Xcel Solutions Final Exam
Who does a life settlement broker represent? - Correct answer-Individual wanting to sell their life policy to a third party
What is the insurance term the State of California uses for an insurer that is eligible to transact business in this state? - Correct answer-Admitted
Most U.S. life insurance companies belong to the - Correct answer-Medical Information Bureau
Which of the following healthcare providers provide both the healthcare services and healthcare coverage? - Correct answer-Health Maintenance Organization (HMO)
Which of the following is NOT covered by the Family and Medical Leave Act (FMLA)? - Correct answer-Traveling overseas with a spouse
Which word implies permissiveness according to the California Insurance Code? - Correct answer-may When found in California Insurance Code, the word "may" implies permissiveness.
Under a long-term care insurance policy, adult day care coverage will provide for - Correct answer-part time care at a facility for elderly individuals who live at home
Major medical expense plans typically use a cost containment measure for emergency hospital care. This is referred to as a - Correct answer-Deductible
Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose? - Correct answer-Interest Option
Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's - Correct answer-Implied authority
Kim is insured under a disability income insurance policy with an "own occupation" clause. She was recently injured in an automobile accident and can no longer perform the tasks of her job. Kim is now considered to be - Correct answer-Totally Disabled
What is a common reason people purchase an annuity - Correct answer-To protect against the risk of outliving their financial resources
Why is a life insurance policy's delivery date important? - Correct answer-The free-look period begins on the policy delivery date 1 / 2
Periodic increases in policy benefits are allowed in which long-term care policy provision? - Correct answer-Inflation Protection
What is the term used to describe the frequency and severity of certain illnesses and accidents? - Correct answer-Morbidity
Key person insurance is intended to - Correct answer-cover business losses due to death of key employee
Minimum participation standards exist for group health insurance plans in order to - Correct answer-prevent adverse selection
Which of the following is NOT included under long-term care insurance? - Correct answer-Hospital acute care
When calculating life insurance premium rates, which component would an agent's commission fall under? - Correct answer-Insurer's expenses
The reason for social insurance is to - Correct answer-protect certain vulnerable segments of the population
Jon's health plan pays benefits of 90% for in-network providers and 70% for out-of- network providers. What kind of plan is this? - Correct answer-PPO
Which of the following acts is NOT a Federal offense committed by an insurance agent?
- Correct answer-Misrepresentation on an insurance application
An insurer having a large number of similar exposure units is considered important because - Correct answer-the greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums
Medical expense policies will typically cover which of the following ? - Correct answer- injuries caused by accidents
Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her beneficiary? - Correct answer-60 payments (10 years annuity received 5 years worth so had 5 years left , multiply the 5 years by 12 months in a year=60)
When does a life insurance policy's waiver of premium take effect? - Correct answer- insured becomes totally disabled
Which of the following is NOT an important reason for a life insurance application? - Correct answer-The beneficiary must sign the application before the insurer will issue the policy
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