XCEL Health & Life Insurance Practice Exam | 150 Questions with Approved Answers | 100% Correct| Latest 2025/2026 Update.

XCEL Health & Life Insurance
Practice Exam | 150 Questions with
Approved Answers | 100% Correct|
Latest 2025/2026 Update.

Question:

A life insurance policyowner has just exercised the policy's reduced paid-
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up option. Which of these statements is true??
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Answer:

The amount of coverage would be less than the original coverage
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Question:
An individual unable to perform two or more Activities of Daily Living
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(ADLs) will trigger coverage from a _____ policy.?
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Answer:

Long Term Care (LTC)
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Question:
The notice of claim provision states that the insured notify the insurance
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company within ____ days of a claim.?
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Answer:

20

,Question:

Which is NOT true regarding Medicare Supplement policies??
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Answer:

Must include a minimum 20-day Free-Look provision
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Question:

Which of these is NOT a reason the insurance application is important??
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Answer:

When attached to the policy, the application becomes part of the
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insurance clause i,-




Question:

Michael has a universal life policy with an increasing death benefit option.
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With an initial face amount of $50,000, what would the actual death
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benefit be?? i,-




Answer:

$55,000



Question:
How are employer-paid premiums for employee group health insurance
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normally treated for tax purposes?? i,- i,- i,- i,-




Answer:

Tax deductible to the employee / Nontaxable to the employee
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,Question:

An insurance producer who offers a potential client something of value as
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an incentive to purchase insurance is engaging in:?
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Answer:

Rebating



Question:

Katherine is a retiree and was recently hospitalized for 10 days. Which
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type of insurance policy would best cover her for excess hospital
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expenses??
Answer:

Medicare Supplement i,-




Question:
Which welfare program provides assistance to the needy??
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Answer:

Medicaid



Question:
Medicare is NOT available to a(n):?
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Answer:

61-year old Medicaid recipient
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, Question:
Who does the insurance agent legally represent??
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Answer:

The insurance company
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Question:

Why are insurance contracts said to be contracts of adhesion??
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Answer:

One party writes the contract and the other party must accept the
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contract as written i,- i,-




Question:

What is the applicant's consideration in an insurance contract??
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Answer:

Premiums



Question:

At certain ages or dates, an insured can increase the stated benefit (within
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limits) under their disability income policy, regardless of health. Which
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policy rider BEST describes this??
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Answer:

Futre Income Option
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Question: