XCEL TESTING SOLUTIONS LIFE AND
HEALTH INSURANCE WEIGHTED EXAM 150
WRITTEN QUESTIONS WITH ANSWERS
FINAL PAPER 2026 FULL QUESTIONS
WITH CORRECT ANSWERS GRADED A+
⩥ An insured under a Major Medical expense plan with a zero
deductible and 80/20 coinsurance provision files a $1,000 claim. How
much of this claim is the insured responsible for? Answer: $200
because this policy has a zero deductible, the insures is only responsible
for the 20% coinsurance on this claim, or $200
⩥ An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance.
The insured incurs $25,000 of covered losses. How much will the
insured pay? Answer: $5,000
⩥ Which type of plan would be the most appropriate for an individual on
Medicare and concerned that Medicare will NOT pay for charges
exceeding the approved amount? Answer: Medicare supplement Plan F
⩥ When can a group health policy renewal be denied according to the
Health Insurance Portability and Accountability Act (HIPAA)? Answer:
when contribution or participation rules have been violated
,⩥ What does the word "level: in Level Term describe? Answer: the face
amount
⩥ A non-contributory health insurance plan helps the insurer avoid
Answer: adverse selection
because all eligible employees are usually covered, non-contributory
plans are desirable from an underwriting standpoint because adverse
selection is minimized.
⩥ To qualify for a resident producer license in the state of Michigan, an
individual Answer: must complete the required pre-licensing education
within 12 months of license application
⩥ Under an expense-incurred individual health policy, what is the
MAXIMUM length of time after issuance of the policy that an insurer
can exclude coverage for a pre-existing condition? Answer: 12 months
pre-existing conditions may be excluded for a maximum of 12 months
from the date of enrollment.
⩥ An insured has a health plan that pays established amounts in
accordance with a list of injuries, surgical procedures, or other losses.
This list is called a Answer: benefit schedule
,benefits schedule set predetermined limits or maximums on how much
money and insured can be reimbursed for a covered loss.
⩥ Who is the individual paid on a fee-for-service basis? Answer:
Provider
⩥ Which of the following is NOT an illegal inducement? Answer:
Giving the insured an article of merchandise printed with the producer's
name costing $5
$5 or less of tokens or merchandise to applicants is allowed.
⩥ Making a statement that is false or maliciously critical of the financial
condition of an insurer is known as Answer: defamation
⩥ Which of these statements about Medicaid is CORRECT? Answer:
Funded by federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered
by each state.
⩥ All of these are considered key factors in underwriting life insurance
EXCEPT Answer: Marital Status
, Correct: tobacco use, health history, age
⩥ All of the following plans allow for employee contributions to be
taken on a pre-tax basis EXCEPT Answer: Health reimbursement
Arrangement plan
employers contribute to health reimbursement Arrangement planz
(HRA's), not employees.
⩥ Which of the following gifts from a producer would NOT be
considered rebating? Answer: $5 pen
A producer quoting life insurance may give an applicant an article of
merchandise having an invoice value of $5.00 or less.
⩥ Chris is an insured bricklayer who severed his left hand in an
automobile accident. Although his primary duty cannot be performed,
Chris is also a substitute high school teacher. He collects a full disability
income check every month. How does his policy define total disability?
Answer: own occupation
the "own occupation" definition of total disability requires that the
insured be unable to perform the insured's current occupation as a result
of an accident or sickness.
HEALTH INSURANCE WEIGHTED EXAM 150
WRITTEN QUESTIONS WITH ANSWERS
FINAL PAPER 2026 FULL QUESTIONS
WITH CORRECT ANSWERS GRADED A+
⩥ An insured under a Major Medical expense plan with a zero
deductible and 80/20 coinsurance provision files a $1,000 claim. How
much of this claim is the insured responsible for? Answer: $200
because this policy has a zero deductible, the insures is only responsible
for the 20% coinsurance on this claim, or $200
⩥ An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance.
The insured incurs $25,000 of covered losses. How much will the
insured pay? Answer: $5,000
⩥ Which type of plan would be the most appropriate for an individual on
Medicare and concerned that Medicare will NOT pay for charges
exceeding the approved amount? Answer: Medicare supplement Plan F
⩥ When can a group health policy renewal be denied according to the
Health Insurance Portability and Accountability Act (HIPAA)? Answer:
when contribution or participation rules have been violated
,⩥ What does the word "level: in Level Term describe? Answer: the face
amount
⩥ A non-contributory health insurance plan helps the insurer avoid
Answer: adverse selection
because all eligible employees are usually covered, non-contributory
plans are desirable from an underwriting standpoint because adverse
selection is minimized.
⩥ To qualify for a resident producer license in the state of Michigan, an
individual Answer: must complete the required pre-licensing education
within 12 months of license application
⩥ Under an expense-incurred individual health policy, what is the
MAXIMUM length of time after issuance of the policy that an insurer
can exclude coverage for a pre-existing condition? Answer: 12 months
pre-existing conditions may be excluded for a maximum of 12 months
from the date of enrollment.
⩥ An insured has a health plan that pays established amounts in
accordance with a list of injuries, surgical procedures, or other losses.
This list is called a Answer: benefit schedule
,benefits schedule set predetermined limits or maximums on how much
money and insured can be reimbursed for a covered loss.
⩥ Who is the individual paid on a fee-for-service basis? Answer:
Provider
⩥ Which of the following is NOT an illegal inducement? Answer:
Giving the insured an article of merchandise printed with the producer's
name costing $5
$5 or less of tokens or merchandise to applicants is allowed.
⩥ Making a statement that is false or maliciously critical of the financial
condition of an insurer is known as Answer: defamation
⩥ Which of these statements about Medicaid is CORRECT? Answer:
Funded by federal, sate, and local taxes
Medicaid is funded by federal, state, and local taxes but is administered
by each state.
⩥ All of these are considered key factors in underwriting life insurance
EXCEPT Answer: Marital Status
, Correct: tobacco use, health history, age
⩥ All of the following plans allow for employee contributions to be
taken on a pre-tax basis EXCEPT Answer: Health reimbursement
Arrangement plan
employers contribute to health reimbursement Arrangement planz
(HRA's), not employees.
⩥ Which of the following gifts from a producer would NOT be
considered rebating? Answer: $5 pen
A producer quoting life insurance may give an applicant an article of
merchandise having an invoice value of $5.00 or less.
⩥ Chris is an insured bricklayer who severed his left hand in an
automobile accident. Although his primary duty cannot be performed,
Chris is also a substitute high school teacher. He collects a full disability
income check every month. How does his policy define total disability?
Answer: own occupation
the "own occupation" definition of total disability requires that the
insured be unable to perform the insured's current occupation as a result
of an accident or sickness.
