XCEL Ohio Life and Health State 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 no occupational 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) specialty 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
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
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 vertical 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 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 no forfeiture 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
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
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