XCEL Arizona Life and Health Insurance
State Exam Questions and Answers
1. Under a long-term care inflation rider, the benefit levels: periodically
increase without proof of insurability
2. In order for a health plan to be an "accountable health plan",
who has to approve it?: the director
3. Medicare Part A coinsurance payments are covered by: Medicare
Supplement Plan A
4. Employees generally receive workers compensation benefits for: lost
wages and medical expenses due to occupational accidents
5. What year was the Mental Health Parity and Addiction Equity Act
established?-
: 2008
6. In what situation would disability income insurance premiums
be a de-ductible expense?: Corporation paying for group disability income coverage
for its employees
,7. John received a one-time distribution of $50,000 from his
modified endow-ment 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%
8. A survivorship life insurance policy usually covers how many lives?:
2
9. Mentally or physically handicapped dependent children MUST be
covered under an individual health insurance policy: until they become self-
supportive
10. 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
11. 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
12. 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
13. Which of the following health plans pay benefits on a pre-paid
service basis?-
: HMO
14. 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
15. 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
16. 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
17. 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
State Exam Questions and Answers
1. Under a long-term care inflation rider, the benefit levels: periodically
increase without proof of insurability
2. In order for a health plan to be an "accountable health plan",
who has to approve it?: the director
3. Medicare Part A coinsurance payments are covered by: Medicare
Supplement Plan A
4. Employees generally receive workers compensation benefits for: lost
wages and medical expenses due to occupational accidents
5. What year was the Mental Health Parity and Addiction Equity Act
established?-
: 2008
6. In what situation would disability income insurance premiums
be a de-ductible expense?: Corporation paying for group disability income coverage
for its employees
,7. John received a one-time distribution of $50,000 from his
modified endow-ment 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%
8. A survivorship life insurance policy usually covers how many lives?:
2
9. Mentally or physically handicapped dependent children MUST be
covered under an individual health insurance policy: until they become self-
supportive
10. 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
11. 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
12. 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
13. Which of the following health plans pay benefits on a pre-paid
service basis?-
: HMO
14. 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
15. 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
16. 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
17. 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
