Xcel State Exam Simulator Questions
with Correct Answers 2025
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
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
,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
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
with Correct Answers 2025
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
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
,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
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
