XCEL TESTING SOLUTIONS LATEST EXAM ACTUAL
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
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permanent insurance accumulates a reserve that will eventually - ✔✔equal the face
amount of the policy
Level premium permanent insurance accumulates a reserve that will eventually equal
the face amount of the policy.
✔✔A medical provider that accepts Medicare Assignment must - ✔✔accept payment
based upon a defined Medicare schedule as payment in full
A medical provider that accepts Medicare Assignment must accept payment based
upon a defined Medicare schedule as payment in full.
✔✔What happens when an insurance policy is backdated? - ✔✔The policy's effective
date is earlier than the present
Backdating on an insurance policy is the practice of making the policy effective on an
earlier date than the present.
✔✔Which type of multiple protection policy pays on the death of the last person? -
✔✔Survivorship life policy
A survivorship life policy pays on the death of the last person.
✔✔During the accumulation period, who can surrender an annuity? - ✔✔Policyowner
The policyowner is the only one who can surrender an annuity during the accumulation
period.
✔✔Which type of policy combines the flexibility of a universal life policy with investment
choices? - ✔✔Variable universal life policy
When the structure and flexibility of a universal life policy are combined with investment
choices, the result is a variable universal life policy.
✔✔A nonresident of Louisiana who has satisfied the licensing requirements for a line of
insurance in the licensee's state and who wishes to sell that line of insurance in
Louisiana, must meet all of the following requirements EXCEPT: - ✔✔Take the
appropriate Louisiana licensing examination
A nonresident licensee from another state is not required to take a licensing
examination if they are already in good standing with their state of residence.
✔✔An insurer's license to do business in Louisiana is called - ✔✔a certificate of
authority
An insurer's license to do business in Louisiana is called a certificate of authority.
, ✔✔When a company is licensed by the Department of Insurance to do business in this
state, it becomes - ✔✔An authorized company
When a company is licensed by the Department of Insurance to do business in this
state, it becomes an authorized company.
✔✔In Louisiana, a long-term care policy which lapses may be reinstated within five
months if - ✔✔The covered individual was mentally incapacitated
In Louisiana, a long-term care policy which lapses may be reinstated within five months
if the covered individual was mentally incapacitated.
✔✔Dorian exercised a nonforfeiture option by using his life policy's cash value to
purchase an extended term insurance option. When the term insurance expires, -
✔✔the protection ends
When the term insurance expires in an extended term option, there is no more
protection.
✔✔A health insurance policy covers the insured, the insured's spouse, and their child. If
additional children are born to the family, the health insurance policy must cover the
children - ✔✔From the date of birth
In this situation, the health insurance policy must cover the children from the date of
birth.
✔✔A securities license is required for a life insurance producer to sell - ✔✔variable life
insurance
A life insurance producer needs to possess a securities license to sell variable
annuities.
✔✔Susan is insured through her Group Health Insurance plan and changed her
coverage to an individual plan with the same insurer after her employment was
terminated. This change is called a(n) - ✔✔conversion
A conversion takes place when an insured individual changes his or her Group Health
Insurance to an individual policy with the same insurer at the termination of
employment.
✔✔Ron has a new employer and wishes to enroll in the company's group health plan. In
determining whether his pre-existing health condition applies, Ron cannot have more
than a ___ day gap without previous health insurance. - ✔✔63
Under HIPAA, a group health plan may not impose a pre-existing condition exclusion if
the person has had creditable medical coverage for at least 12 months as long as the
person had no more than 63 days with no coverage.
✔✔Which of these is NOT subject to income taxation under a Modified Endowment
Contract (MEC)? - ✔✔Death benefit
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
.
permanent insurance accumulates a reserve that will eventually - ✔✔equal the face
amount of the policy
Level premium permanent insurance accumulates a reserve that will eventually equal
the face amount of the policy.
✔✔A medical provider that accepts Medicare Assignment must - ✔✔accept payment
based upon a defined Medicare schedule as payment in full
A medical provider that accepts Medicare Assignment must accept payment based
upon a defined Medicare schedule as payment in full.
✔✔What happens when an insurance policy is backdated? - ✔✔The policy's effective
date is earlier than the present
Backdating on an insurance policy is the practice of making the policy effective on an
earlier date than the present.
✔✔Which type of multiple protection policy pays on the death of the last person? -
✔✔Survivorship life policy
A survivorship life policy pays on the death of the last person.
✔✔During the accumulation period, who can surrender an annuity? - ✔✔Policyowner
The policyowner is the only one who can surrender an annuity during the accumulation
period.
✔✔Which type of policy combines the flexibility of a universal life policy with investment
choices? - ✔✔Variable universal life policy
When the structure and flexibility of a universal life policy are combined with investment
choices, the result is a variable universal life policy.
✔✔A nonresident of Louisiana who has satisfied the licensing requirements for a line of
insurance in the licensee's state and who wishes to sell that line of insurance in
Louisiana, must meet all of the following requirements EXCEPT: - ✔✔Take the
appropriate Louisiana licensing examination
A nonresident licensee from another state is not required to take a licensing
examination if they are already in good standing with their state of residence.
✔✔An insurer's license to do business in Louisiana is called - ✔✔a certificate of
authority
An insurer's license to do business in Louisiana is called a certificate of authority.
, ✔✔When a company is licensed by the Department of Insurance to do business in this
state, it becomes - ✔✔An authorized company
When a company is licensed by the Department of Insurance to do business in this
state, it becomes an authorized company.
✔✔In Louisiana, a long-term care policy which lapses may be reinstated within five
months if - ✔✔The covered individual was mentally incapacitated
In Louisiana, a long-term care policy which lapses may be reinstated within five months
if the covered individual was mentally incapacitated.
✔✔Dorian exercised a nonforfeiture option by using his life policy's cash value to
purchase an extended term insurance option. When the term insurance expires, -
✔✔the protection ends
When the term insurance expires in an extended term option, there is no more
protection.
✔✔A health insurance policy covers the insured, the insured's spouse, and their child. If
additional children are born to the family, the health insurance policy must cover the
children - ✔✔From the date of birth
In this situation, the health insurance policy must cover the children from the date of
birth.
✔✔A securities license is required for a life insurance producer to sell - ✔✔variable life
insurance
A life insurance producer needs to possess a securities license to sell variable
annuities.
✔✔Susan is insured through her Group Health Insurance plan and changed her
coverage to an individual plan with the same insurer after her employment was
terminated. This change is called a(n) - ✔✔conversion
A conversion takes place when an insured individual changes his or her Group Health
Insurance to an individual policy with the same insurer at the termination of
employment.
✔✔Ron has a new employer and wishes to enroll in the company's group health plan. In
determining whether his pre-existing health condition applies, Ron cannot have more
than a ___ day gap without previous health insurance. - ✔✔63
Under HIPAA, a group health plan may not impose a pre-existing condition exclusion if
the person has had creditable medical coverage for at least 12 months as long as the
person had no more than 63 days with no coverage.
✔✔Which of these is NOT subject to income taxation under a Modified Endowment
Contract (MEC)? - ✔✔Death benefit
