XCEL TESTING SOLUTIONS COMPREHENSIVE EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Justin is receiving disability income benefits from a group policy paid for by his
employer. How are these benefits treated for tax purposes? - ✔✔Taxable income
Disability insurance benefits from a group policy paid for by an employer is considered
taxable income.
✔✔How is a health provider reimbursed if they do NOT have an agreement in place
with the insurance company? - ✔✔With a usual, customary, and reasonable fee
✔✔In order to qualify for a company convention, an insurance producer agrees to pay
the first quarterly premium for the applicant for new insurance. This is called a -
✔✔rebate
This situation is considered a rebate, which is illegal.
✔✔The Louisiana Health Plan is best described as - ✔✔A health insurance plan for
individuals who have been denied coverage elsewhere
The Louisiana Health Plan is best described as a health insurance plan for individuals
who have been denied coverage elsewhere.
✔✔The Commissioner may suspend a producer's license for all of the following reasons
EXCEPT - ✔✔Sharing commissions with other licensed producers
Sharing commissions with other licensed producers is allowed.
✔✔A life insurance policyowner was injured in an automobile accident which results in a
total and permanent disability. Which rider would pay a monthly amount because of this
disability? - ✔✔Disability income rider
The rider which pays a life insurance policyowner a monthly amount in the event of total
and permanent disability is called a disability income rider.
✔✔The waiting period for a disability insurance policy - ✔✔excludes payments for a
short-term illness or injury
With regard to disability insurance, the waiting (elimination) period is to exclude
payments for a short-term illness or injury.
✔✔Which of the following is considered to be an alternative to a life settlement? -
✔✔Accelerated death benefit rider
An alternative to a life settlement is an accelerated death benefit rider.
✔✔A licensed producer who changes a residential or business address must notify the
Commissioner within how many days? - ✔✔30
A licensed producer who changes a residential or business address must notify the
Commissioner within 30 days.
,✔✔If the annuitant dies before the annuity start date, - ✔✔the premiums paid plus
interest earned will be given to the beneficiary
If the annuitant dies before the annuity start date, the beneficiary receives the
premiums paid plus interest earned.
✔✔A limited payment whole life policy provides - ✔✔lifetime protection
Premiums on limited payment whole life insurance are paid for a limited number of
years, but the benefits last a lifetime.
✔✔The life insurance and annuity replacement regulation defines replacement as -
✔✔exchanging an existing policy for a new policy
Replacement regulation defines replacement as exchanging (or altering) an existing
policy for a new policy.
✔✔Claims settlement practices of insurers are regulated by: - ✔✔State insurance
departments
Claims settlement practices of insurers are regulated by state insurance departments.
✔✔Which is true about the licensing of business entities in Louisiana? - ✔✔A licensed
producer must be designated as responsible for compliance with state insurance laws
and regulations
A licensed producer must be designated as responsible for compliance with state
insurance laws and regulations.
✔✔A temporary producer's license is effective for - ✔✔180 days
A temporary producer's license is effective for 180 days.
✔✔G had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy? -
✔✔31 days
A person covered by a group policy also has the right to convert such coverage to an
individual policy within the conversion period (31 days) without proving insurability. If
this right is exercised, the employee is responsible for the payment of premium.
✔✔Which of the following types of deductibles would apply a single deductible to both
medical and dental insurance coverage? - ✔✔Integrated deductible
A single deductible applied to both medical and dental insurance coverage is referred
to as an integrated deductible.
✔✔What is the contract called that is issued to an employer for a Group Medical
Insurance plan? - ✔✔Master policy
A single contract for Group Medical Insurance issued to an employer is known as a
master policy.
, ✔✔An appointing insurer has how many days to file a notice of appointment with the
Commissioner? - ✔✔15
An appointing insurer has 15 days to file a notice of appointment with the
Commissioner.
✔✔The factor used most often when underwriting a disability income policy is -
✔✔annual earnings
✔✔Which of the following is NOT a required provision in an accident and health
insurance policy? - ✔✔change of occupation
The change of occupation provision is considered an OPTIONAL provision.
✔✔Which type of rider will waive the premium on a child's life insurance policy if the
parent paying the premium dies? - ✔✔Payor benefit
A payor benefit will waive the premium on a juvenile life insurance policy if the parent
paying the premium dies.
✔✔In small group accident and health plans, a late enrollee is an individual who -
✔✔elects coverage after the initial eligibility period
In small group accident and health plans, a late enrollee is an individual who elects
coverage after the initial eligibility period. The late enrollee may be required to provide
evidence of insurability.
✔✔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
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Justin is receiving disability income benefits from a group policy paid for by his
employer. How are these benefits treated for tax purposes? - ✔✔Taxable income
Disability insurance benefits from a group policy paid for by an employer is considered
taxable income.
✔✔How is a health provider reimbursed if they do NOT have an agreement in place
with the insurance company? - ✔✔With a usual, customary, and reasonable fee
✔✔In order to qualify for a company convention, an insurance producer agrees to pay
the first quarterly premium for the applicant for new insurance. This is called a -
✔✔rebate
This situation is considered a rebate, which is illegal.
✔✔The Louisiana Health Plan is best described as - ✔✔A health insurance plan for
individuals who have been denied coverage elsewhere
The Louisiana Health Plan is best described as a health insurance plan for individuals
who have been denied coverage elsewhere.
✔✔The Commissioner may suspend a producer's license for all of the following reasons
EXCEPT - ✔✔Sharing commissions with other licensed producers
Sharing commissions with other licensed producers is allowed.
✔✔A life insurance policyowner was injured in an automobile accident which results in a
total and permanent disability. Which rider would pay a monthly amount because of this
disability? - ✔✔Disability income rider
The rider which pays a life insurance policyowner a monthly amount in the event of total
and permanent disability is called a disability income rider.
✔✔The waiting period for a disability insurance policy - ✔✔excludes payments for a
short-term illness or injury
With regard to disability insurance, the waiting (elimination) period is to exclude
payments for a short-term illness or injury.
✔✔Which of the following is considered to be an alternative to a life settlement? -
✔✔Accelerated death benefit rider
An alternative to a life settlement is an accelerated death benefit rider.
✔✔A licensed producer who changes a residential or business address must notify the
Commissioner within how many days? - ✔✔30
A licensed producer who changes a residential or business address must notify the
Commissioner within 30 days.
,✔✔If the annuitant dies before the annuity start date, - ✔✔the premiums paid plus
interest earned will be given to the beneficiary
If the annuitant dies before the annuity start date, the beneficiary receives the
premiums paid plus interest earned.
✔✔A limited payment whole life policy provides - ✔✔lifetime protection
Premiums on limited payment whole life insurance are paid for a limited number of
years, but the benefits last a lifetime.
✔✔The life insurance and annuity replacement regulation defines replacement as -
✔✔exchanging an existing policy for a new policy
Replacement regulation defines replacement as exchanging (or altering) an existing
policy for a new policy.
✔✔Claims settlement practices of insurers are regulated by: - ✔✔State insurance
departments
Claims settlement practices of insurers are regulated by state insurance departments.
✔✔Which is true about the licensing of business entities in Louisiana? - ✔✔A licensed
producer must be designated as responsible for compliance with state insurance laws
and regulations
A licensed producer must be designated as responsible for compliance with state
insurance laws and regulations.
✔✔A temporary producer's license is effective for - ✔✔180 days
A temporary producer's license is effective for 180 days.
✔✔G had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy? -
✔✔31 days
A person covered by a group policy also has the right to convert such coverage to an
individual policy within the conversion period (31 days) without proving insurability. If
this right is exercised, the employee is responsible for the payment of premium.
✔✔Which of the following types of deductibles would apply a single deductible to both
medical and dental insurance coverage? - ✔✔Integrated deductible
A single deductible applied to both medical and dental insurance coverage is referred
to as an integrated deductible.
✔✔What is the contract called that is issued to an employer for a Group Medical
Insurance plan? - ✔✔Master policy
A single contract for Group Medical Insurance issued to an employer is known as a
master policy.
, ✔✔An appointing insurer has how many days to file a notice of appointment with the
Commissioner? - ✔✔15
An appointing insurer has 15 days to file a notice of appointment with the
Commissioner.
✔✔The factor used most often when underwriting a disability income policy is -
✔✔annual earnings
✔✔Which of the following is NOT a required provision in an accident and health
insurance policy? - ✔✔change of occupation
The change of occupation provision is considered an OPTIONAL provision.
✔✔Which type of rider will waive the premium on a child's life insurance policy if the
parent paying the premium dies? - ✔✔Payor benefit
A payor benefit will waive the premium on a juvenile life insurance policy if the parent
paying the premium dies.
✔✔In small group accident and health plans, a late enrollee is an individual who -
✔✔elects coverage after the initial eligibility period
In small group accident and health plans, a late enrollee is an individual who elects
coverage after the initial eligibility period. The late enrollee may be required to provide
evidence of insurability.
✔✔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
