XCEL TESTING SOLUTIONS LIFE AND HEALTH INSURANCE WEIGHTED EXAM ACTUAL EXAM LATEST VERSION COMPLETE 300 WRITTEN QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A

XCEL TESTING SOLUTIONS LIFE AND HEALTH

INSURANCE WEIGHTED EXAM 2023-2024 ACTUAL

EXAM LATEST VERSION COMPLETE 300 WRITTEN

QUESTIONS AND CORRECT DETAILED 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- longterm care

Rationale: All long-term care policies must be guaranteed

renewable.

Which type of business insurance is meant to cover the costs of

continuing to do business while the owner is disabled? - ANSWERBusiness 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 longterm 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.

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 - ANSWERProhibits 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

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