XCEL Arizona Life and Health Insurance
State Exam Questions And Answers
Under a long-term care inflation rider, the benefit levels - Answerperiodically increase
without proof of insurability
.In order for a health plan to be an "accountable health plan", who has to approve it? -
Answerthe director
.Medicare Part A coinsurance payments are covered by - AnswerMedicare Supplement
Plan A
.Employees generally receive workers compensation benefits for - Answerlost wages
and medical expenses due to occupational accidents
.What year was the Mental Health Parity and Addiction Equity Act established? -
Answer2008
.In what situation would disability income insurance premiums be a deductible expense?
- AnswerCorporation 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? - Answer100%
.A survivorship life insurance policy usually covers how many lives? - Answer2
.Mentally or physically handicapped dependent children MUST be covered under an
individual health insurance policy - Answeruntil 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? - Answer90
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? - AnswerPartial 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? - Answer100 employees
.Which of the following health plans pay benefits on a pre-paid service basis? -
AnswerHMO
, .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? -
AnswerSocial Security Disability
.Which of the co-annuitants listed below would receive the largest monthly benefit
payments in a joint and 100% survivor annuity? - AnswerAges 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? - AnswerAs 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? - AnswerMay 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? -
Answer31 days
.A policyowner with a terminal illness who sells his life insurance policy to a third party is
called a - Answerviator
.What is a juvenile life insurance policy? - AnswerA 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? - AnswerCross purchase agreement
.Which of the following involves sharing an uncertain risk with another similar group? -
AnswerTransfer
.The time limit an individual has to "rollover" funds from an IRA or qualified plan is -
Answer60 days
.A life annuity with period certain is characterized as - Answerguaranteeing 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 - AnswerKey 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 - Answerspecific
reasons stated in the contract
State Exam Questions And Answers
Under a long-term care inflation rider, the benefit levels - Answerperiodically increase
without proof of insurability
.In order for a health plan to be an "accountable health plan", who has to approve it? -
Answerthe director
.Medicare Part A coinsurance payments are covered by - AnswerMedicare Supplement
Plan A
.Employees generally receive workers compensation benefits for - Answerlost wages
and medical expenses due to occupational accidents
.What year was the Mental Health Parity and Addiction Equity Act established? -
Answer2008
.In what situation would disability income insurance premiums be a deductible expense?
- AnswerCorporation 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? - Answer100%
.A survivorship life insurance policy usually covers how many lives? - Answer2
.Mentally or physically handicapped dependent children MUST be covered under an
individual health insurance policy - Answeruntil 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? - Answer90
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? - AnswerPartial 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? - Answer100 employees
.Which of the following health plans pay benefits on a pre-paid service basis? -
AnswerHMO
, .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? -
AnswerSocial Security Disability
.Which of the co-annuitants listed below would receive the largest monthly benefit
payments in a joint and 100% survivor annuity? - AnswerAges 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? - AnswerAs 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? - AnswerMay 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? -
Answer31 days
.A policyowner with a terminal illness who sells his life insurance policy to a third party is
called a - Answerviator
.What is a juvenile life insurance policy? - AnswerA 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? - AnswerCross purchase agreement
.Which of the following involves sharing an uncertain risk with another similar group? -
AnswerTransfer
.The time limit an individual has to "rollover" funds from an IRA or qualified plan is -
Answer60 days
.A life annuity with period certain is characterized as - Answerguaranteeing 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 - AnswerKey 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 - Answerspecific
reasons stated in the contract
