Xcel Testing Solutions- Life and Health Insurance- Weighted Exam-
150 Questions
1. Which of the following exemptions is NOT available for calls from the Do Not Call Registry?
Answer: Insurance sales calls
2. What type of policy allows the insurer to cancel or terminate the policy at any tim...
Xcel Testing Solutions- Life and Health Insurance- Weighted Exam-
150 Questions
1. Which of the following exemptions is NOT available for calls from the Do Not Call Registry?
Answer: Insurance sales calls
2. What type of policy allows the insurer to cancel or terminate the policy at any time with written
notice and refund of advance premium?
Answer: Cancelable policy
3. What type of rider in a life insurance policy allows the insured to purchase additional insurance
without providing evidence of insurability?
Answer: Guaranteed insurability rider
4. Which type of disability income plan cannot be cancelled or have its premium rates changed under
any circumstances?
Answer: Noncancellable policy
5. Where can you find policy benefits in an insurance policy?
Answer: Declarations page
6. What happens if the insurer discovers an error in the age stated on an individual life insurance
application?
Answer: Benefits will be calculated according to how much coverage the premium paid would have
purchased for the correct age.
7. What type of peril is typically covered under health insurance?
Answer: Injury due to accident
8. What is a viatical settlement contract?
,Answer: An agreement between a life insurance policyowner and a viatical settlement provider
9. Under the Affordable Care Act, how does a grandfathered health plan lose its grandfathered status?
Answer: If the insurer significantly raises co-insurance charges, deductibles, or co-payment charges
10. Which investment technique eliminates the risk of losing money in the stock market by never
purchasing stocks?
Answer: Risk avoidance
11. Which nursing home option is best suited for an individual who needs some nursing care and
supervision but not full-time care?
Answer: Assisted living facility
12. What is the agreement between an insurance producer and insurer called in Louisiana law?
Answer: Appointment
13. Which of the following would NOT be considered a presumptive disability?
Answer: Loss of a leg or arm (loss of one arm or leg is NOT considered a presumptive disability)
14. How often must a producer's license be renewed in Louisiana?
Answer: Every 2 years
15. At what age does open enrollment for Medicare Supplements begin?
Answer: Age 65
16. When an individual continues working after age 65 and keeps their group health plan, which payer
comes first for coverage?
Answer: Group insurance plan (Medicare is secondary)
17. What type of whole life policy option is selected when extended term insurance is chosen?
, Answer: Nonforfeiture option
The Commissioner must examine the financial affairs of each admitted insurer operating in Louisiana at
least once every how many years? ✔️5
At the very least, an admitted company shall be examined once every 5 years by the Commissioner.
When a Medicare supplement policy is purchased during the open enrollment period ✔️the policy
must be issued regardless of health status
During open enrollment for Medicare supplements, policies will be issued regardless of health status.
Which of the following actions may an insurance company NOT do in a health policy that contains a
guaranteed renewable premium benefit? ✔️Increase the premiums on an individual basis
A guaranteed renewable policy CANNOT increase the premiums on an individual basis, only on the basis
of an entire classification.
A nonresident of Louisiana who has satisfied the licensing requirements for a line of insurance in the
licensee's state and who wishes to sell that line of insurance in Louisiana, must meet all of the following
requirements EXCEPT: ✔️Take the appropriate Louisiana licensing examination
A nonresident licensee from another state is not required to take a licensing examination if they are
already in good standing with their state of residence.
A life insurance policy that has premiums fully paid up within a stated time period is called ✔️limited
payment insurance
Limited payment insurance is characterized by premiums that are fully paid up within a stated period,
after which no further premiums are required.
The taxable portion of each annuity payment is calculated using which method? ✔️Exclusion Ratio
The Exclusion Ratio is used to determine the taxable portion of each annuity payment.
How are annuities given favorable tax treatment? ✔️Gains are taxed at distribution
Annuity gains are typically tax deferred until distribution.
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