Xcel Solutions - Final Exam Questions
with Correct Answers 2025
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an
automobile accident, where would the death proceeds be directed? - CORRECT ANSWER -
Daughter
When is a Group Health policy required to provide coverage for a newborn child? - CORRECT
ANSWER -At the moment of birth
What is the required renewability status of all Medicare supplement policies? - CORRECT
ANSWER -Guaranteed renewable
Who issues Medicare Supplement policies? - CORRECT ANSWER -insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived
due to disability? - CORRECT ANSWER -P will still receive declared dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? -
CORRECT ANSWER -20-pay life
The Nevada Insurance Guaranty Association - CORRECT ANSWER -protects Nevada insurance
policy owners in the event an insurance company becomes insolvent
The most important factor to consider when determining whether to convert term insurance at
the insured's attained age or to the insured's original age is: - CORRECT ANSWER -the cost
,A Medicare Supplement policy may be cancelled for which of the following reasons? - CORRECT
ANSWER -The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: - CORRECT ANSWER -The entire cost
of the plan is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: - CORRECT ANSWER -
Insurer's corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? - CORRECT
ANSWER -Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which
of these reports? - CORRECT ANSWER -Inspection report
T is receiving $3,000/month from a Disability Income policy in which T's employer has pad the
premiums. How are the $3,000 benefit payments taxable? - CORRECT ANSWER -Benefits are
taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that starts
when the insured dies? - CORRECT ANSWER -Family Maintenance Policy
Basic Medical Expense insurance: - CORRECT ANSWER -has lower benefit limits than Major
Medical Insurance
What is the requirement for maintaining an individual Nevada producer license? - CORRECT
ANSWER -completing 30 hours of continuing education every 3 years
, J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - CORRECT ANSWER -Twisting
Which of these is considered a mandatory provision? - CORRECT ANSWER -payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? - CORRECT
ANSWER -payor benefit rider
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take
the required minimum distributions from their qualified retirement plan? - CORRECT ANSWER -
50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance
clause. How much will the INSURED have to pay if a total of $15,000 in covered medical
expenses are incurred? - CORRECT ANSWER -$7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100%
premium refund? - CORRECT ANSWER -30
Which of the following is an example of defamation? - CORRECT ANSWER -circulating brochures
that falsely denounce the financial condition of an insurer
T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially
disabled, what can he likely expect? - CORRECT ANSWER -Less than $5,000 per month benefit
regardless of the cause
A Medicare Supplement policyholder has ___ days to return the policy and receive a full
premium refund. - CORRECT ANSWER -30
with Correct Answers 2025
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an
automobile accident, where would the death proceeds be directed? - CORRECT ANSWER -
Daughter
When is a Group Health policy required to provide coverage for a newborn child? - CORRECT
ANSWER -At the moment of birth
What is the required renewability status of all Medicare supplement policies? - CORRECT
ANSWER -Guaranteed renewable
Who issues Medicare Supplement policies? - CORRECT ANSWER -insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived
due to disability? - CORRECT ANSWER -P will still receive declared dividends
What type of policy would offer a 40-year old the quickest accumulation of cash value? -
CORRECT ANSWER -20-pay life
The Nevada Insurance Guaranty Association - CORRECT ANSWER -protects Nevada insurance
policy owners in the event an insurance company becomes insolvent
The most important factor to consider when determining whether to convert term insurance at
the insured's attained age or to the insured's original age is: - CORRECT ANSWER -the cost
,A Medicare Supplement policy may be cancelled for which of the following reasons? - CORRECT
ANSWER -The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: - CORRECT ANSWER -The entire cost
of the plan is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: - CORRECT ANSWER -
Insurer's corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? - CORRECT
ANSWER -Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which
of these reports? - CORRECT ANSWER -Inspection report
T is receiving $3,000/month from a Disability Income policy in which T's employer has pad the
premiums. How are the $3,000 benefit payments taxable? - CORRECT ANSWER -Benefits are
taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that starts
when the insured dies? - CORRECT ANSWER -Family Maintenance Policy
Basic Medical Expense insurance: - CORRECT ANSWER -has lower benefit limits than Major
Medical Insurance
What is the requirement for maintaining an individual Nevada producer license? - CORRECT
ANSWER -completing 30 hours of continuing education every 3 years
, J is a producer who has induced an insured through misrepresentation to surrender an existing
insurance policy. What is J guilty of? - CORRECT ANSWER -Twisting
Which of these is considered a mandatory provision? - CORRECT ANSWER -payment of claims
Which life insurance rider typically appears on a Juvenile life insurance policy? - CORRECT
ANSWER -payor benefit rider
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take
the required minimum distributions from their qualified retirement plan? - CORRECT ANSWER -
50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance
clause. How much will the INSURED have to pay if a total of $15,000 in covered medical
expenses are incurred? - CORRECT ANSWER -$7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100%
premium refund? - CORRECT ANSWER -30
Which of the following is an example of defamation? - CORRECT ANSWER -circulating brochures
that falsely denounce the financial condition of an insurer
T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially
disabled, what can he likely expect? - CORRECT ANSWER -Less than $5,000 per month benefit
regardless of the cause
A Medicare Supplement policyholder has ___ days to return the policy and receive a full
premium refund. - CORRECT ANSWER -30
