XCEL TESTING SOLUTIONS EVALUATION EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
.
✔✔Sonya applied for a health insurance policy on April 1. Her agent submitted the
information to the insurance company on April 6. She paid the premium on May 15 with
the policy indicating the effective date being May 30. On which date would Sonya have
coverage? - ✔✔May 30
The "effective date" is the health insurance coverage start date.
✔✔Which situation would qualify an individual for receiving benefits from a qualified
long-term care policy? - ✔✔Becoming cognitively impaired (mentally ill)
A qualified long-term care policy must pay benefits when an individual is cognitively
impaired.
✔✔The limited period of time given to all members to sign up for a group health plan is
called the - ✔✔enrollment period
The enrollment period is a limited period of time during which all members may sign up
for a group plan.
✔✔When replacing individual health insurance, a producer should compare existing
benefits with the proposed new policy to determine if: - ✔✔Existing benefits would be
maintained under the new plan
When replacing individual health insurance, a producer should compare existing
benefits with the proposed new policy to determine if existing benefits would be
maintained under the new plan.
✔✔In a Long-Term Care policy, activities of daily living (ADL's) can be each of the
following EXCEPT - ✔✔Talking
Talking is not considered an activity of daily living (ADL) for Long-Term Care insurance
purposes.
Activities of daily living (ADLs) include bathing, dressing, eating, mobility, transferring,
toileting, and continence.
✔✔A Medicare Supplement Policy is - ✔✔designed to fill in the gaps of Part A and Part
B Medicare
A Medicare Supplement policy is designed to fill in the gaps of Part A and Part B
Medicare.
✔✔In order to act as an insurance producer, a business entity must do which of the
following? - ✔✔Obtain an insurance producer license
A business entity must obtain an insurance producer license in order to act as an
insurance producer.
,✔✔Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How
much will she pay if she incurs a loss of $1,500? - ✔✔$700
In this situation, the insured will pay $500 deductible plus $200 coinsurance = $700.
✔✔Which of these statements concerning Traditional IRAs is CORRECT? -
✔✔Earnings are taxable when withdrawn
Traditional IRA earnings are taxable when withdrawn.
✔✔Typically, Long-Term Disability benefits are coordinated with which benefit plan? -
✔✔Social Security
In most cases, Long-Term Disability benefits are coordinated with Social Security
benefits.
✔✔A producer is required to give an applicant for long-term care - ✔✔An outline of
coverage
An outline of coverage must be delivered to a prospective applicant for long-term care
insurance at the time of initial solicitation.
✔✔A disability income policy can prevent an insured from earning a higher income than
if he/she were working by utilizing - ✔✔benefit limits
To prevent an insured from earning a higher income than if he or she were working,
disability income policies utilize benefit limits.
✔✔All of the following are considered to be nonforfeiture options available to a
policyowner EXCEPT - ✔✔Reduction of Premium
All of these are nonforfeiture options EXCEPT Reduction of Premium.
✔✔A waiver of premium rider allows an insured to waive premium payments if the
insured is - ✔✔completely and permanently disabled
Under a waiver of premium rider, the company waives the right to receive a premium if
the insured individual is permanently and completely disabled.
✔✔Which type of annuity guarantees a stated number of income payments, whether or
not the annuitant is still alive to receive them? - ✔✔Life annuity certain
A life annuity certain provides a guaranteed minimum number of benefit payments,
whether the annuitant live or dies.
✔✔With a scheduled dental policy, how are covered expenses paid? - ✔✔Benefits are
limited to a specific maximum dollar amount per procedure
Benefits will be limited to a specific maximum dollar amount per procedure in a
scheduled dental policy.
, ✔✔Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which
phase is this annuity in? - ✔✔Accumulation period
Kathy's annuity is in the accumulation period.
✔✔Which of the following are considered viatical settlement providers in Louisiana? -
✔✔Licensed entities entering multiple agreements with terminally ill patients
Licensed entities entering multiple agreements with terminally ill patients can be
considered viatical settlement providers.
✔✔The type of multiple protection coverage that pays on the death of the last person is
called a(n) - ✔✔survivorship life policy
Under a multiple protective policy, the policy that pays on the death of the last person is
called a survivorship life policy.
✔✔A life insurance illustration showing future premiums being paid out of
nonguaranteed values must disclose that - ✔✔The policyowner may need to resume
premium payments depending on actual results
A life insurance illustration showing future premiums being paid out of nonguaranteed
values must disclose that the policyowner may need to resume premium payments
depending on actual results.
✔✔In a life or health insurance contract, "consideration" would be the - ✔✔statements
made in the application and the premium
The statements made in the application and the premium constitute "consideration" for
a life or health insurance policy.
✔✔The purpose of the Life and Health Insurance Guaranty Association is to -
✔✔ensure that claims filed against insolvent insurance companies will be paid
The Life and Health Guaranty Association was created to protect policyholders,
insureds, and beneficiaries of life insurance policies, health insurance policies, annuity
contracts and supplemental contracts when insurers fail to perform contractual
obligations due to financial impairment.
✔✔What is the primary reason for buying an annuity? - ✔✔Provide future economic
security
The main reason for purchasing an annuity is to provide future economic security.
✔✔A clause that allows an insurer the right to terminate coverage at any anniversary
date is called a(n) - ✔✔optional renewability clause
An optional renewability clause allows an insurer the unrestricted right to terminate
coverage at any anniversary or at any premium due date.
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
.
✔✔Sonya applied for a health insurance policy on April 1. Her agent submitted the
information to the insurance company on April 6. She paid the premium on May 15 with
the policy indicating the effective date being May 30. On which date would Sonya have
coverage? - ✔✔May 30
The "effective date" is the health insurance coverage start date.
✔✔Which situation would qualify an individual for receiving benefits from a qualified
long-term care policy? - ✔✔Becoming cognitively impaired (mentally ill)
A qualified long-term care policy must pay benefits when an individual is cognitively
impaired.
✔✔The limited period of time given to all members to sign up for a group health plan is
called the - ✔✔enrollment period
The enrollment period is a limited period of time during which all members may sign up
for a group plan.
✔✔When replacing individual health insurance, a producer should compare existing
benefits with the proposed new policy to determine if: - ✔✔Existing benefits would be
maintained under the new plan
When replacing individual health insurance, a producer should compare existing
benefits with the proposed new policy to determine if existing benefits would be
maintained under the new plan.
✔✔In a Long-Term Care policy, activities of daily living (ADL's) can be each of the
following EXCEPT - ✔✔Talking
Talking is not considered an activity of daily living (ADL) for Long-Term Care insurance
purposes.
Activities of daily living (ADLs) include bathing, dressing, eating, mobility, transferring,
toileting, and continence.
✔✔A Medicare Supplement Policy is - ✔✔designed to fill in the gaps of Part A and Part
B Medicare
A Medicare Supplement policy is designed to fill in the gaps of Part A and Part B
Medicare.
✔✔In order to act as an insurance producer, a business entity must do which of the
following? - ✔✔Obtain an insurance producer license
A business entity must obtain an insurance producer license in order to act as an
insurance producer.
,✔✔Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How
much will she pay if she incurs a loss of $1,500? - ✔✔$700
In this situation, the insured will pay $500 deductible plus $200 coinsurance = $700.
✔✔Which of these statements concerning Traditional IRAs is CORRECT? -
✔✔Earnings are taxable when withdrawn
Traditional IRA earnings are taxable when withdrawn.
✔✔Typically, Long-Term Disability benefits are coordinated with which benefit plan? -
✔✔Social Security
In most cases, Long-Term Disability benefits are coordinated with Social Security
benefits.
✔✔A producer is required to give an applicant for long-term care - ✔✔An outline of
coverage
An outline of coverage must be delivered to a prospective applicant for long-term care
insurance at the time of initial solicitation.
✔✔A disability income policy can prevent an insured from earning a higher income than
if he/she were working by utilizing - ✔✔benefit limits
To prevent an insured from earning a higher income than if he or she were working,
disability income policies utilize benefit limits.
✔✔All of the following are considered to be nonforfeiture options available to a
policyowner EXCEPT - ✔✔Reduction of Premium
All of these are nonforfeiture options EXCEPT Reduction of Premium.
✔✔A waiver of premium rider allows an insured to waive premium payments if the
insured is - ✔✔completely and permanently disabled
Under a waiver of premium rider, the company waives the right to receive a premium if
the insured individual is permanently and completely disabled.
✔✔Which type of annuity guarantees a stated number of income payments, whether or
not the annuitant is still alive to receive them? - ✔✔Life annuity certain
A life annuity certain provides a guaranteed minimum number of benefit payments,
whether the annuitant live or dies.
✔✔With a scheduled dental policy, how are covered expenses paid? - ✔✔Benefits are
limited to a specific maximum dollar amount per procedure
Benefits will be limited to a specific maximum dollar amount per procedure in a
scheduled dental policy.
, ✔✔Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which
phase is this annuity in? - ✔✔Accumulation period
Kathy's annuity is in the accumulation period.
✔✔Which of the following are considered viatical settlement providers in Louisiana? -
✔✔Licensed entities entering multiple agreements with terminally ill patients
Licensed entities entering multiple agreements with terminally ill patients can be
considered viatical settlement providers.
✔✔The type of multiple protection coverage that pays on the death of the last person is
called a(n) - ✔✔survivorship life policy
Under a multiple protective policy, the policy that pays on the death of the last person is
called a survivorship life policy.
✔✔A life insurance illustration showing future premiums being paid out of
nonguaranteed values must disclose that - ✔✔The policyowner may need to resume
premium payments depending on actual results
A life insurance illustration showing future premiums being paid out of nonguaranteed
values must disclose that the policyowner may need to resume premium payments
depending on actual results.
✔✔In a life or health insurance contract, "consideration" would be the - ✔✔statements
made in the application and the premium
The statements made in the application and the premium constitute "consideration" for
a life or health insurance policy.
✔✔The purpose of the Life and Health Insurance Guaranty Association is to -
✔✔ensure that claims filed against insolvent insurance companies will be paid
The Life and Health Guaranty Association was created to protect policyholders,
insureds, and beneficiaries of life insurance policies, health insurance policies, annuity
contracts and supplemental contracts when insurers fail to perform contractual
obligations due to financial impairment.
✔✔What is the primary reason for buying an annuity? - ✔✔Provide future economic
security
The main reason for purchasing an annuity is to provide future economic security.
✔✔A clause that allows an insurer the right to terminate coverage at any anniversary
date is called a(n) - ✔✔optional renewability clause
An optional renewability clause allows an insurer the unrestricted right to terminate
coverage at any anniversary or at any premium due date.
