2024 XCEL TESTING SOLUTIONS-
LIFE AND HEALTH INSURANCE-
WEIGHTED EXAM- 150 QUESTIONS
WITH VALID ANSWERS
Which of the following is NOT part of an insurance contract? - CORRECT
ANSWERS-Certificate of Authority
The Certificate of Authority allows an insurer to conduct business in a state.
It is not part of an insurance contract.
Which of the following is considered to be controlled business? - CORRECT
ANSWERS-Selling most of the insurance policies to family members
Selling most of the insurance policies to family members would be
considered controlled business.
A life insurance policy becomes incontestable after it has been in force for -
CORRECT ANSWERS-2 years
The contestable period in Louisiana for life insurance policies is 2 years.
An annuitant is guaranteed to NOT outlive their benefits with a(n) - CORRECT
ANSWERS-Guaranteed lifetime withdrawal benefit
A guaranteed lifetime withdrawal benefit (GLWB) is a rider on a variable
annuity that allows minimum withdrawals from the invested amount without
having to annuitize the investment. This rider guarantees that a certain
percentage (often based on age) of the amount invested can be withdrawn
each year for as long as the contract holder lives.
What is an insurer required to do when faced with an error made under the
Misstatement of Age provision? - CORRECT ANSWERS-Pay age-corrected
benefits
Under the Misstatement of Age Provision, when done in error, an insurer
must pay age-corrected benefits.
Kurt is an active duty serviceman who was recently killed in an accident
while home on leave. Which military service exclusion clause would pay upon
his death? - CORRECT ANSWERS-Results
The "results clause" states the insurer is excused from paying the amount
only if the death is a result of war.
,An insurer operating in the U.S. but headquartered outside the U.S. is -
CORRECT ANSWERS-an alien insurer
An insurance company headquartered in another country is considered an
alien insurer in the United States.
If an employee contributes 50% toward the disability plan premium provided
by an employer, what would be considered the taxable income of a $1,000
monthly disability benefit? - CORRECT ANSWERS-$500
In this situation, the taxable monthly income is $500 because half of the
premium was paid for by the employer.
Which statement is true regarding Louisiana's continuing education
requirements for licensed producers? - CORRECT ANSWERS-A producer must
meet specified course requirements within a two-year period
Producers must complete 24 hours of continuing education per line of
authority every two years in order to renew their licenses.
Each policy of life insurance shall contain a provision that a grace period
shall be allowed within which the payment of any premium after the first
may be made. The standard grace period shall be - CORRECT ANSWERS-30
days
The required grace period for life insurance policies in Louisiana is 30 days.
Which situation accurately describes a reduced paid-up nonforfeiture option?
- CORRECT ANSWERS-Policy has a decreased face amount
With a reduced paid-up nonforfeiture option, the policy will have a
decreased face amount.
Which of these is NOT considered to be a risk factor in life insurance
underwriting? - CORRECT ANSWERS-Number of children
All of these are considered risk factors in life underwriting criteria EXCEPT
number of children.
The double indemnity provision in a life insurance policy pertains to an
insured's death caused by a(n) - CORRECT ANSWERS-accident
A life insurance policy's double indemnity provision would apply when the
policyowner's death occurs due to an accident.
All of the following are considered to be fraud EXCEPT - CORRECT ANSWERS-
collecting a charge for insurance that is less than the charge applicable to
that insurance
All of these are considered fraudulent acts EXCEPT collecting a charge for
insurance that is less than the charge applicable to that insurance.
The Do Not Call Registry offers exemptions for calls placed from all of the
following EXCEPT - CORRECT ANSWERS-insurance sales calls
, Charities, political organizations, and surveys are all offered exemptions from
The Do Not Call Registry
The type of policy where the insurer can send a notice to the insured that the
policy has been cancelled in the middle of the term is called - CORRECT
ANSWERS-cancelable
The renewability provision in a cancelable policy allows the insurer to cancel
or terminate the policy at any time, simply by providing written notification
to the insured and refunding any advance premium that has been paid.
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) - CORRECT ANSWERS-Guaranteed insurability rider
A guaranteed insurability rider allows for the insured to purchase additional
insurance at specific dates or events without evidence of insurability.
Disability Income plans which require that the insurer can NEVER change or
alter premium rates are usually considered - CORRECT ANSWERS-
Noncancellable
A noncancellable policy cannot be cancelled nor can its premium rates be
increased under any circumstances.
In what part of an insurance policy are policy benefits found? - CORRECT
ANSWERS-Declarations
Essentially, the insurance declaration page is like a quick guide to the
insurance policy, providing all of the basic information the policyholder needs
to know.
What happens if the insurer discovers that the insured's age was accidentally
misstated on an application for an individual life insurance policy? - CORRECT
ANSWERS-Benefits will be calculated according to how much coverage the
premium paid would have purchased for the correct age
Benefits will be calculated according to how much coverage the premium
paid would have purchased for the correct age.
Health insurance will typically cover which of the following perils? - CORRECT
ANSWERS-Injury due to accident
Accidental injury is typically a covered peril in health insurance.
A viatical settlement contract is an agreement between - CORRECT
ANSWERS-A life insurance policyowner and a viatical settlement provider
A viatical settlement contract is an agreement between a life insurance
policyowner and a viatical settlement provider.
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