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Xcel Nevada Final Exam Questions and answers | Latest 2024/25 RATED A+
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Xcel Nevada Final Exam Questions and answers | Latest 2024/25 RATED A+
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Xcel Nevada Final Exam Questions andanswers | Latest 2024/25 RATED A+
Which of the following is NOT an example of a producer's breach of contract under
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fiduciary duty?
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Misappropriation of premiums ii ii
commingling premiums ii
improper withholding of premiums ii ii ii
allowing premiums to be submitted electronically - allowing premiums to be submitted
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electronically
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Nevada Requires that coverage for newborns begins "from the moment of birth" and a
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premium must be paid within:
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31 days ii
90 days ii
6 months
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12 months - 31 days
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A foreign insurance company doing business in Nevada:
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Is not subject to Florida insurance laws
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is a company that was formed under the laws of another state
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Is a company that was formed under the laws of another country
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is only authorized to write business outside the United States - Is a company that was
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formed under the laws of another state
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All of the following statements about Major Medical benefits are true, EXCEPT:
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The deductible can be expressed as a fixed dollar amount
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The benefit period begins only after a specified amount of expenses have accrued
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Benefits are generally expressed as a percentage of eligible expenses
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Benefits have no maximum limit - Benefits have no maximum limit
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M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery
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on M. What determines the claim M is eligible for?
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Claim payment is equal to physician's actual charges
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Claim payment is negotiated between physician and patient
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Determined by the schedule of benefits from the hospital ii ii ii ii ii ii ii ii
Determined by the terms of the policy - Determined by the terms of the policy ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
P received Disability income benefits for 3 months then returns to work. She is able to work
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one month before her condition returns, leaving her disabled once again. What would the
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insurance company most likely regard this second period of disability as?
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A presumptive disability
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An occupational disability
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A residual disability
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,A recurrent disability - A recurrent disability
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Which of these arrangements allows one to bypass insurable interest laws?
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Concealment
Indemnity contract ii
Contract of adhesion ii ii
Investor-Originated Life Insurance - Investor-Originated Life Insurance ii ii ii ii ii ii ii
Sometimes called IOLI, stranger-originated life insurance ii ii ii ii ii
What determines the full amount of Social Security retirement benefits a qualified
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individual is entitled to receive?
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Primary Insurance Amount (PIA) ii ii ii
Total taxes paid paid into FICA
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Number of dependents ii ii
State of residence - Primary Insurance Amount (PIA)
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Which statement regarding the Misstatement of Age provision is considered to be true?
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Coverage will be adjusted to reflect the insured's true age if a misstatement of age is
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discovered
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Requires that a new policy must be applied for if a misstatement of age is found on the
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current policy
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Misstatement of Age provision is valid only during the contestable period ii ii ii ii ii ii ii ii ii ii
Insurer may void the policy if a misstatement of age is discovered - Coverage will be
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adjusted to reflect the insured's true age if a misstatement of age is discovered
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A written agreement to provide a Life insurance Policy holder immediate cash in exchange
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for the sale and transfer of a Life Insurance Policy is a:
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Variable Life Policy ii ii
Viatical Settlement ii
Equity Index Annuity ii ii
Health Care Savings Account - Viatical Settlement
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A potential client, age 40, would like to purchase a Whole Life policy that will accumulate
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cash value at a faster rate in the early years of the policy. Which of these statements made
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by the producer would be correct?
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Straight life accumulates faster than Limited-Pay Life
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20-Pay Life accumulates cash value faster than Straight Life
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Cash value accumulation of both 20-pay Life and Straight Life depend on the surer's
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financial rating
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20-Pay Life and Straight Life accumulate cash value at the same rate - 20-pay Life
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accumulates cash value faster than Straight Life
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Which health policy clause specifies the amount of benefits to be paid?
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Insuring
Consideration
Free-look
,Payment Mode - Insuring ii ii ii ii
Within how many days after policy delivery can a Medicare Supplement policy be returned
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for a 100% premium refund?
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15
20
25
30 - 30 ii ii ii
All of these Settlement options involve the systematic liquidation of the death proceeds in
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the event of the insured's death, EXCEPT:
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Fixed Period ii
Interest Only ii
Fixed Amount ii
Life Income - Interest Only ii ii ii ii ii
Nevada insurance law specifically allows the Commissioner to issue a temporary license
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to which of the following individuals?
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A nonresident producer who has relocated to Tennessee
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A resident producer whose license has lapsed
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A new appointed officer of an insurance agent who is actively completing relicensing
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requirements
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A surviving spouse of a deceased producer - A surviving spouse of a deceased producer
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Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
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contributory group Term Life plan to all its eligible employees?
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Portion of the premiums paid for by the employer may be a tax deduction
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Portion of the premiums paid for by the employee may be a tax deduction
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Portion of the death proceeds are taxable to the beneficiary ii ii ii ii ii ii ii ii ii
Portion of the death proceeds are taxable to the estate - Portion of the premiums paid for
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by the employer may be a tax deduction
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L takes out a life insurance policy and dies 10 years later. During the claim process, the
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insurer discovers that L had understated her age on the application. Under the
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Misstatement of Age provision, the insurer will
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pay the death benefit in full ii ii ii ii ii
adjust the death benefit to an increased amount ii ii ii ii ii ii ii
adjust the death benefit to a reduced amount ii ii ii ii ii ii ii
deny the claim - adjust the death benefit to a reduced amount
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N has a Major Medical policy that only pays a portion of N's medical expenses. N is
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responsible for paying the remaining balance. This provision is known as
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Assignment of Benefits ii ii
Coinsurance
Indemnity
Co-deductible - Coinsurance ii ii ii
, T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially
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disabled, what can he likely expect?
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$5,000 per month benefit ii ii ii
$10,000 per month benefit if the cause was accidental ii ii ii ii ii ii ii ii
More than $5,000 per month benefit if cause was work-related
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Less than $5,000 per month benefit regardless of the cause - Less than $5,000 per month
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benefit regardless of the cause
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What type of policy would only provide coverage for specific types of illnesses (cancer,
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stroke, etc)?
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MEWA
Blanket insurance ii
Dread disease insurance ii ii
Disability Insurance - Dread disease insurance ii ii ii ii ii ii
M completes an application for life insurance but does not pay the initial premium. All of
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these actions must occur before M's policy goes into effect, EXCEPT:
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policy is delivered ii ii
free-look period has expired ii ii ii
insurance company issues policy ii ii ii
initial premium is collected - free-look period has expired
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To be eligible for Social Security disability benefits, an employee must be unable to
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perform:
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any occupation ii
his/her current occupation ii ii
any occupation that reflects the employee's education level
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any occupation that the employee is qualified and willing to do - any occupation
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Which of the following Dividend options results in taxable income to the policy owner?
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Paid-up Additions ii
Cash
Accumulation at Interest ii ii
Reduced Premium - Accumulation at Interest ii ii ii ii ii ii
Which type of contract liquidates an estate through recurrent payments?
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Universal life insurance ii ii
Whole life insurance ii ii
Annuity
401(k) - Annuity ii ii ii
All of the following are considered to be typical characteristics describing the nature of an
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insurance contract, EXCEPT:
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Bilateral
Unilateral
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