XCEL Arizona Life and Health Insurance State Exam Questions
and Answers Graded A+
Under a long-term care inflation rider, the benefit children MUST be covered under an individual
levels - -periodically increase without proof health insurance policy - -until they become
of insurability self-supportive
In order for a health plan to be an "accountable ERISA requires that a Summary Plan Description
health plan", who has to approve it? - -the must be provided to a new plan member within
director how many days following the new member's
eligibility date? - -90 days
Medicare Part A coinsurance payments are
covered by - -Medicare Supplement Plan A A policyowner suffers an injury that renders him
incapable of performing one or more important
job duties. Any decrease in income resulting from
Employees generally receive workers this injury would make him eligible for benefits
compensation benefits for - -lost wages under which provision? - -Partial disability
and medical expenses due to occupational
accidents
What is the maximum number of employees
(earning at least $5,000) that an employer can
What year was the Mental Health Parity and have in order to start a SIMPLE retirement plan?
Addiction Equity Act established? - -2008 - -100 employees
In what situation would disability income Which of the following health plans pay benefits
insurance premiums be a deductible expense? - on a pre-paid service basis? - -HMO
-Corporation paying for group disability
income coverage for its employees
An individual may receive Medicare Part A
Hospital benefits, regardless of age, as long as
John received a one-time distribution of $50,000 the person has received which of the following
from his modified endowment contract (MEC). benefits for at least 24 months? - -Social
Prior to that, the contract's cash value was Security Disability
$150,000, the contract investment amount was
$100,000, and the death benefit was $500,000.
What percentage of the $50,000 distribution was Which of the co-annuitants listed below would
taxable as ordinary income? - -100% receive the largest monthly benefit payments in a
joint and 100% survivor annuity? - -Ages
71 and 73
A survivorship life insurance policy usually
covers how many lives? - -2
Kevin has an existing life insurance policy and
assigns it to another insurer for a new contract.
Mentally or physically handicapped dependent How would this transaction be treated for tax
, XCEL Arizona Life and Health Insurance State Exam Questions
and Answers Graded A+
purposes? - -As a Section 1035 exchange as - -guaranteeing benefit payments for a
stated minimum number of years
Karen is considering replacing her individual
accident and health insurance policy with James owns a business and purchased a policy
another individual policy. She has had issues in that covers the business expense of finding a
the past with her gall bladder that would be permanent or temporary employee to replace a
considered a pre-existing condition. How will a disabled one. This type of disability coverage is
pre-existing conditions exclusion affect Karen's called - -Key employee coverage
new insurance contract? - -May reduce her
benefits
Kelly purchases a health insurance policy issued
on a conditionally renewable basis. The
Greg had recently been terminated from his job insurance company has a right to refuse renewal
that covered him for group life insurance. How of the policy for - -specific reasons stated in
long does he have to convert his coverage to an the contract
individual policy? - -31 days
Who is the beneficiary in a life insurance policy? -
A policyowner with a terminal illness who sells -The stated person or entity who is
his life insurance policy to a third party is called a designated to receive the death proceeds
- -viator
The guarantee of insurability option provides a
What is a juvenile life insurance policy? - - long-term care policyowner the ability to - -
A life policy that covers the life of a minor buy additional coverage at a later date
ABC Partnership is a business with a limited Most prepaid dental plans cover - -Oral
number of partners. Which disability buy-sell examinations
agreement is best suited for this business? -
-Cross purchase agreement
A policyowner fell behind on the premium
payments of a whole life policy and is now in the
Which of the following involves sharing an grace period. How much will the beneficiary
uncertain risk with another similar group? - receive if the insured dies during this grace
-Transfer period and the policy also contains an
outstanding policy loan? - -Face amount
minus the loan balance and past-due premium
The time limit an individual has to "rollover" funds
from an IRA or qualified plan is - -60 days
In regards to the Affordable Care Act (ACA),
which of these is NOT a role of a health
A life annuity with period certain is characterized insurance exchange? - -Contact the
and Answers Graded A+
Under a long-term care inflation rider, the benefit children MUST be covered under an individual
levels - -periodically increase without proof health insurance policy - -until they become
of insurability self-supportive
In order for a health plan to be an "accountable ERISA requires that a Summary Plan Description
health plan", who has to approve it? - -the must be provided to a new plan member within
director how many days following the new member's
eligibility date? - -90 days
Medicare Part A coinsurance payments are
covered by - -Medicare Supplement Plan A A policyowner suffers an injury that renders him
incapable of performing one or more important
job duties. Any decrease in income resulting from
Employees generally receive workers this injury would make him eligible for benefits
compensation benefits for - -lost wages under which provision? - -Partial disability
and medical expenses due to occupational
accidents
What is the maximum number of employees
(earning at least $5,000) that an employer can
What year was the Mental Health Parity and have in order to start a SIMPLE retirement plan?
Addiction Equity Act established? - -2008 - -100 employees
In what situation would disability income Which of the following health plans pay benefits
insurance premiums be a deductible expense? - on a pre-paid service basis? - -HMO
-Corporation paying for group disability
income coverage for its employees
An individual may receive Medicare Part A
Hospital benefits, regardless of age, as long as
John received a one-time distribution of $50,000 the person has received which of the following
from his modified endowment contract (MEC). benefits for at least 24 months? - -Social
Prior to that, the contract's cash value was Security Disability
$150,000, the contract investment amount was
$100,000, and the death benefit was $500,000.
What percentage of the $50,000 distribution was Which of the co-annuitants listed below would
taxable as ordinary income? - -100% receive the largest monthly benefit payments in a
joint and 100% survivor annuity? - -Ages
71 and 73
A survivorship life insurance policy usually
covers how many lives? - -2
Kevin has an existing life insurance policy and
assigns it to another insurer for a new contract.
Mentally or physically handicapped dependent How would this transaction be treated for tax
, XCEL Arizona Life and Health Insurance State Exam Questions
and Answers Graded A+
purposes? - -As a Section 1035 exchange as - -guaranteeing benefit payments for a
stated minimum number of years
Karen is considering replacing her individual
accident and health insurance policy with James owns a business and purchased a policy
another individual policy. She has had issues in that covers the business expense of finding a
the past with her gall bladder that would be permanent or temporary employee to replace a
considered a pre-existing condition. How will a disabled one. This type of disability coverage is
pre-existing conditions exclusion affect Karen's called - -Key employee coverage
new insurance contract? - -May reduce her
benefits
Kelly purchases a health insurance policy issued
on a conditionally renewable basis. The
Greg had recently been terminated from his job insurance company has a right to refuse renewal
that covered him for group life insurance. How of the policy for - -specific reasons stated in
long does he have to convert his coverage to an the contract
individual policy? - -31 days
Who is the beneficiary in a life insurance policy? -
A policyowner with a terminal illness who sells -The stated person or entity who is
his life insurance policy to a third party is called a designated to receive the death proceeds
- -viator
The guarantee of insurability option provides a
What is a juvenile life insurance policy? - - long-term care policyowner the ability to - -
A life policy that covers the life of a minor buy additional coverage at a later date
ABC Partnership is a business with a limited Most prepaid dental plans cover - -Oral
number of partners. Which disability buy-sell examinations
agreement is best suited for this business? -
-Cross purchase agreement
A policyowner fell behind on the premium
payments of a whole life policy and is now in the
Which of the following involves sharing an grace period. How much will the beneficiary
uncertain risk with another similar group? - receive if the insured dies during this grace
-Transfer period and the policy also contains an
outstanding policy loan? - -Face amount
minus the loan balance and past-due premium
The time limit an individual has to "rollover" funds
from an IRA or qualified plan is - -60 days
In regards to the Affordable Care Act (ACA),
which of these is NOT a role of a health
A life annuity with period certain is characterized insurance exchange? - -Contact the
