Xcel Life Insurance Exam With Correct Answers 2025.
When does an immediate annuity begin making payments? - ANSWER- After multiple premiums
have been paid
Matt is applying for life insurance and requests a double indemnity rider. A double indemnity
benefit will be payable to Matt's beneficiary if Matt - ANSWER- dies instantly from a car
accident
Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is
called - ANSWER- estate conservation
An accident and health insurer has just received written proof of loss from one of its insureds.
The insured must now wait 60 days before - ANSWER- bringing legal action agaínst the insurer
In a Long-Term Care policy, activities of daily living (ADL's) can be each of the following
EXCEPT - ANSWER- Talking
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
ANSWER- 10 days
Legal purpose is a term used in contract law meaning - ANSWER- there must be legal reasons
for entering into the contract
Which of the following is INELIGIBLE to participate in a Section 125 Plan? - ANSWER- An S-
Corp Owner with a greater than 2% share
Which of the following pertains to the analysis of an applicant's personal information and
determining whether insurance should be issued or declined? - ANSWER- Underwriting
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary? - ANSWER- Life income
Which of the following is NOT an eligible dependent on an Accident and Health policy? -
ANSWER- 27 year old married child
A life settlement broker is someone who is - ANSWER- licensed to negotiate a life settlement
contract
Within how many days must a rollover be completed in order to avoid being taxed as current
income? - ANSWER- O 60
All of the following are typically included in a life insurance policy illustration EXCEPT -
ANSWER- Names of the beneficiaries
An employer may qualify for health care tax credits through SHOP Marketplace if that
employer has fewer than how many employees? - ANSWER- 25
The amount received for a life insurance policy in a life settlement is _________ than the death
benefit. - ANSWER- less
, A Medicare Supplement policy must NOT contain benefits which - ANSWER- duplicate
Medicare benefits
When does a life insurance policy typically become effective? - ANSWER- When initial premium
is collected and policy is issued
The Federal Employees Benefit Program consists of two types of health plans for federal
civilian employees. The two plans are fee-for-service and - ANSWER- prepaid
Premium mode is a term used to describe the - ANSWER- frequency of the premium payment
How are health plans classified according to the Affordable Care Act? - ANSWER- Bronze,
Silver, Gold, Platinum
Which of the following is NOT covered by New York workers compensation laws? - ANSWER-
OOn-the-job injury that was both intentional and self-inflicted
What happens when an insurance policy is backdated? - ANSWER- The policy's effective date
is earlier than the present
An example of misrepresentation is - ANSWER- providing incorrect, misleading, incomplete, or
materially untrue information in the license application
Health insurance will typically cover which of the following perils? - ANSWER- Injury due to
accident
What is a corridor in relation to a Universal Life insurance policy? - ANSWER- The gap between
the total death benefit and the policy's cash value
due date where she can still make payment and avoid Janice forgot to make her insurance
premium payment by the due date. The specified period after the discontinuance of her
coverage is called the - ANSWER- grace period
Group accident and health insurance policies issued in New York must generally include an
unmarried dependent child who is_____ years old or younger. - ANSWER- 19
The purpose of Medicare Supplement Insurance is to address gaps in Medicare coverage,
which can include - ANSWER- Medicare in-hospital deductible
Which of the following enables a life policy to be replaced with another life policy and results
in the postponement of the tax consequence? - ANSWER- Section 1035 exchange
Employees are required to work at least _________hours per week to become eligible for a small
employer health plan - ANSWER- 20
After year(s) from date of issue, an individual health insurance policy can no longer be
cancelled by the insurer for misstatements (except for fraud). - ANSWER- 2
Major Medical expense plans provide coverage for each of the following EXCEPT - ANSWER-
Work-related injuries
When does an immediate annuity begin making payments? - ANSWER- After multiple premiums
have been paid
Matt is applying for life insurance and requests a double indemnity rider. A double indemnity
benefit will be payable to Matt's beneficiary if Matt - ANSWER- dies instantly from a car
accident
Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is
called - ANSWER- estate conservation
An accident and health insurer has just received written proof of loss from one of its insureds.
The insured must now wait 60 days before - ANSWER- bringing legal action agaínst the insurer
In a Long-Term Care policy, activities of daily living (ADL's) can be each of the following
EXCEPT - ANSWER- Talking
Kathy pays a monthly premium on her health insurance policy. How long is her grace period? -
ANSWER- 10 days
Legal purpose is a term used in contract law meaning - ANSWER- there must be legal reasons
for entering into the contract
Which of the following is INELIGIBLE to participate in a Section 125 Plan? - ANSWER- An S-
Corp Owner with a greater than 2% share
Which of the following pertains to the analysis of an applicant's personal information and
determining whether insurance should be issued or declined? - ANSWER- Underwriting
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary? - ANSWER- Life income
Which of the following is NOT an eligible dependent on an Accident and Health policy? -
ANSWER- 27 year old married child
A life settlement broker is someone who is - ANSWER- licensed to negotiate a life settlement
contract
Within how many days must a rollover be completed in order to avoid being taxed as current
income? - ANSWER- O 60
All of the following are typically included in a life insurance policy illustration EXCEPT -
ANSWER- Names of the beneficiaries
An employer may qualify for health care tax credits through SHOP Marketplace if that
employer has fewer than how many employees? - ANSWER- 25
The amount received for a life insurance policy in a life settlement is _________ than the death
benefit. - ANSWER- less
, A Medicare Supplement policy must NOT contain benefits which - ANSWER- duplicate
Medicare benefits
When does a life insurance policy typically become effective? - ANSWER- When initial premium
is collected and policy is issued
The Federal Employees Benefit Program consists of two types of health plans for federal
civilian employees. The two plans are fee-for-service and - ANSWER- prepaid
Premium mode is a term used to describe the - ANSWER- frequency of the premium payment
How are health plans classified according to the Affordable Care Act? - ANSWER- Bronze,
Silver, Gold, Platinum
Which of the following is NOT covered by New York workers compensation laws? - ANSWER-
OOn-the-job injury that was both intentional and self-inflicted
What happens when an insurance policy is backdated? - ANSWER- The policy's effective date
is earlier than the present
An example of misrepresentation is - ANSWER- providing incorrect, misleading, incomplete, or
materially untrue information in the license application
Health insurance will typically cover which of the following perils? - ANSWER- Injury due to
accident
What is a corridor in relation to a Universal Life insurance policy? - ANSWER- The gap between
the total death benefit and the policy's cash value
due date where she can still make payment and avoid Janice forgot to make her insurance
premium payment by the due date. The specified period after the discontinuance of her
coverage is called the - ANSWER- grace period
Group accident and health insurance policies issued in New York must generally include an
unmarried dependent child who is_____ years old or younger. - ANSWER- 19
The purpose of Medicare Supplement Insurance is to address gaps in Medicare coverage,
which can include - ANSWER- Medicare in-hospital deductible
Which of the following enables a life policy to be replaced with another life policy and results
in the postponement of the tax consequence? - ANSWER- Section 1035 exchange
Employees are required to work at least _________hours per week to become eligible for a small
employer health plan - ANSWER- 20
After year(s) from date of issue, an individual health insurance policy can no longer be
cancelled by the insurer for misstatements (except for fraud). - ANSWER- 2
Major Medical expense plans provide coverage for each of the following EXCEPT - ANSWER-
Work-related injuries
