1|Page
XCEL Arizona Life insurance Exam
Simulator Includes Accurate And Verified
Questions Tailored For Life, Health,
Property, And Casualty Insurance Licensing
Exams Across Various States. It Mirrors The
Actual Testing Experience With Modules On
Insurance T
Under a long-term care inflation rider, the benefit levels - .
. ANSWER ✔ ✔periodically increase without proof of
insurability
In order for a health plan to be an "accountable health
plan", who has to approve it? - . . ANSWER ✔ ✔the
director
Medicare Part A coinsurance payments are covered by - . .
ANSWER ✔ ✔Medicare Supplement Plan A
Employees generally receive workers compensation
benefits for - . . ANSWER ✔ ✔lost wages and medical
expenses due to occupational accidents
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What year was the Mental Health Parity and Addiction
Equity Act established? - . . ANSWER ✔ ✔2008
In what situation would disability income insurance
premiums be a deductible expense? - . . 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? - . . ANSWER
✔ ✔100%
A survivorship life insurance policy usually covers how
many lives? - . . ANSWER ✔ ✔2
Mentally or physically handicapped dependent children
MUST be covered under an individual health insurance
policy - . . ANSWER ✔ ✔until they become self-supportive
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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? - . . 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? - . .
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? - . . ANSWER ✔ ✔100
employees
Which of the following health plans pay benefits on a pre-
paid service basis? - . . ANSWER ✔ ✔HMO
An individual may receive Medicare Part A Hospital
benefits, regardless of age, as long as the person has
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received which of the following benefits for at least 24
months? - . . 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? - . . 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? - . . 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? - . . 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? - . .
ANSWER ✔ ✔31 days
XCEL Arizona Life insurance Exam
Simulator Includes Accurate And Verified
Questions Tailored For Life, Health,
Property, And Casualty Insurance Licensing
Exams Across Various States. It Mirrors The
Actual Testing Experience With Modules On
Insurance T
Under a long-term care inflation rider, the benefit levels - .
. ANSWER ✔ ✔periodically increase without proof of
insurability
In order for a health plan to be an "accountable health
plan", who has to approve it? - . . ANSWER ✔ ✔the
director
Medicare Part A coinsurance payments are covered by - . .
ANSWER ✔ ✔Medicare Supplement Plan A
Employees generally receive workers compensation
benefits for - . . ANSWER ✔ ✔lost wages and medical
expenses due to occupational accidents
,2|Page
What year was the Mental Health Parity and Addiction
Equity Act established? - . . ANSWER ✔ ✔2008
In what situation would disability income insurance
premiums be a deductible expense? - . . 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? - . . ANSWER
✔ ✔100%
A survivorship life insurance policy usually covers how
many lives? - . . ANSWER ✔ ✔2
Mentally or physically handicapped dependent children
MUST be covered under an individual health insurance
policy - . . ANSWER ✔ ✔until they become self-supportive
,3|Page
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? - . . 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? - . .
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? - . . ANSWER ✔ ✔100
employees
Which of the following health plans pay benefits on a pre-
paid service basis? - . . ANSWER ✔ ✔HMO
An individual may receive Medicare Part A Hospital
benefits, regardless of age, as long as the person has
, 4|Page
received which of the following benefits for at least 24
months? - . . 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? - . . 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? - . . 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? - . . 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? - . .
ANSWER ✔ ✔31 days
