Reno- You are quite correct with the requirements for larger generators. I've made inspections with the maintenance people in a large hospital where they have a program set up and monthly, they notify the various areas of the complex that there will be a generator test a a prearranged time. The test consist of recording the voltage on each leg with utility power> dropping the utility power> then using a stop watch, log the transfer time> check the voltage coming from the generator> let it run for about 20 minutes> bring utility power back up and then log the transfer time. This hospital has numerous generators for the various areas of the complex and it took all day to complete the test. Of course there was lunch for the Inspector

The small generators such as mine are designed to not transfer load during exercising the generator. (Generac residential grade)