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XCEL Chapter 4 - Health and Accident
Insurance Questions and Answers
100% Pass
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of -
✔✔100% of costs
What is issued to each employee of an employer health plan? - ✔✔Certificate
Health insurance will typically cover which of the following perils? - ✔✔Injury due to accident
The purpose of the Coordination of Benefits provision in group accident and health plan is to - ✔✔Avoid
overpayment of claims
This is achieved by identifying primary and secondary insurers.
Without a section 125 plan in place, what would happen to an employee's payroll contribution to an
HSA? - ✔✔It would be considered taxable income to the employee
Contribution to an HSA may be made pre-tax under a Section 125 Cafeteria Plan. Without a section 125
plan in place, it would be considered taxable income to the employee.
A group disability income plan that pays tax-free benefits to covered employees is considered - ✔✔fully
contributory
Emily Charlene © 2025, All Rights Reserved.
, 2|Page
Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group
Health Plan will verify Creditable Coverage so that the - ✔✔Employee's waiting period for coverage of a
preexisting condition can be reduced under the new employer's health plan
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? - ✔✔May 30
Which of the following is INELIGIBLE to participate in a Section 125 plan? - ✔✔An S-Corp owner with a
greater than 2% share
Continued coverage under COBRA would be provided to all of the following EXCEPT: - ✔✔a covered
employee is terminated for gross misconduct
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits
must? - ✔✔Be the same and the premium cannot exceed
102%
An insurer has the right to recover payment made to the insured from the negligent party. These rights
are called? - ✔✔Subrogation
Mark continues working after the age 65 and is covered through his employer's group health plan. Which
of the following statements is TRUE? - ✔✔Medicare is the secondary payer
which of the following is typically not eligible for coverage in a group health policy? - ✔✔Temporary
employee
Under the subrogation clause, legal action can be taken by the insurer against the? - ✔✔Responsible third
party
Emily Charlene © 2025, All Rights Reserved.
XCEL Chapter 4 - Health and Accident
Insurance Questions and Answers
100% Pass
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of -
✔✔100% of costs
What is issued to each employee of an employer health plan? - ✔✔Certificate
Health insurance will typically cover which of the following perils? - ✔✔Injury due to accident
The purpose of the Coordination of Benefits provision in group accident and health plan is to - ✔✔Avoid
overpayment of claims
This is achieved by identifying primary and secondary insurers.
Without a section 125 plan in place, what would happen to an employee's payroll contribution to an
HSA? - ✔✔It would be considered taxable income to the employee
Contribution to an HSA may be made pre-tax under a Section 125 Cafeteria Plan. Without a section 125
plan in place, it would be considered taxable income to the employee.
A group disability income plan that pays tax-free benefits to covered employees is considered - ✔✔fully
contributory
Emily Charlene © 2025, All Rights Reserved.
, 2|Page
Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group
Health Plan will verify Creditable Coverage so that the - ✔✔Employee's waiting period for coverage of a
preexisting condition can be reduced under the new employer's health plan
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? - ✔✔May 30
Which of the following is INELIGIBLE to participate in a Section 125 plan? - ✔✔An S-Corp owner with a
greater than 2% share
Continued coverage under COBRA would be provided to all of the following EXCEPT: - ✔✔a covered
employee is terminated for gross misconduct
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits
must? - ✔✔Be the same and the premium cannot exceed
102%
An insurer has the right to recover payment made to the insured from the negligent party. These rights
are called? - ✔✔Subrogation
Mark continues working after the age 65 and is covered through his employer's group health plan. Which
of the following statements is TRUE? - ✔✔Medicare is the secondary payer
which of the following is typically not eligible for coverage in a group health policy? - ✔✔Temporary
employee
Under the subrogation clause, legal action can be taken by the insurer against the? - ✔✔Responsible third
party
Emily Charlene © 2025, All Rights Reserved.
