Xcel State
Xcel State Exam Simulator Questions with
Verified 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
Xcel State
,Xcel State
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
Xcel State
, Xcel State
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
Xcel State
Xcel State Exam Simulator Questions with
Verified 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
Xcel State
,Xcel State
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
Xcel State
, Xcel State
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
Xcel State
