XCEL State Exam Simulator EXAM LATEST UPDATE 2025 ACTUAL EXAM
COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS |100%GUARANTEED
PASS!!!
What type of license is required for an individual who charges a fee to review an
insured's existing life insurance policy?
A) Life agent
B) Life and disability analyst
C) Life and disability counselor
D) Adjuster - CORRECT ANSWER-B) Life and disability analyst
Which of the following acts is NOT a Federal offense committed by an insurance agent?
A) Falsify records
B) Insurance fraud
C) Misrepresentation on an insurance application
D) Embezzlement - CORRECT ANSWER-C) Misrepresentation on an insurance
application
Christine has a health insurance policy that has been in force beyond the incontestable
period. The insurer has discovered that a fraudulent statement was made on the
application. What would the insurer have to pay on a claim, assuming this wasn't a
guaranteed renewable policy?
A) 100% of the claim's amount
B) Nothing
C) 50% of the claim's amount
D) 75% of the claim's amount - CORRECT ANSWER-B) Nothing
Medicare Part A does not pay for medical benefits provided for treatment in a skilled
nursing facility beyond
A) 100 days
B) 120 days
C) 30 days
D) 60 days - CORRECT ANSWER-A) 100 days
When an applicant applies for insurance, the process by which the insurer determines
whether to issue a policy is called
A) regulation
B) issuance
C) adverse selection
D) underwriting - CORRECT ANSWER-D) underwriting
,Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies,
this income will become payable to their children for the remainder of the period. Kristi
has what kind of annuity?
A) Joint life with period certain
B) Life annuity with survivorship
C) Survivorship annuity
D) Temporary annuity certain - CORRECT ANSWER-D) Temporary annuity certain
Phil is shopping for an annuity that guarantees he
CANNOT outlive the benefits. Which of these benefit options would he choose?
A) Accelerated lifetime benefit
B) Guaranteed lifetime withdrawal benefit
C) Right of income rider
D) Guaranteed minimum accumulation benefit - CORRECT ANSWER-B) Guaranteed
lifetime withdrawal benefit
The guaranteed lifetime withdrawal benefit normally requires a fee, but it ensures that
the income benefit will be paid for life without actually annuitizing the contract.
Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called
A) variable payout
B) fixed accumulation
C) interest guaranteed
D) annuity certain - CORRECT ANSWER-D) annuity certain
How are annuities given favorable tax treatment?
A) Gains are tax deductible
B) Gains are tax exempt at distribution
C) Gains are taxed at distribution
D) Gains are converted to tax credits - CORRECT ANSWER-C) Gains are taxed at
distribution
Which type of annuity stops all payments upon the death of the annuitant?
A) Life annuity
B) Period certain annuity
C) Cash refund annuity
D) Joint and survivor annuity - CORRECT ANSWER-A) Life annuity
The systematic liquidation of a sum of money is provided by a(n)
,A) annuity
B) endowment contract
C) life insurance policy
D) 1035 contract exchange - CORRECT ANSWER-A) annuity
A savings vehicle designed to first accumulate funds and then systematically liquidates
the funds is called a(n)
A) immediate annuity
B) deferred annuity
C) endowment
D) whole life policy - CORRECT ANSWER-B) deferred annuity
Lisa has recently bought a fixed annuity. Which of these is considered to be a
disadvantage of owning this type of annuity?
A) Payments cease 5 years after the annuitant's death
B) During periods of inflation, annuitants will experience an increase in purchasing
power of their payments
C) During periods of inflation, annuitants will experience a decrease in purchasing
power of their payments
D) Payment amounts can be unpredictable from month to month - CORRECT
ANSWER-C) During periods of inflation, annuitants will experience a decrease in
purchasing power of their payments
An annuity is primarily used to provide
A) retirement income
B) disability income
C) long-term care benefits
D) death benefits - CORRECT ANSWER-A) retirement income
Which of these will have the highest monthly payout upon annuitization?
A) Life with period certain
B) Joint and survivor life
C) Straight life
D) Joint life - CORRECT ANSWER-C) Straight life
Which of these is NOT considered to be a purpose of an annuity?
A) Annuities are intended to create an estate
B) Annuities are intended to liquidate an estate
C) Annuities are intended for the tax-free growth of principal
, D) Annuities are intended to distribute accumulated principal - CORRECT ANSWER-A)
Annuities are intended to create an estate
According to the PPACA, the medical enrollment tier that has 80% actuarial value is
called
A) bronze
B) platinum
C) gold
D) silver - CORRECT ANSWER-C) gold
People with low income can be provided with medical assistance through which
program?
A)HSA
B) Medicare
C) Medi-Cal
D) Social Security - CORRECT ANSWER-C) Medi-Cal
What is a corridor in relation to a Universal Life insurance
policy?
A) The gap between when a claim is filed and when the death benefit is received
B) The gap between the total death benefit and the policy's cash value
C) The amount of interest that has accumulated in the policy's
cash value
D) The point in time when the policy's cash value reaches $0 - CORRECT ANSWER-B)
The gap between the total death benefit and the policy's cash value
Which of the following statements is TRUE about Medicaid?
A) Coverage includes compulsory hospital and voluntary supplementary medical
insurance
B) It is funded by federal, state, and local taxes
C) It is administered by the Federal government
D) It is health insurance for the elderly - CORRECT ANSWER-B) It is funded by federal,
state, and local taxes
What type of changes can be made to a guaranteed renewable health insurance policy?
A) The incontestability period
B) The policy's provisions
C) The premium rates of the policyowner
D) The grace period - CORRECT ANSWER-C) The premium rates of the policyowner
Which of the following statements about aleatory contracts is NOT true?
COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS |100%GUARANTEED
PASS!!!
What type of license is required for an individual who charges a fee to review an
insured's existing life insurance policy?
A) Life agent
B) Life and disability analyst
C) Life and disability counselor
D) Adjuster - CORRECT ANSWER-B) Life and disability analyst
Which of the following acts is NOT a Federal offense committed by an insurance agent?
A) Falsify records
B) Insurance fraud
C) Misrepresentation on an insurance application
D) Embezzlement - CORRECT ANSWER-C) Misrepresentation on an insurance
application
Christine has a health insurance policy that has been in force beyond the incontestable
period. The insurer has discovered that a fraudulent statement was made on the
application. What would the insurer have to pay on a claim, assuming this wasn't a
guaranteed renewable policy?
A) 100% of the claim's amount
B) Nothing
C) 50% of the claim's amount
D) 75% of the claim's amount - CORRECT ANSWER-B) Nothing
Medicare Part A does not pay for medical benefits provided for treatment in a skilled
nursing facility beyond
A) 100 days
B) 120 days
C) 30 days
D) 60 days - CORRECT ANSWER-A) 100 days
When an applicant applies for insurance, the process by which the insurer determines
whether to issue a policy is called
A) regulation
B) issuance
C) adverse selection
D) underwriting - CORRECT ANSWER-D) underwriting
,Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies,
this income will become payable to their children for the remainder of the period. Kristi
has what kind of annuity?
A) Joint life with period certain
B) Life annuity with survivorship
C) Survivorship annuity
D) Temporary annuity certain - CORRECT ANSWER-D) Temporary annuity certain
Phil is shopping for an annuity that guarantees he
CANNOT outlive the benefits. Which of these benefit options would he choose?
A) Accelerated lifetime benefit
B) Guaranteed lifetime withdrawal benefit
C) Right of income rider
D) Guaranteed minimum accumulation benefit - CORRECT ANSWER-B) Guaranteed
lifetime withdrawal benefit
The guaranteed lifetime withdrawal benefit normally requires a fee, but it ensures that
the income benefit will be paid for life without actually annuitizing the contract.
Maria would like an annuity that provides a guaranteed accumulation or payout. The
type of annuity she is seeking is called
A) variable payout
B) fixed accumulation
C) interest guaranteed
D) annuity certain - CORRECT ANSWER-D) annuity certain
How are annuities given favorable tax treatment?
A) Gains are tax deductible
B) Gains are tax exempt at distribution
C) Gains are taxed at distribution
D) Gains are converted to tax credits - CORRECT ANSWER-C) Gains are taxed at
distribution
Which type of annuity stops all payments upon the death of the annuitant?
A) Life annuity
B) Period certain annuity
C) Cash refund annuity
D) Joint and survivor annuity - CORRECT ANSWER-A) Life annuity
The systematic liquidation of a sum of money is provided by a(n)
,A) annuity
B) endowment contract
C) life insurance policy
D) 1035 contract exchange - CORRECT ANSWER-A) annuity
A savings vehicle designed to first accumulate funds and then systematically liquidates
the funds is called a(n)
A) immediate annuity
B) deferred annuity
C) endowment
D) whole life policy - CORRECT ANSWER-B) deferred annuity
Lisa has recently bought a fixed annuity. Which of these is considered to be a
disadvantage of owning this type of annuity?
A) Payments cease 5 years after the annuitant's death
B) During periods of inflation, annuitants will experience an increase in purchasing
power of their payments
C) During periods of inflation, annuitants will experience a decrease in purchasing
power of their payments
D) Payment amounts can be unpredictable from month to month - CORRECT
ANSWER-C) During periods of inflation, annuitants will experience a decrease in
purchasing power of their payments
An annuity is primarily used to provide
A) retirement income
B) disability income
C) long-term care benefits
D) death benefits - CORRECT ANSWER-A) retirement income
Which of these will have the highest monthly payout upon annuitization?
A) Life with period certain
B) Joint and survivor life
C) Straight life
D) Joint life - CORRECT ANSWER-C) Straight life
Which of these is NOT considered to be a purpose of an annuity?
A) Annuities are intended to create an estate
B) Annuities are intended to liquidate an estate
C) Annuities are intended for the tax-free growth of principal
, D) Annuities are intended to distribute accumulated principal - CORRECT ANSWER-A)
Annuities are intended to create an estate
According to the PPACA, the medical enrollment tier that has 80% actuarial value is
called
A) bronze
B) platinum
C) gold
D) silver - CORRECT ANSWER-C) gold
People with low income can be provided with medical assistance through which
program?
A)HSA
B) Medicare
C) Medi-Cal
D) Social Security - CORRECT ANSWER-C) Medi-Cal
What is a corridor in relation to a Universal Life insurance
policy?
A) The gap between when a claim is filed and when the death benefit is received
B) The gap between the total death benefit and the policy's cash value
C) The amount of interest that has accumulated in the policy's
cash value
D) The point in time when the policy's cash value reaches $0 - CORRECT ANSWER-B)
The gap between the total death benefit and the policy's cash value
Which of the following statements is TRUE about Medicaid?
A) Coverage includes compulsory hospital and voluntary supplementary medical
insurance
B) It is funded by federal, state, and local taxes
C) It is administered by the Federal government
D) It is health insurance for the elderly - CORRECT ANSWER-B) It is funded by federal,
state, and local taxes
What type of changes can be made to a guaranteed renewable health insurance policy?
A) The incontestability period
B) The policy's provisions
C) The premium rates of the policyowner
D) The grace period - CORRECT ANSWER-C) The premium rates of the policyowner
Which of the following statements about aleatory contracts is NOT true?
