XCEL Ohio Life and Health State Practice Exam Questions And Answers, Exams of Life Sciences

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Practice Exam Questions And Answers

Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? - correct answer ✅Pre-death distributions are typically taxable. A medical provider that accepts Medicare Assignment must - correct answer ✅accept payment based upon a defined Medicare schedule as payment in full. Which of the following statements regarding Group Disability Income Insurance is TRUE? - correct answer ✅It provides benefits for nonoccupational illness and injuries. The taxable portion of each annuity payment is calculated using which method? - correct answer ✅Exclusion Ratio An example of a health insuring corporation (HIC) speciality care is an - correct answer ✅neurologist An accident and health policy that provides reimbursement benefits makes them payable to the - correct answer ✅insured Which of the following would disqualify a company's retirement plan for receiving favorable tax treatment? - correct answer ✅It is temporary

Practice Exam Questions And Answers

Janice forgot to make her insurance premium payment by the due date. The specified period after the due date where she can still make payment and avoid discontinuance of her coverage is called the - correct answer ✅grace period Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement? - correct answer ✅Premiums paid plus interest earned is returned to the beneficiary The difference between the Long Term Care Partnership and a Non- Partnership Plan is which of the following? - correct answer ✅Asset protection Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) - correct answer ✅concealment Under group health insurance, a certificate of coverage is issued to the - correct answer ✅employee The deeds and actions of a producer indicate what kind of authority? - correct answer ✅Apparent Which of these factors would an insurer consider when determining whether to accept a group life plan? - correct answer ✅Average age

Practice Exam Questions And Answers

Under a non-qualified annuity, interest is taxed after the - correct answer ✅exclusion ratio has been calculated A policy owner can receive an immediate payment before the insured dies by using an - correct answer ✅viatical settlement contract What guarantees that the statements supplied by an insurance applicant are true? - correct answer ✅Warranty A tax-free Section 1035 Exchange of a life insurance policy to a different policy is permitted it it occurs - correct answer ✅from insurer to insurer and no cash is received by the policy owner Long-Term Care policies or certificates issued in Ohio are required to have - correct answer ✅a nonforfeiture value Life insurance policies will normally pay for losses arising from - correct answer ✅commercial aviation A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability is called an - correct answer ✅guaranteed insurability rider

Practice Exam Questions And Answers

Which of these do NOT provide primary care for HIC members? - correct answer ✅Surgeon In a Long-Term Care policy, activities of daily living (ADL's) can be each of the following EXCEPT - correct answer ✅Talking According to life insurance contract law, insurable interest exists - correct answer ✅at the time of application All of these are considered forms of advertising EXCEPT - correct answer ✅An insurer's AM Best rating How do insurers predict the increase of individual risks? - correct answer ✅Law of large numbers An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of - correct answer ✅fraud States that have "no loss no gain" laws require a replacing policy to - correct answer ✅pay for ongoing claims under the policy it replaces

Practice Exam Questions And Answers

Which of the following policies does NOT build cash value? - correct answer ✅Term The type of policy which pays on the death of the last person is called - correct answer ✅survivorship life All of these are valid policy dividend options for a life insurance policyowner EXCEPT - correct answer ✅accumulate without interest Coverage for newborns under an accident and health plan MUST include coverage for - correct answer ✅birth abnormalities 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 answer ✅prepaid The role of the federal government was expanded when Medicaid was established by allowing the state to - correct answer ✅receive matching funds to expand public assistance programs Fixed period settlement options are considered to be a form of a(n) - correct answer ✅annuity

Practice Exam Questions And Answers

A securities license is required for a life insurance producer to sell - correct answer ✅variable life insurance The MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes - correct answer ✅the entire insurance contract between the parties Who provides all preventative and routine medical care given to a health insuring corporation (HIC) member? - correct answer ✅Primary care physician When a principal authorizes gives the agent authority in writing, it's referred to as - correct answer ✅express authority A policy owner may change two policy features on what type of life insurance? - correct answer ✅Adjustable life The first payment for newborn accident and health coverage is due ___ days after birth - correct answer ✅ 31 An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called - correct answer ✅coinsurance

Practice Exam Questions And Answers

An advertisement for an insurance product may contain - correct answer ✅the insurer's name Mortality is calculated by using a large risk pool of - correct answer ✅people and time The entire contract includes the actual policy and the - correct answer ✅application A life insurance policy sold in Ohio can be contested by the insurer ONLY during the first ___ years of the contract - correct answer ✅two Ohio requires that a licensee complete ___ hours of continuing education on the subject of ethics every reporting period. - correct answer ✅ 3 Which of the following is an example of the insured's consideration? - correct answer ✅A paid premium A beneficiary can occur - correct answer ✅normally at any time during the policy term

Practice Exam Questions And Answers

A minor may receive a life insurance policy's death benefit ONLY - correct answer ✅if the minor has an appointed guardian Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance? - correct answer ✅Policy owner has the right to select the investment which will provide the greatest return All of the following may be an unfair claims practice EXCEPT - correct answer ✅Denying an insured's fraudulent claim Which of these is NOT a TRUE statement regarding HIC's? - correct answer ✅Benefits are provided on a reimbursement basis Which of the following is NOT part of an insurance contract? - correct answer ✅Certificate of Authority The free look period on Ohio for individual health insurance policies is ___ days - correct answer ✅ 10 An individual covered under a Blue Cross Blue Shield plan is called a - correct answer ✅subscriber

Practice Exam Questions And Answers

Who were Keogh plans designed to provide pension benefits for? - correct answer ✅The self-employed A business typically which type of life insurance to cover their employees? - correct answer ✅Group policy The gatekeeper's role when used by an HMO is - correct answer ✅obtaining referrals to specialists from primary care physicians Insurance agent Kelly offers a prospect a $1,000 shopping card if an insurance policy is purchased through her. What illegal activity is this an example of? - correct answer ✅Rebating What will the beneficiary receive if an annuitant dies during the accumulation period? - correct answer ✅The greater of the accumulated cash value of the total paid premium Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? - correct answer ✅Decreasing term insurance A common exclusion with Vision plans is - correct answer ✅lasik surgery

Practice Exam Questions And Answers

Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - correct answer ✅Life income Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance? - correct answer ✅Medicare in-hospital deductible Which of these retirement plans do NOT qualify for a federal income tax deduction? - correct answer ✅ROTH IRA Which of these is NOT considered a supplemental health insuring corporation(HIC) service? - correct answer ✅outpatient medical services An error was made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply? - correct answer ✅Age Medicare Part A does not pay for medical benefits provided for treatment in a skilled nursing facility beyond - correct answer ✅100 days How soon can the benefit payments begin with a deferred annuity? - correct answer ✅A minimum of 12 months after date of purchase

Practice Exam Questions And Answers

Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? - correct answer ✅$5, An order issued by the superintendent that prohibits a specific practice listed in the order is called an - correct answer ✅cease and desist order Part A Hospital expense coverage provided under Medicare is automatically made available to each of the following EXCEPT - correct answer ✅A 70-year old NOT eligible for Social Security Which of the following is a legal entity created for the sole purpose of providing affordable group health coverage to its participants? - correct answer ✅Multiple Employer Welfare Arrangement (MEWA) The premium payment mode that results in the highest overall cost would be - correct answer ✅monthly Major medical insurance will typically cover medical expenses that result from - correct answer ✅a negative reaction to prescribed medication

Practice Exam Questions And Answers

Who assumes the investment risk with a fixed annuity contract? - correct answer ✅The insurer Carole is a licensed agent who lives in Michigan and transacts insurance in Ohio. In Ohio, Carole is considered to be a(n) - correct answer ✅nonresident agent Which of these statements regarding the annuitant is CORRECT? - correct answer ✅The annuitant's life expectancy determines the annuity payments Fraternal Benefit Society has each of the following characteristics EXCEPT - correct answer ✅Exist for profit Medicaid is a government-funded program designed to provide health care to - correct answer ✅poor people Which of the following is typically NOT eligible for coverage in a group health policy? - correct answer ✅Temporary employee Which of the following is considered to be an act of misrepresentation?

• correct answer ✅Falsifying the terms, benefits, advantages, or conditions of an insurance policy

Practice Exam Questions And Answers

A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the - correct answer ✅named living primary beneficiaries Which type of long-term care benefit would be most appropriate for a stroke victim who requires speech therapy administered at her home? - correct answer ✅Home health care A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called - correct answer ✅conditionally renewable Which of these is considered to be a document that describes the critical segments of a life insurance policy? - correct answer ✅Policy summary XYZ Corp pays the tax-deductible insurance premiums for a key employee disability policy. Which of the following would be the appropriate tax consequence? - correct answer ✅Benefits are fully taxable Under the Affordable Care Act, which of these plans is designed to provide coverage that is actuarially equivalent of 80% of thee full actuarial value of the benefits provided under the plan? - correct answer ✅Gold

Practice Exam Questions And Answers

All Health Benefit Plans issued after January 1, 2014 must provide - correct answer ✅preventative health care A life insurance policy's advertising material MUST contain all of the following information EXCEPT - correct answer ✅Agent's commission An insurer can exclude coverage for a preexisting condition on a Medicare Supplement policy for up to - correct answer ✅6 months What is an insurance policy's grace period? - correct answer ✅Period of time after the premium is due but the policy remains in force A life insurance applicant in Ohio may backdate the application for up to ___ months - correct answer ✅ 3 An insurer's ability to make unpredictable payouts to policyowners is called - correct answer ✅liquidity Inducement is BEST defined as - correct answer ✅offering to buy, sell, give, or allow a prospective insured employment, stock or special favors in exchange for an insurance transaction

Practice Exam Questions And Answers

Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds - correct answer ✅will no longer provide insurance protection All of these are characteristics of a universal life insurance policy EXCEPT

• correct answer ✅Flexible surrender value Distribution from a Health Savings Account (HSA) for qualified medical expenses are - correct answer ✅tax-free In Ohio, a Long-Term Care policy must be ___ renewable - correct answer ✅Guaranteed What is the purpose of the Ohio Life and Health Insurance Guaranty Association? - correct answer ✅Ensures that claim filed against insolvent insurance companies will be paid Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death? - correct answer ✅Results An agent is legally permitted to share his/her commissions - correct answer ✅with another licensed agent

Practice Exam Questions And Answers

An agent's license has been suspended for non-renewal. The agent may apply for reinstatement - correct answer ✅within 12 months of the license renewal date Underwriters can acquire information from all of the following sources EXCEPT - correct answer ✅genetic testing Donna and Mary were racing bicycles in a store parking lot while being cheered on by fellow employees. Mary ran into John, another employee, who happened to be taking out the garbage. Both Mary and John are injured. Who would most likely be covered under Workers' Compensation? - correct answer ✅John Jonas has disability insurance through his employer. The employer pays 75% of the premium, and Jonas pays the other 25%. What is Jonas's tax liability for any benefits paid from the disability plan? - correct answer ✅Taxes must be paid on 75% of the benefits received Legal purpose is a term used in contract law meaning - correct answer ✅there must be legal reason for entering into the contract Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-

Practice Exam Questions And Answers

Ferguson Act, what is the minimum penalty for this? - correct answer ✅$10, The waiver of premium does NOT include which provision? - correct answer ✅All future premiums are waived if the insured recovers from a disability A life insurance policy that is subject to a contract interest rate is referred to as - correct answer ✅universal life Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have? - correct answer ✅Calendar-year deductible How do interest earnings accumulate in a deferred annuity? - correct answer ✅On a tax-deferred basis Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called? - correct answer ✅Estate conversion Which of these is considered to be a Living Benefit option in a life insurance policy? - correct answer ✅Accelerated death benefit

Practice Exam Questions And Answers

What is the elimination period of an individual disability policy? - correct answer ✅Time period of a disabled person must wait before benefits are paid Which of these is NOT considered a form of life insurance advertisement? - correct answer ✅Buyer's Guide Which of the following is a reinstatement condition? - correct answer ✅Proof of insurability Which of the following does restorative dental treatment cover? - correct answer ✅Crowns Medical Expense Insurance would cover - correct answer ✅an injury occurring at the insured's residence What happens when an insurance policy is backdated? - correct answer ✅The policy's effective date is earlier than the present A life insurance policyowner is allowed ___ days upon policy delivery to return the policy for a full premium refund. - correct answer ✅ 10

Practice Exam Questions And Answers

An agent has committed an insurance crime that violates US Code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime? - correct answer ✅US Attorney General When screening an applicant for HIV, the insurer - correct answer ✅may require a blood test for HIV An agent's renewal date for his/her license is on or before - correct answer ✅the last day of the licensee's birth month A pharmacy benefit covers prescription drugs derived from a list called a - correct answer ✅drug formulary The least expensive option to pay off a 30-year mortgage balance would be - correct answer ✅decreasing term life Joanne has a $100,000 whole life policy with an accumulated $25, of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE? - correct answer ✅Net death benefit will be reduced if the loan is not repaid An attending physician's statement would be appropriate for which life insurance purpose? - correct answer ✅At the request of the insurer to assist in the underwriting decision

Practice Exam Questions And Answers

A person covered with an individual health plan - correct answer ✅is issued a policy Unmarried children who are incapable of self support and have proof of incapacity are included under their parent's health coverage until - correct answer ✅policy termination 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 answer ✅ 63 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 answer ✅bringing legal action against the insurer One role of the superintendent is to - correct answer ✅enforce state insurance laws Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? - correct answer ✅Accumulation at Interest Option

Practice Exam Questions And Answers

Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true? - correct answer ✅The policy may be paid up early by using policy dividends At what age will a person normally enroll with an insurance carrier under a Part C Medicare Advantage Plan? - correct answer ✅Age 65 Which of these is NOT a legal reason for an HIC to release a subscriber's confidential health information? - correct answer ✅Public interest What type of injury would NOT be covered under a health insurance policy? - correct answer ✅Work-related What is the primary feature of a viatical settlement? - correct answer ✅Reduced death benefit prepayment Which of these preventative care services is NOT provided by health insuring corporation (HIC) primary care physicians? - correct answer ✅Adult hearing screenings What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? - correct answer ✅Specified amount of money

Practice Exam Questions And Answers

Which of these will typically authorize treatment from a specialist? - correct answer ✅Gatekeeper Which of the following would be considered an underwriting duty of an agent? - correct answer ✅Completing all applications and collecting initial payments 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 Which of the following is required for an insurer to conduct business in this state? - correct answer ✅Certificate of authority The conversion privilege under a group life plan allows an employee to convert to a(n) - correct answer ✅individual plan upon employment termination Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT - correct answer ✅the beneficiary

Practice Exam Questions And Answers

An insurance company has just received a request for verification from a viatical settlement provider. The insurer is required to respond within ___ calendar days to this request. - correct answer ✅ 30 Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year? - correct answer ✅100% of his health care cost can be deducted from his gross income