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