Download Xcel Testing Solutions- Life and Health Insurance- Weighted Exam- 150 written Questions.. and more Exams Nursing in PDF only on Docsity!
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT - ANS insurance sales calls Charities, political organizations, and surveys are all offered exemptions from The Do Not Call Registry The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called - ANS cancelable The renewability provision in a cancelable policy allows the insurer to cancel or terminate the policy at any time, simply by providing written notification to the insured and refunding any advance premium that has been paid. Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. This rider is called a(n) - ANS Guaranteed insurability rider A guaranteed insurability rider allows for the insured to purchase additional insurance at specific dates or events without evidence of insurability. Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered - ANS Noncancellable A noncancellable policy cannot be cancelled nor can its premium rates be increased under any circumstances. In what part of an insurance policy are policy benefits found? - ANS Declarations Essentially, the insurance declaration page is like a quick guide to the insurance policy, providing all of the basic information the policyholder needs to know. What happens if the insurer discovers that the insured's age was accidentally misstated on an application for an individual life insurance policy? - ANS Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age Benefits will be calculated according to how much coverage the premium paid would have purchased for the correct age. Health insurance will typically cover which of the following perils? - ANS Injury due to accident Accidental injury is typically a covered peril in health insurance. A viatical settlement contract is an agreement between - ANS A life insurance
Xcel Testing Solutions- Life and Health
Insurance- Weighted Exam- 150 written
Questions with answers
policyowner and a viatical settlement provider
Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the following statements is TRUE? - ANS Medicare is the secondary payer If an individual continues to work after the age of 65 and keeps the group plan, primary coverage comes from the group insurance plan and Medicare is considered the secondary payer. A whole life policy option where extended term insurance is selected is called a(n) - ANS nonforfeiture option A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to the existing amount of life insurance is called the extended term option. The Commissioner must examine the financial affairs of each admitted insurer operating in Louisiana at least once every how many years? - ANS 5 At the very least, an admitted company shall be examined once every 5 years by the Commissioner. When a Medicare supplement policy is purchased during the open enrollment period - ANS the policy must be issued regardless of health status During open enrollment for Medicare supplements, policies will be issued regardless of health status. Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit? - ANS Increase the premiums on an individual basis A guaranteed renewable policy CANNOT increase the premiums on an individual basis, only on the basis of an entire classification. A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and who wishes to sell that line of insurance in Louisiana, must meet all of the following requirements EXCEPT: - ANS Take the appropriate Louisiana licensing examination A nonresident licensee from another state is not required to take a licensing examination if they are already in good standing with their state of residence. A life insurance policy that has premiums fully paid up within a stated time period is called - ANS limited payment insurance Limited payment insurance is characterized by premiums that are fully paid up within a stated period, after which no further premiums are required. The taxable portion of each annuity payment is calculated using which method? - ANS Exclusion Ratio The Exclusion Ratio is used to determine the taxable portion of each annuity payment. How are annuities given favorable tax treatment? - ANS Gains are taxed at distribution
Annuity gains are typically tax deferred until distribution. All policies must be guaranteed renewable. - ANS long-term care All long-term care policies must be guaranteed renewable. Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled? - ANS Business overhead expense policy A form of business disability insurance that is designed to cover the actual costs of continuing to do business while an insured business owner is disabled is called a business overhead expense policy. Which of these is NOT a characteristic of the Accelerated Death Benefit option? - ANS The benefit can be offered as a rider at a specific extra cost or may be at no cost Accelerated Death Benefit options are offered with NO increase in premium. What is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date of an individual long-term care policy? - ANS Pre-existing condition In an individual long-term care policy, a pre-existing condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date. A producer who is licensed in Louisiana but resident in another state is called a - ANS nonresident producer A producer licensed in Louisiana but a resident in another state is called a nonresident producer. The typical long-term care insurance policy is designed to provide a minimum of year(s) of coverage. - ANS 1 Long-term care insurance in any insurance policy is designed to provide coverage for a minimum benefit period of 1 year. To receive an insurance license an applicant must - ANS Apply for the license after passing the appropriate examination An applicant must apply for the license after passing the appropriate examination in order to receive an insurance license. A cease and desist order issued against a producer - ANS Prohibits a specific practice listed in the order A cease and desist order issued against a producer prohibits a specific practice listed in the order. How are survivorship life insurance policies helpful in estate planning? - ANS Provide funds to help pay taxes Survivorship life insurance policies are useful in estate planning because they can provide money to pay taxes on assets.
James is the 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? - ANS The death benefit paid will be what the premium would have purchased at the correct age Under the Misstatement of Age provision, the amount paid will be what the premium would have purchased at the correct age. A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a(n) - ANS guaranteed renewable policy An insurer has the right to change the premium for policyowners with a guaranteed renewable policy, but CANNOT cancel the policy. Which type of Medicare Supplement information can be used without prior state approval? - ANS Government publications Insurers can use government publications for communicating Medicare Supplement information without prior state approval. Which annuity payout option allows the policyowner to choose a pre-determined number of benefit payments? - ANS period certain An annuity where the policyowner chooses a pre-determined number of benefit payments is called period certain. An insurer must furnish to a claimant forms for filing proof of loss within days upon receiving a notice of claim. - ANS 15 Upon receipt of notice of claim, the insurance company will furnish to the claimant forms for filing proof of loss within 15 days. Written notice for a health claim must be given to the insurer days after the occurrence of the loss. - ANS 20 Written notice for a health claim must be given to the insurer 20 days after the occurrence of the loss. In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at - ANS 60% of the benefit 60% of an income benefit is taxed to the employee because 60% of the premiums paid come from the employer. An insurer need NOT pay interest on death benefits if the proceeds of the life policy are paid within - ANS 20 days after the date of the death of the insured An insurer need not pay interest on benefits if the proceeds of the policy are paid within 20 days after the date of death of the insured. 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? - ANS Calendar-year deductible
Which of the following is NOT a common exclusion for a medical expense policy? - ANS Physical Therapy All of the following actions are considered rebating EXCEPT - ANS sharing commissions with other licensed and appointed agents Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health policy most likely contains a(n) - ANS deductible A deductible is a stated initial dollar amount that the individual insured is required to pay before insurance benefits are paid. Life insurance policies can refuse to pay benefits for death from all of the following causes of death EXCEPT - ANS heart attack A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT - ANS fare-paying passenger A policy may contain provisions excluding or restricting coverage as specified in the event of death under all of these situations EXCEPT a fare-paying passenger. What types of life insurance are normally used for key employee indemnification? - ANS term, whole, and universal life insurance The types of life insurance generally used to cover key employee indemnification are term, whole, and universal life insurance. An insurance producer is BEST defined as - ANS a person who has a contract with an insurance company to represent it "Insurance producer" or "producer" is a person required to be licensed pursuant to the laws of this state to sell, solicit, or negotiate insurance. Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? - ANS Taxable income Disability insurance benefits from a group policy paid for by an employer is considered taxable income. How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company? - ANS With a usual, customary, and reasonable fee In order to qualify for a company convention, an insurance producer agrees to pay the first quarterly premium for the applicant for new insurance. This is called a - ANS rebate This situation is considered a rebate, which is illegal. The Louisiana Health Plan is best described as - ANS A health insurance plan for individuals who have been denied coverage elsewhere The Louisiana Health Plan is best described as a health insurance plan for individuals who have been denied coverage elsewhere.
A licensed producer must be designated as responsible for compliance with state insurance laws and regulations. A temporary producer's license is effective for - ANS 180 days A temporary producer's license is effective for 180 days. G had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy? - ANS 31 days A person covered by a group policy also has the right to convert such coverage to an individual policy within the conversion period (31 days) without proving insurability. If this right is exercised, the employee is responsible for the payment of premium. Which of the following types of deductibles would apply a single deductible to both medical and dental insurance coverage? - ANS Integrated deductible A single deductible applied to both medical and dental insurance coverage is referred to as an integrated deductible. What is the contract called that is issued to an employer for a Group Medical Insurance plan? - ANS Master policy A single contract for Group Medical Insurance issued to an employer is known as a master policy. An appointing insurer has how many days to file a notice of appointment with the Commissioner? - ANS 15 An appointing insurer has 15 days to file a notice of appointment with the Commissioner. The factor used most often when underwriting a disability income policy is - ANS annual earnings Which of the following is NOT a required provision in an accident and health insurance policy? - ANS change of occupation The change of occupation provision is considered an OPTIONAL provision. Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? - ANS Payor benefit A payor benefit will waive the premium on a juvenile life insurance policy if the parent paying the premium dies. In small group accident and health plans, a late enrollee is an individual who - ANS elects coverage after the initial eligibility period In small group accident and health plans, a late enrollee is an individual who elects coverage after the initial eligibility period. The late enrollee may be required to provide evidence of insurability.
Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective date being May 30. On which date would Sonya have coverage? - ANS May 30 The "effective date" is the health insurance coverage start date. Which situation would qualify an individual for receiving benefits from a qualified long- term care policy? - ANS Becoming cognitively impaired (mentally ill) A qualified long-term care policy must pay benefits when an individual is cognitively impaired. The limited period of time given to all members to sign up for a group health plan is called the - ANS enrollment period The enrollment period is a limited period of time during which all members may sign up for a group plan. When replacing individual health insurance, a producer should compare existing benefits with the proposed new policy to determine if: - ANS Existing benefits would be maintained under the new plan When replacing individual health insurance, a producer should compare existing benefits with the proposed new policy to determine if existing benefits would be maintained under the new plan. In a Long-Term Care policy, activities of daily living (ADL's) can be each of the following EXCEPT - ANS Talking Talking is not considered an activity of daily living (ADL) for Long-Term Care insurance purposes. Activities of daily living (ADLs) include bathing, dressing, eating, mobility, transferring, toileting, and continence. A Medicare Supplement Policy is - ANS designed to fill in the gaps of Part A and Part B Medicare A Medicare Supplement policy is designed to fill in the gaps of Part A and Part B Medicare. In order to act as an insurance producer, a business entity must do which of the following? - ANS Obtain an insurance producer license A business entity must obtain an insurance producer license in order to act as an insurance producer. Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How much will she pay if she incurs a loss of $1,500? - ANS $ In this situation, the insured will pay $500 deductible plus $200 coinsurance = $700. Which of these statements concerning Traditional IRAs is CORRECT? - ANS Earnings are taxable when withdrawn
The type of multiple protection coverage that pays on the death of the last person is called a(n) - ANS survivorship life policy Under a multiple protective policy, the policy that pays on the death of the last person is called a survivorship life policy. A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that - ANS The policyowner may need to resume premium payments depending on actual results A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that the policyowner may need to resume premium payments depending on actual results. In a life or health insurance contract, "consideration" would be the - ANS statements made in the application and the premium The statements made in the application and the premium constitute "consideration" for a life or health insurance policy. The purpose of the Life and Health Insurance Guaranty Association is to - ANS ensure that claims filed against insolvent insurance companies will be paid The Life and Health Guaranty Association was created to protect policyholders, insureds, and beneficiaries of life insurance policies, health insurance policies, annuity contracts and supplemental contracts when insurers fail to perform contractual obligations due to financial impairment. What is the primary reason for buying an annuity? - ANS Provide future economic security The main reason for purchasing an annuity is to provide future economic security. A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) - ANS optional renewability clause An optional renewability clause allows an insurer the unrestricted right to terminate coverage at any anniversary or at any premium due date. Jonas has disability insurance through his employer. The employer pays 75% of the premium, and Jonas pays the other 25%. What is Jonas's tax liability for any benefits paid from the disability plan? - ANS Taxes must be paid on 75% of the benefits received In this situation, the insured must pay taxes on 75% of the benefits received. Continued coverage under COBRA would be provided to a(n) - ANS terminated employee A terminated employee is eligible to continue health coverage under COBRA. Which policy feature makes a universal life policy different from a whole life policy? - ANS A flexible premium schedule The policy feature that makes universal life different from whole life insurance policies is its flexible premium schedule.
A provision that allows a policyowner to withdraw a policy's cash value interest free is a(n) - ANS partial surrender A partial surrender allows the policyowner to withdraw the policy's cash value interest free. An insurance producer is one who may do all of the following EXCEPT - ANS Underwrite insurance contracts An insurance producer is one who may do all of the following EXCEPT underwrite insurance contracts. Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? - ANS Universal Life policy This is an example of a Universal Life policy. Level premium permanent insurance accumulates a reserve that will eventually - ANS equal the face amount of the policy Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy. A medical provider that accepts Medicare Assignment must - ANS accept payment based upon a defined Medicare schedule as payment in full A medical provider that accepts Medicare Assignment must accept payment based upon a defined Medicare schedule as payment in full. What happens when an insurance policy is backdated? - ANS The policy's effective date is earlier than the present Backdating on an insurance policy is the practice of making the policy effective on an earlier date than the present. Which type of multiple protection policy pays on the death of the last person? - ANS Survivorship life policy A survivorship life policy pays on the death of the last person. During the accumulation period, who can surrender an annuity? - ANS Policyowner The policyowner is the only one who can surrender an annuity during the accumulation period. Which type of policy combines the flexibility of a universal life policy with investment choices? - ANS Variable universal life policy When the structure and flexibility of a universal life policy are combined with investment choices, the result is a variable universal life policy. A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the licensee's state and who wishes to sell that line of insurance in
Under HIPAA, a group health plan may not impose a pre-existing condition exclusion if the person has had creditable medical coverage for at least 12 months as long as the person had no more than 63 days with no coverage. Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? - ANS Death benefit The death benefit would NOT be subject to income tax under a Modified Endowment Contract (MEC). Which market index is normally associated with an indexed annuity's rate of return? - ANS S & P 500 An indexed annuity rate of return is linked to a market index, like the S & P 500. All of the following are unfair claims settlement practices EXCEPT - ANS An attempt to settle a claim by arbitration All of these are unfair claim settlements EXCEPT for "An attempt to settle a claim by arbitration". Under the Fair Credit Reporting Act, which statement is true? - ANS The consumer who was investigated must be advised that credit, insurance, or employment was denied because of an unfavorable report. A consumer being investigated must be advised of any denial based on an unfavorable report. Generally speaking, which three levels of care are Long-Term Care policies provided with? - ANS Skilled nursing, intermediate, and custodial care Three levels of care provided by Long-Term Care policies are skilled nursing, intermediate, and custodial care.ect. Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement? - ANS Premiums paid plus interest earned is returned to the beneficiary If an annuitant dies before the annuity start date, the beneficiary receives the premiums paid plus interest earned. 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? - ANS Long Term Care Insurance premiums Tax-qualified long-term care premiums are considered a deductible medical expense if the taxpayer's medical expenses exceed 7.5% of their adjusted gross income. Which of the following is considered to be controlled business? - ANS Selling most of the insurance policies to family members Selling most of the insurance policies to family members would be considered controlled business.
A life insurance policy becomes incontestable after it has been in force for - ANS 2 years The contestable period in Louisiana for life insurance policies is 2 years. An annuitant is guaranteed to NOT outlive their benefits with a(n) - ANS Guaranteed lifetime withdrawal benefit A guaranteed lifetime withdrawal benefit (GLWB) is a rider on a variable annuity that allows minimum withdrawals from the invested amount without having to annuitize the investment. This rider guarantees that a certain percentage (often based on age) of the amount invested can be withdrawn each year for as long as the contract holder lives. What is an insurer required to do when faced with an error made under the Misstatement of Age provision? - ANS Pay age-corrected benefits Under the Misstatement of Age Provision, when done in error, an insurer must pay age- corrected benefits. Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death? - ANS Results The "results clause" states the insurer is excused from paying the amount only if the death is a result of war. An insurer operating in the U.S. but headquartered outside the U.S. is - ANS an alien insurer An insurance company headquartered in another country is considered an alien insurer in the United States. If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1,000 monthly disability benefit? - ANS $ In this situation, the taxable monthly income is $500 because half of the premium was paid for by the employer. Which statement is true regarding Louisiana's continuing education requirements for licensed producers? - ANS A producer must meet specified course requirements within a two-year period Producers must complete 24 hours of continuing education per line of authority every two years in order to renew their licenses. Each policy of life insurance shall contain a provision that a grace period shall be allowed within which the payment of any premium after the first may be made. The standard grace period shall be - ANS 30 days The required grace period for life insurance policies in Louisiana is 30 days. Which situation accurately describes a reduced paid-up nonforfeiture option? - ANS Policy has a decreased face amount
