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Xcel Life Insurance > prepare to pass > Flashcards

prepare to pass Flashcards

1
Q

B’s policy provides coverage on an in-hopsital basis only and contains a limited daily room and board benefit. which of these policies does B have

comprehensive major medical
basic hospital
critical illness
basic surgical

A

basic hospital

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2
Q

every 12 months after the initial enrollment period, an HMO must hold an open enrollement period of
10 days
31
45
60

A

31 days

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3
Q

the insuring clause

-specifies the additional time given to pay past due premiums
-states the scope and limits of the coverage
-states the amount of premium to be collected
-prohibits the insured from suing the insurer for at least 60 days after filing a written proof of loss

A

-states the scope and limits of the coverage

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4
Q

which of the following provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled

-family maintenance clause
-payor clause
-assignment provision
-automatic premium loan provision

A

payor clause

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5
Q

what is old age and survivors health insurance (OASDHI) also known as

-medicare
-social security
-medicaid
-FICA

A

Social secuity

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6
Q

T purchased a 100K single premium straight life annuity 5 years ago. he has received monthly payments since the inception of the annuity. if T dies the insurance company

-does not have to make any further payments
-must make full payments to the beneficiary
-must make half payments to beneficiary

A

does not have to make any further payments

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7
Q

S recently received a 500K lump sum retirement buyout from her employer. she would like to buy an annuity that will immediately furnish her with a guaranteed income for life. what type of anuity is best suited for her situation

-403B plan
-deferred premium
-single premium
-period certian

A

single premium

will start providing income payments within the first year

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8
Q

all students attending a large university could be covered by

-a blanket policy
-franchise policy
-jumbo group
-commercial insurance

A

blanket policy

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9
Q

insurers may request a hearing with _______ if their policy is rejected

20
30
60
90 days

A

20 days

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10
Q

with optionally renewable health policies the insurer may

-renew the policy only if no claims have been filed the previous year
-renew the policy only with the insureds consent
-review the policy wheneer they please and determine whether or not renew it
-review the policy annually and determine whether or not to renew it

A

-review the policy annually and determine whether or not to renew it

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11
Q

T owns an accident and health policy and notifies her insurance company that she has chosen a less hazardous occupation. under the change of occupation provision, which of the following actions may her insurance company take

-allow her to take a tax deduction on unearned premiums
-increase her policy coverage amount
-decrease her policy coverage amount
-nothing

A

increase her policys coverage amount

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12
Q

on Aug 6, D submitted an application for 50K life insurance policy and did not pay the initial premium. on aug 18, D went to his doctor complaining of chest pains, and some tests were given by the doctor. the life policy was delivered by the producer on aug 20 and D explains what had recently taken place with the doctor. what action should the producer then take?

-collect initial premium
-collect the intial premium along with a signed health statment
-explainto the application the policy is no longer in effect due to the change in health condition
-collect the initial premium and leave. a binding receipt

A

-collect the intial premium along with a signed health statment

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13
Q

which of these factors does not influence an applicant’s need for life insurance

-lifestyle of the applicant
-number of dependents
-self maintenance expenses
-future educational costs of dependents

A

future educational costs

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14
Q

what type of policy would only provide coverage for specific typees of illnesses

(cancer stroke)
-MEWA
-blanekt insurance
dread disease
disability

A

dread disease

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15
Q

which of these is not an example of doing insurance business

-selling shares of stock
receiving an insurance application
collecting insurance premium
delivering insurance policy

A
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15
Q

XYZ company pays the entire premium for its group health plan. the minimum percentage of eligible employees that must be covered is
-25
-50
-75
-100

A

100

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16
Q

when an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans

-joint
-noncontributory
-contributory
-participating

A

contributory

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17
Q

K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. which policy provision specifies that coverage may be restored in this situation

-free look
-reinstatment
-grace period
-consideration

A

reinstatment

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18
Q

what is the initial source of underwriting for an insurance policy

-application containing statements from the insured
-mib report
-credit report
-medical exam

A

application containing statements from the insured

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19
Q

B an insurance agent tells his clients that their rights may be impaired if they fail to complete a release form within a given period of time. B may be found guilty of

-boycotting
-rebating
-coercion
-discrimination

A

coercion

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20
Q

which type of provider is known for stressing preventative medical care and routine physical examinations
HMO
PPO
MEWA
Major medical provider

A

HMO

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21
Q

a primary beneficiary has died before the insured in a life insurance policy. a contingent beneficiary is also named in the policy, which of the following will occur when the insured dies

-proceeds will go to the primary beneficiarys estate
-probate will decide who receives proceeds
-proceeds will go to the contingent beneficiary
-proceeds will to to the insured estate

A

-proceeds will go to the contingent beneficiary

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22
Q

in order to sell an ________ life policy, a producer is required to register with the financial industry regulatory authority (FINRA)

-variable
-adjustable
-striaght
-term

A

variable

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23
Q

which of the following statements about health reimbursement arrangements HRA is correct

-if the employee had a qualified medical leave from work, lost wages can be reimbursed
-if the employee paid for qualified medical expenses, the reimbursements may be tax free
-an unused amounts are added to employees gross income
-health insurance premiums can be reimbursed to the employee

A

-if the employee paid for qualified medical expenses, the reimbursements may be tax free

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23
Q

which of the following statments about health coverage for newborns is not true?

-coverage includes treatment of congenital defects
-coverage continues after the first 31 days upon payment of the first premium
-coverage is limited to only congenital defects
-coverage begins at moment of birth

A

-coverage is limited to only congenital defects

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24
Q

with whome may an agent legally share commissions

-the insured
-applicant
-beneficiary
-another agent with same line of insurance

A

-another agent with same line of insurance

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25
Q

The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is

-grace period
physical examination and autopsy
entire contract
time limit on certain defenses

A

t`ime limit on certain defenses

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26
Q

which of the following statements about the classification of applicants is incorrect

-substandard applicants are never declined by underwriters
-substandard applicants are occasionally declined by underwririters
-preferred risk applicants typically have better premiums rates than standard risk applicants
-applicant can be classified as substandard risk because hazardous job

A

-substandard applicants are never declined by underwriters

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27
Q

in a life insurance policy which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy

A

owners rights

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28
Q

which of the following best describes a warranty

A

statement guaranteed to be true

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29
Q

which premium schedule results in the lowest cost to the policy owner

A

annual

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30
Q

during a sales presentation for a participating life insurance policy, an agent must

A

make a prospect understand that dividends are not guaranteed

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31
Q

which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures

commercial
ppo
hmm
admin services only plan

A

commerical insurer

32
Q

periodic health claim payments must be made at least

monthly
weekly
daily
annually

A

monthly

33
Q

under a long term care policy, which benefit would be typically excluded or limited

intermediate nursing
skilled nursing
home health care
alcohol rehab

A

alcohol rehab

34
Q

V is insured under and individual disability income policy with a 30-day elimination period. on july 1 he is involved in an accident and temporarily disabled. he returns to work on December 1. how many months of benefit are payable?

6
5
4
4.5 months

A

4 months

35
Q

T is covered by two health insurance plans: a group plan through his employer and his spouses plan as a dependent. under the model group coordination of benefits provision, when T files a claim, his employers plan is considered the:

principal
surplus
primary
secondary

A

primary

35
Q

medicare part c is

-government insurance
avialable to those who are enrolled in a medicare supplement plan with income under 12K per year
original part a and b medicare
available to those who are enrolled in medicare part a and b

A

available to those who are enrolled in medicare part a and b

36
Q

which of these is not considered to be a right given to a policyowner

-surrendering the policys cash value
-modify a provision in the insurance contract
-assignment of ownership
-change the beneficiary if revocable

A

-modify a provision in the insurance contract

37
Q

which of these life products is not considered interest sensitive

-modified whole life
variable universal life
interest sensitive whole life
variable life

A

modified whole life

38
Q

which of these actions is taken when a policyowner uses a life insurance policy as collateral for a bank loan

-revocable assignment
-beneficiary change
-irrevocable assignmengt
-collateral assignment

A

-collateral assignment

39
Q

the percentage of an individuals primary insurance amount. (PIA) determines the benefits paid in which of the following programs

-SS disability income
medicare supplements
medivaid
cobra

A

-SS disability income

39
Q

M’s insurance company denied reinstatement application for her lapsed health 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 the denial before the policy will be automatically placed back in force

-10 days
30 days
45 days
60 days

A

45 days

40
Q

an evidence of coverage form may be issued by a health maintenance organization HMO after being approved by the

-attorny general
NAIC
commissioner
National HMO assoc

A

commissioner

41
Q

a life insurance application must be signed by all of these except

-the policyowner
the agent
the insured
beneficiary

A

beneficiary

42
Q

what type of life policy covers two people and pays upon the death of the last insured?

-shared
-survivorship
-adjustable
-joint

A

survivorship

43
Q

who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in texas

-the insured
the agent and the insured
the agent
the commissioner of insurance

A

the agent

44
Q

what is considered to be a characteristic of a conditionally renewable health insurance policy

-premiums may increase at time of renewal
premiums may increase at any time
policy may be renewed at the discretion of the insured
policy may be amended by the insurer at an time

A

-premiums may increase at time of renewal

45
Q

which of the following consists of an offer, acceptance and consideration

warranty
estoppel
contract
representation

A

contract

46
Q

what type of life insurance are credit policies issued as

whole
variable
term
universal

A

term

46
Q

if an individual is covered under an accidental death policy and dies, an autopsy can be performed in all these situations except

when the cause of death is unknown
when the state prohibits this by law
when consent for the autopsy is not obtained
when foul play was a contributing factor

A

when the state prohibits this by law

47
Q

_______ of continuing education MUST be completed in the classroom or classroom equivalent

20
50
80
100

A

50%

48
Q

an insured must notify an insurer of a medical claim within ______days after an accident

10
20
3040

A

20

49
Q

an insurer must provide an insured with claim forms within ______days after receiving notice of a loss

5
10
15
20

A

15

50
Q

which of the following is an important underwritiing principal of group life insurance

physical examinations are required
everyone must be covered in the group
employer must pay for the entire premium
the group must be formed for the purpose of gettting affordable insurance

A

everyone must be covered in the group

51
Q

upon policy delivery, a signed good health statment is requested from the applicant. why would this be necessary?

-the applicant chose an annual premium mode
-the applicant is suspected of making a material misrepresentation
-the initial premium was submited with the application
-the initial premium was not submitted with the app

A

-the initial premium was not submitted with the app

52
Q

which of the following is not a required provision in group life policies

-free look
incontestable
conversion
right to loan

A

right to loan

53
Q

additional coverage can be added to a whole life policy by adding an

payor rider
accelerated benefit rider
decreasing term rider
automatic premium loan rider

A

decreasing term rider

54
Q

a student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following

guaranteed insurability rider
aviation exclusion
impairment rider
accidental death benefit rider

A

aviation exclusion

55
Q

ABC insurance company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. abc is comitting a prohibited act under texas insurance laws covering

twisting
flase advertising
rebating
unfair methods of competition

A

unfair methods of competition

56
Q

what should an insured do if the insurer does not send claims forms within the time period set forth in a health policys claims forms provision

-file a lawsuit
submit the claim in any form
wiat for the claim form to arrive
resubmit the request for a claim form

A

submit the claim in any form

57
Q

which of these are not an example of nonforfeiture option
extnded term
reduced paid up
cash surrender
life income

A

life income

58
Q

whole life policies are guaranteed to provide all the following except

cash value that will ultimately replace the death benefit
nonforfeiture benefit options
fixed premiums
partial withdraw features beyond surrender of charge

A

partial withdraw features beyond surrender of charge

59
Q

investment gains from a universa life policy go towards

A

the cash value

60
Q

what is considered to be a characteristic of a conditionally renewable health insurance policy

premiums may increase at a time of renewal

A

premiums may increase at a time of renewal

61
Q

A Policy that becomes a MEC

will loose many of its tax advantages

A

will loose many of its tax advantages

62
Q

free look provision begins

upon receipt of the policy by policyowner

A

upon receipt of the policy by policyowner

63
Q

which of these statements concerning an individual disability income policy is true

normally includes an elimination period

A

normally includes an elimination period

64
Q

all of these statments about the waiver of premium provision are true except

individual must be eligible for SS disability for claim to be accepted

A

individual must be eligible for SS disability for claim to be accepted

65
Q

which of the following statments is true about a acceleerated death benefit

must have a terminal illness to qualify

A

must have a terminal illness to qualify

66
Q

who elects the governing body of mutual insurance company

policyholders

A

policyholders

67
Q

who owns a stock insurance company

stockholders

A

stockholders

68
Q

less hazardous occupation under change of occupation which would the insurance comapny take

increase policy coverage amount

A

increase policy coverage amount

69
Q

which of these is not a reason to purchase life insurance on life of a minor

if both parents were to die it would provide death benefit to a child

A

if both parents were to die it would provide death benefit to a child

70
Q

when a person returns to work after a period of total disability but cannot earn as much as they did before the disability this situation is called which of the following

residual disability

A

residual disability

71
Q

what type of life insurance are credit policies issued as

term

A

term

72
Q

What type of insurance includes flexible premiums and an adjustable death benefit

universal life

A

universal life

73
Q

pre hospital authorization is considered an example of

managed care

A

managed care

74
Q
A
74
Q

situation in which a group of physicians are salaried employees and conduct business in a hmo facility is

closed panel

A

closed panel

75
Q
A
76
Q
A

Xcel Life Insurance (32 decks)

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