I have gathered the most relevant and uptodate practice questions from the 20252026 Xcel Testing
Solutions exam materials for you. The following 100 questions cover all major topics, including life
insurance, health insurance, annuities, and key regulations, and each ANSWER is followed by a detailed
explanation to help you understand the reasoning behind it.
Xcel Solutions Life & Health Exam 20252026: 100 Practice Questions
1. The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
A) Charities
B) Political organizations
C) Insurance sales calls
D) Surveys
ANSWER: C) Insurance sales calls
Explanation: The Do Not Call Registry provides exemptions for calls from charities, political
organizations, and those conducting surveys. However, telemarketing calls, including those for insurance
sales, are not exempt and are prohibited unless there is an established business relationship .
2. The type of policy where the insurer can send a notice to the insured that the policy has been
cancelled in the middle of the term is called:
A) Guaranteed renewable
B) Cancelable
C) Noncancellable
D) Optionally renewable
ANSWER: B) Cancelable
,Explanation: A cancelable policy is a type of health insurance policy that allows the insurer to cancel the
policy or increase premiums at any time during the policy term, provided they give proper written notice
and refund any unearned premium .
3. Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or
events without evidence of insurability. This rider is called a(n):
A) Cost of Living rider
B) Guaranteed Insurability rider
C) Accidental Death rider
D) Waiver of Premium rider
ANSWER: B) Guaranteed Insurability rider
Explanation: A Guaranteed Insurability Rider (GIR) allows the policyowner to purchase additional
amounts of life insurance at specified future dates or events (e.g., marriage, birth of a child) without
having to provide proof of good health .
4. Disability Income plans which require that the insurer can NEVER change or alter premium rates are
usually considered:
A) Guaranteed renewable
B) Cancelable
C) Conditionally renewable
D) Noncancellable
ANSWER: D) Noncancellable
,Explanation: A noncancellable disability income policy guarantees that the policy cannot be canceled
and the premium rates cannot be increased for the life of the policy, as long as premiums are paid on
time .
5. In what part of an insurance policy are policy benefits found?
A) Insuring Clause
B) Exclusions
C) Declarations
D) Conditions
ANSWER: C) Declarations
Explanation: The Declarations page is a summary of the key information in the policy, including the
insured's name, the policy face amount, the premium, and specifically, the policy benefits that are being
provided .
6. What happens if the insurer discovers that the insured's age was accidentally misstated on an
application for an individual life insurance policy?
A) The policy is voided.
B) The premium is refunded.
C) Benefits will be calculated according to how much coverage the premium paid would have purchased
for the correct age.
D) The face amount is reduced by 50%.
ANSWER: C) Benefits will be calculated according to how much coverage the premium paid would have
purchased for the correct age.
, Explanation: The Misstatement of Age provision states that if the insured's age is misstated, the death
benefit payable will be adjusted to the amount that the premiums paid would have purchased at the
insured's correct age .
7. Health insurance will typically cover which of the following perils?
A) Injury due to accident
B) Loss from a speculative investment
C) Intentional selfharm
D) Warrelated injury
ANSWER: A) Injury due to accident
Explanation: Health insurance is designed to cover the financial consequences of accidental injury or
sickness. Most policies have exclusions for intentional acts, war, and losses from investments .
8. A viatical settlement contract is an agreement between:
A) Two insurance companies.
B) A life insurance policyowner and a viatical settlement provider.
C) An employer and an employee.
D) A beneficiary and the state guaranty fund.
ANSWER: B) A life insurance policyowner and a viatical settlement provider.
Explanation: A viatical settlement allows a person who is terminally or chronically ill to sell their existing
life insurance policy to a thirdparty provider for a lump sum of cash, which is typically less than the
policy's death benefit .
Solutions exam materials for you. The following 100 questions cover all major topics, including life
insurance, health insurance, annuities, and key regulations, and each ANSWER is followed by a detailed
explanation to help you understand the reasoning behind it.
Xcel Solutions Life & Health Exam 20252026: 100 Practice Questions
1. The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
A) Charities
B) Political organizations
C) Insurance sales calls
D) Surveys
ANSWER: C) Insurance sales calls
Explanation: The Do Not Call Registry provides exemptions for calls from charities, political
organizations, and those conducting surveys. However, telemarketing calls, including those for insurance
sales, are not exempt and are prohibited unless there is an established business relationship .
2. The type of policy where the insurer can send a notice to the insured that the policy has been
cancelled in the middle of the term is called:
A) Guaranteed renewable
B) Cancelable
C) Noncancellable
D) Optionally renewable
ANSWER: B) Cancelable
,Explanation: A cancelable policy is a type of health insurance policy that allows the insurer to cancel the
policy or increase premiums at any time during the policy term, provided they give proper written notice
and refund any unearned premium .
3. Barbara's policy includes a rider which allows her to purchase additional insurance at specific dates or
events without evidence of insurability. This rider is called a(n):
A) Cost of Living rider
B) Guaranteed Insurability rider
C) Accidental Death rider
D) Waiver of Premium rider
ANSWER: B) Guaranteed Insurability rider
Explanation: A Guaranteed Insurability Rider (GIR) allows the policyowner to purchase additional
amounts of life insurance at specified future dates or events (e.g., marriage, birth of a child) without
having to provide proof of good health .
4. Disability Income plans which require that the insurer can NEVER change or alter premium rates are
usually considered:
A) Guaranteed renewable
B) Cancelable
C) Conditionally renewable
D) Noncancellable
ANSWER: D) Noncancellable
,Explanation: A noncancellable disability income policy guarantees that the policy cannot be canceled
and the premium rates cannot be increased for the life of the policy, as long as premiums are paid on
time .
5. In what part of an insurance policy are policy benefits found?
A) Insuring Clause
B) Exclusions
C) Declarations
D) Conditions
ANSWER: C) Declarations
Explanation: The Declarations page is a summary of the key information in the policy, including the
insured's name, the policy face amount, the premium, and specifically, the policy benefits that are being
provided .
6. What happens if the insurer discovers that the insured's age was accidentally misstated on an
application for an individual life insurance policy?
A) The policy is voided.
B) The premium is refunded.
C) Benefits will be calculated according to how much coverage the premium paid would have purchased
for the correct age.
D) The face amount is reduced by 50%.
ANSWER: C) Benefits will be calculated according to how much coverage the premium paid would have
purchased for the correct age.
, Explanation: The Misstatement of Age provision states that if the insured's age is misstated, the death
benefit payable will be adjusted to the amount that the premiums paid would have purchased at the
insured's correct age .
7. Health insurance will typically cover which of the following perils?
A) Injury due to accident
B) Loss from a speculative investment
C) Intentional selfharm
D) Warrelated injury
ANSWER: A) Injury due to accident
Explanation: Health insurance is designed to cover the financial consequences of accidental injury or
sickness. Most policies have exclusions for intentional acts, war, and losses from investments .
8. A viatical settlement contract is an agreement between:
A) Two insurance companies.
B) A life insurance policyowner and a viatical settlement provider.
C) An employer and an employee.
D) A beneficiary and the state guaranty fund.
ANSWER: B) A life insurance policyowner and a viatical settlement provider.
Explanation: A viatical settlement allows a person who is terminally or chronically ill to sell their existing
life insurance policy to a thirdparty provider for a lump sum of cash, which is typically less than the
policy's death benefit .
