XCEL Chapter 4 - Health and Accident Insurance Questions and Answers 100% Pass

XCEL Chapter 4 - Health and Accident Insurance Questions and Answers 100% Pass Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of - 100% of costs What is issued to each employee of an employer health plan? - Certificate Health insurance will typically cover which of the following perils? - Injury due to accident The purpose of the Coordination of Benefits provision in group accident and health plan is to - 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? - 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 - fully contributory 2 | P a g e Emily Charlene © 2025, All Rights Reserved. Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the - 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? - May 30 Which of the following is INELIGIBLE to participate in a Section 125 plan? - An S-Corp owner with a greater than 2% share Continued coverage under COBRA would be provided to all of the following EXCEPT: - a covered employee is terminated for gross misconduct Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must? - 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? - 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? - Medicare is the secondary payer which of the following is typically not eligible for coverage in a group health policy? - Temporary employee Under the subrogation clause, legal action can be taken by the insurer against the? - Responsible third party 3 | P a g e Emily Charlene © 2025, All Rights Reserved. Credit Accident and Health plans are designed to - help pay off existing loans during periods of disability Which of the following would evidence ownership in a participating health insurance contract? - Policy ownership Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make? - The amount contributed by the employer Health insurance involves two perils, accident and _