Final Exam XCEL VA
1. The free-look period for a new Medicare Supplement policy is:
️ 30 days
2. 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...
1. The free-look period for a new Medicare Supplement policy is:
✔️ 30 days
2. 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
3. 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
4. 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
5. 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
6. 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
7. 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
8. What effect can a long-term care benefit rider have on a life insurance policy?
✔️ Reduced death benefit
, 9. 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
10. Insurable interest in one's own life is legally considered as:
✔️ Generally unlimited
11. Under what circumstance does an accident and health insurer have the right to request an autopsy?
✔️ When not prohibited by state law
12. 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
13. Major medical plans typically exclude coverage for which of the following benefits?
✔️ Custodial care
14. An employee welfare plan exempt from ERISA regulations would be:
✔️ Church plans
15. Which of the following is not an intended use of an annuity?
✔️ Create new funds upon the death of a wage-earner
16. Which of these statements about traditional individual retirement accounts is accurate?
✔️ 10% penalty is applied to withdrawals prior to age 59 1/2
17. The reason for backdating a policy is:
✔️ To obtain a premium rate based on an earlier age
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