Exam (elaborations)
Xcel State Exam Simulator (1)
Xcel State Exam Simulator (1)
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Xcel State Exam SimulatorWhich of the following acts is NOT a Federal offense committed by an insurance agent?
A) Falsify records
B) Insurance fraud
C) Misrepresentation on an insurance application
D) Embezzlement - ANS-C) Misrepresentation on an insurance application
Christine has a health insurance policy that has been in force beyond the incontestable period.
The insurer has discovered that a fraudulent statement was made on the application. What
would the insurer have to pay on a claim, assuming this wasn't a guaranteed renewable policy?
A) 100% of the claim's amount
B) Nothing
C) 50% of the claim's amount
D) 75% of the claim's amount - ANS-B) Nothing
What type of license is required for an individual who charges a fee to review an insured's
existing life insurance policy?
A) Life agent
B) Life and disability analyst
C) Life and disability counselor
D) Adjuster - ANS-B) Life and disability analyst
Medicare Part A does not pay for medical benefits provided for treatment in a skilled nursing
facility beyond
A) 100 days
B) 120 days
C) 30 days
D) 60 days - ANS-A) 100 days
When an applicant applies for insurance, the process by which the insurer determines whether
to issue a policy is called
A) regulation
B) issuance
C) adverse selection
D) underwriting - ANS-D) underwriting
,According to the PPACA, the medical enrollment tier that has 80% actuarial value is called
A) bronze
B) platinum
C) gold
D) silver - ANS-C) gold
People with low income can be provided with medical assistance through which program?
A)HSA
B) Medicare
C) Medi-Cal
D) Social Security - ANS-C) Medi-Cal
What is a corridor in relation to a Universal Life insurance
policy?
A) The gap between when a claim is filed and when the death benefit is received
B) The gap between the total death benefit and the policy's cash value
C) The amount of interest that has accumulated in the policy's
cash value
D) The point in time when the policy's cash value reaches $0 - ANS-B) The gap between the
total death benefit and the policy's cash value
Which of the following statements is TRUE about Medicaid?
A) Coverage includes compulsory hospital and voluntary supplementary medical insurance
B) It is funded by federal, state, and local taxes
C) It is administered by the Federal government
D) It is health insurance for the elderly - ANS-B) It is funded by federal, state, and local taxes
What type of changes can be made to a guaranteed renewable health insurance policy?
A) The incontestability period
B) The policy's provisions
C) The premium rates of the policyowner
D) The grace period - ANS-C) The premium rates of the policyowner
Which of the following statements about aleatory contracts is NOT true?
A) The insured and the insurer have the potential for unequal contributions
B) Insurance contracts are considered aleatory
C) Aleatory contracts are conditioned upon the occurrence of an event
, D) The insured and the insurer contribute equally to the contract - ANS-D) The insured and the
insurer contribute equally to the contract
This statement is NOT true. An aleatory contract
has the potential for the unequal exchange of value or consideration for both parties. For
example, an individual who is covered under a disability insurance policy will collect benefits
upon disability. However, if no disability occurs, benefits are not paid.
All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals
EXCEPT
A) First time home purchase
B) Stock purchase
C) Qualified college expenses
D) Death of the participant - ANS-B) Stock purchase
What is a common reason people purchase an annuity?
A) To create an immediate estate
B) To pay off a debt in the event of death
C) To minimize their tax burden
D) To protect against the risk of outliving their financial resources - ANS-D) To protect against
the risk of outliving their financial resources
Cindy buys a 10-year certain annuity with an installment refund. After receiving monthly
payments for 5 years, Cindy dies. How many remaining payments will the insurer make to her
beneficiary?
A) No payments
B) 30 payments
C) 60 payments
D) 120 payments - ANS-C) 60 payments
Which annuity payout option allows the policyowner to choose a pre-determined number of
benefit payments?
A) Period certain
B) Straight life
C) Installment refund
C) Amount certain - ANS-A) Period certain
Which of the following is NOT a feature of equity-indexed annuities?
A) Offers long term inflation protection
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