Xcel solutions final exam

An employee is covered under a company group life plan with a $50,000 death benefit. What is the Maximum amount a spouse may be insured for under this program

$25,000

XYZ company pays the entire premium for its group health plan. The MINIMUM % of eligible employees that must be covered is

100%

What is the MINIMUM benefit period that must be offered by a long term care policy

12 months

Insurers may request a hearing within ____ if their policy is rejected

20 days

A new general property and casualty licensee must complete at LEAST ____ hours of continuing education within 24 months of initial licensure

24

In Texas, an individual life insurance policy is REQUIRED to have a grace period of

31 days

S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations

36

M's insurance company denied a reinstatement application for her lapsed insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of denial before the policy will be automatically placed back in force

45 days

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits?

5 months

A temporary agent's license issued by the commissioner of insurance is valid for up to ___ days

90

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer finds out that the applicant misstated their age. What will the insurer do?

Adjust the death benefit to a reduced amount

Q purchases a $500,000 life insurance policy and pays a $900 in premiums over the first 6 months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features

Aleatory

All of the following statements regarding group health insurance is true Except

An individual policy is given to each member

An example of false advertising would be

An insurer exaggerating its dividends in a magazine advertisement

In Texas, which of these statements regarding the suicide clause is true

An insurer may not use suicide as a defense against payment after the second year

Which type of contract liquidates an estate through recurrent payments

Annuity

With whom may an agent legally share commissions?

Another agent with the same Line of insurance

An applicants medical information received from the MIB may be furnished to the

Applicants physician

An__-___-_ of benefits of a health policy transfers payments to someone other than the policy owner

Assignment

At what time must a policy owner have incurable interest on the insured in order for the life policy to be valid

At the time of application

G is an accountant who has ten employees and is concerned about how the business would survive financially if G became disabled. The type of policy which best addresses this concern is:

Business overhead expense

Many small business owners worry her their business would survive financially if the owner becomes disabled. The policy best addresses this concern is

Business overhead expense

Which of these circumstances is a business disability buy sell policy designed to help in sale of business

Business owner becoming disabled

Which statement is true about a whole life policy

Cash value may be borrowed against

A disability income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim

Claim will be paid and coverage will remain in force

B, an insurance agent tells his clients that their rights may be impaired if they fail to complete a release from within a given period of time. B may be found guilty of

Coercion

The phrase "transacting business" includes

Collecting premiums

An evidence of coverage form may be issued by a HMO after being approved by the

Commissioner

An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet?

Consideration clause

Which of the following statements about health coverage for newborns is NOT true?

Coverage is LIMITED to only congenital defects

Medicare Part A and Part B do NOT pay for

Dental care

An agent takes an individual disability income application, collects the premium, and issues the prospective insured conditional receipt. The next step the insurance company will take is to:

Determine if the applicant is an acceptable risk by completing standard underwriting procedures

M is insured under a basic hospital/surgical expense policy. A physician performs surgery on M. What determines the claim M is eligible for

Determined by the terms of the policy

Non-occupational disability coverage is designed for

Employees who suffer non work related disabilities, since work related disabilities are covered by workers compensation

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

Everyone must be covered in the group

Health insurance benefits NOT covered due to an act of war are

Excluded by the insurer in the contact provisions

Which of these provisions is not required in life insurance policies

Extended term

After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms

File written proof of loss

Which of the following provisions specifies how long a policy owners health coverage will remain in effect if the policy owner does not pay the premium when it is due

Grace period

Which type of renewability best describes a disability income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class?

Guaranteed renewable

Which of these is NOT a reason for purchasing life insurance on the life of a minor

If both parents were to die, it would provide death benefits to the child

Which of the following statements about Health reimbursement arrangements is correct

If the employee paid for qualified medical expenses, the reimbursements may be tax-free

Which of the following groups may not be insured by a group life insurance policy

Individuals who are related by blood

What is being delivered during a policy delivery

Insurance contract to the proposed insured

Insuring Which health policy clause specifies the amount of benefits to be paid

Insuring

A life insurance arrangement which circumvents insurance interest statutes is called

Investor-Originated Life Insurance

Which of these arrangements allows one to bypass insurance interest laws?

Investor-Originated Life Insurance

An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase

Key person life policy

Which of these are not an example of a non forfeiture option

Life Income

An insurance company would most likely pay benefits under an ADD policy for which if the following losses

Loss of eyesight due to an accidental injury

Which of the following types of health coverage frequently uses a deductible

Major Medical policy

Which type of plan normally includes hospice benefits

Managed care plans

If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for the excess hospital expenses

Medicare Supplement

Periodic health claim payments must be made at least

Monthly

Which of the following statements is correct about accelerated death benefits

Must have a terminal illness to qualify

Which statement is true regarding a minor beneficiary

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

Which of these does not constitute policy delivery

Policy issued with a rating

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the

Policy proceeds

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

Request of the change will be refused

A(n)__-_-_-_-_-_-_-_ beneficiary may be changed by the policy owner without the consent of the beneficiary

Revocable

Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant

Risk classification

Which of the following are equity indexed annuities typically invested in

S&P 500

To terminate an agent's appointment, an insurance company must

Send termination notice to the Texas Department of Insurance

The percentage of an individuals primary insurance amount determines the benefits paid in which of the following programs

Social Security Disability Income

Which of the following best describes a warranty

Statement guaranteed to be true

What should an insured do if the insurer does not send claims forms within the time period set forth in a health policy's claims forms provision

Submit a claim in any form

Which of the following statements about the classification of applicants is incorrect

Substandard applicants are never declined by underwriters

Which of the following costs would a Basic Hospital/Surgical policy cover?

Surgically removing a facial birthmark

All of these statements about the commissioner of insurance are true except

The Commissioner must be elected

Which of the following statements is CORRECT about an agent who is taking an insurance application

The agent should have the applicant initial any changes made on the application

The investment gains from a universal life policy usually go to

The cash value

K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

The contingent - their daughter

A policy of adhesion can only be modified by whom

The insurance company

A Medicare supplement policy may be cancelled for which of the following reasons

The premium has not been paid by the insured

Medicare is intended for all of the following groups except

Those enrolled as a full-time student

Why is an applicants signature required on a life insurance application

To attest that the statements on the application are accurate to the best of the applicant's knowledge

Which of the following benefits is not required under group health plan for drug and alcohol treatment

Transportation to and from a treatment facility

How long does an insurance company appointment remain in force

Until terminated

R becomes disabled and owns an individual disability income policy. When is R eligible to receive disability benefits

Upon satisfying the elimination period requirement

Which of these types of life insurance allows the policy owner to have level premiums and to also choose from a selection of investment options

Variable Life

When does a life insurance contract become effective if the initial premium is not collected during the application process

When producer delivers policy and collects initial premium

A $20,000 life insurance application is completed, however the producer does not collect the initial premium. At what point does the coverage go into effect

When the applicant receives the policy and pays the initial premium

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of the receipt are met

A return of premium life insurance policy is

Whole life and Increasing term

Which of the following actions does the commissioner of insurance not have the power to conduct

activate insurance companies' financial reserves

Which of the following types of care is typically not covered in a long term care policy

acupuncture

B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

additional Whole Life coverage at specified times

What action will an insurer take if an interest payment on a policy loan is not made on time

automatically add the amount of interest due to the loan balance

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

deferred

Credit life insurance is

insurance issued on a debtor to cover outstanding loan balances

According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options?

monthly

Which of these is not considered to be an element of an insurance contract

negotiating

T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?

renewable

An example of an unfair claims settlement practice is

turning down a claim without providing the basis of denial

Which of the following life insurance policies combine term insurance with an investment element

universal life

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

Which statement is correct regarding the premium payment schedule for whole life policies

Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured

What is considered to be a characteristic of a conditionally renewable health insurance policy

Premiums may increase at time of renewal

What is the purpose of the time of payment of claims provision

Prevents delayed claim payments made by the insurer

K is the insured an P is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where K dies before P. Under the common disaster provision, which of these statements is true

Proceeds will be payable to K's estate if P dies within a specified time