XCEL SOLUTIONS FINAL EXAM 2025 PRACTICE TEST 200
QUESTIONS AND CORRECT ANSWERS/ XCEL LIFE
INSURANCE FINAL PRACTICE EXAM
The most important factor to consider when determining whether to convert term insurance at the
insured's attained age or to the insured's original age is: - CORRECT ANSWERS-the cost
Insurance contracts maybe sold, solicited ,or negotiated by an insurance producer ONLY upon -
CORRECT ANSWERS-becoming an appointed producer of an insurer
A hearing must be held before a producer's license can be suspended or revoked. Prior to this hearing,
the Commissioner is required to give - CORRECT ANSWERS-written notice to the producer
Medicaid was designed to assist individuals who are - CORRECT ANSWERS-below a specific
income limit
Variable Whole Life Insurance can be described as - CORRECT ANSWERS-both an insurance
and securities product
Which of the following MUST be delivered with a Medicare Supplement policy? - CORRECT
ANSWERS-Outline of Coverage
A Limited-Pay Life policy - CORRECT ANSWERS-premium payments limited to a specified
number of years
Dental care coverage is designed to cover the costs of: - CORRECT ANSWERS-all of the above
(orthodontia, oral surgery, and root canal therapy)
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 ANSWERS-High-deductible health plan
,All of these are considered to be a benefit under Social Security, EXCEPT for: - CORRECT
ANSWERS-unemployment
A Medicare Supplement policy may be cancelled for which of the following reasons? - CORRECT
ANSWERS-The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: - CORRECT ANSWERS-The entire
cost of the plan is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: - CORRECT
ANSWERS-Insurer's corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? - CORRECT
ANSWERS-Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which of these
reports? - CORRECT ANSWERS-Inspection report
T is receiving $3,000/month from a Disability Income policy in which T's employer has pad the
premiums. How are the $3,000 benefit payments taxable? - CORRECT ANSWERS-Benefits are
taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that starts when the
insured dies? - CORRECT ANSWERS-Family Maintenance Policy
Basic Medical Expense insurance: - CORRECT ANSWERS-has lower benefit limits than Major
Medical Insurance
What is the requirement for maintaining an individual Nevada producer license? - CORRECT
ANSWERS-completing 30 hours of continuing education every 3 years
, J is a producer who has induced an insured through misrepresentation to surrender an existing insurance
policy. What is J guilty of? - CORRECT ANSWERS-Twisting
Which of these is considered a mandatory provision? - CORRECT ANSWERS-payment of
claims
Which life insurance rider typically appears on a Juvenile life insurance policy? - CORRECT
ANSWERS-payor benefit rider
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the
required minimum distributions from their qualified retirement plan? - CORRECT ANSWERS-
50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance clause.
How much will the INSURED have to pay if a total of $15,000 in covered medical expenses are incurred?
- CORRECT ANSWERS-$7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100% premium
refund? - CORRECT ANSWERS-30
K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary.
Under the Common Disaster clause, if K and her husband are both killed in an automobile accident,
where would the death proceeds be directed? - CORRECT ANSWERS-Daughter
When is a Group Health policy required to provide coverage for a newborn child? - CORRECT
ANSWERS-At the moment of birth
What is the required renewability status of all Medicare supplement policies? - CORRECT
ANSWERS-Guaranteed renewable
Who issues Medicare Supplement policies? - CORRECT ANSWERS-insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to
disability? - CORRECT ANSWERS-P will still receive declared dividends
QUESTIONS AND CORRECT ANSWERS/ XCEL LIFE
INSURANCE FINAL PRACTICE EXAM
The most important factor to consider when determining whether to convert term insurance at the
insured's attained age or to the insured's original age is: - CORRECT ANSWERS-the cost
Insurance contracts maybe sold, solicited ,or negotiated by an insurance producer ONLY upon -
CORRECT ANSWERS-becoming an appointed producer of an insurer
A hearing must be held before a producer's license can be suspended or revoked. Prior to this hearing,
the Commissioner is required to give - CORRECT ANSWERS-written notice to the producer
Medicaid was designed to assist individuals who are - CORRECT ANSWERS-below a specific
income limit
Variable Whole Life Insurance can be described as - CORRECT ANSWERS-both an insurance
and securities product
Which of the following MUST be delivered with a Medicare Supplement policy? - CORRECT
ANSWERS-Outline of Coverage
A Limited-Pay Life policy - CORRECT ANSWERS-premium payments limited to a specified
number of years
Dental care coverage is designed to cover the costs of: - CORRECT ANSWERS-all of the above
(orthodontia, oral surgery, and root canal therapy)
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 ANSWERS-High-deductible health plan
,All of these are considered to be a benefit under Social Security, EXCEPT for: - CORRECT
ANSWERS-unemployment
A Medicare Supplement policy may be cancelled for which of the following reasons? - CORRECT
ANSWERS-The premiums has not been paid by the insured
A noncontributory group term life plan is characterized by: - CORRECT ANSWERS-The entire
cost of the plan is paid for by the employer
Variable annuities may invest premiums in each of the following, EXCEPT: - CORRECT
ANSWERS-Insurer's corporate business account
Which of the following costs would a Basic Hospital/Surgical policy likely cover? - CORRECT
ANSWERS-Surgically removing a facial birthmark
Information obtained from a phone conversation to the proposed insured can be found in which of these
reports? - CORRECT ANSWERS-Inspection report
T is receiving $3,000/month from a Disability Income policy in which T's employer has pad the
premiums. How are the $3,000 benefit payments taxable? - CORRECT ANSWERS-Benefits are
taxable to T.
What kind of insurance policy supplies an income stream over a set period of time that starts when the
insured dies? - CORRECT ANSWERS-Family Maintenance Policy
Basic Medical Expense insurance: - CORRECT ANSWERS-has lower benefit limits than Major
Medical Insurance
What is the requirement for maintaining an individual Nevada producer license? - CORRECT
ANSWERS-completing 30 hours of continuing education every 3 years
, J is a producer who has induced an insured through misrepresentation to surrender an existing insurance
policy. What is J guilty of? - CORRECT ANSWERS-Twisting
Which of these is considered a mandatory provision? - CORRECT ANSWERS-payment of
claims
Which life insurance rider typically appears on a Juvenile life insurance policy? - CORRECT
ANSWERS-payor benefit rider
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the
required minimum distributions from their qualified retirement plan? - CORRECT ANSWERS-
50%
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance clause.
How much will the INSURED have to pay if a total of $15,000 in covered medical expenses are incurred?
- CORRECT ANSWERS-$7,000
Within how many days after policy delivery can a Long-term Care policy be returned for a 100% premium
refund? - CORRECT ANSWERS-30
K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary.
Under the Common Disaster clause, if K and her husband are both killed in an automobile accident,
where would the death proceeds be directed? - CORRECT ANSWERS-Daughter
When is a Group Health policy required to provide coverage for a newborn child? - CORRECT
ANSWERS-At the moment of birth
What is the required renewability status of all Medicare supplement policies? - CORRECT
ANSWERS-Guaranteed renewable
Who issues Medicare Supplement policies? - CORRECT ANSWERS-insurance companies
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to
disability? - CORRECT ANSWERS-P will still receive declared dividends
