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