XCEL CHAPTER 7 EXAM 2025
QUESTIONS AND ANSWERS
The California Insurance Code defines "policy" as a(n) - ANS written contract
The cost of services charged by the Health Insurance Counseling Advocacy Program (HiCap) is -
ANS no cost
Which of the following is NOT covered by the Family and Medical Leave Act (FMLA)? -
ANS Traveling overseas with a spouse
Which of the following acts is NOT a Federal offense committed by an insurance agent? -
ANS Misrepresentation on an insurance application
Which of the following is NOT a primary objective of insurance regulation? - ANS Interpret
policy provisions
Which type of jurisdiction requires an insurer to have its rates accepted by the Insurance
Department prior to using them? - ANS Prior approval
What is the purpose of the Pre-Existing Condition Insurance Plan (PCIP)? - ANS PCIP was
created by the PPACA for people rejected by private health insurers due to pre-existing
conditions
According to PPACA, what is a health benefits exchange? - ANS An entity to which individuals
and small businesses can have access to affordable health coverage
1 @COPYRIGHT THEBRIGHT 2025/2026
, Which word implies permissiveness according to the California Insurance Code? - ANS May
Which of the following does the California Insurance Code NOT require an insurance policy to
specify? - ANS Insurer's financial rating
How many "activities of daily living" must an insured be UNABLE to perform in order to meet
the chronically ill requirement of a Long-Term Care policy? - ANS Minimum of two activities
of daily living
Which of the following is NOT considered to be an unfair claims settlement practice? -
ANS Advising a claimant to hire an attorney
A person who asserts a right of recovery under an insurance policy is called - ANS claimant
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer? - ANS Notice of appointment must be submitted to the
Commissioner
According to the California Insurance Code, what term is used to describe a fact so important it
could affect the policy premium? - ANS Materiality
Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy
Program (HiCAP) counselors? - ANS Charge a fee
According to the PPACA, an adult can be covered by a parent's health care plan until what age?
- ANS Age 26
According to the California Insurance Code, what is "insurance"? - ANS A contract
2 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
The California Insurance Code defines "policy" as a(n) - ANS written contract
The cost of services charged by the Health Insurance Counseling Advocacy Program (HiCap) is -
ANS no cost
Which of the following is NOT covered by the Family and Medical Leave Act (FMLA)? -
ANS Traveling overseas with a spouse
Which of the following acts is NOT a Federal offense committed by an insurance agent? -
ANS Misrepresentation on an insurance application
Which of the following is NOT a primary objective of insurance regulation? - ANS Interpret
policy provisions
Which type of jurisdiction requires an insurer to have its rates accepted by the Insurance
Department prior to using them? - ANS Prior approval
What is the purpose of the Pre-Existing Condition Insurance Plan (PCIP)? - ANS PCIP was
created by the PPACA for people rejected by private health insurers due to pre-existing
conditions
According to PPACA, what is a health benefits exchange? - ANS An entity to which individuals
and small businesses can have access to affordable health coverage
1 @COPYRIGHT THEBRIGHT 2025/2026
, Which word implies permissiveness according to the California Insurance Code? - ANS May
Which of the following does the California Insurance Code NOT require an insurance policy to
specify? - ANS Insurer's financial rating
How many "activities of daily living" must an insured be UNABLE to perform in order to meet
the chronically ill requirement of a Long-Term Care policy? - ANS Minimum of two activities
of daily living
Which of the following is NOT considered to be an unfair claims settlement practice? -
ANS Advising a claimant to hire an attorney
A person who asserts a right of recovery under an insurance policy is called - ANS claimant
What is required after a life agent sells an insurance policy to an applicant without being
appointed by the insurer? - ANS Notice of appointment must be submitted to the
Commissioner
According to the California Insurance Code, what term is used to describe a fact so important it
could affect the policy premium? - ANS Materiality
Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy
Program (HiCAP) counselors? - ANS Charge a fee
According to the PPACA, an adult can be covered by a parent's health care plan until what age?
- ANS Age 26
According to the California Insurance Code, what is "insurance"? - ANS A contract
2 @COPYRIGHT THEBRIGHT 2025/2026
