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