XCEL Arizona Life and Health Insurance State Exam 200
Questions with Verified Answers
Under a long-term care inflation rider, the benefit levels - CORRECT ANSWER
periodically increase without proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve
it? - CORRECT ANSWER the director
Medicare Part A coinsurance payments are covered by - CORRECT ANSWER
Medicare Supplement Plan A
Employees generally receive workers compensation benefits for - CORRECT
ANSWER lost wages and medical expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? -
CORRECT ANSWER 2008
In what situation would disability income insurance premiums be a deductible
expense? - CORRECT ANSWER Corporation paying for group disability income
coverage for its employees
John received a one-time distribution of $50,000 from his modified endowment
contract (MEC). Prior to that, the contract's cash value was $150,000, the contract
investment amount was $100,000, and the death benefit was $500,000. What
percentage of the $50,000 distribution was taxable as ordinary income? -
CORRECT ANSWER 100%
A survivorship life insurance policy usually covers how many lives? - CORRECT
ANSWER 2
Mentally or physically handicapped dependent children MUST be covered under
an individual health insurance policy - CORRECT ANSWER until they become self-
supportive
,ERISA requires that a Summary Plan Description must be provided to a new plan
member within how many days following the new member's eligibility date? -
CORRECT ANSWER 90 days
A policyowner suffers an injury that renders him incapable of performing one or
more important job duties. Any decrease in income resulting from this injury
would make him eligible for benefits under which provision? - CORRECT ANSWER
Partial disability
What is the maximum number of employees (earning at least $5,000) that an
employer can have in order to start a SIMPLE retirement plan? - CORRECT
ANSWER 100 employees
Which of the following health plans pay benefits on a pre-paid service basis? -
CORRECT ANSWER HMO
An individual may receive Medicare Part A Hospital benefits, regardless of age, as
long as the person has received which of the following benefits for at least 24
months? - CORRECT ANSWER Social Security Disability
Which of the co-annuitants listed below would receive the largest monthly
benefit payments in a joint and 100% survivor annuity? - CORRECT ANSWER Ages
71 and 73
Kevin has an existing life insurance policy and assigns it to another insurer for a
new contract. How would this transaction be treated for tax purposes? - CORRECT
ANSWER As a Section 1035 exchange
Karen is considering replacing her individual accident and health insurance policy
with another individual policy. She has had issues in the past with her gall bladder
that would be considered a pre-existing condition. How will a pre-existing
conditions exclusion affect Karen's new insurance contract? - CORRECT ANSWER
May reduce her benefits
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy?
- CORRECT ANSWER 31 days
, A policyowner with a terminal illness who sells his life insurance policy to a third
party is called a - CORRECT ANSWER viator
What is a juvenile life insurance policy? - CORRECT ANSWER A life policy that
covers the life of a minor
ABC Partnership is a business with a limited number of partners. Which disability
buy-sell agreement is best suited for this business? - CORRECT ANSWER Cross
purchase agreement
Which of the following involves sharing an uncertain risk with another similar
group? - CORRECT ANSWER Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is
- CORRECT ANSWER 60 days
A life annuity with period certain is characterized as - CORRECT ANSWER
guaranteeing benefit payments for a stated minimum number of years
James owns a business and purchased a policy that covers the business expense
of finding a permanent or temporary employee to replace a disabled one. This
type of disability coverage is called - CORRECT ANSWER Key employee coverage
Kelly purchases a health insurance policy issued on a conditionally renewable
basis. The insurance company has a right to refuse renewal of the policy for -
CORRECT ANSWER specific reasons stated in the contract
Who is the beneficiary in a life insurance policy? - CORRECT ANSWER The stated
person or entity who is designated to receive the death proceeds
The guarantee of insurability option provides a long-term care policyowner the
ability to - CORRECT ANSWER buy additional coverage at a later date
Most prepaid dental plans cover - CORRECT ANSWER Oral examinations
Questions with Verified Answers
Under a long-term care inflation rider, the benefit levels - CORRECT ANSWER
periodically increase without proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve
it? - CORRECT ANSWER the director
Medicare Part A coinsurance payments are covered by - CORRECT ANSWER
Medicare Supplement Plan A
Employees generally receive workers compensation benefits for - CORRECT
ANSWER lost wages and medical expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? -
CORRECT ANSWER 2008
In what situation would disability income insurance premiums be a deductible
expense? - CORRECT ANSWER Corporation paying for group disability income
coverage for its employees
John received a one-time distribution of $50,000 from his modified endowment
contract (MEC). Prior to that, the contract's cash value was $150,000, the contract
investment amount was $100,000, and the death benefit was $500,000. What
percentage of the $50,000 distribution was taxable as ordinary income? -
CORRECT ANSWER 100%
A survivorship life insurance policy usually covers how many lives? - CORRECT
ANSWER 2
Mentally or physically handicapped dependent children MUST be covered under
an individual health insurance policy - CORRECT ANSWER until they become self-
supportive
,ERISA requires that a Summary Plan Description must be provided to a new plan
member within how many days following the new member's eligibility date? -
CORRECT ANSWER 90 days
A policyowner suffers an injury that renders him incapable of performing one or
more important job duties. Any decrease in income resulting from this injury
would make him eligible for benefits under which provision? - CORRECT ANSWER
Partial disability
What is the maximum number of employees (earning at least $5,000) that an
employer can have in order to start a SIMPLE retirement plan? - CORRECT
ANSWER 100 employees
Which of the following health plans pay benefits on a pre-paid service basis? -
CORRECT ANSWER HMO
An individual may receive Medicare Part A Hospital benefits, regardless of age, as
long as the person has received which of the following benefits for at least 24
months? - CORRECT ANSWER Social Security Disability
Which of the co-annuitants listed below would receive the largest monthly
benefit payments in a joint and 100% survivor annuity? - CORRECT ANSWER Ages
71 and 73
Kevin has an existing life insurance policy and assigns it to another insurer for a
new contract. How would this transaction be treated for tax purposes? - CORRECT
ANSWER As a Section 1035 exchange
Karen is considering replacing her individual accident and health insurance policy
with another individual policy. She has had issues in the past with her gall bladder
that would be considered a pre-existing condition. How will a pre-existing
conditions exclusion affect Karen's new insurance contract? - CORRECT ANSWER
May reduce her benefits
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy?
- CORRECT ANSWER 31 days
, A policyowner with a terminal illness who sells his life insurance policy to a third
party is called a - CORRECT ANSWER viator
What is a juvenile life insurance policy? - CORRECT ANSWER A life policy that
covers the life of a minor
ABC Partnership is a business with a limited number of partners. Which disability
buy-sell agreement is best suited for this business? - CORRECT ANSWER Cross
purchase agreement
Which of the following involves sharing an uncertain risk with another similar
group? - CORRECT ANSWER Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is
- CORRECT ANSWER 60 days
A life annuity with period certain is characterized as - CORRECT ANSWER
guaranteeing benefit payments for a stated minimum number of years
James owns a business and purchased a policy that covers the business expense
of finding a permanent or temporary employee to replace a disabled one. This
type of disability coverage is called - CORRECT ANSWER Key employee coverage
Kelly purchases a health insurance policy issued on a conditionally renewable
basis. The insurance company has a right to refuse renewal of the policy for -
CORRECT ANSWER specific reasons stated in the contract
Who is the beneficiary in a life insurance policy? - CORRECT ANSWER The stated
person or entity who is designated to receive the death proceeds
The guarantee of insurability option provides a long-term care policyowner the
ability to - CORRECT ANSWER buy additional coverage at a later date
Most prepaid dental plans cover - CORRECT ANSWER Oral examinations
