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XCEL FINAL
EXAM/COMPREHENSIVE OF LIFE
AND HEALTH INSURANCE WITH
COMPLETE SOLUTION
Question : 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?
Correct answer: Daughter
Question : When is a Group Health policy required to
provide coverage for a newborn child?
Correct answer: At the moment of birth
Question : What is the required renewability status of all
Medicare supplement policies?
Correct answer: Guaranteed renewable
Question : Who issues Medicare Supplement policies?
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Correct answer: insurance companies
Question : P is the insured on a participating life policy.
Which statement is true if P's premiums are waived due to disability?
Correct answer: P will still receive declared dividends
Question : What type of policy would offer a 40-year old
the quickest accumulation of cash value?
Correct answer: 20-pay life
Question : The Nevada Insurance Guaranty Association
Correct answer: protects Nevada insurance policy owners
in the event an insurance company becomes insolvent
Question : The most important factor to consider when
determining whether to convert term insurance at the
insured's attained age or to the insured's original age is:
Correct answer: the cost
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Question : A Medicare Supplement policy may be
cancelled for which of the following reasons?
Correct answer: The premiums has not been paid by the
insured
Question : A noncontributory group term life plan is
characterized by:
Correct answer: The entire cost of the plan is paid for by
the employer
Question : Variable annuities may invest premiums in
each of the following, EXCEPT:
Correct answer: Insurer's corporate business account
Question : Which of the following costs would a Basic
Hospital/Surgical policy likely cover?
Correct answer: Surgically removing a facial birthmark
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Question : Information obtained from a phone
conversation to the proposed insured can be found in which of these reports?
Correct answer: Inspection report
Question : T is receiving $3,000/month from a Disability
Income policy in which T's employer has pad the premiums. How are the $3,000 benefit payments taxable?
Correct answer: Benefits are taxable to T.
Question : What kind of insurance policy supplies an
income stream over a set period of time that starts when the insured dies?
Correct answer: Family Maintenance Policy
Question : Basic Medical Expense insurance:
Correct answer: has lower benefit limits than Major
Medical Insurance