XCELL TESTING SOLUTIONS FINAL PAPER 2026
EXAM QUESTIONS AND SOLUTIONS 100
PERCENT CORRECT
◉ Coordination of Benefits regulation applies to all of the following
plans EXCEPT. Answer: preferred provider organization plan
CORRECT: group vision plan, self-funded group health plan, group
health plan
◉ A spouse and child can be added to the primary insured's
coverage as what kind of rider?. Answer: Family term
◉ Amy has a group medical policy through her employer with a
$500 deductible and a 90% coinsurance provision. She incurs
$1,500 in covered health care services. How much will her group
insurance carrier pay?. Answer: $900
In this situation, the group insurance carrier will pay 90% of the
covered loss after the deductible has been applied.
◉ In order to save on premiums, a Life Insurance policy can legally
be backdated up to. Answer: 6 months
,◉ Statements made by an insurance applicant on an application are
considered to be. Answer: representations
◉ To receive proceeds from a death benefit, a minor. Answer: must
have an appointed guardian
In the interest of protecting the assets of a minor, state law requires
that a guardian be appointed to administer the proceeds payable to
the minor child.
◉ Which of the following services MUST be provided by HMO plans?.
Answer: Home health care
Home health services is an HMO mandatory benefit in Michigan.
◉ The unfair trade practice of replacing an insurance policy from
one insurer to another based on misrepresentation is called.
Answer: twisting
◉ In determining whether a pre-existing condition applies, the
enrollee CANNOT have more than how many days' gap in health
insurance?. Answer: 63
,◉ A business will typically use which type of life insurance to cover
their employees?. Answer: Group policy
◉ Within how many days must a Traditional IRA be rolled over to
another IRA in order to avoid tax consequences?. Answer: 60
◉ Ron has a life insurance policy with a face value of $100,000 and a
cost of living rider. If the consumer price index has gone up 4%, how
much may Ron increase the face value of the policy?. Answer: $4,000
In this situation, Ron may increase the face value of his policy by
$4,000. $100,000 X .04 = $4,000.
◉ When an accident and health policy requires payment of an
additional premium to provide coverage for a newborn, how many
days after the birth is the first payment due?. Answer: 31
◉ Peter has a policy where 80% to 90% of the premium is invested
in traditional fixed income securities and the remainder of the
premium is invested in contracts tied to a stipulated stock index.
What kind of policy is this?. Answer: Equity index whole life
◉ A life insurance policy that contains a guaranteed interest rate
with the chance to earn a rate that is higher than the guaranteed rate
is called. Answer: universal life
, ◉ What is issued to each employee of an employer health plan?.
Answer: Certificate
◉ An insurer would be committing Unfair Discrimination if coverage
was denied based upon. Answer: marital status
◉ A licensee who is required to take continuing education MUST
include how many ethics coursework hours?. Answer: 3
A licensee is required to take 24 hours of continuing education every
two years. Of the 24 hours, 3 must be in ethics
◉ When calculating the amount of life insurance needed for an
income earner, what has to be determined when using the Needs
Approach?. Answer: the family's Financial objectives if the income
earner were to die or become disabled
◉ When the insured gives birth, coverage for eligible newly born
children consists of coverage of injury or sickness including. Answer:
birth abnormalities
◉ Which of these is NOT considered to be a purpose of an annuity?.
Answer: Annuities are intended to create an estate
EXAM QUESTIONS AND SOLUTIONS 100
PERCENT CORRECT
◉ Coordination of Benefits regulation applies to all of the following
plans EXCEPT. Answer: preferred provider organization plan
CORRECT: group vision plan, self-funded group health plan, group
health plan
◉ A spouse and child can be added to the primary insured's
coverage as what kind of rider?. Answer: Family term
◉ Amy has a group medical policy through her employer with a
$500 deductible and a 90% coinsurance provision. She incurs
$1,500 in covered health care services. How much will her group
insurance carrier pay?. Answer: $900
In this situation, the group insurance carrier will pay 90% of the
covered loss after the deductible has been applied.
◉ In order to save on premiums, a Life Insurance policy can legally
be backdated up to. Answer: 6 months
,◉ Statements made by an insurance applicant on an application are
considered to be. Answer: representations
◉ To receive proceeds from a death benefit, a minor. Answer: must
have an appointed guardian
In the interest of protecting the assets of a minor, state law requires
that a guardian be appointed to administer the proceeds payable to
the minor child.
◉ Which of the following services MUST be provided by HMO plans?.
Answer: Home health care
Home health services is an HMO mandatory benefit in Michigan.
◉ The unfair trade practice of replacing an insurance policy from
one insurer to another based on misrepresentation is called.
Answer: twisting
◉ In determining whether a pre-existing condition applies, the
enrollee CANNOT have more than how many days' gap in health
insurance?. Answer: 63
,◉ A business will typically use which type of life insurance to cover
their employees?. Answer: Group policy
◉ Within how many days must a Traditional IRA be rolled over to
another IRA in order to avoid tax consequences?. Answer: 60
◉ Ron has a life insurance policy with a face value of $100,000 and a
cost of living rider. If the consumer price index has gone up 4%, how
much may Ron increase the face value of the policy?. Answer: $4,000
In this situation, Ron may increase the face value of his policy by
$4,000. $100,000 X .04 = $4,000.
◉ When an accident and health policy requires payment of an
additional premium to provide coverage for a newborn, how many
days after the birth is the first payment due?. Answer: 31
◉ Peter has a policy where 80% to 90% of the premium is invested
in traditional fixed income securities and the remainder of the
premium is invested in contracts tied to a stipulated stock index.
What kind of policy is this?. Answer: Equity index whole life
◉ A life insurance policy that contains a guaranteed interest rate
with the chance to earn a rate that is higher than the guaranteed rate
is called. Answer: universal life
, ◉ What is issued to each employee of an employer health plan?.
Answer: Certificate
◉ An insurer would be committing Unfair Discrimination if coverage
was denied based upon. Answer: marital status
◉ A licensee who is required to take continuing education MUST
include how many ethics coursework hours?. Answer: 3
A licensee is required to take 24 hours of continuing education every
two years. Of the 24 hours, 3 must be in ethics
◉ When calculating the amount of life insurance needed for an
income earner, what has to be determined when using the Needs
Approach?. Answer: the family's Financial objectives if the income
earner were to die or become disabled
◉ When the insured gives birth, coverage for eligible newly born
children consists of coverage of injury or sickness including. Answer:
birth abnormalities
◉ Which of these is NOT considered to be a purpose of an annuity?.
Answer: Annuities are intended to create an estate
