XCEL VA Final Exam Questions and Answers with Verified Solutions Graded A 2024

The free-look period for a new Medicare Supplement policy is - 30 days Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the - cost basis All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT - leave a conditional receipt with client which of these would likely be considered an Unfair Claims Settlement practice? - offering settlements that are less than the fair value to offset insurer expenses Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to refuse renewal of the policy for - specific reasons stated in the contract The automatic premium loan provision can be accurately described as a - provision that provides a policy loan to pay any premiums by the end of the grace period An insured files for an accident and health insurance policy claim eight days after the premium due date. The benefit payable is $500 and the overdue premium is $200. Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision, how much will the insurer pay? - $300 What effect can a long-term care benefit rider have on a life insurance policy - reduced death benefit Jerome is covered by a disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this? - nonoccupational coverage insurable Interest in one's own life is legally considered as - generally unlimited under what circumstance does an accident and health insurer have the right to request an autopsy - when not prohibited by state law The pre-existing conditions exclusion under a small employer medical plan - may be partially or fully satisfied by having creditable coverage with a previous employer major medical plans typically exclude coverage for which of the following benefits - custodial care An employee welfare plan exempt from ERISA regulations would be - church plans which of the following is not an intended use of an annuity - Create new funds upon the death of a wage-earner Which of these statements about traditional individual retirement accounts is accurate? - 10% penalty is applied to withdrawals prior to age 59 1/2 The reason for backdating a policy is - to obtain a premium rate based on an earlier age in a disability income contract, an insured is considered to be totally disabled under the presumptive disability provision if he/she - loses the ability to speak Dan has a major medical expense policy with a $200 deductible and an 80/20 coinsurance provision. He incurs covered medical expenses of $100 in November and $400 in January. Under the carryover provision, what will the insurer pay? - $240 a prepaid dental plan has an agreement in place with a network of dentists which - accepts an established amount as payment in full for the dental service rendered which of the following best describes the presumptive disability provision? - waives the typical total disability requirements if an existing medicare supplement policy is being replaced by a new policy, who is required to sign the notice of replacement - agent and applicant the insurance coverage in a variable life insurance policy may vary based on the value of - its underlying investments After an insurance application has been originated, the producer normally - is the major personal contact to the insured a policyowner has a life insurance policy where she had listed her age on the application as 5 years younger than her actual age. If she dies and the insurer discovers the misstatement of age, how much will the insurance company pay? - less than the face amount misrepresenting pertinent policy provisions relating to coverage after a loss - is an unfair claims settlement practice a disability insurance policy was recently issued with a rating. What does this mean? - policyowner will be charged an additional premium