Xcel solutions final exam questions
with verified answers
The percentage of an individuals primary insurance amount determines the benefits
paid in which of the following programs - ANSWER-Social Security Disability Income
Q is severely injured in an automobile accident and becomes totally disabled. How
many months must Q be disabled before being able to apply for Social Security
disability benefits? - ANSWER-5 months
After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms - ANSWER-File written proof of loss
Which of the following types of care is typically not covered in a long term care policy
- ANSWER-acupuncture
Which of these does not constitute policy delivery - ANSWER-Policy issued with a
rating
Which type of plan normally includes hospice benefits - ANSWER-Managed care
plans
Non-occupational disability coverage is designed for - ANSWER-Employees who
suffer non work related disabilities, since work related disabilities are covered by
workers compensation
A policy of adhesion can only be modified by whom - ANSWER-The insurance
company
G is an accountant who has ten employees and is concerned about how the
business would survive financially if G became disabled. The type of policy which
best addresses this concern is: - ANSWER-Business overhead expense
An architecture firm would stand to lose a lot of money in the event of the death of its
project manager. Which type of policy should the firm purchase - ANSWER-Key
person life policy
A new general property and casualty licensee must complete at LEAST ____ hours
of continuing education within 24 months of initial licensure - ANSWER-24
Which of the following groups may not be insured by a group life insurance policy -
ANSWER-Individuals who are related by blood
In Texas, which of these statements regarding the suicide clause is true - ANSWER-
An insurer may not use suicide as a defense against payment after the second year
, Why is an applicants signature required on a life insurance application - ANSWER-
To attest that the statements on the application are accurate to the best of the
applicant's knowledge
The phrase "transacting business" includes - ANSWER-Collecting premiums
Which of these arrangements allows one to bypass insurance interest laws? -
ANSWER-Investor-Originated Life Insurance
With whom may an agent legally share commissions? - ANSWER-Another agent
with the same Line of insurance
An agent takes an individual disability income application, collects the premium, and
issues the prospective insured conditional receipt. The next step the insurance
company will take is to: - ANSWER-Determine if the applicant is an acceptable risk
by completing standard underwriting procedures
A $20,000 life insurance application is completed, however the producer does not
collect the initial premium. At what point does the coverage go into effect -
ANSWER-When the applicant receives the policy and pays the initial premium
B owns a Whole Life policy with a guaranteed insurability option that allows him to
purchase, without evidence of insurability, stated amounts of - ANSWER-additional
Whole Life coverage at specified times
Which of these provisions is not required in life insurance policies - ANSWER-
Extended term
Which type of renewability best describes a disability income policy that covers an
individual until the age of 65, but the insurer has the right to change the premium
rate for the overall risk class? - ANSWER-Guaranteed renewable
K is the insured an P is the sole beneficiary on a life insurance policy. both are
involved in a fatal accident where K dies before P. Under the common disaster
provision, which of these statements is true - ANSWER-Proceeds will be payable to
K's estate if P dies within a specified time
Which of the following is an important underwriting principle of group life insurance -
ANSWER-Everyone must be covered in the group
Which of the following actions does the commissioner of insurance not have the
power to conduct - ANSWER-activate insurance companies' financial reserves
Which of the following are equity indexed annuities typically invested in - ANSWER-
S&P 500
A temporary agent's license issued by the commissioner of insurance is valid for up
to ___ days - ANSWER-90
with verified answers
The percentage of an individuals primary insurance amount determines the benefits
paid in which of the following programs - ANSWER-Social Security Disability Income
Q is severely injured in an automobile accident and becomes totally disabled. How
many months must Q be disabled before being able to apply for Social Security
disability benefits? - ANSWER-5 months
After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms - ANSWER-File written proof of loss
Which of the following types of care is typically not covered in a long term care policy
- ANSWER-acupuncture
Which of these does not constitute policy delivery - ANSWER-Policy issued with a
rating
Which type of plan normally includes hospice benefits - ANSWER-Managed care
plans
Non-occupational disability coverage is designed for - ANSWER-Employees who
suffer non work related disabilities, since work related disabilities are covered by
workers compensation
A policy of adhesion can only be modified by whom - ANSWER-The insurance
company
G is an accountant who has ten employees and is concerned about how the
business would survive financially if G became disabled. The type of policy which
best addresses this concern is: - ANSWER-Business overhead expense
An architecture firm would stand to lose a lot of money in the event of the death of its
project manager. Which type of policy should the firm purchase - ANSWER-Key
person life policy
A new general property and casualty licensee must complete at LEAST ____ hours
of continuing education within 24 months of initial licensure - ANSWER-24
Which of the following groups may not be insured by a group life insurance policy -
ANSWER-Individuals who are related by blood
In Texas, which of these statements regarding the suicide clause is true - ANSWER-
An insurer may not use suicide as a defense against payment after the second year
, Why is an applicants signature required on a life insurance application - ANSWER-
To attest that the statements on the application are accurate to the best of the
applicant's knowledge
The phrase "transacting business" includes - ANSWER-Collecting premiums
Which of these arrangements allows one to bypass insurance interest laws? -
ANSWER-Investor-Originated Life Insurance
With whom may an agent legally share commissions? - ANSWER-Another agent
with the same Line of insurance
An agent takes an individual disability income application, collects the premium, and
issues the prospective insured conditional receipt. The next step the insurance
company will take is to: - ANSWER-Determine if the applicant is an acceptable risk
by completing standard underwriting procedures
A $20,000 life insurance application is completed, however the producer does not
collect the initial premium. At what point does the coverage go into effect -
ANSWER-When the applicant receives the policy and pays the initial premium
B owns a Whole Life policy with a guaranteed insurability option that allows him to
purchase, without evidence of insurability, stated amounts of - ANSWER-additional
Whole Life coverage at specified times
Which of these provisions is not required in life insurance policies - ANSWER-
Extended term
Which type of renewability best describes a disability income policy that covers an
individual until the age of 65, but the insurer has the right to change the premium
rate for the overall risk class? - ANSWER-Guaranteed renewable
K is the insured an P is the sole beneficiary on a life insurance policy. both are
involved in a fatal accident where K dies before P. Under the common disaster
provision, which of these statements is true - ANSWER-Proceeds will be payable to
K's estate if P dies within a specified time
Which of the following is an important underwriting principle of group life insurance -
ANSWER-Everyone must be covered in the group
Which of the following actions does the commissioner of insurance not have the
power to conduct - ANSWER-activate insurance companies' financial reserves
Which of the following are equity indexed annuities typically invested in - ANSWER-
S&P 500
A temporary agent's license issued by the commissioner of insurance is valid for up
to ___ days - ANSWER-90
