Xcel Study Guide

An example of naming a beneficiary by class would be

"To the children born of my union with Ned Jackson"

A disability policy where the premiums are due monthly require a grade period of

10 days

An agent commission for the sale of a medicare supplement policy in the first year following its effective date cannot exceed __ of the commission paid for selling or servicing policy in the second year

200%

Upon meeting company requirements, a lapsed life insurance policy may be reinstated within ___ years

3

When a medicare supplement policy is replaced, the policy owner will have a free look period of ___ days

30

All agents shall maintain full and correct transaction records of the business done by them for a period of at least

6 years

What percentage of a participant's income are group long-term disability benefit amounts typically limited to?

60%

Ron has a new employer and wishes to enroll in the company's group health plan. In determining whether his pre-existing health condition applies, Ron cannot have more than a ___ day gap without previous health insurance.

63

A non-contributory health insurance plan helps the insurer avoid what?

Adverse selection

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

Which scenario would most life insurance policies exclude coverage for?

An individual who has a hobby racing cars once a month

Which of these is NOT considered to be a purpose of an annuity?

Annuities are intended to create an estate

What are the levels of coverage as defined by the Affordable Care Act?

Bronze, Silver, Gold, Platinum

What enables applicants to compare different life insurance policies and helps them choose which policy is best for their needs?

Buyer's guide

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 required for an insurer to conduct business in this state?

Certificate of Authority

Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?

Child term rider

What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?

Claim will be paid if application is approved

Which of the following is required for the renewal of an agent's life insurance license?

Continuing education

All of the following are core benefits of Medicare Supplement Plan A EXCEPT

Deductible payments for the first 60 days of hospitalization under Medicare hospitalization insurance

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

All of these are typically sources of underwriting information for life or health insurance EXCEPT

Disclosure authorization response

All of these are responsibilities of the superintendent EXCEPT:

Endorsing Insurers

How are annuities given favorable tax treatment?

Gains are taxed at distribution

The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is tax deductible. Which of the following may be considered a medical expense under this rule?

Long Term Care Insurance premiums

According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan?

March 23, 2010

Which type of plan would be most appropriate for an individual on Medicare and concerned that Medicare will NOT pay for charges exceeding the approved amount?

Medicare supplement Plan F

A type of insurer that is owned by its policy owners

Mutual

Which clause defines total disability as being unable to perform the major duties of the insured's regular occupation?

Own occupation clause

What is known as the immediate specific event causing loss and giving rise to risk?

Peril

The branch of dentistry that deals with the replacement of missing parts is called

Prosthodontics

Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are tax-deductible when paid for which of the following plans?

Qualified Long-Term Care plan

Dana is an employee who deposits a percentage of her income into her individual annuity. Her company also contributes a percentage into a separate company pension plan. What kind of annuity is this considered?

Qualified retirement annuity

Statements made by an insurance applicant on an application are considered to be what?

Representations

What does "SHOP" stand for in SHOP exchange?

Small Business Health Options Program

When a preferred provider organization (PPO) insured goes out-of-network, which of the following actions occur?

The insurer will pay a reduced amount

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is

The shorter the payment period, the higher the premium

Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life insurance policy is this?

Universal Life Policy

Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested?

Variable universal policy

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

Major medical insurance will typically cover medical expenses that result from

a negative reaction to prescribed medication

HIPAA considers which of the following as "individually identifiable health insurance"

a persons health claim information

The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n)

accident

A long-term care policy typically provides all of the following levels of care EXCEPT

acute care

If an agent would like to start using an assumed name, at what point must the superintendent be informed?

before using the assumed name

Maria is a Preferred Provider Organization (PPO) subscriber and received care from an out-of-network provider. Which of the following is the likely result?

care is covered but at a lower percentage compared to treatment from an in-network provider

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called

coinsurance

Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident?

contingent beneficiary

______ is NOT an element of a valid contract

countersignature

An outline of ____ is required for long-term care policies and provides a brief description of the important features of the policy

coverage

Which of the following unfair trade practices involves an agent who makes malicious statements about another person's financial condition?

defamation

A Medicare Supplement Policy is

designed to fill in the gaps of Part A and Part B Medicare

Key Person Disability Insurance pays benefits to the

employer

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

exclusion ratio

A carrier for a small group health plan may refuse to renew the plan if the employer

fails to pay the premium

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

file written proof of loss

Janice forgot to make her insurance premium payment by the due date. The specified period after the due date where she can still make payment and avoid discontinuance of her coverage is called the

grace period

Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?

incontestable clause

A proposed insured for a health insurance policy was treated for heart disease within the past year. When applying for health insurance, the heart disease treatment

indicates a preexisting condition

Which type of beneficiary should be named if the insured wants to give explicit directions on how the policy proceeds should be paid?

individual

The identity of the ____ must be made clear in every health insurance advertisement

insurer

Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary?

interest only

A person covered with an individual health plan

is issued a policy

A common exclusion with Vision plans is

lasik surgery

How do insurers predict the increase of individual risks?

law of large numbers

The amount received for a life insurance policy in a life settlement is __ than the death benefit

less

When a decreasing term policy is purchased, it contains a decreasing death benefit and

level premiums

A life settlement broker is someone who is

licensed to negotiate a life settlement contract

Which type of annuity stops all payments upon the death of the annuitant?

life annuity

Which of these is NOT considered to be a common life insurance nonforfeiture option?

life income annuity

Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies?

life only

John the policy owner sells his life insurance policy to help pay for the cost of his terminal illness. This transaction is called a

life settlement

All of the following are examples of pure risk except

losing money at a casino

Coming from an insurance point of view, which of the following is the main risk associated with disability?

loss of income

The premium payment mode that results in the highest overall cost would be

monthly

Benefits for a Medicare Supplement policy

must not duplicate Medicare benefits

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

nonforfeiture option

Charles is an agent who is licensed in New York but resides in New Jersey. Charles is considered to be a

nonresident agent

How are premiums paid by the insured for personally owned disability income insurance treated for tax purposes?

not tax deductible

When replacing a life insurance policy an agent must provide the applicant with a

notice regarding replacement

When an agent is replacing an existing ordinary life insurance policy, the agent must take all of the following actions except:

obtain the beneficiaries signature

The gatekeeper's role when used by an HMO is

obtaining referrals to specialists from primary care physicians

Paul is an employee who caught a disease unique to the trade in which he was exposed to. Paul has a(n)

occupational disease

Which of the following is not covered under Workers' Compensation?

pain and suffering

States that have "no loss no gain" laws require a replacing policy to

pay for ongoing claims under the policy replaces

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

physical therapy

Replacement regulation is designed to protect the interests of the

policyowners

Which of the following does Medicare Part D cover?

prescription drugs

The two major actions required for a policyholder to comply with the Reinstatement Clause are

provide evidence of insurability, pay past due premiums

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 agent license is not required when

referring insurance

What is the automatic continuance of insurance coverage referred to as?

renewal

An endorsement found in an insurance plan which modifies the provisions of the policy is called a

rider

Distributions from a Health Savings Account (HSA) for qualified medical expenses are

tax-free

An agent has recently died and leaves behind a spouse. In order for the agent's insurance business to continue, the Superintendent may issue to the agent's spouse a

temporary insurance license

Which of the following would be a valid reason why a policy premium would be higher than the standard premium?

the insured does not meet established underwriting requirements

The free-look provision gives the policyowner

the right to return the policy for a full refund within a specified number of days

Under a Traditional IRA, interest earned is taxed?

upon distribution

Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds

will no longer provide insurance protection

A renewable term life insurance policy allows the policy owner the right to renew the policy

without producing proof of insurability