FLORIDA HEALTH AND LIFE INSURANCE EXAM Xcel Life Insurance 2024/2025 Exam Entry, Exams of Insurance law

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FLORIDA HEALTH AND LIFE

INSURANCE EXAM Xcel Life Insurance

2024/2025 Exam Entry

1. What does "SHOP" stand in SHOP Exchange? - Correct Ans: ✔✔Small Business Health Options Program
2. An employer is issued a group medical insurance policy. This single contract is known as a(n) - Correct Ans: ✔✔master policy
3. Which of the following is NOT covered under Workers' Compensation? - Correct Ans: ✔✔Pain and suffering
4. Which of the following provides Medicare supplement policies? - Correct Ans: ✔✔Private insurance companies
5. A life settlement intermediary is a(n) - Correct Ans: ✔✔association which maintains a facility that displays offers and counteroffers for purchasers or sellers of life settlement contracts
6. An annuitant dies during the distribution period. What kind of annunity will return to a beneficiary the difference between the annunity value and the income payment already made? - Correct Ans: ✔✔Refund annuity

7. The is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant. - Correct Ans: ✔✔Agent
8. The purpose of the Coordination of Benefits provision in group accident and health plans is to - Correct Ans: ✔✔avoid overpayment of claims
9. Medicaid is intended for - Correct Ans: ✔✔poverty stricken people
10. A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) - Correct Ans: ✔✔collateral assignment
11. A disability policy where the premiums are due monthly require a grace period of - Correct Ans: ✔✔10 days
12. Tom the agent replaced a client's insurance policy when it was not in the client's best interest. Tom could be found guilty of - Correct Ans: ✔✔twisting

13. Which type of annuity stops all payments upon the death of the annuitant? - Correct Ans: ✔✔Life annuity
14. Decreasing term life insurance is often used to - Correct Ans: ✔✔provide coverage for a home mortgage
15. What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? - Correct Ans: ✔✔Specified amount of money
16. Major medical insurance will typically cover medical expenses that result from - Correct Ans: ✔✔a negative reaction to prescribed medication
17. The typical long-term care insurance policy is designed to provide a minimum of__________ year(s) of coverage - Correct Ans: ✔✔ 1
18. The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) - Correct Ans: ✔✔accident
19. Life insurance policies will normally pay for losses arising from - Correct Ans: ✔✔commercial aviation

20. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? - Correct Ans: ✔✔Certificate of coverage and benefits
21. Which type of long-term care benefit would be most appropriate for a stroke victim who requires speech therapy administered at her home? - Correct Ans: ✔✔Home health care
22. A disability policyowner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called? - Correct Ans: ✔✔Benefit period
23. Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status? - Correct Ans: ✔✔The insurer significantly raises co-insurance charges, deductibles, or co-payment charges
24. Which of these statements about Medicaid is CORRECT? - Correct Ans: ✔✔Funded by federal, state, and local taxes
25. In group health care, what is the purpose of the coordination of benefits provision? - Correct Ans: ✔✔Determines

what is paid by the primary and secondary insurers in the event of a claim

26. Which of the following is NOT a duty of the Superintendent?
    • Correct Ans: ✔✔Establish rates for the insurers
27. What is the purpose of a Disability Income Benefit? - Correct Ans: ✔✔Provide money for living expenses
28. All of these are characteristics of a universal life insurance policy EXCEPT - Correct Ans: ✔✔Fixed surrender value
29. Upon meeting company requirements, a lapsed life insurance policy may be reinstated within_______ year(s). - Correct Ans: ✔✔ 3
30. with the same insurer Tim is covered under a group plan and would like to change his group coverage to an individual policy because of employment termination. Which of these describes the change that will take place? - Correct Ans: ✔✔Conversion
31. When are group disability benefits considered to be tax-free to the insured? - Correct Ans: ✔✔When the recipient pays the premiums

32. Under the Affordable Care Act, which of these plans is designed to provide coverage that is actuarially equivalent to 80% of the full actuarial value of the benefits provided under the plan?
    • Correct Ans: ✔✔Gold
33. An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT - Correct Ans: ✔✔providing commission information to the applicant
34. the policy equals $250,000. Rob recently died at age 60. The death benefit would be insurance agent told him the policy would be paid up if he reached age 100. The present cash value of Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His - Correct Ans: ✔✔$500,
35. Which of these would limit a company's liability to provide insurance coverage? - Correct Ans: ✔✔Exclusion
36. Prior to conducting an HIV test, the insurer is required to - Correct Ans: ✔✔obtain a written authorization from the proposed insured
37. How does life insurance create an immediate estate? - Correct Ans: ✔✔After first premium is paid, the face amount may be available to the beneficiary

38. A limited payment whole life policy provides - Correct Ans: ✔✔lifetime protection
39. This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes - Correct Ans: ✔✔the entire insurance contract between the parties
40. A health insurance policy will typically cover - Correct Ans: ✔✔preventative health services
41. have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for $125? Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will she - Correct Ans: ✔✔$50.
42. An individual life insurance policy becomes incontestable after it has been in force for - Correct Ans: ✔✔2 years
43. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in - Correct Ans: ✔✔Risk avoidance

44. John the agent made public statements that falsely portrayed an insurer as insolvent. John would be likely found guilty of - Correct Ans: ✔✔defamation
45. In which of the following situations would the insurer be liable for a loss? - Correct Ans: ✔✔The insured suffered an injury as an innocent bystander during a bank robbery
46. In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest? - Correct Ans: ✔✔Insurable interest can be established sufficiently by sentimental attachment alone
47. An example of a tax-qualified retirement plan would be a(n)
    • Correct Ans: ✔✔defined contribution plan
48. How are contributions made to a Roth IRA handled for tax purposes? - Correct Ans: ✔✔Not tax deductible
49. Which of these is considered a major tax advantage of life insurance? - Correct Ans: ✔✔Income tax is typically not owed on proceeds paid directly to a beneficiary

50. All of these are valid policy dividend options for a life insurance policyowner EXCEPT - Correct Ans: ✔✔accumulate without interest
51. Under a non-qualified annuity, interest is taxed after the - Correct Ans: ✔✔exclusion ratio has been calculated
52. When does an immediate annuity begin making payments? - Correct Ans: ✔✔After multiple premiums have been paid
53. Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt - Correct Ans: ✔✔dies instantly from a car accident
54. Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called - Correct Ans: ✔✔estate conservation
55. An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before - Correct Ans: ✔✔bringing legal action agaínst the insurer

56. In a Long-Term Care policy, activities of daily living (ADL's) can be each of the following EXCEPT - Correct Ans: ✔✔Talking
57. Kathy pays a monthly premium on her health insurance policy. How long is her grace period? - Correct Ans: ✔✔10 days
58. Legal purpose is a term used in contract law meaning - Correct Ans: ✔✔there must be legal reasons for entering into the contract
59. Which of the following is INELIGIBLE to participate in a Section 125 Plan? - Correct Ans: ✔✔An S-Corp Owner with a greater than 2% share
60. Which of the following pertains to the analysis of an applicant's personal information and determining whether insurance should be issued or declined? - Correct Ans: ✔✔Underwriting
61. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - Correct Ans: ✔✔Life income

62. Which of the following is NOT an eligible dependent on an Accident and Health policy? - Correct Ans: ✔✔27 year old married child
63. A life settlement broker is someone who is - Correct Ans: ✔✔licensed to negotiate a life settlement contract
64. Within how many days must a rollover be completed in order to avoid being taxed as current income? - Correct Ans: ✔✔O 60
65. All of the following are typically included in a life insurance policy illustration EXCEPT - Correct Ans: ✔✔Names of the beneficiaries
66. An employer may qualify for health care tax credits through SHOP Marketplace if that employer has fewer than how many employees? - Correct Ans: ✔✔ 25
67. The amount received for a life insurance policy in a life settlement is _________ than the death benefit. - Correct Ans: ✔✔less
68. A Medicare Supplement policy must NOT contain benefits which - Correct Ans: ✔✔duplicate Medicare benefits

69. When does a life insurance policy typically become effective? - Correct Ans: ✔✔When initial premium is collected and policy is issued
70. The Federal Employees Benefit Program consists of two types of health plans for federal civilian employees. The two plans are fee-for-service and - Correct Ans: ✔✔prepaid
71. Premium mode is a term used to describe the - Correct Ans: ✔✔frequency of the premium payment
72. How are health plans classified according to the Affordable Care Act? - Correct Ans: ✔✔Bronze, Silver, Gold, Platinum
73. Which of the following is NOT covered by New York workers compensation laws? - Correct Ans: ✔✔OOn-the-job injury that was both intentional and self-inflicted
74. What happens when an insurance policy is backdated? - Correct Ans: ✔✔The policy's effective date is earlier than the present

75. An example of misrepresentation is - Correct Ans: ✔✔providing incorrect, misleading, incomplete, or materially untrue information in the license application
76. Health insurance will typically cover which of the following perils? - Correct Ans: ✔✔Injury due to accident
77. What is a corridor in relation to a Universal Life insurance policy? - Correct Ans: ✔✔The gap between the total death benefit and the policy's cash value
78. due date where she can still make payment and avoid Janice forgot to make her insurance premium payment by the due date. The specified period after the discontinuance of her coverage is called the - Correct Ans: ✔✔grace period
79. Group accident and health insurance policies issued in New York must generally include an unmarried dependent child who is_____ years old or younger. - Correct Ans: ✔✔ 19
80. The purpose of Medicare Supplement Insurance is to address gaps in Medicare coverage, which can include - Correct Ans: ✔✔Medicare in-hospital deductible

81. Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequence? - Correct Ans: ✔✔Section 1035 exchange
82. Employees are required to work at least _________hours per week to become eligible for a small employer health plan - Correct Ans: ✔✔ 20
83. After year(s) from date of issue, an individual health insurance policy can no longer be cancelled by the insurer for misstatements (except for fraud). - Correct Ans: ✔✔ 2
84. Major Medical expense plans provide coverage for each of the following EXCEPT - Correct Ans: ✔✔Work-related injuries
85. A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing - Correct Ans: ✔✔benefit limits
86. A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? - Correct Ans: ✔✔Partial disability

87. A domestic insurance company in New York MUST - Correct Ans: ✔✔be formed under the laws of New York
88. Which of the following statements is NOT true regarding a Critical Illness Plan? - Correct Ans: ✔✔Coverage is limited to a single devastating disease
89. An insurance consultant is BEST defined as a(n) - Correct Ans: ✔✔agent who charges fees for advice
90. Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application? - Correct Ans: ✔✔A good health statement
91. A carrier for a small group health plan may refuse to renew the plan if the employer - Correct Ans: ✔✔fails to pay the premium
92. All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT - Correct Ans: ✔✔Reduction of Premium
93. Under the subrogation clause, legal action can be taken by the insurer against the - Correct Ans: ✔✔responsible third party

94. When does a family health policy's coverage for a newborn child begin? - Correct Ans: ✔✔At the moment of birth
95. Joe is a Medicare participant who receives his benefits through a managed healthcare plan, which Medicare plan does he have? - Correct Ans: ✔✔Part C
96. Which of the following is an example of the insured's consideration? - Correct Ans: ✔✔A paid premium
97. Life settlement brokers are permitted to do all the following except - Correct Ans: ✔✔Make the first transaction up to 30days before approved for a license
98. When a Medicare supplement insurance policy is being replaced who must sign the notice of replacement? - Correct Ans: ✔✔The agent and the applicant
99. What are the levels of coverage as defined by the affordable care act - Correct Ans: ✔✔Bronze silver gold and platinum
100. An interest sensitive life insurance policy owner may be able to withdraw the policies cash value interest free. The provision that allows this is called - Correct Ans: ✔✔Partial surrender

101. Tom has a rider on his disability income policy that guaranteed the right to increase his benefits without a medical exam what kind of rider is this? - Correct Ans: ✔✔Guaranteed insurability rider
102. The gatekeepers roll when used by an HMO is? - Correct Ans: ✔✔Obtaining referral to a specialist from primary care physicians
103. How soon can the benefit payments begin with a deferred annuity? - Correct Ans: ✔✔A minimum of 12 months after the date of purchase
104. What kind of life insurance policy issued by the mutual insurer provides a return of divisible surplus? - Correct Ans: ✔✔Participating life insurance policy
105. Ron has life insurance policy with a face value of $100, and a cost of living rider. If the consumer prince index has gone up 4% how much Maron increase the face value of the policy? - Correct Ans: ✔✔$

106. And immediate annuity has been purchased with a single premium when does the annuitant typically begin receiving benefit payments? - Correct Ans: ✔✔One month
107. The cost of a loss is referred to as a - Correct Ans: ✔✔Peril
108. Underwriters can require information from all the following sources except - Correct Ans: ✔✔Genetic testing
109. The promise of a discount and premium as an inducement to purchase insurance is known as - Correct Ans: ✔✔Rebating
110. Ron has a new employer and wishes to enroll in the company's group health plan in determining whether his pre- existing health condition applies Ron cannot have more than a ________ day gap without previous health insurance. - Correct Ans: ✔✔ 63
111. What is known as an intimate specific event causing loss and giving rise to risk? - Correct Ans: ✔✔Peril
112. ABC insurance company transfer is part of their risk to XYZ insurance company this situation is called - Correct Ans: ✔✔Reinsurance

113. Insurance agent Kelly offers a prospect $1000 shopping cart if insurance policy is purchased through her what illegal activity is this an example of? - Correct Ans: ✔✔rebating
114. Richard owns an insurance policy that is renewable only at the option of the insurance policy his policy is considered to be - Correct Ans: ✔✔Optionally renewable
115. A business for typically use which type of life insurance to cover their employees? - Correct Ans: ✔✔Group policy
116. Insurance policy that is qualified and receive a certificate of authority from the superintendent to sell insurance in the state is called a - Correct Ans: ✔✔Admitted insurer
117. How are survivorship life insurance for it is helpful in estate planning? - Correct Ans: ✔✔Provide funds to help pay taxes
118. Premium paid that exceed 7 1/2% of an insured Adjusted Gross Income or AGI our tax deductible when paid for which of the following plans? - Correct Ans: ✔✔Qualified long term care plan

119. Maria is the preferred provider organization PPO subscriber and receive care from an out of network provider which of the following is a likely result? - Correct Ans: ✔✔Care is covered
120. A form of medical health insurance covering is the treatment and the care of gum disease is called - Correct Ans: ✔✔Dental expense insurance
121. If an agent is advertising a life insurance policy the agent must disclose the - Correct Ans: ✔✔Name of the actual insurer
122. Which falsification makes a universal life policy different from a whole life policy? - Correct Ans: ✔✔A flexible premium schedule
123. Intentional withholding of material facts that were affected insurance policy's validity is called an - Correct Ans: ✔✔Concealment
124. All the following are considered appropriate to use of life insurance for business purposes except - Correct Ans: ✔✔Protecting the business by covering entry-level employees with life insurance

125. A hospital or medical expense policy will typically cover dental treatment expenses which under circumstances? - Correct Ans: ✔✔Dental treatment is needed to repair an injury
126. An agent has recently died and leave behind a spouse in order for the aged insurance business to continue the superintendent may issue to the agent spouse a - Correct Ans: ✔✔Temporary insurance license
127. A long-term care policy typically provide all the following levels of care except - Correct Ans: ✔✔Acute care
128. Who is the individual paid on a fee for service basis? - Correct Ans: ✔✔Provider
129. The monthly benefit for the individual disability income policy is usually limited to percentage of the insured's income in order to avoid - Correct Ans: ✔✔over insurance
130. Which of the following is a reinstatement condition? - Correct Ans: ✔✔Proof of insurability
131. HIPAA considers which of the following as "individually identifiable health information"? - Correct Ans: ✔✔Persons health claim information

132. Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage to the participants? - Correct Ans: ✔✔Multiple employer welfare arrangement or an MEWA
133. As of January 1, 2014 an employer with up to 25 full-time equivalent FTE with average annual wages of less than $50,000 may be eligible for a tax credit of________premiums paid by the employer. - Correct Ans: ✔✔50%
134. Which of these is not an unfair claim statement practice? - Correct Ans: ✔✔Providing claim payments to insurers under the guidelines of the insurance contracts
135. Who is the most investment risk with a fixed annuity contract - Correct Ans: ✔✔The insurer
136. Chris isn't isn't insured bricklayer who served his left hand in an automobile accident although his primary duty cannot be performed Chris lso a suitable high school teacher he collects for disability income check every month. How does his policy define total disability? - Correct Ans: ✔✔Own occupation
137. Master contract and certificate of coverage can be found in which type of policy? - Correct Ans: ✔✔Group

138. Phil is shopping for a new lady that guarantees he cannot at least the benefits which of these benefits options would he choose? - Correct Ans: ✔✔Guaranteed lifetime withdrawal benefit
139. The IRS states that the taxpayers medical expenses that exceed 7.5% of their suggested gross income is tax it up deductible. Which of the following may be considered a medical expense under this role? - Correct Ans: ✔✔Long term care insurance premiums
140. Replacement regulation is designed to protect - Correct Ans: ✔✔Policyowners from mirepresentation and loss of benefits
141. All Health Benefit Plans issued after January 1, 2014 must provide - Correct Ans: ✔✔Preventative health services
142. Which of these will have the highest monthly payout upon annuitization - Correct Ans: ✔✔Straight life
143. Which of the following is included in the entire contract according ti the entire contract provison? - Correct Ans: ✔✔Clauses

144. Which of the following is considered to be an alternative to a life settlement? - Correct Ans: ✔✔Accelered death benefit rider
145. With a scheduled dental policy, how are covered expense paid? - Correct Ans: ✔✔Benefits are limited to a specific maximum dollar amount per procedure
146. Coordination of benefits regulation applies to all of the following plans EXCEPT - Correct Ans: ✔✔Preferred provider Organization plan
147. Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? - Correct Ans: ✔✔Human life value approach
148. Which of the following policies does NOT build cash value? - Correct Ans: ✔✔Term
149. Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death? - Correct Ans: ✔✔Human life value
150. The free look period provided in a life insurance policy is usually - Correct Ans: ✔✔10 days