XCEL LIFE INSURANCE EXAM WITH COMBINED
STUDY GUIDE EXAM QUESTIONS WITH CORRECT
ANSWERS NEW MODIFIED CURRENTLY TESTED
AND APPROVED 2026 LATEST
A life settlement intermediary is a(n) --CORRECT ANSWER--association
which maintains a facility that displays offers and counteroffers for purchasers
or sellers of life settlement contracts
An annuitant dies during the distribution period. What kind of annunity will
return to a beneficiary the difference between the annunity value and the income
payment already made? --CORRECT ANSWER--Refund annuity
The is responsible for determining the appropriateness of a Medicare
Supplement policy for an applicant. --CORRECT ANSWER--Agent
The purpose of the Coordination of Benefits provision in group accident and
health plans is to --CORRECT ANSWER--avoid overpayment of claims
Medicaid is intended for --CORRECT ANSWER--poverty stricken people
A provision that allows a policyowner to temporarily give up ownership rights
to secure a loan is called a(n) --CORRECT ANSWER--collateral assignment
Page 1 of 83
,A disability policy where the premiums are due monthly require a grace period
of --CORRECT ANSWER--10 days
Tom the agent replaced a client's insurance policy when it was not in the client's
best interest. Tom could be found guilty of --CORRECT ANSWER--twisting
Which type of annuity stops all payments upon the death of the annuitant? --
CORRECT ANSWER--Life annuity
Decreasing term life insurance is often used to --CORRECT ANSWER--
provide coverage for a home mortgage
What does a life insurance policy guarantee to the stated beneficiary upon the
death of the insured? --CORRECT ANSWER--Specified amount of money
Major medical insurance will typically cover medical expenses that result from
--CORRECT ANSWER--a negative reaction to prescribed medication
The typical long-term care insurance policy is designed to provide a minimum
of__________ year(s) of coverage --CORRECT ANSWER--1
The double indemnity provision in a life insurance policy pertains to an
insured's death caused by a(n) --CORRECT ANSWER--accident
Page 2 of 83
,Life insurance policies will normally pay for losses arising from --CORRECT
ANSWER--commercial aviation
The coverage, conditions, and limitations in the master policy of a group
contract can be found in which document? --CORRECT ANSWER--Certificate
of coverage and benefits
Which type of long-term care benefit would be most appropriate for a stroke
victim who requires speech therapy administered at her home? --CORRECT
ANSWER--Home health care
A disability policyowner is injured and becomes totally disabled. The benefits
pay for 2 years, starting from the date of the injury. What is this time period
called? --CORRECT ANSWER--Benefit period
Under the Affordable Care Act, how would a grandfathered health plan lose its
grandfathered status? --CORRECT ANSWER--The insurer significantly raises
co-insurance charges, deductibles, or co-payment charges
Which of these statements about Medicaid is CORRECT? --CORRECT
ANSWER--Funded by federal, state, and local taxes
Page 3 of 83
, In group health care, what is the purpose of the coordination of benefits
provision? --CORRECT ANSWER--Determines what is paid by the primary
and secondary insurers in the event of a claim
Which of the following is NOT a duty of the Superintendent? --CORRECT
ANSWER--Establish rates for the insurers
What is the purpose of a Disability Income Benefit? --CORRECT ANSWER--
Provide money for living expenses
All of these are characteristics of a universal life insurance policy EXCEPT --
CORRECT ANSWER--Fixed surrender value
Upon meeting company requirements, a lapsed life insurance policy may be
reinstated within_______ year(s). --CORRECT ANSWER--3
with the same insurer Tim is covered under a group plan and would like to
change his group coverage to an individual policy because of employment
termination. Which of these describes the change that will take place? --
CORRECT ANSWER--Conversion
When are group disability benefits considered to be tax-free to the insured? --
CORRECT ANSWER--When the recipient pays the premiums
Page 4 of 83
STUDY GUIDE EXAM QUESTIONS WITH CORRECT
ANSWERS NEW MODIFIED CURRENTLY TESTED
AND APPROVED 2026 LATEST
A life settlement intermediary is a(n) --CORRECT ANSWER--association
which maintains a facility that displays offers and counteroffers for purchasers
or sellers of life settlement contracts
An annuitant dies during the distribution period. What kind of annunity will
return to a beneficiary the difference between the annunity value and the income
payment already made? --CORRECT ANSWER--Refund annuity
The is responsible for determining the appropriateness of a Medicare
Supplement policy for an applicant. --CORRECT ANSWER--Agent
The purpose of the Coordination of Benefits provision in group accident and
health plans is to --CORRECT ANSWER--avoid overpayment of claims
Medicaid is intended for --CORRECT ANSWER--poverty stricken people
A provision that allows a policyowner to temporarily give up ownership rights
to secure a loan is called a(n) --CORRECT ANSWER--collateral assignment
Page 1 of 83
,A disability policy where the premiums are due monthly require a grace period
of --CORRECT ANSWER--10 days
Tom the agent replaced a client's insurance policy when it was not in the client's
best interest. Tom could be found guilty of --CORRECT ANSWER--twisting
Which type of annuity stops all payments upon the death of the annuitant? --
CORRECT ANSWER--Life annuity
Decreasing term life insurance is often used to --CORRECT ANSWER--
provide coverage for a home mortgage
What does a life insurance policy guarantee to the stated beneficiary upon the
death of the insured? --CORRECT ANSWER--Specified amount of money
Major medical insurance will typically cover medical expenses that result from
--CORRECT ANSWER--a negative reaction to prescribed medication
The typical long-term care insurance policy is designed to provide a minimum
of__________ year(s) of coverage --CORRECT ANSWER--1
The double indemnity provision in a life insurance policy pertains to an
insured's death caused by a(n) --CORRECT ANSWER--accident
Page 2 of 83
,Life insurance policies will normally pay for losses arising from --CORRECT
ANSWER--commercial aviation
The coverage, conditions, and limitations in the master policy of a group
contract can be found in which document? --CORRECT ANSWER--Certificate
of coverage and benefits
Which type of long-term care benefit would be most appropriate for a stroke
victim who requires speech therapy administered at her home? --CORRECT
ANSWER--Home health care
A disability policyowner is injured and becomes totally disabled. The benefits
pay for 2 years, starting from the date of the injury. What is this time period
called? --CORRECT ANSWER--Benefit period
Under the Affordable Care Act, how would a grandfathered health plan lose its
grandfathered status? --CORRECT ANSWER--The insurer significantly raises
co-insurance charges, deductibles, or co-payment charges
Which of these statements about Medicaid is CORRECT? --CORRECT
ANSWER--Funded by federal, state, and local taxes
Page 3 of 83
, In group health care, what is the purpose of the coordination of benefits
provision? --CORRECT ANSWER--Determines what is paid by the primary
and secondary insurers in the event of a claim
Which of the following is NOT a duty of the Superintendent? --CORRECT
ANSWER--Establish rates for the insurers
What is the purpose of a Disability Income Benefit? --CORRECT ANSWER--
Provide money for living expenses
All of these are characteristics of a universal life insurance policy EXCEPT --
CORRECT ANSWER--Fixed surrender value
Upon meeting company requirements, a lapsed life insurance policy may be
reinstated within_______ year(s). --CORRECT ANSWER--3
with the same insurer Tim is covered under a group plan and would like to
change his group coverage to an individual policy because of employment
termination. Which of these describes the change that will take place? --
CORRECT ANSWER--Conversion
When are group disability benefits considered to be tax-free to the insured? --
CORRECT ANSWER--When the recipient pays the premiums
Page 4 of 83
