Xcel Review
index whole life insurance contains a securities component that acts as an 1. hedge against inflation 2. premium stabilizer 3. means to lowering taxes on earnings 4. incentive to purchase more coverage
1. hedge against inflation
which of the following is included in the entire contract according to the entire contract provision? 1.investigation report. 2. occupational rating 3. clauses 4. application
4. application
The entire contract provision includes all of the following except the 1. Application 2. policy 3. changes made by the agent 4. riders
3. changes made by the agent
when an insured has a major plan with first dollar coverage, how does this impact the benefits paid? 1. no deductible payment is required 2. deductible specified in the contract is payable by the insured 3. insured must pay a percentage of covered losses 4. an initial deductible plus a percentage of the remaining covered loss is owed by the insured
1. no deductible payment is required
what kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? 1. nonparticipating life insurance policy 2. participating life insurance policy 3. divisible surplus life insurance policy 4. straight life insurance policy
2. Participating life insurance policy
what is medicare part B also known as ? 1. medicare supplement 2. supplementary medical insurance 3. comprehensive insurance 4. medicaid
2. supplementary medical insurance
which of the following is typically not eligible for coverage in a group health policy? 1. full-time employee 2. temporary employee 3. business partners 4. partner in a partnership
2. temporary employee
which of the following statements is NOT true regarding a critical illness plan? 1. pays a lump sum to the insured upon the diagnosis of a critical illness. 2. the insurer may have a list of critical illnesses they will cover. 3. coverage is limited to a single devastating disease 4. also known as specified disease plans
3. Coverage is limited to a single devastating disease
what type of plan would be most appropriate for an individual on medicare and is concerned that medicare will NOT pay for charges exceeding the approved amount? 1. medicaid 2. long term care 3. Medicare supplement Plan F 4. Comprehensive major medial
Medical Supplement Plan F
an HMO that involves a partnership of physicians and other providers who practice out of a central facility is called? 1. group hmo 2. federal hmo 3. central hmo 4. managed hmo
1. group HMO
A securities license is required for a life insurance producer to sell 1. modified life insurance 2. Modified Endowment Contracts 3. Variable life insurance 4. Universal life insurance
Variable Life insurance
medical expense insurance would cover 1. an injury occurring at the insured residence 2. an injury occurring at work 3. an injury caused by war 4. elective surgeries
1. an injury occurring at the insured residence
which of these statements regarding the annuitant is correct? 1. the contract can only be assigned by the annuitant 2. the annuitant is the only individual who can surrender the contract 3. the annuitant must also be the beneficiary 4. the annuitant life expectancy determines the annuity payments
4. the annuitants life expectancy determines the annuity payments
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. when the term insurance expires, 1. he has the option of resuming the original policy and paying the same premiums 2. the coverage can be extended with a lump sum payments 3. all remaining cash values are paid to the policy owner 4. the protection ends.
4. the protection ends
which of these is considered a major tax advantage of life insurance? 1. tax credits are available for life insurance premiums paid 2. earnings are tax free 3. premiums are tax deductible by an employee if paid for by an employer 4. income tax is typically not owed on proceeds paids directly to a beneficiary.
4. Income tax is typically not owed on proceeds paid directly to a beneficiary.