30 XCEL Chapter 11 Exam Questions with 100% Correct Answers

30 XCEL Chapter 11 Exam Questions with 100% Correct Answers Document Content and Description Below 30 XCEL Chapter 11 Exam Questions with 100% Correct Answers What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do? A. In the event of employment term ination, group health insurance can be kept if the employee pays the premiums B. Receive a tax credit to help offset the cost of health insurance C. Remain on their current coverage for 30 months D. In the event of employment termination, group health insurance can be kept if the employer pays the premiums Answer: In the event of employment termination, group health insurance can be kept if the employee pays the premiums Credit Accident and Health plans are designed to? A. permit creditors the ability to require that coverage be purchased through insurers of their choice B. provide permanent protection C. help pay off existing loans during periods of disability D. not permit free choice of coverage selection Answer: help pay off existing loans during periods of disability Ron has a new employer and wishes to enroll in the company's group health plan. In determining whether his pre-existing health condition applies, Ron cannot have more than a ___ day gap without previous health insurance. A. 45 B. 63 C. 75 D. 90 Answer: 63 Health insurance involves two perils, accident and ____. A. death B. sickness C. disability D. liability Answer: sickness Which of the following would evidence ownership in a participating health insurance contract? A. Stock ownership B. Irrevocable beneficiary status C. Policy ownership D. Collateral assignment Answer: Policy ownership Under the subrogation clause, legal action can be taken by the insurer against the? A. responsible third partyB. beneficiary C. policyowner D. State Answer: responsible third party Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of? A. costs that exceed 7 1/2 % of AGI B. costs that exceed 10% of AGI C. 100% of costs D. no deduction permitted Answer: 100% of costs The election of COBRA for continuation of health coverage will? A. increase the coverage and lower premium B. maintain the same coverage and increase premium C. increase out-of-pocket costs and lower premium D. decrease out-of-pocket costs and maintain same premium Answer: maintain the same coverage and increase premium How many employees must an employer have for a terminated employee to be