XCEL Chapter 4 - Health and Accident
Insurance UPDATED Exam Questions and
CORRECT Answers
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the
amount of - CORRECT ANSWER - 100% of costs
What is issued to each employee of an employer health plan? - CORRECT ANSWER -
Certificate
Health insurance will typically cover which of the following perils? - CORRECT
ANSWER - Injury due to accident
The purpose of the Coordination of Benefits provision in group accident and health plan is to -
CORRECT ANSWER - Avoid overpayment of claims
This is achieved by identifying primary and secondary insurers.
Without a section 125 plan in place, what would happen to an employee's payroll contribution to
an HSA? - CORRECT ANSWER - It would be considered taxable income to the employee
Contribution to an HSA may be made pre-tax under a Section 125 Cafeteria Plan. Without a
section 125 plan in place, it would be considered taxable income to the employee.
A group disability income plan that pays tax-free benefits to covered employees is considered -
CORRECT ANSWER - fully contributory
Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new
Group Health Plan will verify Creditable Coverage so that the - CORRECT ANSWER -
Employee's waiting period for coverage of a preexisting condition can be reduced under the new
employer's health plan
, Sonya applied for a health insurance policy on April 1. Her agent submitted the information to
the insurance company on April 6. She paid the premium on May 15 with the policy indicating
the effective date being May 30. On which date would Sonya have coverage? - CORRECT
ANSWER - May 30
Which of the following is INELIGIBLE to participate in a Section 125 plan? - CORRECT
ANSWER - An S-Corp owner with a greater than 2% share
Continued coverage under COBRA would be provided to all of the following EXCEPT: -
CORRECT ANSWER - a covered employee is terminated for gross misconduct
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's
benefits must? - CORRECT ANSWER - Be the same and the premium cannot exceed
102%
An insurer has the right to recover payment made to the insured from the negligent party. These
rights are called? - CORRECT ANSWER - Subrogation
Mark continues working after the age 65 and is covered through his employer's group health
plan. Which of the following statements is TRUE? - CORRECT ANSWER - Medicare is
the secondary payer
which of the following is typically not eligible for coverage in a group health policy? -
CORRECT ANSWER - Temporary employee
Under the subrogation clause, legal action can be taken by the insurer against the? - CORRECT
ANSWER - Responsible third party
Credit Accident and Health plans are designed to - CORRECT ANSWER - help pay off
existing loans during periods of disability
Insurance UPDATED Exam Questions and
CORRECT Answers
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the
amount of - CORRECT ANSWER - 100% of costs
What is issued to each employee of an employer health plan? - CORRECT ANSWER -
Certificate
Health insurance will typically cover which of the following perils? - CORRECT
ANSWER - Injury due to accident
The purpose of the Coordination of Benefits provision in group accident and health plan is to -
CORRECT ANSWER - Avoid overpayment of claims
This is achieved by identifying primary and secondary insurers.
Without a section 125 plan in place, what would happen to an employee's payroll contribution to
an HSA? - CORRECT ANSWER - It would be considered taxable income to the employee
Contribution to an HSA may be made pre-tax under a Section 125 Cafeteria Plan. Without a
section 125 plan in place, it would be considered taxable income to the employee.
A group disability income plan that pays tax-free benefits to covered employees is considered -
CORRECT ANSWER - fully contributory
Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new
Group Health Plan will verify Creditable Coverage so that the - CORRECT ANSWER -
Employee's waiting period for coverage of a preexisting condition can be reduced under the new
employer's health plan
, Sonya applied for a health insurance policy on April 1. Her agent submitted the information to
the insurance company on April 6. She paid the premium on May 15 with the policy indicating
the effective date being May 30. On which date would Sonya have coverage? - CORRECT
ANSWER - May 30
Which of the following is INELIGIBLE to participate in a Section 125 plan? - CORRECT
ANSWER - An S-Corp owner with a greater than 2% share
Continued coverage under COBRA would be provided to all of the following EXCEPT: -
CORRECT ANSWER - a covered employee is terminated for gross misconduct
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's
benefits must? - CORRECT ANSWER - Be the same and the premium cannot exceed
102%
An insurer has the right to recover payment made to the insured from the negligent party. These
rights are called? - CORRECT ANSWER - Subrogation
Mark continues working after the age 65 and is covered through his employer's group health
plan. Which of the following statements is TRUE? - CORRECT ANSWER - Medicare is
the secondary payer
which of the following is typically not eligible for coverage in a group health policy? -
CORRECT ANSWER - Temporary employee
Under the subrogation clause, legal action can be taken by the insurer against the? - CORRECT
ANSWER - Responsible third party
Credit Accident and Health plans are designed to - CORRECT ANSWER - help pay off
existing loans during periods of disability
