Download XCEL 128 Quiz Questions With Correct Solutions: Insurance Concepts and Applications and more Exams Insurance law in PDF only on Docsity!
XCEL 128 Quiz Questions With
Correct solutions
Which of these riders will pay a death benefit if the insured's spouse dies? - โ โ Family term insurance rider
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? - โ โ Calendar-year deductible
Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? - โ โ Pre-death distributions are typically taxable
Which of the following is NOT a specific power given to the superintendent? - โ โ Enact insurance legislation
Which of the following is NOT a specific power given to the superintendent? - โ โ what is the non
What is the nonforfeiture value of an annuity before annuitization? - โ โ The superintendent determines an examination of an insurers books and records is necessary. After receiving the notification, the insurer
Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt - โ โ Which of the following is a reinstatement condition
An immediate annuity has been purchased with a single premium. When does the annuitant typically begin receiving benefit payments? - โ โ
The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as - โ โ What is a corridor in relation to a Universal Life insurance policy?
Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary? - โ โ
An individual covered under a Blue Cross Blue Shield plan is called a(n) - โ โ Participant
The policyholder for a group health benefit plan is considered to be the
Intentional withholding of material facts would affect an insurance policies validity is called a(n) - โ โ Concealment
An example of a health insuring corporation (HIC) specialty care provider is a(n) - โ โ Neurologist
Which of the following is NOT typically included under "hospital care" for most health insuring corporation (HIC) plans? - โ โ Private duty nursing
An insurance producer is often responsible for field underwriting during the application process. All fo these are possible field underwriting roles EXCEPT - โ โ Providing commission information to the applicant
All of the following riders can increase the death benefit amount EXCEPT - โ โ Waiver of Premium
A beneficiary change can occur: - โ โ Normally at any time during the policy term
Maria is a PPO (preferred provider organization subscriber and received care from an out of networks provider. Which of the following is the likely result? - โ โ Care is covered
Benefits provided by a Medicare Supplement policy must NOT - โ โ Duplicate Medicare benefits
Unmarried children who are incapable of self support and have proof of incapacity are included under thier parents health coverage until - โ โ Policy termination
A disability elimination period is best described as a - โ โ time deductible
Sharon is the policy owner of a $50,000 life insurance policy. Her son, Mike, is the beneficiary. If Sharon MUST obtain Mikes' signature in order to change the beneficiary, what kind of beneficiary designation is this? - โ โ Irrevocable
Bob and Tom start a business. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Eventually, they retire and dissolve the business. Bob dies 12 months later. The policies continue in force with no change. Both partners are still married at the time of Bob's death. In this situation, who will receive Bob's policy proceeds? - โ โ Tom
An example of endodontic treatment is a - โ โ root canal
Which of these is NOT considered to be a purpose of an annuity? - โ โ Annuities are intended to create an estate
Which of these would be the best example fo limited pay life insurance policy? - โ โ Whole life policy with premiums paid up after 20 years
Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? - โ โ Guaranteed insurability rider
What does COBRA fo 1985 allow an employee to do? - โ โ In the event of employment termination, group health insurance can be kept if the employee pats the premiums
The focus of major medical insurance is providing coverage for - โ โ preventative care
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day? - โ โ Claim will be paid if application is approved.
Which of the following does Medicare Part D cover? - โ โ Prescription drugs
An insurance company advertises an accident and health insurance product in a local Ohio newspaper and refers to dollar amount benefits.
Loss of income insurance provides - โ โ an individual the means to replace wages
Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? - โ โ Accumulation at Interest Option
A provision in a whole life policy that allows a poicy owner to terminate the policy in return for a reduced paid - up policy of the same type is called a(n) - โ โ nonforfeiture provision
A non-admitted insurer - โ โ is not afforded protection by the guaranty fund
In contrast to a guaranteed renewable policy, a noncancellable policy - โ โ may never raise premiums
Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance? - โ โ Medicare in-hospital deductible
Which of these factors is NOT taken into account when determining - โ โ automobile
An insured under a major medical expense plan with a zero deductible and 80/20 coinsurance provision files a $1,000 claim. How much of this claim is the insured responsible for? - โ โ $
Level premium term life insurance policies - โ โ automatically convert to permanent insurance at a predetermined date
in order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST - โ โ provide evidence of insurability to the insurer
All of the following are core benefits of Medicare Supplement Plan A EXCEPT - โ โ Deductible payments for the first 60 days of hospitalization under Medicare hospitalization insurance
All of these are typically sources of underwriting information for life or health insurance EXCEPT - โ โ
Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. - โ โ 20
What is issued to each employee of an employer health plan? - โ โ certificate
According to the Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied? - โ โ Participation or contribution rules have been violated
Long-Term care polices or certificated issued in Ohio are required to have - โ โ a nonforfeiture value
Which market index is normally associated with an indexed annuity's rate of return - โ โ S&P 500
If an insured dies during the grace period with no premiums paid - โ โ the policy would be payable, minus the premium amount
Pete the agent recently had his license suspended because he was found to be in violation of state insurance law. Due to this suspension, Pete - โ โ May be assessed the administrative costs sustained by the Department
All of the following are included as part of a contract in the entire contract provision - โ โ Changes made by the producer
Under a Modified Endowment Contract, what are the likely tax consequences? - โ โ Pre-death distributions will become taxable
Which of the following is typically NOT eligible for coverage in a group health policy? - โ โ Temporary employee
When does an immediate annuity begin making payments? - โ โ After the first premium has been paid
A partial surrender is allowed in which of the following life policies? - โ โ Universal life
All of the following riders can increase the death benefit amount EXCEPT - โ โ Waiver of Premium
A health insurance policy where the insurer has the right to terminate the policy fr reasons other than the insureds health is called - โ โ Conditionally Renewable
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 - โ โ Indicates a preexisting condition
How do interest earnings accumulated in a deferred annuity - โ โ On a tax-deferred basis
Which of the following statements is NOT true regarding a Critical Illness Plan - โ โ Coverage is limited to a single devastating disease
Which of these is a TRUE statement regarding HIC's - โ โ HIC's operate on a prepayment basis
James is insured on a life insurance policy where his age was misstated on the application. Which of the following is CORRECT regarding the death benefit amount? - โ โ The death benefit paid will be what the premium would have purchased at the correct age
How son can the benefit payments begin with a deferred annuity? - โ โ A minimum of 12 months after date of purchase
Under non-qualified annuity, interest is taxed after the - โ โ
Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death? - โ โ
Which disability policy provision would address any concerns of the value of the benefits decreasing over time? - โ โ Cost of living benefit
A whole life policy option where extended term insurance is selected is called a(n) - โ โ nonforfeiture option
A life insurance policyowner is allowed days upon policy delivery to return the policy for a full premium refund - โ โ 10 days
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? - โ โ 10 days
A spouse and child can be added to the primary insured's coverage as what kind of rider? - โ โ family term
With a scheduled dental policy, how are covered expenses paid? - โ โ Benefits are limited to a specific maximum dollar amount per procedure
Which of the following statements regarding Group Disability Income is TRUE? - โ โ It provides benefits for nonoccupational illnesses and injuries
An insurer may refuse to renew an employer's small group health plan due to - โ โ Nonpayment of premium
The open enrollment period for Medicare Supplements begins at age - โ โ
An order issued by the superintendent that prohibits a specific practice listed in the order is called a(n) - โ โ cease and desist order
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must - โ โ
A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing - โ โ benefit limits
what types of life insurance are normally used for key employee indemnification? - โ โ term, whole, and universal life insurance
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity? - โ โ During periods of inflation, annuitants will experience a decrease in purchasing power of their payments
A whole life insurance policy accumulates cash value that becomes - โ โ the policy loan value which the insured may borrow against
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? - โ โ
Pre-death distributions from a modified endowment (MEC) receive different tax treatment than other life insurance policies because - โ โ MEC tends to be an investment vehicle
Advertisements for accident and health policies that ONLY cover a stated illness MUST display a statement that the - โ โ policy is limited
The superintendent determines an examination of an insurer's books and records is necessary. After receiving the notification, the insurer - โ โ must not impede the examination
In which of the following situations would the insurer be liable for a loss? - โ โ The insured suffered an injury as an innocent bystander during a bank robbery
Continued coverage under COBRA would be provided to all of the following EXCEPT - โ โ a covered employee is terminated for gross misconduct
The taxable portion of each annuity payment is calculated using which method? - โ โ Exclusion Ration
Generally speaking, which three levels of care areLong-Term Care policies provided with? - โ โ Skilled nursing, intermediate, and custodial care
When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)? - โ โ when contribution or participation rules have been violated
