XCEL LIFE INSURANCE EXAM 2026
PREMIUM REVIEW SET PROVIDING
DETAILED ANSWER KEY
◉With Disability Income insurance, an insurance company may
limit the monthly benefit amount a prospective policy holder may
obtain because of the insured's. Answer: Gross income at the time of
purchase
◉What is Medicare?. Answer: A hospital and medical expense
insurance program
◉Which of the following BEST describes how pre-admission
certification is used?. Answer: Used to prevent nonessential medical
costs
◉A group health policy's approved premium rate is guaranteed by
the insurer for an initial period of at LEAST __ months. Answer: 12
◉T is covered by two health insurance plans: a group plan through
his employer and his spouse's plan as a dependent. When T submits
a claim, his employer's plan is considered what type of carrier under
the Model Group Coordination of Benefits provision?. Answer:
Primary carrier
,◉A Universal Life policy is sometimes referred to as an unbundled
life policy because the owner can see the interest earned, expense
charges, and the. Answer: Cost of Insurance
◉Which statement is TRUE regarding a variable insurance life
policy?. Answer: A minimum guaranteed death benefit is provided
◉When a person returns to work after a period of total disability
but cannot earn as much as he or she did before the disability, this
situation is called which of the following?. Answer: Residual
disability
◉In NC, an insurer licensed to conduct business in NC, but domiciled
in New Jersey is called a(n). Answer: Foreign Company
◉Which of the following services is NOT included under
hospitalization expense coverage?. Answer: Surgical fees
◉Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling?. Answer:
Variable life
◉The underwriting process involves all of these, EXCEPT for?.
Answer: Policy loan
,◉Credit Life Insurance is:. Answer: issued in an amount not to
exceed the amount of the loan
◉Which of these actions should a producer take when submitting an
insurance application to an insurer?. Answer: Inform insurer of
referral information not included on the application
◉A policy of adhesion can only be modified by whom?. Answer: The
insurance company
◉What is the purpose of a policy summary?. Answer: It highlights
the critical parts of the policy issued
◉Which product would best serve a retired individual looking to
invest a lump-sum of money through an insurance company?.
Answer: Annuity
◉What type of life policy covers two people and pays the face
amount after the first one dies?. Answer: Joint Life Policy
◉An applicant's medical information received from the Medical
Information Bureau (MIB) may be furnished to the. Answer:
Applicant's physician
, ◉Which of the following BEST describes how a Preferred Provider
Organization (PPO) is less restrictive than a Health Maintenance
Organization (HMO)?. Answer: More physicians to choose from
◉An eligible employee has a MAXIMUM of ___ days after their first
day of employment to be added to group health coverage.. Answer:
90
◉How does a typical Variable Life Policy investment account grow?.
Answer: Through mutual funds, stocks, and bonds
◉A potential client, age 40, would like to purchase a whole life
policy that will accumulate cash value at a faster rate in the early
years of the policy. Which of these statements made by the producer
would be correct?. Answer: 20-Pay Life accumulates cash value
faster than straight life
◉Which of the following is a requirement for obtaining a resident
agent license?. Answer: Submit a valid email address to the
commissioner
◉K has inherited a large sum of money. K purchases an annuity with
this sum on July 1, and starts receiving payments August 1. These
payments will continue for as long as she and her spouse lives.
PREMIUM REVIEW SET PROVIDING
DETAILED ANSWER KEY
◉With Disability Income insurance, an insurance company may
limit the monthly benefit amount a prospective policy holder may
obtain because of the insured's. Answer: Gross income at the time of
purchase
◉What is Medicare?. Answer: A hospital and medical expense
insurance program
◉Which of the following BEST describes how pre-admission
certification is used?. Answer: Used to prevent nonessential medical
costs
◉A group health policy's approved premium rate is guaranteed by
the insurer for an initial period of at LEAST __ months. Answer: 12
◉T is covered by two health insurance plans: a group plan through
his employer and his spouse's plan as a dependent. When T submits
a claim, his employer's plan is considered what type of carrier under
the Model Group Coordination of Benefits provision?. Answer:
Primary carrier
,◉A Universal Life policy is sometimes referred to as an unbundled
life policy because the owner can see the interest earned, expense
charges, and the. Answer: Cost of Insurance
◉Which statement is TRUE regarding a variable insurance life
policy?. Answer: A minimum guaranteed death benefit is provided
◉When a person returns to work after a period of total disability
but cannot earn as much as he or she did before the disability, this
situation is called which of the following?. Answer: Residual
disability
◉In NC, an insurer licensed to conduct business in NC, but domiciled
in New Jersey is called a(n). Answer: Foreign Company
◉Which of the following services is NOT included under
hospitalization expense coverage?. Answer: Surgical fees
◉Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling?. Answer:
Variable life
◉The underwriting process involves all of these, EXCEPT for?.
Answer: Policy loan
,◉Credit Life Insurance is:. Answer: issued in an amount not to
exceed the amount of the loan
◉Which of these actions should a producer take when submitting an
insurance application to an insurer?. Answer: Inform insurer of
referral information not included on the application
◉A policy of adhesion can only be modified by whom?. Answer: The
insurance company
◉What is the purpose of a policy summary?. Answer: It highlights
the critical parts of the policy issued
◉Which product would best serve a retired individual looking to
invest a lump-sum of money through an insurance company?.
Answer: Annuity
◉What type of life policy covers two people and pays the face
amount after the first one dies?. Answer: Joint Life Policy
◉An applicant's medical information received from the Medical
Information Bureau (MIB) may be furnished to the. Answer:
Applicant's physician
, ◉Which of the following BEST describes how a Preferred Provider
Organization (PPO) is less restrictive than a Health Maintenance
Organization (HMO)?. Answer: More physicians to choose from
◉An eligible employee has a MAXIMUM of ___ days after their first
day of employment to be added to group health coverage.. Answer:
90
◉How does a typical Variable Life Policy investment account grow?.
Answer: Through mutual funds, stocks, and bonds
◉A potential client, age 40, would like to purchase a whole life
policy that will accumulate cash value at a faster rate in the early
years of the policy. Which of these statements made by the producer
would be correct?. Answer: 20-Pay Life accumulates cash value
faster than straight life
◉Which of the following is a requirement for obtaining a resident
agent license?. Answer: Submit a valid email address to the
commissioner
◉K has inherited a large sum of money. K purchases an annuity with
this sum on July 1, and starts receiving payments August 1. These
payments will continue for as long as she and her spouse lives.
