XCEL TESTING SOLUTIONS FINAL EXAM 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔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.
✔✔Of the following dividend options, which of these is taxable? - ✔✔Accumulation at
interest
The accumulation at interest is a taxable dividend option.
✔✔A health insurance policy will typically cover - ✔✔preventative health services
Preventative health services are normally covered under a health insurance policy.
✔✔A guaranteed issue insurance policy has no - ✔✔medical underwriting
A guaranteed issue policy refers to an insurance policy with no medical underwriting.
✔✔An insurer, in general business practice, fails to promptly provide a reasonable
explanation for the denial of a claim. This is considered to be - ✔✔an unfair claim
settlement practice
Failing to promptly provide a reasonable explanation for the denial of a claim is
considered to be an unfair claim settlement practice.
✔✔Which of the following is a requirement for ANY change in an insurance application?
- ✔✔Change must be initialed by the applicant
Any changes in an insurance application MUST be initialed by the applicant.
✔✔A Medicare supplement plan can be canceled by the insurer - ✔✔for nonpayment of
premiums
An insurer can cancel a Medicare supplement plan after nonpayment of premiums.
✔✔Under group health insurance, a certificate of coverage is issued to the -
✔✔employee
Under group health insurance, a certificate of coverage is issued to the employee. The
employer is issued the master contract.
✔✔James is the insured on a life insurance policy where his age was misstated on the
application. Which of the following is CORRECT regarding the death benefit amount? -
✔✔The death benefit paid will be what the premium would have purchased at the
correct age
Under the Misstatement of Age provision, the amount paid will be what the premium
would have purchased at the correct age.
,✔✔A health insurance policy that allows an insurer to change the policyowner's
premiums, but NOT cancel the policy is called a(n) - ✔✔guaranteed renewable policy
An insurer has the right to change the premium for policyowners with a guaranteed
renewable policy, but CANNOT cancel the policy.
✔✔Which type of Medicare Supplement information can be used without prior state
approval? - ✔✔Government publications
Insurers can use government publications for communicating Medicare Supplement
information without prior state approval.
✔✔Which annuity payout option allows the policyowner to choose a pre-determined
number of benefit payments? - ✔✔period certain
An annuity where the policyowner chooses a pre-determined number of benefit
payments is called period certain.
✔✔An insurer must furnish to a claimant forms for filing proof of loss within ___ days
upon receiving a notice of claim. - ✔✔15
Upon receipt of notice of claim, the insurance company will furnish to the claimant forms
for filing proof of loss within 15 days.
✔✔Written notice for a health claim must be given to the insurer ___ days after the
occurrence of the loss. - ✔✔20
Written notice for a health claim must be given to the insurer 20 days after the
occurrence of the loss.
✔✔In an employer-sponsored contributory group Disability Income plan, the employer
pays 60% of the premium and each employee pays 40% of the premium. Any income
benefits paid are taxed to the employee at - ✔✔60% of the benefit
60% of an income benefit is taxed to the employee because 60% of the premiums paid
come from the employer.
✔✔An insurer need NOT pay interest on death benefits if the proceeds of the life policy
are paid within - ✔✔20 days after the date of the death of the insured
An insurer need not pay interest on benefits if the proceeds of the policy are paid within
20 days after the date of death of the insured.
✔✔Ted has a health insurance plan that requires him to pay a specific sum out of
pocket before any benefits are paid in a calendar year. Which of these does his health
plan have? - ✔✔Calendar-year deductible
✔✔Which of the following is NOT a common exclusion for a medical expense policy? -
✔✔Physical Therapy
, ✔✔All of the following actions are considered rebating EXCEPT - ✔✔sharing
commissions with other licensed and appointed agents
✔✔Jennifer is required to pay a specific sum out of pocket before any benefits are paid
in a year. Her health policy most likely contains a(n) - ✔✔deductible
A deductible is a stated initial dollar amount that the individual insured is required to pay
before insurance benefits are paid.
✔✔Life insurance policies can refuse to pay benefits for death from all of the following
causes of death EXCEPT - ✔✔heart attack
✔✔A life insurance policy normally contains a provision that restricts coverage in the
event of death under all of the following situations EXCEPT - ✔✔fare-paying passenger
A policy may contain provisions excluding or restricting coverage as specified in the
event of death under all of these situations EXCEPT a fare-paying passenger.
✔✔What types of life insurance are normally used for key employee indemnification? -
✔✔term, whole, and universal life insurance
The types of life insurance generally used to cover key employee indemnification are
term, whole, and universal life insurance.
✔✔An insurance producer is BEST defined as - ✔✔a person who has a contract with an
insurance company to represent it
"Insurance producer" or "producer" is a person required to be licensed pursuant to the
laws of this state to sell, solicit, or negotiate insurance.
✔✔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.
QUESTIONS AND SOLUTIONS RATED A+
✔✔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.
✔✔Of the following dividend options, which of these is taxable? - ✔✔Accumulation at
interest
The accumulation at interest is a taxable dividend option.
✔✔A health insurance policy will typically cover - ✔✔preventative health services
Preventative health services are normally covered under a health insurance policy.
✔✔A guaranteed issue insurance policy has no - ✔✔medical underwriting
A guaranteed issue policy refers to an insurance policy with no medical underwriting.
✔✔An insurer, in general business practice, fails to promptly provide a reasonable
explanation for the denial of a claim. This is considered to be - ✔✔an unfair claim
settlement practice
Failing to promptly provide a reasonable explanation for the denial of a claim is
considered to be an unfair claim settlement practice.
✔✔Which of the following is a requirement for ANY change in an insurance application?
- ✔✔Change must be initialed by the applicant
Any changes in an insurance application MUST be initialed by the applicant.
✔✔A Medicare supplement plan can be canceled by the insurer - ✔✔for nonpayment of
premiums
An insurer can cancel a Medicare supplement plan after nonpayment of premiums.
✔✔Under group health insurance, a certificate of coverage is issued to the -
✔✔employee
Under group health insurance, a certificate of coverage is issued to the employee. The
employer is issued the master contract.
✔✔James is the insured on a life insurance policy where his age was misstated on the
application. Which of the following is CORRECT regarding the death benefit amount? -
✔✔The death benefit paid will be what the premium would have purchased at the
correct age
Under the Misstatement of Age provision, the amount paid will be what the premium
would have purchased at the correct age.
,✔✔A health insurance policy that allows an insurer to change the policyowner's
premiums, but NOT cancel the policy is called a(n) - ✔✔guaranteed renewable policy
An insurer has the right to change the premium for policyowners with a guaranteed
renewable policy, but CANNOT cancel the policy.
✔✔Which type of Medicare Supplement information can be used without prior state
approval? - ✔✔Government publications
Insurers can use government publications for communicating Medicare Supplement
information without prior state approval.
✔✔Which annuity payout option allows the policyowner to choose a pre-determined
number of benefit payments? - ✔✔period certain
An annuity where the policyowner chooses a pre-determined number of benefit
payments is called period certain.
✔✔An insurer must furnish to a claimant forms for filing proof of loss within ___ days
upon receiving a notice of claim. - ✔✔15
Upon receipt of notice of claim, the insurance company will furnish to the claimant forms
for filing proof of loss within 15 days.
✔✔Written notice for a health claim must be given to the insurer ___ days after the
occurrence of the loss. - ✔✔20
Written notice for a health claim must be given to the insurer 20 days after the
occurrence of the loss.
✔✔In an employer-sponsored contributory group Disability Income plan, the employer
pays 60% of the premium and each employee pays 40% of the premium. Any income
benefits paid are taxed to the employee at - ✔✔60% of the benefit
60% of an income benefit is taxed to the employee because 60% of the premiums paid
come from the employer.
✔✔An insurer need NOT pay interest on death benefits if the proceeds of the life policy
are paid within - ✔✔20 days after the date of the death of the insured
An insurer need not pay interest on benefits if the proceeds of the policy are paid within
20 days after the date of death of the insured.
✔✔Ted has a health insurance plan that requires him to pay a specific sum out of
pocket before any benefits are paid in a calendar year. Which of these does his health
plan have? - ✔✔Calendar-year deductible
✔✔Which of the following is NOT a common exclusion for a medical expense policy? -
✔✔Physical Therapy
, ✔✔All of the following actions are considered rebating EXCEPT - ✔✔sharing
commissions with other licensed and appointed agents
✔✔Jennifer is required to pay a specific sum out of pocket before any benefits are paid
in a year. Her health policy most likely contains a(n) - ✔✔deductible
A deductible is a stated initial dollar amount that the individual insured is required to pay
before insurance benefits are paid.
✔✔Life insurance policies can refuse to pay benefits for death from all of the following
causes of death EXCEPT - ✔✔heart attack
✔✔A life insurance policy normally contains a provision that restricts coverage in the
event of death under all of the following situations EXCEPT - ✔✔fare-paying passenger
A policy may contain provisions excluding or restricting coverage as specified in the
event of death under all of these situations EXCEPT a fare-paying passenger.
✔✔What types of life insurance are normally used for key employee indemnification? -
✔✔term, whole, and universal life insurance
The types of life insurance generally used to cover key employee indemnification are
term, whole, and universal life insurance.
✔✔An insurance producer is BEST defined as - ✔✔a person who has a contract with an
insurance company to represent it
"Insurance producer" or "producer" is a person required to be licensed pursuant to the
laws of this state to sell, solicit, or negotiate insurance.
✔✔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.
