XCEL TESTING SOLUTIONS LIFE AND HEALTH
INSURANCE WEIGHTED EXAM 2023-2024 ACTUAL
EXAM LATEST VERSION COMPLETE 300 WRITTEN
QUESTIONS AND CORRECT DETAI LED ANSWERS
|ALREADY GRADED A
A life insurance policy that has premiums fully paid up within a stated time period is called - ANSWER- limited payment insurance
Rationale: 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? - ANSWER- Exclusion Ratio
Rationale: The Exclusion Ratio is used to determine the taxable portion
of each annuity payment.
How are annuities given favorable tax treatment? - ANSWER- Gains are taxed at distribution
Rationale: Annuity gains are typically tax deferred until distribution.
All _____ policies must be guaranteed renewable. - ANSWER- long- term care
Rationale: All long-term care policies must be guaranteed
renewable. 1 / 4
Which type of business insurance is meant to cover the costs of continuing to do business while the owner is disabled? - ANSWER- Business overhead expense policy
Rationale: A form of business disability insurance that is designed to
cover the actual costs of continuing to do business while an insured business owner is disabled is called a business overhead expense policy.
Which of these is NOT a characteristic of the Accelerated Death Benefit option? - ANSWER- The benefit can be offered as a rider at a specific extra cost or may be at no cost
Rationale: Accelerated Death Benefit options are offered with NO
increase in premium.
What is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date of an individual long- term care policy? - ANSWER- Pre-existing condition
Rationale: In an individual long-term care policy, a pre-existing
condition is a condition for which medical advice or treatment was recommended by or received from a provider of health care service within six months preceding the effective date.
A producer who is licensed in Louisiana but resident in another state is called a - ANSWER- nonresident producer
Rationale: A producer licensed in Louisiana but a resident in
another state is called a nonresident producer. 2 / 4
The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage. - ANSWER- 1
Rationale: Long-term care insurance in any insurance policy is
designed to provide coverage for a minimum benefit period of 1 year.
To receive an insurance license an applicant must - ANSWER- Apply for the license after passing the appropriate examination
Rationale: An applicant must apply for the license after passing the
appropriate examination in order to receive an insurance license.
A cease and desist order issued against a producer - ANSWER- Prohibits a specific practice listed in the order
Rationale: A cease and desist order issued against a producer
prohibits a specific practice listed in the order.
How are survivorship life insurance policies helpful in estate planning? - ANSWER- Provide funds to help pay taxes
Rationale: Survivorship life insurance policies are useful in estate
planning because they can provide money to pay taxes on assets.
When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)? - ANSWER- When contribution or participation rules have been violated 3 / 4
Rationale: According to HIPAA, a group health policy renewal can
be denied when participation or contribution rules have been violated.
Credit Accident and Health plans are designed to - ANSWER- help pay off existing loans during periods of disability
Rationale: Credit Accident and Health plans are designed to help
pay off existing loans during periods of disability.
What amount will be paid under a policy where the insured misstated his/her age? - ANSWER- An amount the premium would have purchased at the correct age
Rationale: The misstatement of age provision allows the insurer to
adjust the benefit payable if the age of the insured was misstated when application for the policy was made.
Of the following dividend options, which of these is taxable? - ANSWER- Accumulation at interest
Rationale: The accumulation at interest is a taxable dividend option.
A health insurance policy will typically cover - ANSWER- preventative health services
Rationale: Preventative health services are normally covered under
a health insurance policy.
A guaranteed issue insurance policy has no - ANSWER- medical underwriting
- / 4