XCEL Final Exam California Life, Accident, and Health Insurance Latest Update 2025-2026 Actual Exam 150 Questions with 100% Verified Correct Answers Guaranteed A+ Verified by Professor
A creditor would be allowed rights to life insurance policy proceeds if which of the
following beneficiaries is chosen? - CORRECT ANSWER: The insured's estate.
a life agent who has misappropriated fiduciary funds to his own use. What is Pete guilty
of? - CORRECT ANSWER: Theft
A life insurance policy that pays the face amount if the insured survives to a specified? -
CORRECT ANSWER: Endowment insurance
A life insurance policy where the insured can choose where the cash value can be
invested is called? - CORRECT ANSWER: Variable Life
A person who asserts a right of recovery under an insurance policy is called? -
CORRECT ANSWER: Claimant
A situation in which there is ONLY a chance of loss or no loss is a? - CORRECT
ANSWER: Pure risk
A terminated employee that has exercised the conversion privilege is able to convert? -
CORRECT ANSWER: Term insurance into permanent insurance
According to PPACA, what is a health benefits exchange? - CORRECT ANSWER: An
entity to which individuals and small businesses can have access to affordable health coverage 1 / 3
According to section 1729.2 of the California Insurance Code, which of these does NOT qualify as "background information"? - CORRECT ANSWER: Misdemeanor charges filed, not resulting in a conviction
According to the California code governing claim settlement practices, which of the following is NOT considered to be an act of unfair discrimination? - CORRECT
ANSWER: Denial of a claim based on reckless behavior
According to the California Insurance Code, which of the following is NOT an example of an insurable event? - CORRECT ANSWER: An insured suffers a financial loss in the state lottery
According to the PPACA, the medical enrollment tier that has 80% actuarial value is called: - CORRECT ANSWER: Gold
after the annual deductible is met a medicare part b patient will pay ____ of the
remaining covered expenses. - CORRECT ANSWER: 20%
All of the following are considered characteristics of group life insurance EXCEPT? -
CORRECT ANSWER: Individual policies
All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT: - CORRECT ANSWER: Probability of loss is unknown
All of the these are examples of cost sharing in a health insurance policy EXCEPT? -
CORRECT ANSWER: Coordination
All of these statements concerning Medicare are true EXCEPT? - CORRECT ANSWER:
Long-term care is covered by Medicare Part C 2 / 3
Allen has a disability income policy with a $2,500 monthly benefit and a 30-day elimination period. He is unable to work 90 days following an automobile accident. What will the policy pay? - CORRECT ANSWER: 90 days - 30 day elimination period is 60 days (2 months). 2 months X $2,500/month benefit = $5,000 total benefit paid.
An agent's attempt to stop the replacement of an existing life insurance policy is known
as? - CORRECT ANSWER: Conservation
An annuitant would like to determine the current value of her annuity. To do this, she multiplies the number of "accumulation units" she owns times the unit value of the "separate account". What kind of annuity BEST matches this description? - CORRECT
ANSWER: Variable Annuity
An annuity which is backed by a life insurer's separate account is called a? - CORRECT
ANSWER: Variable Annuity
An individual covered under a disability income policy may be eligible for a partial disability benefit if? - CORRECT ANSWER: the insured can perform some of their job activities on a part-time basis
An insurance company entitled to transact business in California is called a(n)? -
CORRECT ANSWER: Admitted carrier
An insurer enters into a contract with a third party to insure itself against losses from
insurance policies it issues. What is this agreement called? - CORRECT ANSWER:
Reinsurance
An insurer having a large number of similar exposure units is consider important
because - CORRECT ANSWER: The greater the number insured, the more accurately
the insurer can predict losses and set up "appropriate premiums"
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