XCEL Pre-Final Exam - New York Life, Accident and Health Part 2 Correct 100%(GRADED A)

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 - ANSWERS100% of costs The purpose of the Coordination of Benefits provision in group accident and health plans is to A. avoid overpayment of claims B. reduce out-of-pocket costs C. reduce adverse selection D. lower the cost of premiums - ANSWERSavoid overpayment of claims What is issued to each employee of an employer health plan? A. Provision B. Receipt C. Policy D. Certificate - ANSWERSCertificate Susan is insured through her Group Health Insurance plan and changed her coverage to an individual plan with the same insurer after her employment was terminated. This change is called a(n) A. crossover B. conversion C. exchange D. extension of benefits - ANSWERSconversion The limited period of time given to all members to sign up for a group health plan is called the A. enlistment period B. sign-up period C. probationary period D. enrollment period - ANSWERSenrollment period Under the subrogation clause, legal action can be taken by the insurer against the A. responsible third party B. beneficiary C. policyowner D. State - ANSWERSresponsible third party Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must A. be less extensive and premium cannot exceed 102% B. be the same and the premium cannot exceed 102% C. be more extensive and the premium cannot exceed 102% D. be the same as well as the premium - ANSWERSbe the same and the premium cannot exceed 102% Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes? A. Partially taxable income B. Non-taxable income C. Taxable income D. Conditionally taxable income - ANSWERSTaxable income Which of the following would be considered a possible applicant and contract policyholder for group health benefits? A. Human resource department B. Employer C. Insured employee D. Insurance company - ANSWERSEmployer Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make? A. The amount contributed by the employer B. The amount contributed by the owner C. The underlying account investments used D. The medical expenses paid for by the HSA - ANSWERSThe amount contributed by the employer What is the contract called that is issued to an employer for a Group Medical Insurance plan? A. Master policy B. Certificate of coverage C. Provisional policy D. Document of coverage - ANSWERSMaster policy Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective date being May 30. On which date would Sonya have coverage? A. April 1 B. April 6 C. May 15 D. May 30 - ANSWERSMay 30. When are group disability benefits considered to be tax-free to the insured? A. When the recipient pays the premiums B. When the employer pays the premiums C. When both the employer and recipient pay the premiums D. When benefits paid are equal to or lower than the recipient's salary - ANSWERSWhen the recipient pays the premiums In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at A. Employee has no tax liability B. 40% of the benefit C. 60% of the benefit D. 100% of benefit - ANSWERS60% of the benefit Which of the following does Coordination of Benefits allow? A. Allows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid B. Allows both a group health plan and individual health plan to coordinate their benefit payments C. Allows the deductible to be spread out between all the health providers D. Allows each health provider to pay 100% of the claim - ANSWERSAllows the secondary payor to reduce their benefit payments so no more than 100% of the claim is paid Continued coverage under COBRA would be provided to all of the following EXCEPT: A. former dependent of employee no longer of dependent status B. terminated employee C. divorced spouse of employee D. a covered employee is terminated for gross misconduct - ANSWERSa covered employee is terminated for gross misconduct Group health plans may deny participation based upon the A. member's claims history B. member's current age C. member's pre-existing condition D. member' part-time employment status - ANSWERSmember' part-time employment status Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA? A. It would be considered taxable income to the employee B. The employee would not be allowed to XCEL Pre-Final Exam - New York Life, Accident and Health Part 2 Correct 100%(GRADED A)