XCEL Exam 2026 Questions and Answers
Graded A+
Which of these is NOT considered to be a common life insurance nonforfeiture
option?
a. Cash surrender
b. Extended term insurance
c. Reduced paid-up insurance
d. Life income annuity - Correct answer-d. Life income annuity
Which of these would NOT be considered a presumptive disability?
a. Loss of vision and speech
b. Loss of hearing
c. Loss of a leg or arm
d. Loss of a leg and arm - Correct answer-c. Loss of a leg or arm
,A business will typically use which type of life insurance to cover their employees?
a. Group policy
b. Adjustable life policy
c. Whole life policy
d. Endowment policy - Correct answer-a. Group policy
Which of the following would evidence ownership in a participating health
insurance?
a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment - Correct answer-c. Policy ownership
According to the principle of Utmost Good Faith, the insured will answer questions
on the application to the best of their knowledge and pay the required premium,
while the insurer will deal fairly with the insured and it's
,a. Underwriting
b. Issuance of the policy
c. Promises made
d. Legal reserve - Correct answer-c. Promises made
A life insurance policy sold in Michigan may be contested by the insurer ONLY
during the first ___ year(s) of the contract.
a. One
b. Two
c. Three
d. Four - Correct answer-b. Two
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance.
How much will she pay if she incurs a loss of $1,500?
a. $200
b. $500
c. $700
, d. $1,300 - Correct answer-c. $700
Which of these is NOT a qualifying event for Medicare?
a. On Social Security disability for over 2 years
b. Kidney failure
c. Age 65 or older
d. Falling below the federal poverty level - Correct answer-d. Falling below the
federal poverty level
Naming a contingent beneficiary as "all surviving children" is described by which
term?
a. Contingent designation
b. Primary designation
c. Class designation
d. Tertiary designation - Correct answer-c. Class designation
A Roth IRA owner must be at least what age in order to make tax-free
withdrawals?
Graded A+
Which of these is NOT considered to be a common life insurance nonforfeiture
option?
a. Cash surrender
b. Extended term insurance
c. Reduced paid-up insurance
d. Life income annuity - Correct answer-d. Life income annuity
Which of these would NOT be considered a presumptive disability?
a. Loss of vision and speech
b. Loss of hearing
c. Loss of a leg or arm
d. Loss of a leg and arm - Correct answer-c. Loss of a leg or arm
,A business will typically use which type of life insurance to cover their employees?
a. Group policy
b. Adjustable life policy
c. Whole life policy
d. Endowment policy - Correct answer-a. Group policy
Which of the following would evidence ownership in a participating health
insurance?
a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment - Correct answer-c. Policy ownership
According to the principle of Utmost Good Faith, the insured will answer questions
on the application to the best of their knowledge and pay the required premium,
while the insurer will deal fairly with the insured and it's
,a. Underwriting
b. Issuance of the policy
c. Promises made
d. Legal reserve - Correct answer-c. Promises made
A life insurance policy sold in Michigan may be contested by the insurer ONLY
during the first ___ year(s) of the contract.
a. One
b. Two
c. Three
d. Four - Correct answer-b. Two
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance.
How much will she pay if she incurs a loss of $1,500?
a. $200
b. $500
c. $700
, d. $1,300 - Correct answer-c. $700
Which of these is NOT a qualifying event for Medicare?
a. On Social Security disability for over 2 years
b. Kidney failure
c. Age 65 or older
d. Falling below the federal poverty level - Correct answer-d. Falling below the
federal poverty level
Naming a contingent beneficiary as "all surviving children" is described by which
term?
a. Contingent designation
b. Primary designation
c. Class designation
d. Tertiary designation - Correct answer-c. Class designation
A Roth IRA owner must be at least what age in order to make tax-free
withdrawals?
