Xcel solutions exam 2
Which type of long-term care benefit would be most appropriate for a stroke victim who
requires speech therapy administered at her home?
Respite care
Continuing Care
Home health care
Custodial Care - answer Home health care
Which type of policy combines the flexibility of a universal life policy with investment
choices?
Adjustable universal life policy
Flexible universal life policy
Variable universal life policy
Modified universal life policy - answer Variable universal life policy
The election of COBRA for continuation of health coverage will
increase the coverage and lower premium
maintain the same coverage and increase premium
increase out-of-pocket costs and lower premium
decrease out-of-pocket costs and maintain same premium - answermaintain the same
coverage and increase premium
Under Michigan Insurance Code, Chapter 45, financial loss can be defined as
loss if income
restrictive fees
punitive penalties
additional fines - answerloss of income
All of these are characteristics of a universal life insurance policy EXCEPT
Flexible death benefit
fixed surrender value
flexible premiums
builds cash value - answerfixed surrender value
The acceptance of a credit life application requires the submission of a certificate of
insurance to the insured within ____ days.
,10
20
30
40 - answer30
Small employers who are sponsored by an insurer to provide group benefits to its
employees are called
Fraternal Benefit society
Surplus line brokers
Lloyd of London
MEWA - answerMEWA
Coming from an insurance point of view, which of the following is the main risk
associated with disability?
loss of limbs
loss of income
decreased work skills
decreased mobility - answerloss of income
How are survivorship life insurance policies helpful in estate planning?
provide funds to help fund retirement
provide funds to help pay taxes
provide funds for funeral expenses
provide tax deductions for premium payments - answerprovide funds to help pay taxes
The act of using misrepresentation to induce an insured person to terminate an existing
policy and purchase a new policy is referred to as
twisting
subrogation
defamation
intimidation - answertwisting
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following
statements is true?
the policy may be paid up early by using accumulated cash values
the policy may be paid up early by using policy dividends
the policy's premium will increase after 20 years
the policy's cash value steadily decrease after 20 years - answerthe policy may be paid
up early by using policy dividends
What is Medicare Part B also known as?
, Medical Supplementary
Supplementary medical insurance
comprehensive insurance
medicaid - answersupplementary medical insurance
Which of these is NOT considered to be a nonforfeiture option in a whole life insurance
policy?
interest only
reduced paid-up insurance
extended term insurance
cash surrender - answerinterest only
Under a disability income policy, which provision would be payable if the cause of an
injury is unexpected and accidental?
presumptive disability provision
absolute accidental provision
accidental death benefit provision
accidental bodily injury provision - answeraccidental bodily injury provision
In Michigan, a person providing insurance advice to a person or business for a fee is
required to hold which license?
adjuster
producer
counselor
limited lines - answercounselor
What type of policy would only provide coverage for specific types of illnesses (cancer,
stroke, etc)?
MEWA
Blanket insurance
Dread disease insurance
Disability insurance - answerDread disease insurance
What guarantees that the statements supplied by an insurance applicant are true?
Assurance
Promise
Representation
Warranty - answerWarranty
The _______ reserves the right to renew a small employer health plan.
Which type of long-term care benefit would be most appropriate for a stroke victim who
requires speech therapy administered at her home?
Respite care
Continuing Care
Home health care
Custodial Care - answer Home health care
Which type of policy combines the flexibility of a universal life policy with investment
choices?
Adjustable universal life policy
Flexible universal life policy
Variable universal life policy
Modified universal life policy - answer Variable universal life policy
The election of COBRA for continuation of health coverage will
increase the coverage and lower premium
maintain the same coverage and increase premium
increase out-of-pocket costs and lower premium
decrease out-of-pocket costs and maintain same premium - answermaintain the same
coverage and increase premium
Under Michigan Insurance Code, Chapter 45, financial loss can be defined as
loss if income
restrictive fees
punitive penalties
additional fines - answerloss of income
All of these are characteristics of a universal life insurance policy EXCEPT
Flexible death benefit
fixed surrender value
flexible premiums
builds cash value - answerfixed surrender value
The acceptance of a credit life application requires the submission of a certificate of
insurance to the insured within ____ days.
,10
20
30
40 - answer30
Small employers who are sponsored by an insurer to provide group benefits to its
employees are called
Fraternal Benefit society
Surplus line brokers
Lloyd of London
MEWA - answerMEWA
Coming from an insurance point of view, which of the following is the main risk
associated with disability?
loss of limbs
loss of income
decreased work skills
decreased mobility - answerloss of income
How are survivorship life insurance policies helpful in estate planning?
provide funds to help fund retirement
provide funds to help pay taxes
provide funds for funeral expenses
provide tax deductions for premium payments - answerprovide funds to help pay taxes
The act of using misrepresentation to induce an insured person to terminate an existing
policy and purchase a new policy is referred to as
twisting
subrogation
defamation
intimidation - answertwisting
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following
statements is true?
the policy may be paid up early by using accumulated cash values
the policy may be paid up early by using policy dividends
the policy's premium will increase after 20 years
the policy's cash value steadily decrease after 20 years - answerthe policy may be paid
up early by using policy dividends
What is Medicare Part B also known as?
, Medical Supplementary
Supplementary medical insurance
comprehensive insurance
medicaid - answersupplementary medical insurance
Which of these is NOT considered to be a nonforfeiture option in a whole life insurance
policy?
interest only
reduced paid-up insurance
extended term insurance
cash surrender - answerinterest only
Under a disability income policy, which provision would be payable if the cause of an
injury is unexpected and accidental?
presumptive disability provision
absolute accidental provision
accidental death benefit provision
accidental bodily injury provision - answeraccidental bodily injury provision
In Michigan, a person providing insurance advice to a person or business for a fee is
required to hold which license?
adjuster
producer
counselor
limited lines - answercounselor
What type of policy would only provide coverage for specific types of illnesses (cancer,
stroke, etc)?
MEWA
Blanket insurance
Dread disease insurance
Disability insurance - answerDread disease insurance
What guarantees that the statements supplied by an insurance applicant are true?
Assurance
Promise
Representation
Warranty - answerWarranty
The _______ reserves the right to renew a small employer health plan.
