Xcel Testing Solutions- Life and Health Insurance- Weighted Exam-
150 Questions
Key Insurance Concepts and Answers
1. Do Not Call Registry Exemptions:
- Exemption(s): Charities, political organizations, and surveys
- Not Exempt: Insurance sales calls
2. Cancelable Policy:
- A policy that allows the insurer to cancel with written notice and refund the premium.
3. Guaranteed Insurability Rider:
- Allows the insured to purchase additional insurance at specific times without evidence of insurability.
4. Noncancellable Policy:
- A policy that cannot be cancelled and whose premiums cannot be increased under any
circumstances.
5. Declarations:
- The section of an insurance policy where policy benefits are outlined.
6. Misstated Age on Application:
- If the insured's age is misstated, benefits are calculated based on what the correct age’s premium
would have purchased.
7. Health Insurance Coverage:
- Typically covers injuries due to accidents.
8. Viatical Settlement Contract:
, - An agreement between a life insurance policyowner and a viatical settlement provider.
9. Grandfathered Health Plans Under ACA:
- Lose status if insurers significantly raise co-insurance, deductibles, or co-payment charges.
10. Risk Avoidance:
- Eliminates the risk of losing money in the stock market by not purchasing stocks.
11. Nursing Home Options:
- Best for part-time care: Assisted living facilities.
12. Appointment in Louisiana Law:
- The agreement allowing an insurance producer to sell or negotiate policies for compensation.
13. Presumptive Disability:
- Loss of one arm or leg is not considered a presumptive disability.
14. Producer License Renewal in Louisiana:
- Must be renewed every two years.
Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home
options would best serve him? ✔️Assisted living
An assisted living facility would best suit an individual who needs some nursing care and supervision but
not full-time care.
The open enrollment period for Medicare Supplements begins at age ✔️65
Open enrollment for Medicare Supplements begins at the age the individual becomes eligible for
Medicare, which is typically age 65.
, Mark continues working after the age of 65 and is covered through his employer's group health plan.
Which of the following statements is TRUE? ✔️Medicare is the secondary payer
If an individual continues to work after the age of 65 and keeps the group plan, primary coverage comes
from the group insurance plan and Medicare is considered the secondary payer.
A whole life policy option where extended term insurance is selected is called a(n) ✔️nonforfeiture
option
A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to
the existing amount of life insurance is called the extended term 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.
150 Questions
Key Insurance Concepts and Answers
1. Do Not Call Registry Exemptions:
- Exemption(s): Charities, political organizations, and surveys
- Not Exempt: Insurance sales calls
2. Cancelable Policy:
- A policy that allows the insurer to cancel with written notice and refund the premium.
3. Guaranteed Insurability Rider:
- Allows the insured to purchase additional insurance at specific times without evidence of insurability.
4. Noncancellable Policy:
- A policy that cannot be cancelled and whose premiums cannot be increased under any
circumstances.
5. Declarations:
- The section of an insurance policy where policy benefits are outlined.
6. Misstated Age on Application:
- If the insured's age is misstated, benefits are calculated based on what the correct age’s premium
would have purchased.
7. Health Insurance Coverage:
- Typically covers injuries due to accidents.
8. Viatical Settlement Contract:
, - An agreement between a life insurance policyowner and a viatical settlement provider.
9. Grandfathered Health Plans Under ACA:
- Lose status if insurers significantly raise co-insurance, deductibles, or co-payment charges.
10. Risk Avoidance:
- Eliminates the risk of losing money in the stock market by not purchasing stocks.
11. Nursing Home Options:
- Best for part-time care: Assisted living facilities.
12. Appointment in Louisiana Law:
- The agreement allowing an insurance producer to sell or negotiate policies for compensation.
13. Presumptive Disability:
- Loss of one arm or leg is not considered a presumptive disability.
14. Producer License Renewal in Louisiana:
- Must be renewed every two years.
Bill requires some nursing care and supervision but NOT full-time care. Which of these nursing home
options would best serve him? ✔️Assisted living
An assisted living facility would best suit an individual who needs some nursing care and supervision but
not full-time care.
The open enrollment period for Medicare Supplements begins at age ✔️65
Open enrollment for Medicare Supplements begins at the age the individual becomes eligible for
Medicare, which is typically age 65.
, Mark continues working after the age of 65 and is covered through his employer's group health plan.
Which of the following statements is TRUE? ✔️Medicare is the secondary payer
If an individual continues to work after the age of 65 and keeps the group plan, primary coverage comes
from the group insurance plan and Medicare is considered the secondary payer.
A whole life policy option where extended term insurance is selected is called a(n) ✔️nonforfeiture
option
A nonforfeiture provision in a whole life policy that uses cash value to purchase term insurance equal to
the existing amount of life insurance is called the extended term 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.
