Download Xcel Final Exam trial update questions andanswers complete update guide 2024\2025 and more Exams Nursing in PDF only on Docsity!
Xcel Final Exam trial update questions andanswers
complete update guide 2024 \ 2025
*comprehensive of life and health insurance
Typically, Long-Term Disability benefits are coordinated with which benefit plan? - Social Security The focus of major medical insurance is providing coverage for - medical and hospitalization expenses An insured under a Major Medical expense plan with a zero deductible and 80/ coinsurance provision files a $1,000 claim. How much of this claim is the insured responsible for? - $ because this policy has a zero deductible, the insures is only responsible for the 20% coinsurance on this claim, or $ An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured pay? - $5, Which type of plan would be the most appropriate for an individual on Medicare and concerned that Medicare will NOT pay for charges exceeding the approved amount? - Medicare supplement Plan F When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)? - when contribution or participation rules have been violated What does the word "level: in Level Term describe? - the face amount A non-contributory health insurance plan helps the insurer avoid - adverse selection because all eligible employees are usually covered, non-contributory plans are desirable from an underwriting standpoint because adverse selection is minimized.
To qualify for a resident producer license in the state of Michigan, an individual - must complete the required pre-licensing education within 12 months of license application Under an expense-incurred individual health policy, what is the MAXIMUM length of time after issuance of the policy that an insurer can exclude coverage for a pre-existing condition? - 12 months
The time limit for filing claim disputes is addressed in which provision of an accident and health policy? - legal actions All of the following plans allow for employee contributions to be taken on a pre-tax basis EXCEPT - Health reimbursement Arrangement plan employers contribute to health reimbursement Arrangement planz (HRA's), not employees. Which of the following gifts from a producer would NOT be considered rebating? - $ pen
A producer quoting life insurance may give an applicant an article of merchandise having an invoice value of $5.00 or less. Written notice for a health claim must be given to the insurer days after the occurrence of the loss. - 20 Chris is an insured bricklayer who severed his left hand in an automobile accident. Although his primary duty cannot be performed, Chris is also a substitute high school teacher. He collects a full disability income check every month. How does his policy define total disability? - own occupation the "own occupation" definition of total disability requires that the insured be unable to perform the insured's current occupation as a result of an accident or sickness. Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? - Human life value approach The human life value approach predicts an individual's future earning potential and determines how much of that amount would be devoted to dependents. Index whole life insurance contains a securities component that acts as a(n) - hedge against inflation Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit options would he choose? - Guaranteed lifetime withdrawal benefit The guaranteed lifetime withdrawal benefit normally requires a fee, but it ensures that the income benefit will be paid for life without actually annuitizing the contract. Which of these factors would an insurer consider when determining whether to accept a group life plan? - average age and insurer would consider the average age when determining whether to accept a group Life Plan.
Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this? - Child term rider A child term rider is a level term insurance that can be added to an existing policy. The typical long-term care insurance policy is designed to provide a minimum of year(s) of coverage. - 1 How many employees must an employer have for a terminated employee to be eligible for COBRA? - 20 Which of the following policies does NOT build cash value? - Term CORRECT: straight life, endowment, variable life Which type of annuity stops all payments upon the death of the annuitant? - Life annuity The type of annuity in which all payments cease upon the death of an annuitant is referred to as a life annuity. Under the subrogation clause, legal action can be taken by the insurer against the - responsible third party Disability Income plans which require that the insurer can NEVER change or alter premium rates are usually considered - Noncancellable A noncancellable policy cannot be cancelled nor can its premium rates be increased under any circumstances. Coordination of Benefits regulation applies to all of the following plans EXCEPT - preferred provider organization plan CORRECT: group vision plan, self-funded group health plan, group health plan
A spouse and child can be added to the primary insured's coverage as what kind of rider? - Family term Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1,500 in covered health care services. How much will her group insurance carrier pay? - $ In this situation, the group insurance carrier will pay 90% of the covered loss after the deductible has been applied.
Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this? - Equity index whole life A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called - universal life What is issued to each employee of an employer health plan? - Certificate
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? - Calendar-year deductible A calendar-year deductible is paid before any benefits are paid in a calendar year. An insurer would be committing Unfair Discrimination if coverage was denied based upon - marital status A licensee who is required to take continuing education MUST include how many ethics coursework hours? - 3 A licensee is required to take 24 hours of continuing education every two years. Of the 24 hours, 3 must be in ethics 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) - Guaranteed insurability rider When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach? - the family's Financial objectives if the income earner were to die or become disabled Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. When the term insurance expires, - the protection ends When the insured gives birth, coverage for eligible newly born children consists of coverage of injury or sickness including - birth abnormalities Which of these is NOT considered to be a purpose of an annuity? - Annuities are intended to create an estate CORRECT: annuities are indented to liquidate an estate, annuities are intended for the tax-free growth of principal, and annuities are intended to distribute accumulate principal
Medical Expense Insurance would cover - an injury occurring at the insured's residence A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) - 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. Which of these is NOT considered to be a risk factor in life insurance underwriting? - Number of children CORRECT: health history, hobbies, occupation Which of these is NOT a characteristic of the Accelerated Death Benefit option? - the benefit can be offered as a writer and a specific extra cost or may be at no cost CORRECT: the face amount and policy premium are not affected by the payment, before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness, there may be a dollar amount on the maximum benefit The branch of dentistry which deals with the replacement of missing parts is called - Prosthodontics Prosthodontics is the branch of dentistry concerned with the design, manufacture, and fitting of artificial replacements for teeth and other parts of the mouth. Under long-term care insurance, which of the following MUST an insurer offer to each policyowner at the time of purchase? - An inflation protection feature How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company? - With a usual, customary, and reasonable fee Which of the following provides Medicare supplement policies? - Private insurance companies
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? - May 30 The "effective date" is the health insurance coverage start date. A producer MUST be appointed by the insurer within how many days from the date the agency contract application is submitted? - 15
Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in? - Accumulation period Under Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as - loss of income Which of the following individuals is REQUIRED to be licensed as an insurance counselor in the State of Michigan? - A person providing insurance advice to a person or business for a fee
A licensee can disclose a consumer's policy account number to all of the following EXCEPT a - nonaffiliated third party CORRECT: member in an affinity program that was identified to the consumer upon entering the program, service provider marketing on behalf of licensee, consumer reporting agency. What is the tax liability for employer contributions in Health Savings Accounts (HSA's)? - No tax payment needed Employer-paid contributions to Health Savings Accounts are tax-free to the employee. A licensee who informs an insured of inaccurate terms, benefits, or advantages of any policy is committing which of the following violations? - Misrepresention what is the primary reason for buying an annuity? - Provide future economic security A common exclusion with Vision plans is - lasik surgery INCLUDED: eyeglass frames, the examination, contact lenses In the Michigan Insurance Code, Chapter 45, insurance fraud defines financial loss as all of the following EXCEPT - additional premiums CORRECT: loss of earnings, out-of-pocket expenses, repair and replacement costs All of these are considered a financial loss under Chapter 45 of the Michigan Insurance Code EXCEPT for "additional premiums". Which policy feature makes a universal life policy different from a whole life policy? - A flexible premium schedule An insurer must furnish to a claimant forms for filing proof of loss within days upon receiving a notice of claim. - 15
60% of an income benefit is taxed to the employee because 60% of the premiums paid come from the employer. Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the - employees waiting period for coverage of a pre-existing condition can be reduced under the new employers Health Plan The election of COBRA for continuation of health coverage will - maintain the same coverage and increase premium Continuation of coverage under COBRA results in the same coverage with increased premiums up to 102% of prior premium. What activity does NOT require an insurance producer's license? - Underwriting CORRECT: soliciting, negotiating, selling Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His insurance agent told him the policy would be paid up if he reached age 100. The present cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would be - $500, In this situation, the death benefit would be the $500,000 face amount. A rehabilitation benefit is intended to - prepare the insured to return to employment what amount will be paid under a policy where the insured misstated his/her age? - An amount the premium would have purchased at the correct age An example of naming a beneficiary by class would be - to the children born of my union with the Ned Jackson In group health care, what is the purpose of the coordination of benefits provision? - determines what is paid by the primary and secondary insurers in the event of the claim
Which of the following statements is NOT true regarding a Critical Illness Plan? - coverage is limited to a single devastating disease CORRECT: pays a lump sum to the insured upon the diagnosis of a critical illness, the insurer may have a list of critical illnesses they will cover, also known as Specified Disease Plans
