XCELL TESTING SOLUTIONS ACTUAL EXAM
PAPER 2026
◉ The problem of overinsurance is addressed in which health
insurance provision. Answer: Coordination of benefits
◉ When a life insurance policy is surrendered, how does the cost
recovery rule apply. Answer: The policy's cost basis is exempt from
taxation
◉ How are acts of war considered under a group life insurance
policy?. Answer: Policy exclusion
◉ Paul has an existing annuity and is sold a new one, in which the
new policy holds no greater financial benefit to him than the existing
contract. This is considered a(n). Answer: unnecessary replacement
◉ A life insurance policy where the insured can choose where the
cash value can be invested is called. Answer: variable life
◉ What does the grace period allow a life insurance policyowner to
do?. Answer: Make a premium payment after the due date without
any loss of coverage
,◉ A participating company is also referred to as which type of
insurer?. Answer: Mutual insurer
◉ How many "activities of daily living" must an insured be UNABLE
to perform in order to meet the chronically ill requirement of a
Long-Term Care policy?. Answer: Minimum of two activities of daily
living
◉ Which of the following is a type of insurance where an insurer
transfers loss exposures from policies written for its insureds?.
Answer: Reinsurance
◉ Allen has a disability income policy with a $2,500 monthly benefit
and a 30-day elimination period. He is unable to work 90 days
following an automobile accident. What will the policy pay?. Answer:
$5,000
◉ When an accidental death benefit is added to a whole life policy,
how does this affect the policy's cash value?. Answer: Policy's cash
value is not affected
◉ John and Mary have a handicapped child that is financially
dependent upon them. The death of one of the parents would not be
financially disastrous, however the death of both likely would be.
Which policy would be best suited for them?. Answer: Second-to-die
policy
, ◉ The California Insurance Code allows an individual how many
days to cancel a life policy for a full-refund?. Answer: Between 10
and 30 days
◉ How long must life agents keep their transaction records?.
Answer: 5 years
◉ Restoring an insured to the same condition as before a loss is
known as. Answer: Principle of indemnity
◉ In what order are people on the MRMIP waiting list allowed to
enroll?. Answer: Based on the date an individual's application is
received
◉ What is the purpose of the Pre-Existing Condition Insurance Plan
(PCIP)?. Answer: PCIP was created by the PPACA for people rejected
by private health insurers due to pre-existing conditions
◉ The conditions, times, and circumstances under which an insured
is NOT covered by a health policy are called. Answer: exclusions
◉ Which of the following is NOT a feature of equity-indexed
annuities?. Answer: Offers a maximum interest rate that increases
annually
PAPER 2026
◉ The problem of overinsurance is addressed in which health
insurance provision. Answer: Coordination of benefits
◉ When a life insurance policy is surrendered, how does the cost
recovery rule apply. Answer: The policy's cost basis is exempt from
taxation
◉ How are acts of war considered under a group life insurance
policy?. Answer: Policy exclusion
◉ Paul has an existing annuity and is sold a new one, in which the
new policy holds no greater financial benefit to him than the existing
contract. This is considered a(n). Answer: unnecessary replacement
◉ A life insurance policy where the insured can choose where the
cash value can be invested is called. Answer: variable life
◉ What does the grace period allow a life insurance policyowner to
do?. Answer: Make a premium payment after the due date without
any loss of coverage
,◉ A participating company is also referred to as which type of
insurer?. Answer: Mutual insurer
◉ How many "activities of daily living" must an insured be UNABLE
to perform in order to meet the chronically ill requirement of a
Long-Term Care policy?. Answer: Minimum of two activities of daily
living
◉ Which of the following is a type of insurance where an insurer
transfers loss exposures from policies written for its insureds?.
Answer: Reinsurance
◉ Allen has a disability income policy with a $2,500 monthly benefit
and a 30-day elimination period. He is unable to work 90 days
following an automobile accident. What will the policy pay?. Answer:
$5,000
◉ When an accidental death benefit is added to a whole life policy,
how does this affect the policy's cash value?. Answer: Policy's cash
value is not affected
◉ John and Mary have a handicapped child that is financially
dependent upon them. The death of one of the parents would not be
financially disastrous, however the death of both likely would be.
Which policy would be best suited for them?. Answer: Second-to-die
policy
, ◉ The California Insurance Code allows an individual how many
days to cancel a life policy for a full-refund?. Answer: Between 10
and 30 days
◉ How long must life agents keep their transaction records?.
Answer: 5 years
◉ Restoring an insured to the same condition as before a loss is
known as. Answer: Principle of indemnity
◉ In what order are people on the MRMIP waiting list allowed to
enroll?. Answer: Based on the date an individual's application is
received
◉ What is the purpose of the Pre-Existing Condition Insurance Plan
(PCIP)?. Answer: PCIP was created by the PPACA for people rejected
by private health insurers due to pre-existing conditions
◉ The conditions, times, and circumstances under which an insured
is NOT covered by a health policy are called. Answer: exclusions
◉ Which of the following is NOT a feature of equity-indexed
annuities?. Answer: Offers a maximum interest rate that increases
annually
