Xcel solutions - Life and Health
Exam 2025–2026 Insurance
Licensing Prep Accurate Real
Exam Question
EXAM
1. The Do Not Call Registry offers exemptions for calls placed from all of the
following EXCEPT
A) Charities
B) Political organizations
C) Insurance sales calls
D) Surveys
Answer: C) Insurance sales calls
Rationale: The Do Not Call Registry provides exemptions for calls from charities,
political organizations, and surveyors. However, insurance sales calls are not exempt and
are subject to the registry's restrictions .
2. The type of policy where the insurer can send a notice to the insured that the
policy has been cancelled in the middle of the term is called:
A) Cancelable
B) Noncancelable
C) Guaranteed renewable
D) Conditionally renewable
Answer: A) Cancelable
Rationale: A cancelable policy allows the insurer to terminate the policy at any time
during the term by providing written notification to the insured and refunding any
unearned premium .
3. Barbara's policy includes a rider which allows her to purchase additional
insurance at specific dates or events without evidence of insurability. This rider is
called a(n):
A) Accelerated benefit rider
, B) Waiver of premium rider
C) Guaranteed insurability rider
D) Cost of living rider
Answer: C) Guaranteed insurability rider
Rationale: A guaranteed insurability rider permits the insured to purchase additional
coverage at specified future dates or upon certain life events (e.g., marriage, birth of a
child) without needing to provide proof of good health .
4. Disability Income plans which require that the insurer can NEVER change or
alter premium rates are usually considered:
A) Cancelable
B) Optionally renewable
C) Guaranteed renewable
D) Noncancellable
Answer: D) Noncancellable
Rationale: A noncancellable policy guarantees that the insurer cannot cancel the policy
nor increase the premium rates for any reason, as long as premiums are paid on time .
5. In what part of an insurance policy are policy benefits found?
A) Declarations
B) Insuring Agreement
C) Exclusions
D) Conditions
Answer: A) Declarations
Rationale: The Declarations page is the quick guide to the policy and contains key
information such as the policyowner's name, the insured's name, the policy amount
(benefits), and the premium .
6. What happens if the insurer discovers that the insured's age was accidentally
misstated on an application for an individual life insurance policy?
A) The policy is voided
B) The policy is adjusted to the correct age
C) Benefits will be calculated according to how much coverage the premium paid would
have purchased for the correct age
D) The insurer will refund the premiums and cancel the policy
, Answer: C) Benefits will be calculated according to how much coverage the premium
paid would have purchased for the correct age
Rationale: Under the misstatement of age provision, if an insured's age is misstated, the
insurer adjusts the death benefit to the amount that the premiums paid would have
purchased at the correct age .
7. Health insurance will typically cover which of the following perils?
A) Injury due to a self-inflicted wound
B) Injury due to an accident
C) Injury due to war
D) Loss due to a named disease only
Answer: B) Injury due to an accident
Rationale: Health insurance policies are designed to cover accidental injuries and
sicknesses. Intentional self-inflicted injuries, war-related injuries, and other specific
exclusions are typically not covered .
8. A viatical settlement contract is an agreement between:
A) An insurance company and a beneficiary
B) A life insurance policyowner and a viatical settlement provider
C) A producer and an insured
D) Two insurance companies
Answer: B) A life insurance policyowner and a viatical settlement provider
Rationale: A viatical settlement is a transaction where a person who is terminally or
chronically ill sells their life insurance policy to a third party (the provider) for a lump
sum cash amount, which is less than the death benefit .
9. Under the Affordable Care Act, how would a grandfathered health plan lose its
grandfathered status?
A) The employer changes insurance carriers
B) The insurer significantly raises co-insurance charges, deductibles, or co-payment
charges
C) The plan adds a new benefit
D) The plan renews annually
Answer: B) The insurer significantly raises co-insurance charges, deductibles, or co-
payment charges
Rationale: Grandfathered health plans are exempt from certain ACA requirements.
, However, they can lose this status if they make significant changes, such as significantly
reducing benefits or increasing cost-sharing requirements like deductibles or co-
insurance .
10. Which of these techniques will remove the risk of losing money in the stock
market by never purchasing stocks?
A) Risk transfer
B) Risk retention
C) Risk avoidance
D) Risk sharing
Answer: C) Risk avoidance
Rationale: Risk avoidance is the process of eliminating the possibility of a loss by not
engaging in the activity that creates the risk. By never buying stocks, the person avoids
the risk of losing money in the market .
11. Which of the following nursing home options would BEST suit an individual
who needs some nursing care and supervision but NOT full-time care?
A) Skilled nursing facility
B) Intermediate care facility
C) Assisted living facility
D) Custodial care facility
Answer: C) Assisted living facility
Rationale: Assisted living facilities provide a combination of housing, personal care, and
health services for individuals who need some help with daily activities but do not
require the 24-hour skilled nursing care provided in a nursing home .
12. Under Louisiana law, the agreement between an insurance producer and
insurer under which the insurance producer, for compensation, may sell, solicit, or
negotiate policies issued by the insurer is defined as:
A) A contract
B) An appointment
C) A license
D) A certificate of authority
Answer: B) An appointment
Rationale: An appointment is the legal authorization granted by an insurer to an
Exam 2025–2026 Insurance
Licensing Prep Accurate Real
Exam Question
EXAM
1. The Do Not Call Registry offers exemptions for calls placed from all of the
following EXCEPT
A) Charities
B) Political organizations
C) Insurance sales calls
D) Surveys
Answer: C) Insurance sales calls
Rationale: The Do Not Call Registry provides exemptions for calls from charities,
political organizations, and surveyors. However, insurance sales calls are not exempt and
are subject to the registry's restrictions .
2. The type of policy where the insurer can send a notice to the insured that the
policy has been cancelled in the middle of the term is called:
A) Cancelable
B) Noncancelable
C) Guaranteed renewable
D) Conditionally renewable
Answer: A) Cancelable
Rationale: A cancelable policy allows the insurer to terminate the policy at any time
during the term by providing written notification to the insured and refunding any
unearned premium .
3. Barbara's policy includes a rider which allows her to purchase additional
insurance at specific dates or events without evidence of insurability. This rider is
called a(n):
A) Accelerated benefit rider
, B) Waiver of premium rider
C) Guaranteed insurability rider
D) Cost of living rider
Answer: C) Guaranteed insurability rider
Rationale: A guaranteed insurability rider permits the insured to purchase additional
coverage at specified future dates or upon certain life events (e.g., marriage, birth of a
child) without needing to provide proof of good health .
4. Disability Income plans which require that the insurer can NEVER change or
alter premium rates are usually considered:
A) Cancelable
B) Optionally renewable
C) Guaranteed renewable
D) Noncancellable
Answer: D) Noncancellable
Rationale: A noncancellable policy guarantees that the insurer cannot cancel the policy
nor increase the premium rates for any reason, as long as premiums are paid on time .
5. In what part of an insurance policy are policy benefits found?
A) Declarations
B) Insuring Agreement
C) Exclusions
D) Conditions
Answer: A) Declarations
Rationale: The Declarations page is the quick guide to the policy and contains key
information such as the policyowner's name, the insured's name, the policy amount
(benefits), and the premium .
6. What happens if the insurer discovers that the insured's age was accidentally
misstated on an application for an individual life insurance policy?
A) The policy is voided
B) The policy is adjusted to the correct age
C) Benefits will be calculated according to how much coverage the premium paid would
have purchased for the correct age
D) The insurer will refund the premiums and cancel the policy
, Answer: C) Benefits will be calculated according to how much coverage the premium
paid would have purchased for the correct age
Rationale: Under the misstatement of age provision, if an insured's age is misstated, the
insurer adjusts the death benefit to the amount that the premiums paid would have
purchased at the correct age .
7. Health insurance will typically cover which of the following perils?
A) Injury due to a self-inflicted wound
B) Injury due to an accident
C) Injury due to war
D) Loss due to a named disease only
Answer: B) Injury due to an accident
Rationale: Health insurance policies are designed to cover accidental injuries and
sicknesses. Intentional self-inflicted injuries, war-related injuries, and other specific
exclusions are typically not covered .
8. A viatical settlement contract is an agreement between:
A) An insurance company and a beneficiary
B) A life insurance policyowner and a viatical settlement provider
C) A producer and an insured
D) Two insurance companies
Answer: B) A life insurance policyowner and a viatical settlement provider
Rationale: A viatical settlement is a transaction where a person who is terminally or
chronically ill sells their life insurance policy to a third party (the provider) for a lump
sum cash amount, which is less than the death benefit .
9. Under the Affordable Care Act, how would a grandfathered health plan lose its
grandfathered status?
A) The employer changes insurance carriers
B) The insurer significantly raises co-insurance charges, deductibles, or co-payment
charges
C) The plan adds a new benefit
D) The plan renews annually
Answer: B) The insurer significantly raises co-insurance charges, deductibles, or co-
payment charges
Rationale: Grandfathered health plans are exempt from certain ACA requirements.
, However, they can lose this status if they make significant changes, such as significantly
reducing benefits or increasing cost-sharing requirements like deductibles or co-
insurance .
10. Which of these techniques will remove the risk of losing money in the stock
market by never purchasing stocks?
A) Risk transfer
B) Risk retention
C) Risk avoidance
D) Risk sharing
Answer: C) Risk avoidance
Rationale: Risk avoidance is the process of eliminating the possibility of a loss by not
engaging in the activity that creates the risk. By never buying stocks, the person avoids
the risk of losing money in the market .
11. Which of the following nursing home options would BEST suit an individual
who needs some nursing care and supervision but NOT full-time care?
A) Skilled nursing facility
B) Intermediate care facility
C) Assisted living facility
D) Custodial care facility
Answer: C) Assisted living facility
Rationale: Assisted living facilities provide a combination of housing, personal care, and
health services for individuals who need some help with daily activities but do not
require the 24-hour skilled nursing care provided in a nursing home .
12. Under Louisiana law, the agreement between an insurance producer and
insurer under which the insurance producer, for compensation, may sell, solicit, or
negotiate policies issued by the insurer is defined as:
A) A contract
B) An appointment
C) A license
D) A certificate of authority
Answer: B) An appointment
Rationale: An appointment is the legal authorization granted by an insurer to an
