WGU D564
XCEL State Exam Simulator Questions with
Correct Detailed Answers Graded A 2025
Which of the following situations are NOT subject to Florida life insurance laws? -
Correct Answer ✔insurance companies' day to day operations
Dividends paid from a life insurance policy are -Correct Answer ✔issued by the
insurer
Which of the following does Social Security NOT provide benefits for? -Correct
Answer ✔dismemberment
In regards to representations or warranties, which of these statements is TRUE? -
Correct Answer ✔If material to the risk, false representations will void a policy
Asset protection can be provided by a long-term care partnership policy if the
policyholder qualifies for -Correct Answer ✔Medicaid
An agent may provide a prospective client with an advertising gift as long as the
value of that gift does not exceed -Correct Answer ✔$100
According to Florida law, group life insurance conversion privileges must NOT -
Correct Answer ✔require evidence of insurability
All individuals covered under a group contract will receive a(n) -Correct Answer
✔certificate
S wants to open a tax-exempt Health Savings Account. To qualify for this type of
account, Federal law dictates that S must be enrolled in a -Correct Answer ✔high-
deductible health plan
Why is an applicant's signature required on a life insurance application? -Correct
Answer ✔to attest that the statements on the application are accurate to the best of
the applicant's knowledge
Which of the following Life insurance policies combine term insurance with an
investment element? -Correct Answer ✔Universal Life
WGU D564
,WGU D564
A policyowner would like to change the beneficiary on a Life insurance policy and
make the change permanent. Which type of designation would fulfill this need? -
Correct Answer ✔irrevocable
Medicare Part A and Part B do NOT pay for -Correct Answer ✔dental work
An example of sliding would be -Correct Answer ✔charging for an additional
product without the applicant's consent
Additional coverage can be added to a Whole Life policy by adding a(n) -Correct
Answer ✔decreasing term rider
When an insurance application is taken by a producer, which of these statements is
true? -Correct Answer ✔any changes made on the application require the
applicant's initials
The advantage of reinstating an original life policy is -Correct Answer ✔the
premiums re based on a younger age
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT -Correct Answer ✔Bilateral
a life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached -Correct Answer ✔Waiver of
premium
According to Florida's life insurance replacement laws, a policyowner must be
provided with a written Comparison and Summary Statement when it's requested
by -Correct Answer ✔the policyowner
What percentage of eligible persons must a policy cover in a noncontributory
group? -Correct Answer ✔100%
An insurance company receives E's application for an individual health policy. E
did not complete all of the medical history questions because she could not
remember the exact dates. E signed the policy and submitted it to the insurance
company anyway. A few weeks later, E suffers a heart attack and is hospitalized
WGU D564
, WGU D564
without completing the medical history questions and paying the initial premium.
E is not insured. Which of the following clauses details the conditions that E did
not meet? -Correct Answer ✔consideration clause
Which of the following services is NOT included under hospitalization expense
coverage? -Correct Answer ✔surgical fees
P received Disability income benefits for 3 months then returns to work. She is
able to work one month before her condition returns, leaving her disabled once
again. What would the insurance company most likely regard this second period of
disability as? -Correct Answer ✔a recurrent disability
Term insurance has which of the following characteristics? -Correct Answer
✔expires at the end of the policy period
T was treated for an ailment 2 months prior to applying for a health insurance
policy. This condition was noted on the application and the policy was issued
shortly afterwards.How will the insurer likely consider this condition? -Correct
Answer ✔insurer will likely consider as a pre-existing condition which may not be
covered for one year
What type of policy would offer a 40-year old the quickest accumulation of cash
value? -Correct Answer ✔20-pay life
Under Florida law, which of the following provisions is NOT required in a
Medicare Supplement policy? -Correct Answer ✔Limitation of pre-existing
conditions for up to 12 months
Which of the following is NOT considered rebating -Correct Answer ✔Sharing
commission with an agent licensed in the same line of business
All of the following are Nonforfeiture Options EXCEPT -Correct Answer
✔Automatic Premium Loan Option
According to the Mandatory Uniform Policy Provisions, what is the maximum
amount of time after the premium due date during which the policy remains in
force even though the premium has not been paid? -Correct Answer ✔31 days
WGU D564
XCEL State Exam Simulator Questions with
Correct Detailed Answers Graded A 2025
Which of the following situations are NOT subject to Florida life insurance laws? -
Correct Answer ✔insurance companies' day to day operations
Dividends paid from a life insurance policy are -Correct Answer ✔issued by the
insurer
Which of the following does Social Security NOT provide benefits for? -Correct
Answer ✔dismemberment
In regards to representations or warranties, which of these statements is TRUE? -
Correct Answer ✔If material to the risk, false representations will void a policy
Asset protection can be provided by a long-term care partnership policy if the
policyholder qualifies for -Correct Answer ✔Medicaid
An agent may provide a prospective client with an advertising gift as long as the
value of that gift does not exceed -Correct Answer ✔$100
According to Florida law, group life insurance conversion privileges must NOT -
Correct Answer ✔require evidence of insurability
All individuals covered under a group contract will receive a(n) -Correct Answer
✔certificate
S wants to open a tax-exempt Health Savings Account. To qualify for this type of
account, Federal law dictates that S must be enrolled in a -Correct Answer ✔high-
deductible health plan
Why is an applicant's signature required on a life insurance application? -Correct
Answer ✔to attest that the statements on the application are accurate to the best of
the applicant's knowledge
Which of the following Life insurance policies combine term insurance with an
investment element? -Correct Answer ✔Universal Life
WGU D564
,WGU D564
A policyowner would like to change the beneficiary on a Life insurance policy and
make the change permanent. Which type of designation would fulfill this need? -
Correct Answer ✔irrevocable
Medicare Part A and Part B do NOT pay for -Correct Answer ✔dental work
An example of sliding would be -Correct Answer ✔charging for an additional
product without the applicant's consent
Additional coverage can be added to a Whole Life policy by adding a(n) -Correct
Answer ✔decreasing term rider
When an insurance application is taken by a producer, which of these statements is
true? -Correct Answer ✔any changes made on the application require the
applicant's initials
The advantage of reinstating an original life policy is -Correct Answer ✔the
premiums re based on a younger age
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT -Correct Answer ✔Bilateral
a life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached -Correct Answer ✔Waiver of
premium
According to Florida's life insurance replacement laws, a policyowner must be
provided with a written Comparison and Summary Statement when it's requested
by -Correct Answer ✔the policyowner
What percentage of eligible persons must a policy cover in a noncontributory
group? -Correct Answer ✔100%
An insurance company receives E's application for an individual health policy. E
did not complete all of the medical history questions because she could not
remember the exact dates. E signed the policy and submitted it to the insurance
company anyway. A few weeks later, E suffers a heart attack and is hospitalized
WGU D564
, WGU D564
without completing the medical history questions and paying the initial premium.
E is not insured. Which of the following clauses details the conditions that E did
not meet? -Correct Answer ✔consideration clause
Which of the following services is NOT included under hospitalization expense
coverage? -Correct Answer ✔surgical fees
P received Disability income benefits for 3 months then returns to work. She is
able to work one month before her condition returns, leaving her disabled once
again. What would the insurance company most likely regard this second period of
disability as? -Correct Answer ✔a recurrent disability
Term insurance has which of the following characteristics? -Correct Answer
✔expires at the end of the policy period
T was treated for an ailment 2 months prior to applying for a health insurance
policy. This condition was noted on the application and the policy was issued
shortly afterwards.How will the insurer likely consider this condition? -Correct
Answer ✔insurer will likely consider as a pre-existing condition which may not be
covered for one year
What type of policy would offer a 40-year old the quickest accumulation of cash
value? -Correct Answer ✔20-pay life
Under Florida law, which of the following provisions is NOT required in a
Medicare Supplement policy? -Correct Answer ✔Limitation of pre-existing
conditions for up to 12 months
Which of the following is NOT considered rebating -Correct Answer ✔Sharing
commission with an agent licensed in the same line of business
All of the following are Nonforfeiture Options EXCEPT -Correct Answer
✔Automatic Premium Loan Option
According to the Mandatory Uniform Policy Provisions, what is the maximum
amount of time after the premium due date during which the policy remains in
force even though the premium has not been paid? -Correct Answer ✔31 days
WGU D564
