XCEL LIFE INSURANCE FINAL EXAM 2024-2025 XCEL OLUTIONS LIFE
INSURANCE EXAM 250 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
Typically, Long-Term Disability benefits are coordinated with which benefit plan? - CORRECT
ANSWER✔✔Social Security
The focus of major medical insurance is providing coverage for - CORRECT ANSWER✔✔
medical and hospitalization expenses
An insured under a Major Medical expense plan with a zero deductible and 80/20
coinsurance provision files a $1,000 claim. How much of this claim is the insured responsible
for? - CORRECT ANSWER✔✔$200
because this policy has a zero deductible, the insures is only responsible for the 20%
coinsurance on this claim, or $200
An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured incurs
$25,000 of covered losses. How much will the insured pay? - CORRECT ANSWER✔✔
$5,000
Which type of plan would be the most appropriate for an individual on Medicare and
concerned that Medicare will NOT pay for charges exceeding the approved amount? -
CORRECT ANSWER✔✔Medicare supplement Plan F
When can a group health policy renewal be denied according to the Health Insurance
Portability and Accountability Act (HIPAA)? - CORRECT ANSWER✔✔when contribution or
participation rules have been violated
,What does the word "level: in Level Term describe? - CORRECT ANSWER✔✔the face
amount
A non-contributory health insurance plan helps the insurer avoid - CORRECT ANSWER✔✔
adverse selection
because all eligible employees are usually covered, non-contributory plans are desirable
from an underwriting standpoint because adverse selection is minimized.
To qualify for a resident producer license in the state of Michigan, an individual - CORRECT
ANSWER✔✔must complete the required pre-licensing education within 12 months of
license application
Under an expense-incurred individual health policy, what is the MAXIMUM length of time after
issuance of the policy that an insurer can exclude coverage for a pre-existing condition? -
CORRECT ANSWER✔✔12 months
pre-existing conditions may be excluded for a maximum of 12 months from the date of
enrollment.
An insured has a health plan that pays established amounts in accordance with a list of
injuries, surgical procedures, or other losses. This list is called a - CORRECT ANSWER✔✔
benefit schedule
benefits schedule set predetermined limits or maximums on how much money and insured
can be reimbursed for a covered loss.
Who is the individual paid on a fee-for-service basis? - CORRECT ANSWER✔✔Provider
Which of the following is NOT an illegal inducement? - CORRECT ANSWER✔✔Giving the
insured an article of merchandise printed with the producer's name costing $5
$5 or less of tokens or merchandise to applicants is allowed.
,Making a statement that is false or maliciously critical of the financial condition of an
insurer is known as - CORRECT ANSWER✔✔defamation
Which of the following is NOT a required provision in an accident and health insurance
policy? - CORRECT ANSWER✔✔change of occupation
the change of occupation provision is considered an OPTIONAL provision
Which of these statements about Medicaid is CORRECT? - CORRECT ANSWER✔✔Funded by
federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered by each state.
All of these are considered key factors in underwriting life insurance EXCEPT - CORRECT
ANSWER✔✔Marital Status
Correct: tobacco use, health history, age
The time limit for filing claim disputes is addressed in which provision of an accident and
health policy? - CORRECT ANSWER✔✔legal actions
All of the following plans allow for employee contributions to be taken on a pre-tax basis
EXCEPT - CORRECT ANSWER✔✔Health reimbursement Arrangement plan
employers contribute to health reimbursement Arrangement planz (HRA's), not employees.
Which of the following gifts from a producer would NOT be considered rebating? - CORRECT
ANSWER✔✔$5 pen
A producer quoting life insurance may give an applicant an article of merchandise having an
invoice value of $5.00 or less.
, Written notice for a health claim must be given to the insurer ___ days after the occurrence
of the loss. - CORRECT ANSWER✔✔20
Chris is an insured bricklayer who severed his left hand in an automobile accident. Although
his primary duty cannot be performed, Chris is also a substitute high school teacher. He
collects a full disability income check every month. How does his policy define total
disability? - CORRECT ANSWER✔✔own occupation
the "own occupation" definition of total disability requires that the insured be unable to
perform the insured's current occupation as a result of an accident or sickness.
Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependents? - CORRECT ANSWER✔✔Human life value
approach
The human life value approach predicts an individual's future earning potential and
determines how much of that amount would be devoted to dependents.
Index whole life insurance contains a securities component that acts as a(n) - CORRECT
ANSWER✔✔hedge against inflation
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of
these benefit options would he choose? - CORRECT ANSWER✔✔Guaranteed lifetime
withdrawal benefit
The guaranteed lifetime withdrawal benefit normally requires a fee, but it ensures that the
income benefit will be paid for life without actually annuitizing the contract.
Which of these factors would an insurer consider when determining whether to accept a
group life plan? - CORRECT ANSWER✔✔average age
and insurer would consider the average age when determining whether to accept a group
Life Plan.
INSURANCE EXAM 250 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
Typically, Long-Term Disability benefits are coordinated with which benefit plan? - CORRECT
ANSWER✔✔Social Security
The focus of major medical insurance is providing coverage for - CORRECT ANSWER✔✔
medical and hospitalization expenses
An insured under a Major Medical expense plan with a zero deductible and 80/20
coinsurance provision files a $1,000 claim. How much of this claim is the insured responsible
for? - CORRECT ANSWER✔✔$200
because this policy has a zero deductible, the insures is only responsible for the 20%
coinsurance on this claim, or $200
An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured incurs
$25,000 of covered losses. How much will the insured pay? - CORRECT ANSWER✔✔
$5,000
Which type of plan would be the most appropriate for an individual on Medicare and
concerned that Medicare will NOT pay for charges exceeding the approved amount? -
CORRECT ANSWER✔✔Medicare supplement Plan F
When can a group health policy renewal be denied according to the Health Insurance
Portability and Accountability Act (HIPAA)? - CORRECT ANSWER✔✔when contribution or
participation rules have been violated
,What does the word "level: in Level Term describe? - CORRECT ANSWER✔✔the face
amount
A non-contributory health insurance plan helps the insurer avoid - CORRECT ANSWER✔✔
adverse selection
because all eligible employees are usually covered, non-contributory plans are desirable
from an underwriting standpoint because adverse selection is minimized.
To qualify for a resident producer license in the state of Michigan, an individual - CORRECT
ANSWER✔✔must complete the required pre-licensing education within 12 months of
license application
Under an expense-incurred individual health policy, what is the MAXIMUM length of time after
issuance of the policy that an insurer can exclude coverage for a pre-existing condition? -
CORRECT ANSWER✔✔12 months
pre-existing conditions may be excluded for a maximum of 12 months from the date of
enrollment.
An insured has a health plan that pays established amounts in accordance with a list of
injuries, surgical procedures, or other losses. This list is called a - CORRECT ANSWER✔✔
benefit schedule
benefits schedule set predetermined limits or maximums on how much money and insured
can be reimbursed for a covered loss.
Who is the individual paid on a fee-for-service basis? - CORRECT ANSWER✔✔Provider
Which of the following is NOT an illegal inducement? - CORRECT ANSWER✔✔Giving the
insured an article of merchandise printed with the producer's name costing $5
$5 or less of tokens or merchandise to applicants is allowed.
,Making a statement that is false or maliciously critical of the financial condition of an
insurer is known as - CORRECT ANSWER✔✔defamation
Which of the following is NOT a required provision in an accident and health insurance
policy? - CORRECT ANSWER✔✔change of occupation
the change of occupation provision is considered an OPTIONAL provision
Which of these statements about Medicaid is CORRECT? - CORRECT ANSWER✔✔Funded by
federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered by each state.
All of these are considered key factors in underwriting life insurance EXCEPT - CORRECT
ANSWER✔✔Marital Status
Correct: tobacco use, health history, age
The time limit for filing claim disputes is addressed in which provision of an accident and
health policy? - CORRECT ANSWER✔✔legal actions
All of the following plans allow for employee contributions to be taken on a pre-tax basis
EXCEPT - CORRECT ANSWER✔✔Health reimbursement Arrangement plan
employers contribute to health reimbursement Arrangement planz (HRA's), not employees.
Which of the following gifts from a producer would NOT be considered rebating? - CORRECT
ANSWER✔✔$5 pen
A producer quoting life insurance may give an applicant an article of merchandise having an
invoice value of $5.00 or less.
, Written notice for a health claim must be given to the insurer ___ days after the occurrence
of the loss. - CORRECT ANSWER✔✔20
Chris is an insured bricklayer who severed his left hand in an automobile accident. Although
his primary duty cannot be performed, Chris is also a substitute high school teacher. He
collects a full disability income check every month. How does his policy define total
disability? - CORRECT ANSWER✔✔own occupation
the "own occupation" definition of total disability requires that the insured be unable to
perform the insured's current occupation as a result of an accident or sickness.
Which approach predicts a person's earning potential and determines how much of that
amount would be devoted to dependents? - CORRECT ANSWER✔✔Human life value
approach
The human life value approach predicts an individual's future earning potential and
determines how much of that amount would be devoted to dependents.
Index whole life insurance contains a securities component that acts as a(n) - CORRECT
ANSWER✔✔hedge against inflation
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of
these benefit options would he choose? - CORRECT ANSWER✔✔Guaranteed lifetime
withdrawal benefit
The guaranteed lifetime withdrawal benefit normally requires a fee, but it ensures that the
income benefit will be paid for life without actually annuitizing the contract.
Which of these factors would an insurer consider when determining whether to accept a
group life plan? - CORRECT ANSWER✔✔average age
and insurer would consider the average age when determining whether to accept a group
Life Plan.
