XCEL Arizona Life and Health Insurance State Exam with accurate
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answers
Under a long-term care inflation rider, the benefit levels - ✔✔periodically increase without proof
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of insurability
||
In order for a health plan to be an "accountable health plan", who has to approve it? - ✔✔the
|| || || || || || || || || || || || || || || || || || ||
director
Medicare Part A coinsurance payments are covered by - ✔✔Medicare Supplement Plan A
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Employees generally receive workers compensation benefits for - ✔✔lost wages and medical
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expenses due to occupational accidents || || || ||
What year was the Mental Health Parity and Addiction Equity Act established? - ✔✔2008
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In what situation would disability income insurance premiums be a deductible expense? -
|| || || || || || || || || || || || ||
✔✔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).
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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? - ✔✔100%
|| || || || ||
A survivorship life insurance policy usually covers how many lives? - ✔✔2
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Mentally or physically handicapped dependent children MUST be covered under an individual
|| || || || || || || || || || || ||
health insurance policy - ✔✔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? - ✔✔90 days
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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? - ✔✔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? - ✔✔100 employees
|| || || || || || || || || ||
Which of the following health plans pay benefits on a pre-paid service basis? - ✔✔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? - ✔✔Social Security
|| || || || || || || || || || || || || || || ||
Disability
Which of the co-annuitants listed below would receive the largest monthly benefit payments in a
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joint and 100% survivor annuity? - ✔✔Ages 71 and 73
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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? - ✔✔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? - ✔✔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? - ✔✔31 days
|| || || || || || || || || || || || || ||
, A policyowner with a terminal illness who sells his life insurance policy to a third party is called a
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- ✔✔viator
|| ||
What is a juvenile life insurance policy? - ✔✔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? - ✔✔Cross purchase agreement || || || || || || || || || ||
Which of the following involves sharing an uncertain risk with another similar group? -
|| || || || || || || || || || || || || ||
✔✔Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is - ✔✔60 days
|| || || || || || || || || || || || || || || || || ||
A life annuity with period certain is characterized as - ✔✔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 - ✔✔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 - ✔✔specific reasons stated in
|| || || || || || || || || || || || || || || || ||
the contract ||
Who is the beneficiary in a life insurance policy? - ✔✔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 -
|| || || || || || || || || || || || || ||
✔✔buy additional coverage at a later date || || || || || ||
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answers
Under a long-term care inflation rider, the benefit levels - ✔✔periodically increase without proof
|| || || || || || || || || || || || || ||
of insurability
||
In order for a health plan to be an "accountable health plan", who has to approve it? - ✔✔the
|| || || || || || || || || || || || || || || || || || ||
director
Medicare Part A coinsurance payments are covered by - ✔✔Medicare Supplement Plan A
|| || || || || || || || || || || ||
Employees generally receive workers compensation benefits for - ✔✔lost wages and medical
|| || || || || || || || || || || ||
expenses due to occupational accidents || || || ||
What year was the Mental Health Parity and Addiction Equity Act established? - ✔✔2008
|| || || || || || || || || || || || ||
In what situation would disability income insurance premiums be a deductible expense? -
|| || || || || || || || || || || || ||
✔✔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? - ✔✔100%
|| || || || ||
A survivorship life insurance policy usually covers how many lives? - ✔✔2
|| || || || || || || || || || ||
Mentally or physically handicapped dependent children MUST be covered under an individual
|| || || || || || || || || || || ||
health insurance policy - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔100 employees
|| || || || || || || || || ||
Which of the following health plans pay benefits on a pre-paid service basis? - ✔✔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? - ✔✔Social Security
|| || || || || || || || || || || || || || || ||
Disability
Which of the co-annuitants listed below would receive the largest monthly benefit payments in a
|| || || || || || || || || || || || || || ||
joint and 100% survivor annuity? - ✔✔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? - ✔✔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? - ✔✔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? - ✔✔31 days
|| || || || || || || || || || || || || ||
, A policyowner with a terminal illness who sells his life insurance policy to a third party is called a
|| || || || || || || || || || || || || || || || || ||
- ✔✔viator
|| ||
What is a juvenile life insurance policy? - ✔✔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? - ✔✔Cross purchase agreement || || || || || || || || || ||
Which of the following involves sharing an uncertain risk with another similar group? -
|| || || || || || || || || || || || || ||
✔✔Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is - ✔✔60 days
|| || || || || || || || || || || || || || || || || ||
A life annuity with period certain is characterized as - ✔✔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 - ✔✔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 - ✔✔specific reasons stated in
|| || || || || || || || || || || || || || || || ||
the contract ||
Who is the beneficiary in a life insurance policy? - ✔✔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 -
|| || || || || || || || || || || || || ||
✔✔buy additional coverage at a later date || || || || || ||
