The soul is dyed the color of its thoughts. Think only on those things that are in line with your principles and can bear the light of day. The content of your character is your choice. Day by day, what you do is who you become. Your integrity is your destiny - it is the light that guides your way. - Heraclitus
Then uninstall it just like you would any other application.
Oh wait the thread is called applets not working. Applets run through your browser, which uses a Java JRE Runtime attached to the browser. The problem is with the browser and the JVM it is using.
Which browser are you using? IE? In INternet Options - Advanced Tab there is a section for the Microsoft JVM. I only have JIT compiler checked. Also, wasn't there a time that Microsoft wasn't shipping a JVM and you would have to download it yourself.
Other suggestion is to contact the support for the exam similator.