I want to see what happens to my application if it is interrupted by a phone call or text message. Is there a way I can test this on the iPhone simulator?
It may not help in your situation (since it doesn't work in the simulator), but activating Siri works in a similar way to a phone call, sending your application to the background and interrupting audio, so is easier to test than making a call. Siri is on iPhone 4S and above, iPod touch 5th gen, and iPad 3 and above. Just hold down the home button if you have Siri enabled.