XCEL TESTING SOLUTIONS EXAMS SCRIPT 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Which of these would NOT be considered a presumptive disability? - ✔✔Loss of a
leg or arm
The loss of ONE arm or a leg is NOT considered a presumptive disability.
✔✔A producer's license in Louisiana must be renewed every - ✔✔Two years
Producer licenses are issued for periods of 2 years.
✔✔Bill requires some nursing care and supervision but NOT full-time care. Which of
these nursing home options would best serve him? - ✔✔Assisted living
An assisted living facility would best suit an individual who needs some nursing care
and supervision but not full-time care.
✔✔The open enrollment period for Medicare Supplements begins at age - ✔✔65
Open enrollment for Medicare Supplements begins at the age the individual becomes
eligible for Medicare, which is typically age 65.
✔✔Mark continues working after the age of 65 and is covered through his employer's
group health plan. Which of the following statements is TRUE? - ✔✔Medicare is the
secondary payer
If an individual continues to work after the age of 65 and keeps the group plan, primary
coverage comes from the group insurance plan and Medicare is considered the
secondary payer.
✔✔A whole life policy option where extended term insurance is selected is called a(n) -
✔✔nonforfeiture option
A nonforfeiture provision in a whole life policy that uses cash value to purchase term
insurance equal to the existing amount of life insurance is called the extended term
option.
✔✔The Commissioner must examine the financial affairs of each admitted insurer
operating in Louisiana at least once every how many years? - ✔✔5
At the very least, an admitted company shall be examined once every 5 years by the
Commissioner.
✔✔When a Medicare supplement policy is purchased during the open enrollment period
- ✔✔the policy must be issued regardless of health status
During open enrollment for Medicare supplements, policies will be issued regardless of
health status.
,✔✔Which of the following actions may an insurance company NOT do in a health policy
that contains a guaranteed renewable premium benefit? - ✔✔Increase the premiums on
an individual basis
A guaranteed renewable policy CANNOT increase the premiums on an individual basis,
only on the basis of an entire classification.
✔✔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.
✔✔A life insurance policy that has premiums fully paid up within a stated time period is
called - ✔✔limited payment insurance
Limited payment insurance is characterized by premiums that are fully paid up within a
stated period, after which no further premiums are required.
✔✔The taxable portion of each annuity payment is calculated using which method? -
✔✔Exclusion Ratio
The Exclusion Ratio is used to determine the taxable portion of each annuity payment.
✔✔How are annuities given favorable tax treatment? - ✔✔Gains are taxed at
distribution
Annuity gains are typically tax deferred until distribution.
✔✔All _____ policies must be guaranteed renewable. - ✔✔long-term care
All long-term care policies must be guaranteed renewable.
✔✔Which type of business insurance is meant to cover the costs of continuing to do
business while the owner is disabled? - ✔✔Business overhead expense policy
A form of business disability insurance that is designed to cover the actual costs of
continuing to do business while an insured business owner is disabled is called a
business overhead expense policy.
✔✔Which of these is NOT a characteristic of the Accelerated Death Benefit option? -
✔✔The benefit can be offered as a rider at a specific extra cost or may be at no cost
Accelerated Death Benefit options are offered with NO increase in premium.
✔✔What is a condition for which medical advice or treatment was recommended by or
received from a provider of health care service within six months preceding the effective
date of an individual long-term care policy? - ✔✔Pre-existing condition
, In an individual long-term care policy, a pre-existing condition is a condition for which
medical advice or treatment was recommended by or received from a provider of health
care service within six months preceding the effective date.
✔✔A producer who is licensed in Louisiana but resident in another state is called a -
✔✔nonresident producer
A producer licensed in Louisiana but a resident in another state is called a nonresident
producer.
✔✔The typical long-term care insurance policy is designed to provide a minimum of __
year(s) of coverage. - ✔✔1
Long-term care insurance in any insurance policy is designed to provide coverage for a
minimum benefit period of 1 year.
✔✔To receive an insurance license an applicant must - ✔✔Apply for the license after
passing the appropriate examination
An applicant must apply for the license after passing the appropriate examination in
order to receive an insurance license.
✔✔A cease and desist order issued against a producer - ✔✔Prohibits a specific practice
listed in the order
A cease and desist order issued against a producer prohibits a specific practice listed
in the order.
✔✔How are survivorship life insurance policies helpful in estate planning? - ✔✔Provide
funds to help pay taxes
Survivorship life insurance policies are useful in estate planning because they can
provide money to pay taxes on assets.
✔✔When can a group health policy renewal be denied according to the Health
Insurance Portability and Accountability Act (HIPAA)? - ✔✔When contribution or
participation rules have been violated
According to HIPAA, a group health policy renewal can be denied when participation or
contribution rules have been violated.
✔✔Credit Accident and Health plans are designed to - ✔✔help pay off existing loans
during periods of disability
Credit Accident and Health plans are designed to help pay off existing loans during
periods of disability.
✔✔What amount will be paid under a policy where the insured misstated his/her age? -
✔✔An amount the premium would have purchased at the correct age
The misstatement of age provision allows the insurer to adjust the benefit payable if the
age of the insured was misstated when application for the policy was made.
QUESTIONS AND SOLUTIONS RATED A+
✔✔Which of these would NOT be considered a presumptive disability? - ✔✔Loss of a
leg or arm
The loss of ONE arm or a leg is NOT considered a presumptive disability.
✔✔A producer's license in Louisiana must be renewed every - ✔✔Two years
Producer licenses are issued for periods of 2 years.
✔✔Bill requires some nursing care and supervision but NOT full-time care. Which of
these nursing home options would best serve him? - ✔✔Assisted living
An assisted living facility would best suit an individual who needs some nursing care
and supervision but not full-time care.
✔✔The open enrollment period for Medicare Supplements begins at age - ✔✔65
Open enrollment for Medicare Supplements begins at the age the individual becomes
eligible for Medicare, which is typically age 65.
✔✔Mark continues working after the age of 65 and is covered through his employer's
group health plan. Which of the following statements is TRUE? - ✔✔Medicare is the
secondary payer
If an individual continues to work after the age of 65 and keeps the group plan, primary
coverage comes from the group insurance plan and Medicare is considered the
secondary payer.
✔✔A whole life policy option where extended term insurance is selected is called a(n) -
✔✔nonforfeiture option
A nonforfeiture provision in a whole life policy that uses cash value to purchase term
insurance equal to the existing amount of life insurance is called the extended term
option.
✔✔The Commissioner must examine the financial affairs of each admitted insurer
operating in Louisiana at least once every how many years? - ✔✔5
At the very least, an admitted company shall be examined once every 5 years by the
Commissioner.
✔✔When a Medicare supplement policy is purchased during the open enrollment period
- ✔✔the policy must be issued regardless of health status
During open enrollment for Medicare supplements, policies will be issued regardless of
health status.
,✔✔Which of the following actions may an insurance company NOT do in a health policy
that contains a guaranteed renewable premium benefit? - ✔✔Increase the premiums on
an individual basis
A guaranteed renewable policy CANNOT increase the premiums on an individual basis,
only on the basis of an entire classification.
✔✔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.
✔✔A life insurance policy that has premiums fully paid up within a stated time period is
called - ✔✔limited payment insurance
Limited payment insurance is characterized by premiums that are fully paid up within a
stated period, after which no further premiums are required.
✔✔The taxable portion of each annuity payment is calculated using which method? -
✔✔Exclusion Ratio
The Exclusion Ratio is used to determine the taxable portion of each annuity payment.
✔✔How are annuities given favorable tax treatment? - ✔✔Gains are taxed at
distribution
Annuity gains are typically tax deferred until distribution.
✔✔All _____ policies must be guaranteed renewable. - ✔✔long-term care
All long-term care policies must be guaranteed renewable.
✔✔Which type of business insurance is meant to cover the costs of continuing to do
business while the owner is disabled? - ✔✔Business overhead expense policy
A form of business disability insurance that is designed to cover the actual costs of
continuing to do business while an insured business owner is disabled is called a
business overhead expense policy.
✔✔Which of these is NOT a characteristic of the Accelerated Death Benefit option? -
✔✔The benefit can be offered as a rider at a specific extra cost or may be at no cost
Accelerated Death Benefit options are offered with NO increase in premium.
✔✔What is a condition for which medical advice or treatment was recommended by or
received from a provider of health care service within six months preceding the effective
date of an individual long-term care policy? - ✔✔Pre-existing condition
, In an individual long-term care policy, a pre-existing condition is a condition for which
medical advice or treatment was recommended by or received from a provider of health
care service within six months preceding the effective date.
✔✔A producer who is licensed in Louisiana but resident in another state is called a -
✔✔nonresident producer
A producer licensed in Louisiana but a resident in another state is called a nonresident
producer.
✔✔The typical long-term care insurance policy is designed to provide a minimum of __
year(s) of coverage. - ✔✔1
Long-term care insurance in any insurance policy is designed to provide coverage for a
minimum benefit period of 1 year.
✔✔To receive an insurance license an applicant must - ✔✔Apply for the license after
passing the appropriate examination
An applicant must apply for the license after passing the appropriate examination in
order to receive an insurance license.
✔✔A cease and desist order issued against a producer - ✔✔Prohibits a specific practice
listed in the order
A cease and desist order issued against a producer prohibits a specific practice listed
in the order.
✔✔How are survivorship life insurance policies helpful in estate planning? - ✔✔Provide
funds to help pay taxes
Survivorship life insurance policies are useful in estate planning because they can
provide money to pay taxes on assets.
✔✔When can a group health policy renewal be denied according to the Health
Insurance Portability and Accountability Act (HIPAA)? - ✔✔When contribution or
participation rules have been violated
According to HIPAA, a group health policy renewal can be denied when participation or
contribution rules have been violated.
✔✔Credit Accident and Health plans are designed to - ✔✔help pay off existing loans
during periods of disability
Credit Accident and Health plans are designed to help pay off existing loans during
periods of disability.
✔✔What amount will be paid under a policy where the insured misstated his/her age? -
✔✔An amount the premium would have purchased at the correct age
The misstatement of age provision allows the insurer to adjust the benefit payable if the
age of the insured was misstated when application for the policy was made.
