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