XCEL LIFE INSURANCE EXAM QUESTIONS AND ANSWERS
UPDATED ALREADY GRADED A+ 2025/2026
What does a life insurance policy guarantee to the stated beneficiary
upon the death of the insured? - ANSWER->Specified amount of
money
Major medical insurance will typically cover medical expenses that
result from - ANSWER->a negative reaction to prescribed medication
The typical long-term care insurance policy is designed to provide a
minimum of__________ year(s) of coverage - ANSWER->1
The double indemnity provision in a life insurance policy pertains to an
insured's death
caused by a(n) - ANSWER->accident
Life insurance policies will normally pay for losses arising from -
ANSWER->commercial aviation
The coverage, conditions, and limitations in the master policy of a
group contract can be found in which document? - ANSWER-
>Certificate of coverage and benefits
Which type of long-term care benefit would be most appropriate for a
stroke victim who requires speech therapy administered at her
home? - ANSWER->Home health care
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? - ANSWER->Benefit period
,Under the Affordable Care Act, how would a grandfathered health plan
lose its grandfathered status? - ANSWER->The insurer significantly
raises co-insurance charges, deductibles, or co-payment charges
Which of these statements about Medicaid is CORRECT? - ANSWER-
>Funded by federal,
state, and local taxes
In group health care, what is the purpose of the coordination of
benefits provision? - ANSWER>Determines what is paid by the primary
and secondary insurers in the event of a claim
Which of the following is NOT a duty of the Superintendent? - ANSWER-
>Establish rates for the insurers
What is the purpose of a Disability Income Benefit? - ANSWER->Provide
money for living expenses
All of these are characteristics of a universal life insurance policy
EXCEPT - ANSWER->Fixed surrender value
Upon meeting company requirements, a lapsed life insurance policy
may be reinstated
within_______ year(s). - ANSWER->3
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? - ANSWER->Conversion
, When are group disability benefits considered to be tax-free to the
insured? - ANSWER>When the recipient pays the premiums
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? - ANSWER-
>Gold
An insurance producer is often responsible for field underwriting during
the application process. All of these are possible field underwriting
roles EXCEPT - ANSWER>providing commission information to the
applicant
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 - ANSWER->$500,000
Which of these would limit a company's liability to provide insurance
coverage? - ANSWER>Exclusion
Prior to conducting an HIV test, the insurer is required to - ANSWER-
>obtain a written authorization from the proposed insured How does
life insurance create an immediate estate? - ANSWER->After first
premium is paid, the face amount may be available to the beneficiary
A limited payment whole life policy provides - ANSWER->lifetime
protection
UPDATED ALREADY GRADED A+ 2025/2026
What does a life insurance policy guarantee to the stated beneficiary
upon the death of the insured? - ANSWER->Specified amount of
money
Major medical insurance will typically cover medical expenses that
result from - ANSWER->a negative reaction to prescribed medication
The typical long-term care insurance policy is designed to provide a
minimum of__________ year(s) of coverage - ANSWER->1
The double indemnity provision in a life insurance policy pertains to an
insured's death
caused by a(n) - ANSWER->accident
Life insurance policies will normally pay for losses arising from -
ANSWER->commercial aviation
The coverage, conditions, and limitations in the master policy of a
group contract can be found in which document? - ANSWER-
>Certificate of coverage and benefits
Which type of long-term care benefit would be most appropriate for a
stroke victim who requires speech therapy administered at her
home? - ANSWER->Home health care
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? - ANSWER->Benefit period
,Under the Affordable Care Act, how would a grandfathered health plan
lose its grandfathered status? - ANSWER->The insurer significantly
raises co-insurance charges, deductibles, or co-payment charges
Which of these statements about Medicaid is CORRECT? - ANSWER-
>Funded by federal,
state, and local taxes
In group health care, what is the purpose of the coordination of
benefits provision? - ANSWER>Determines what is paid by the primary
and secondary insurers in the event of a claim
Which of the following is NOT a duty of the Superintendent? - ANSWER-
>Establish rates for the insurers
What is the purpose of a Disability Income Benefit? - ANSWER->Provide
money for living expenses
All of these are characteristics of a universal life insurance policy
EXCEPT - ANSWER->Fixed surrender value
Upon meeting company requirements, a lapsed life insurance policy
may be reinstated
within_______ year(s). - ANSWER->3
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? - ANSWER->Conversion
, When are group disability benefits considered to be tax-free to the
insured? - ANSWER>When the recipient pays the premiums
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? - ANSWER-
>Gold
An insurance producer is often responsible for field underwriting during
the application process. All of these are possible field underwriting
roles EXCEPT - ANSWER>providing commission information to the
applicant
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 - ANSWER->$500,000
Which of these would limit a company's liability to provide insurance
coverage? - ANSWER>Exclusion
Prior to conducting an HIV test, the insurer is required to - ANSWER-
>obtain a written authorization from the proposed insured How does
life insurance create an immediate estate? - ANSWER->After first
premium is paid, the face amount may be available to the beneficiary
A limited payment whole life policy provides - ANSWER->lifetime
protection
