submitted with the application?

"Forward the application to the insurer without the initial premium".

Who has the option to renew a Renewable Term policy?

insured

What is the maximum Social Security Disability benefit amount an insured can receive?

100% of the insured's Primary Insurance Amount (PIA) The MAXIMUM Social Security Disability benefit an insured may receive is equal to 100% of the insured's Primary Insurance Amount (PIA).

An insurer must provide an insured with claim forms within _ days after receiving notice of a loss.

15 days

Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage.

6 months

What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?

A Family Maintenance Policy pays a monthly income from the date of death of the insured to the end of the preselected period. The payment of the face amount of the policy is payable at the end of such preselected period.

Which of the following statements describes what an Accident and Health policyowner may NOT do?

Adjust the premium payments

The Consideration clause in a life insurance contract contains what pertinent information?

Amount of premium payments and when they are due The Consideration clause in a life insurance policy specifies the amount and frequency of premium payments that the policyowners must make to keep the insurance in force.

When does a Probationary Period provision become effective in a health insurance contract?

At the policy's inception

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

Company XYZ offers a group Term Life insurance plan to it employees. What does each employee covered under this plan receive?

Certificate of Insurance - Term Life

A(n) ______________ of benefits of a Health Policy transfers payments to someone other than the policyowner.

assignment

How are Roth IRA distributions normally taxed?

Distributions are received tax-free

S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?

Equity index insurance

Which of the following is an important underwriting principle of group life insurance?

Everyone must be covered in the group

Which of the following Nonforfeiture options offers the highest death benefit?

Extended term

The first portion of a covered Major Medical insurance expense that the insured is required to pay is called the

initial deductible

A medical care provider which typically delivers health services at its own local medical facility is known as a

Health Maintenance Organization (HMO's)

In regards to representations or warranties, which of these statements is TRUE?

If material to the risk, false representations will void a policy

What kind of premium does a Whole Life policy have?

Level

Which of these are NOT an example of a Nonforfeiture option?

Life Income

What is being delivered during a policy delivery?

Insurance contract to the proposed insured

Which of the following claims are typically excluded from Medical expense policies?

Intentionally self-inflicted injuries

What is the purpose of a Policy Summary?

It highlights the critical parts of the policy issued

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

T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect?

Less than $5,000 per month benefit regardless of the cause

In Major Medical Expense policies, what is the objective of a Stop Loss provision?

Limits an insured's out-of-pocket medical expenses

Which of these factors do NOT play a role in the underwriting of a life insurance policy?

Marital status. Marital status does not affect the underwriting of a life insurance policy.

J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?

Modified Premium Life

If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?

Nothing. Employers cannot report additional taxable income to employees covered under a group life policy paid for by the employer

The Notice of Claims provision requires a policyowner to:

Notify an insurer of a claim within a specified time

Which of these provisions require proof of insurability after a policy has lapsed?

Reinstatement

Q is looking to buy a life insurance policy that will provide the greatest amount of protection for a temporary time period. Which of these policies should Q purchase?

Term life

Which of these life insurance riders allows the applicant to have excess coverage?

Term rider

Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?

The Conversion - provision allows the policysowner to change the policy to a permanent life policy without providing evidence of insurability.

A contract owner terminates an annuity before the income payment period begins. The owner will then receive

The current contract surrender value

Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges?

The maximum amount considered eligible for reimbursement by an insurance company under a health plan

A life insurance policy would be considered a wagering contract WITHOUT:

insurable interest

An individual who purchases a Life annuity is given protection against:

This risk of living longer than expected

The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is:

Time Limit on Certain Defenses

A(n) ___________ Life policy combines investment choices with a form of Term coverage

Variable Universal

Term Life Policies that have the ability to be converted to permanent coverage may do so during a specific time period. This conversion period

Varies according to the contract

At what point does a Whole Life Insurance policy endow?

When the cash value equals the death benefit

Any changes made on an insurance application requires the initials of whom?

applicant

The combination of Whole Life and _ Term insurance is referred to as a Family Income Policy

decreasing

Which of the following statements about Health Reimbursement Arrangements (HRA) is correct?

if the Employee paid for qualified medical expenses, the reimbursements may be tax-free

T sends proof of loss to her insurer for an acceptable medical expense claim under her individual Health Insurance policy. Upon receipt, the insurer must pay the benefits

immediately

Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?

increase face amount

Typically a life insurance death benefit is paid by a lump-sum payment. A(n) option is a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum payment.

settlement

What type of life policy covers two people and pays upon the death of the last insured?

survivorship

A term life insurance policy matures

upon the insured's death during the term of the policy